#1सत्यमेव जयते GOVERNMENT OF GUJARAT Textiles Sector Profile#2India Scenario#3Overview सत्यमेव जयते GOVERNMENT OF GUJARAT The Indian textile industry is the 2nd largest manufacturer and exporter in the world Textiles industry contributes 2% to India's GDP 14.4% share in India's total exports in 2016-17 Textiles industry contributes 7% to India's industry output in terms of value One of the largest employment generators with 45 million people employed directly and another 60 million people employed in allied sectors including large number of women and rural population Textiles industry received FDI inflow worth $ 2816 million (INR 15,985 crore) from April 2000 to December 2017 Source: Annual Report 2017-18, Ministry of Textiles, Govt. of India; DIPP 3#4Overview सत्यमेव जयते GOVERNMENT OF GUJARAT India exported Textiles & Clothing (including Handicrafts) worth $ 39.67 billion (INR 257,816 crore) in 2016-17 47% India accounts for 5% share in the global trade of Textile & apparels Major export destinations, EU-28 and USA, accounted for 47% of the total textile & apparel exports from India 2nd largest exporter of cotton in the world, exporting mainly to #2 Bangladesh, China, Vietnam, Pakistan & Indonesia 2nd largest producer of silk in the world, after China, with 30,348 #2 MTs of silk production in 2016-17 50% Largest producer of raw jute & jute goods in the world, accounting for 50% of world's production Source: Annual Report 2017-18, Ministry of Textiles, Govt. of India 1 USD = 65 INR 4#5Gujarat Scenario#6Strong presence across the value chain Farm Fibre Fabric - Fashion > सत्यमेव जयते GOVERNMENT OF GUJARAT Foreign . Largest producer (35%) of cotton in India Largest producer of man-made fibre in India with ~50% share • A strong base with more than 1100 ginning units • • • • More than 4 • million spindles Largest producer of synthetic fabric in India with ~40% share Largest producer of denim in India and the third largest in the world Contributes to 50% of India's art silk fabric production 30% of India's total woven fabric production • Over 25% of India's technical textiles output Significant presence in Garments & apparels, made- ups, embroidery work Accounts for 12% of textile & apparel exports of India Largest exporter (60%) of cotton in India Source: Industries Commissionerate, GoG, Annual Survey of Industries, Gujarat Socio-Economic Review, Industry Reports 60#7Textile infrastructure offered by Gujarat सत्यमेव जयते GOVERNMENT OF GUJARAT Textile Parks Textile SEZS Apparel Parks Centers of Excellence Industrial Training Institutes Leading Academic & Research Institutions 14 Textiles Parks offering plug and play infrastructure 3 Textile SEZS developed in Ahmedabad with investment of ~INR 5 billion Ahmedabad Apparel Park (SEZ) and 5 upcoming SEZS for textiles & apparels 2 composite centers in Ahmedabad & Surat One CoE will be developed by NTC* 28 Industrial Training Institutes (ITI) provides courses on textiles and garments Home to leading institutions such as ATIRA, MANTRA, NIFT & NID 1 Source: Industries Commissionerate, GoG, *NTC - National Textile Corporation, ATIRA - Ahmedabad Textile Industry Research Association, MANTRA - Manmade Textile Research Association, NIFT - National Institute of Fashion Technology, NID - National Institute of Design 7#8Presence of 27 clusters including 18 MSME clusters in the state सत्यमेव जयते GOVERNMENT OF GUJARAT Textile units in Gujarat involved in Ginning, Spinning, Weaving/knitting, Processing, 108,000+ Embroidery & zari work, screen printing, etc. Cotton producing clusters spread across 12 districts Garmenting, ginning, weaving, knitting, spinning & processing clusters spread across 11 districts Surendra Ahmedabad Morbi nagar Jamnagar Devbhoomi Dwarka Rajkot Botad Bhavnagar Porbandar Amreli Junagadh Gir Somnath Major Cotton Producing Districts Kachchh Mehsana Gandhinagar Ahmedabad Surendranagar Botad Rajkot Amreli Junagadh Surat Garmenting Ginning Weaving & Knitting Spinning Processing Vapi 8#9GIDC Sanand Industrial Estate - Investment Zone for Textile Units Ahmedabad Sanand Vadodara Surat Textile companies in Sanand Modern Terry Towels Ltd Jalaram Polymers CIL Nova Petrochemicals Ltd District Industrial Estate सत्यमेव जयते GOVERNMENT OF GUJARAT Ahmedabad Sanand Area 2056 Ha Price (USD/Sq. Mtr.) 58.15* Focus Sectors Modern Denim Ltd • Textiles • Engineering • Automobiles & Ancillary Ascent Yarns Pvt Ltd • Plastics International & Nearest Major Port Nearest Railway Nearest Major City Electronics & Semiconductors Domestic Airport Ahmedabad 30-35 KM/SH-17 Modern Kandla/JNPT/ Pipavav 300-400 KM TERRY TOWELS Modern DENIM LTD. jjalaram Ascent *Indicative prices, subject to change. Rates differ as per the location of industrial estate Junction Ahmedabad Ahmedabad Major Cities/Urban Centres Sanand 30-40 KM 30-35 KM/SH-17 Ahmedabad (in km) 35 Vadodara (in Km) 130 CIL NOVA PETROCHEMICALS LTD Surat (in Km) 275 Mumbai (in Km) 570 9#10Khoraj Industrial Estate - Investment Zone for Textile Units सत्यमेव जयते GOVERNMENT OF GUJARAT Overview Proposed Land Use: Industrial, Residential, Commercial, Recreational Khoraj Ahmedabad International & Domestic Airport Nearest Major Port Nearest Railway Junction Nearest Major City Surat Ahmedabad Kandla/JNPT/ Pipavav Ahmedabad 65 KM 265 KM 46 KM Ahmedabad 45 KM Vadodara Proposed facilities at Khoraj An ecosystem of core manufacturing, allied industries, supporting facilities including testing labs, warehousing, logistic support etc. • Best-in class infrastructure seamless communication - Excellent roads, including dedicated power, continuous water supply, and Capacity building through training institutes and incubation centre 10#11● Textiles from Gujarat are exported to about 20 international destinations सत्यमेव जयते GOVERNMENT OF GUJARAT Major exported textile products are Meditech textiles, Readymade garments, Yarns & Denims Canada . USA Mexico Textile trade partners Brazil Europe Saudi Arabia Nigeria China Republic of Korea Taiwan Vietnam GUJARAT 11#12. • • Gujarat Garments & Apparel Policy 2017 - Interest subsidy • 5% per annum for 5 years up to $ 1.15 million per year Power Tariff subsidy • Rs. 1 per unit for five years Payroll Assistance • For new apparel units, $ 61 for females & $ 49 for males Assistance for dormitories • Up to 50% of project cost with a ceiling of $769,230 per entity Skill development • Assistance of up to 85% of project cost for setting of Training Institutions up to max $ 461,500 • Assistance to Training Centers up to 50% of investment up to $ 30,769 per center • Reimbursement of tuition fees to trainees up to 50% . Support for establishing Mega Apparel Park • Up to 50% (max $ 1.5 million) for establishing common infrastructure facilities Plug and Play System for Apparel Manufacturing • सत्यमेव जयते GOVERNMENT OF GUJARAT GIDC to develop readymade sheds for apparel factories & provide them on long term lease or rental basis with 50% assistance pf project cost 1 USD = 65 INR 12#13● Gujarat Textiles Policy 2012 Interest subsidy सत्यमेव जयते GOVERNMENT OF GUJARAT • 7% on new plant & machinery for spinning & garment/made-up units, 6% for technical textiles, and 5% for others • Tax reimbursement • • • • • 2.5% reimbursement of the aggregate of SGST amount paid through cash ledger against output liability of SGST on sale of eligible products/intermediates Power Tariff subsidy • Rs. 1 per unit for cotton, spinning and weaving units Technology acquisition & up-gradation • Financial assistance of up to 50%; maximum of $ 38,460 per process/product Assistance to Apparel Training Institutions and Trainees • Assistance up to 85% of project cost for setting of Training Institutions up to max $ 461,538 • Assistance to Training Centers up to 50% of investment up to $ 30,769 per center • Assistance of 50% of total fees up to $ 107 per trainee for training of minimum 15 days Support to Industries / Industries Association for Textile & Apparel Park • Up to 50% (max $ 1.5 million, $ 4.6 million for spinning park) for establishing common infra Energy & Water conservation • 50% cost of energy/water audit Environmental Compliance by a recognized institution up to $ 769 20% of cost of equipment subject to maximum $ 30,769 in each case separately • Government of Gujarat Resolution No. GST-102017-2218-Ch dated 07/07/2018 (Industries & Mines Department) 1 USD = 65 INR 13#14Policy driven approach has yielded investments more than $4 billion invested across textile value chain सत्यमेव जयते GOVERNMENT OF GUJARAT Ginning (1859 units) Investments*: $ 536 mn 5-year CAGR: 92% Spinning (3.5 million working Spindle) Investments*: $ 1,285 mn 5-year CAGR: 50% Weaving (74,935 looms^) Investments*: $ 1,044 mn 5-year CAGR: 48% Technical Textiles (170 units) Investments*: $ 351 mn 5-year CAGR: 44% Knitting/ Garmenting (3211 units) Investments*: $ 628 mn 5-year CAGR: 43% Processing (808 Units) Investments*: $ 173 mn 5-year CAGR: 11% Source: Industries Commissionerate, GoG Note: *Investments from 2012 to 2017 ^These are advanced looms (airjet, waterjet, etc.). Overall, there are around 500,000 power looms 14#15Presence of international and national players across the value chain Ginning Weaving asha Ginni Filaments Ltd. TM ASHA Cotton Industries Technical Textiles <- WWELSPUN ALOK INDUSTRIES LIMITED INTEGRATED TEXTILE SOLUTIONS Spinning ADITYA BIRLA Garden VARELI NUVO Embroidery & zari work units Knitting/ Garmenting dinesh Arvind सत्यमेव जयते GOVERNMENT OF GUJARAT ALOK INDUSTRIES LIMITED INTEGRATED TEXTILE SOLUTIONS Processing Raymond DIGJAM Key International Players Ahlstrom, Hygienics Corporation, TenCate Geosynthetics Key National Players Arvind mills, Welspun, Raymond, Mafatlal, Digjam, Alok industries, Garden silk mills, Aditya Birla Group *Note: These are advanced looms (airjet, waterjet, etc.). Overall, there are around 500,000 power looms 15#16Details of Nodal Department / Agencies सत्यमेव जयते GOVERNMENT OF GUJARAT Industries & Mines Department https://www.imd-gujarat.gov.in Industries Commissionerate https://www.ic.gujarat.gov.in 16#17Thank you