millions of metresof joysWeavingT e x T i l e

Madhya Pradesh Trade and Investment Facilitation Corporation Limited (MPTRIFAC)AVN Towers,192, Zone -1, M.P Nagar, Bhopal 462011Tel.: (+91) 755 4270246. Fax: (+91) 755 2559973. E-mail: facilitation@mptrifac.org Website: www.investmp.com National Partner Knowledge Partner

Content• TextileScenarioinIndia• Textile&HandloomScenarioinMadhyaPradesh• AdvantageMadhyaPradesh• MajorPlayers• InvestmentOpportunities

The saree featured on the cover is a Maheshwari.

indian Textile industry set for a strong growth• Leadingsourcinghubintheglobalmarket• 2nd largest cotton producer in the world• 74%ofthetotaltextileexportsinclude

apparel and cotton textiles products• Majorexportdestinations

– USA – Canada– Hong Kong – Brazil– SaudiArabia – Turkey– RepublicofKorea – Bangladesh

• ApparelexportsfromIndiaisexpectedtoincreaseto$US82billionby2021

• DomestictextileandapparelindustryinIndiaisestimatedtoreach$US141billionby2021

india’s total textile andapparelmarket

35%Exports

65%Domestic

Domestictextile andapparelmarket

24%Technicaltextiles

69%Apparel

7%Hometextiles

indian textile industry

contributionduring2013

4%to the country’s

GDP

14%to industrial production

11%to the country’s export earnings

KeycontributortoIndia’sGDPscenario in indiaTextile

2008-09

18

2009-10

15.25

2010-11

17.7

2011-12

18

2012-13

19

CottonProductioninlakhbales of170kgs

2008-09

202.8

2009-10

250.5

2010-11

278.5

2011-12

310.0

2012-13

348.4

CottonConsumptionbyTextileMills(inmillionkgs)

Source:OfficeoftheTextileCommissioner,Mumbai,TheCottonCorporationofIndiaLtd.

Widerangeofnaturalandman-madefiberproduction

1st JuteProduction2nd SilkProduction

2nd CottonProduction

5th Syntheticfibersandyarn

Abundant raw material

• Oneofthemosteconomicallabourcompensation

• Availabilityofskilledlabouracross the apparel supply chain

Availabilityofskilled andeconomicallabour

• 100percentFDIintextilesector

• GovernmentsettingupSiTPs and Mega Cluster Zones

• IncreasingloansunderTUFS

• TheCentralSilkBoardencourages farmers and privateplayerstogrowsilk

Government initiatives/policy support

BigpresenceofsupportIndustry:• AccessoryandTrim

manufacturers• Stitchingandotherrelated

equipment manufacturers• Yarnandfabricdyeing

chemical manufacturers

Robust support industry

• Higherdisposableincometo drive textile demand

• Growingmediainfluence/exposure

• Increasedpenetrationof organised retail and favourabledemographics

Growing consumerbase

Textile & handloomScenario in Madhya PradeshKey growth drivers of Textile sector

Textile scenario in indiaindia has a strong presence across the textile value chainstartingfromfiberproductiontogarmenting.

•5th largest cotton producing stateintheCountrywith19lakhbalesofproductionin2012-13

•5.2%ofcountry’scottonisproduced in Madhya Pradesh

•Richtraditionofweavingandknitting

•MadhyaPradeshhas45textile mills that have created 3,10,000combinedjobs

• Anapparelpark,implementedbyM.P.AudyogikKendraVikasNigam(Indore),islocatedinanareaof133.38acresinthe indore SeZ

• UndertheTextilesCentreInfrastructureDevelopmentScheme,Indoreisidentifiedasakeyregionforinfrastructure development

• Indorehasareadymadegarments cluster with more than1,260units

• CLCTextileParkisconstructing an integrated textileparkwithstateofthe art facilities in district Chhindwara,MadhyaPradesh

TexTile infrasTrucTure in Madhya Pradesh

CompositeMills 20

Exclusiveweavingunits 8

Export-orientedspinningunits 12

Handlooms 47,000

Looms 6,500

PowerLooms 43290

Powerloomunits 17524

Rotors 14348

Spindles 14,14,000

Spinningunits 40

Source:PublicPrivatePartnerships,MoF,GoI

BhindMorena

DatiaSheopur

Shivpuri

Guna AshokNagarNeemuch

Mandsaur

Ratlam

Jhabua

AlirajpurDhar

Dewas

KhargoneBarwani

Khandwa

Burhanpur

Harda

Hoshangabad

Betul

ChhindwaraSeoni

Balaghat

MandlaDindori

Narsinghpur

Shajapur

Sehore

Raisen

TikamgarhRewaChhatarpur

Panna

DamohSagarVidishaRajgarh

Satna

Sidhi

Singrauli

Katni

Umaria Shahdol

Anuppur

Gwalior

Ujjain

Indore

Jabalpur

Bhopal

TotalWorkingLooms

Handlooms in operations

2010-11 2011-12 2012-13

1699822503 23169

Production and employemnt providedbyhandloom

Production(millionMts.) Employment(‘000)

25.8 29.1

69.5

67.567.5

51

2010-11

60.0

50.0

40.0

30.0

20.0

10.0

0.0

70.0

69.5

69.0

68.5

68.0

67.5

66.52011-12 2012-13

DistrictwisepresenceofprominentHandloomClusters-2012-13• Morethan45,400weaversgetemploymentinmainclustersoutofwhich36%arewomenweavingworkers• HandmadesareeslikeChanderi,TussarandMaheshwarihaveabeautifulworkofartistry• Handblockprinting(speciallyBaghprinting)withfigurativemotifsisafamoustextilepresentationfromMadhyaPradesh

disTricT wise Presence of ProMinenT handlooM clusTers - 2012-13

BhindMorena

DatiaSheopur

Shivpuri

Guna AshokNagarNeemuch

Mandsaur

Ratlam

Jhabua

AlirajpurDhar

Dewas

KhargoneBarwani

Khandwa

Burhanpur

Harda

Hoshangabad

Betul

ChhindwaraSeoni

Balaghat

MandlaDindori

Narsinghpur

Shajapur

Sehore

Raisen

TikamgarhRewaChhatarpur

Panna

DamohSagarVidishaRajgarh

Satna

Sidhi

Singrauli

Katni

Umaria Shahdol

Anuppur

Gwalior

Ujjain

Indore

Jabalpur

Bhopal

3572118

595

43

1678474

395

205

106

525

525

3303

1389

342

Source:DirectorateofHandloom&HandicraftsSource:DirectorateofHandloom&Handicrafts

ThecottontextilemillsclustersarelocatedaroundIndore,Bhopal,Pithampur(Dhar),Khargone,Ujjain,Gwalior,Dewas,Chhindwara,KhandwaandBurhanpur

Delhi

Mumbai

Kolkata

Bhubaneshwar

Hyderabad

Bengaluru Chennai

Raipur

Pune

Indore

Bhopal

LucknowGwalior

Jaipur

Gurgaon

Ahmedabad

Haldia

Paradip

Vishakhapatnam

Kandla Jabalpur

Chandigarh

Advantage Madhya PradeshStrategic location

Landandskilledmanpoweravailability

Wellconnectedtokeycities&consumermarkets

• 425trainspassthroughMadhya Pradesh daily

• 220trainspassthroughthestate capital Bhopal alone

• North-SouthandEast-Westcorridors pass through MP

Train Connectivity

• 18NationalHighwaysof4,670kmcrossMP

• StateHighwaysof10,249km

Road Connectivity

• ConvenientaccesstomajorportssuchasKandlaPort,Jawaharlal Nehru Port Trust

Connectivity to Ports

Averagedailywagerates(INR)forweavers(Men)

300

275

190

110

Tripura

Bihar

Karnataka

MadhyaPradesh

Source:MinistryofLabour&Employment,GoI

• Skilledmanpowerisavailableinthestateforweaving,knittingandstitching

• Costtocompanyforhumanresourcesischeaperby30-35%inthestate

• Oneofthemostpeacefulandlaborproductive states

• Mandayslostoverlast5yearsislessthan1%oftotalavailablemandays

• Oneofthelowestindustriallandratesin india

• SecondstateinIndiatoprovidelandformegaprojectsat75%discount

North-South,East-WestCorridor

EaseofDoingBusiness

incentives to Textile Projects in Madhya Pradesh

• OnlineSingleWindowSystemforInvestorFacilitation&ApprovalMonitoring

SingleWindowFacilitator

• VATandCSTreimbursement• ExemptionfromEntryTax• ExemptionfromElectricityDuty• Concessiononlandforindustrialdevelopment• Interestsubsidy

InvestorFriendlyPolicies

One of the most attractivepackagesfor the investors

Viableearlygestation

Provisionformitigationofrisk

incenTive duraTion deTails reMark

Interestsubsidy 5years 5%forstandalonetextileproject,7%forcomposite textile project without capping

UnderRevisedSpecialPackageforTextileIndustry,2012

industrial investment Promotion Assistance Scheme (IIPAS)

8 years •VATplusCSTreimbursementwithmaximumceilingof100%investmentinplantandmachineryapprovedunderTUFSscheme•Maximumassistanceamountnottoexceednettaxpaidbytheunit

UnderRevisedSpecialPackageforTextileIndustry,2012

entry tax exemption Upto10years Fromthedateoffirstpurchaseofrawmaterial Under industrial Promotion Policy,2010(asamendedin,2012)

land concession for mega projects

- 75%rebateonprescribedpremium• ProjectcostINR25to50cr–5acres• ProjectcostINR50to100cr–10acres• ProjectcostINR100to200cr–15acres• ProjectcostINR200to500cr–20acres• AboveINR500cr–areatobedecidedby

CabinetCommitteeonInvestmentPromotion

Under industrial Promotion Policy,2010(asamendedin,2012)

Policy under review.Source:DirectorateofHandloom&Handicrafts

Advantage Madhya Pradeshincentives to Textile Projects in Madhya Pradesh

incenTive duraTion deTails reMark

industrial investment Promotion Assistance Scheme (IIPAS)

Upto14years Upto100%ofcapitalInvestmentmadeintheproject.Underthisscheme,projectswouldbeeligibleforIndustrialInvestmentPromotionAssistanceof50%to75%afteradjustingtheinputtax rebate on the amount of value added tax (VAT) andcentralsalestax(CST)(excludingtheamountofvalueaddedtaxonpurchaseofrawmaterials)depositedbythem.

Under industrial PromotionPolicy,2010(asamendedin,2012)

FinancialAssistanceon infrastructure development cost

15%FinancialassistanceonestablishmentofindustrialparkswithalimitofINR5cr.50%assistanceonexpenditureoninfrastructuredevelopmentwithalimitofINR1crforlarge&mediumunits.

Under industrial PromotionPolicy,2010(asamendedin,2012)

Customised package-fiscalincentives

MegaprojectshavingfixedcapitalinvestmentofINR25cr.ormorewillbeconsideredforcustomizedpackageoncasetocasebasisbyCabinetCommitteeonInvestmentPromotion

Theincentivepackageextendedtomotherunitsshallalsobeapplicabletovendorunits.

MajorplayerssuchasCenturyTextiles,Vardhman,RaymondandGrasimhaveoperationsinMadhyaPradesh

cenTury TexTiles and

indusTries lTd

• Thecompany’syarnanddenimproductionunitsarelocatedatSatrati,Distt.Khargone

• Thecompanyaimstoexpanditscapacitybyabout1800tonnesperyearbyMarch2014

GrasiM indusTries

• Thecompany’stextileplantlocatedatMalanpurmanufacturesworsteddyed yarn spun from pure merino wool along with polyester and other blend

vardhMan TexTiles

• Thecompany’syarnmanufacturingunitsarelocatedinMandideep(74,496spindles),Satlapur(170,528spindles)andBudhni(60,000spindles)

• TheBudhniplanthasfabricweavingunit(400looms)andafabricprocessingunitwithacapacityof40millionmetersperannum

rayMond lTd• Oneofthetextilemanufacturingplantsofthecompanyislocatedat

Chhindwara• Thecompanyhasacapacityof31millionmeters

sel GrouP

• SELhasestablisheda‘SpinningandKnittingYarn’unitoveranareaof287.55acresintheMehatwaravillage(Sehoredistrict).

• Thecurrentcapacityoftheunitis1.95lakhspindlesandpermissionsarebeingsoughttoaddanadditionalcapacityof1.95lakhspindlesfromtheconcerned departments

oTher Major Players

• ParasrampuriaInternational • PratibhaSyntex• MaralOverseas • TridentGroup• NaharSpinningMillsLtd • Oswal• BhaskarGroup • SuryavanshiSpinningMillsLtd.

Investor’sSpeak“We are privileged to be associated with Madhya Pradesh. The state government’sproactiveness and pro-investor approach has inspired us to set up the world’s largestintegratedtextilemanufacturingfacilityinMadhyaPradesh.ItwillbeanhonourforTRIDENTtobeapartofMadhyaPradesh’sindustrialdevelopment.”Mr.RajinderGupta,Chairman,TridentGroup

“Ifounditwasaveryattractiveplacetoinvest.AndwewouldliketoexpandourpresenceinMadhyaPradesh.”Mr.S.P.Oswal,Chairman,VardhmanGroup

Key Opportunities across the supply chaininvestment opportunities

• MadhyaPradeshranks5thinterms of cotton producing State in the Country

• Cottonproductionof19lakhbalesintheyear2012-13.

Raw cotton Production

• CottontextileclusterslocatedaroundIndore,Bhopal,Pithampur,Khargone,Ujjain,Gwalior,BurhanpurandDewas

Ginning & Spinning

WeavingandknittingunitscanbeexploredAREA• Malwa-Nimarregion• Bhopalregion• ChhindwaraDistt.of

Jabalpurregion

Weaving & Knitting

Processingofyarnsandfabricslike dyeing of yarns and dyeing&printingoffabricscanbeestablished

OTHEROPPORTUnITIES• Equipmentmanufacturingsuchasdyeing,printing

machines and dyeing chemicals etc

AREAin and around of existing cotton producing units(Indore,Bhopal,Pithampur,Khargone,Ujjain,Gwalior,Burhanpur,ChhindwaraandDewas)

Dyeing&Finishing

Setting-upofapparelandreadymadegarmentunitsGarmentaccessoryunitssuchasembroidery,lacemanufacturing,packagingunitsintheproximityofexistingreadymadegarmentandapparelparkssuchasIndoreAREA:• ReadymadegarmentparkinGadaipura-Gwalior.• Indore,BhopalandJabalpurregionOPPORTUnITIESFurthergreatopportunitiesexistinthegrowingsegmentof technical textiles across the supply chain

GarmentManufacturing&Finishing

Furthergreatopportunitiesexistinthegrowingsegmentoftechnical textiles across the supply chain

MajorLandparcelsavailableforTextileindustryinvestment opportunities

BhindMorena

DatiaSheopur

Shivpuri

Guna AshokNagarNeemuch

Mandsaur

Ratlam

Jhabua

AlirajpurDhar

Dewas

KhargoneBarwani

Khandwa

Burhanpur

Harda

Hoshangabad

Betul

ChhindwaraSeoni

Balaghat

MandlaDindori

Narsinghpur

Shajapur

Sehore

Raisen

TikamgarhRewaChhatarpur

Panna

DamohSagarVidishaRajgarh

Satna

Sidhi

Singrauli

Katni

Umaria Shahdol

Anuppur

Gwalior

Ujjain

Indore

Jabalpur

Bhopal

land in hectaresdhar Pithampur,Ujjaini 276

Bhopal Acharpura,Bagroda 267

hoshangabad Babai 200

khandwa Rudhi Bhavasinghpura 149

Morena Jaderua,Banmore,Pahari 140

Mandla Maneri 120

Guna Chainpura 97

seoni Burkalkhapa 87

jabalpur Hargarh,Umaria-Dungria 87

dewas Sirsoda 50

rajgarh Pilukhedi 45

indore Bijepur 45

Gwalior Gadaipura 20

jhabua Meghnagar 10

chhindwara Boregaon 8

shajapur Maksi 6

khargone Nimrani 4

note:MajorlandparcelsavailablewithAKVnsofdevelopedanddevelopingland