Madhya Pradesh. Sector Profile: Textiles
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1 Madhya Pradesh Sector Profile: Textiles
2 Contents Textiles Scenario in India Textiles Scenario in Madhya Pradesh Why Madhya Pradesh? Opportunities in Textiles Contacts 2
3 Textiles Scenario in India Textiles sector accounts for 4% of Country s GDP Textiles Industry valued at US$ 55 billion, 64% of which services domestic demand Indian Textiles industry contributes 14 % to total industrial production 2 nd biggest employment generator after Agriculture 61 % of global loomage 12 % of the world's production of textile fibers and yarn 22 % of the global spindleage 16% of global cotton production 16.63% of the total export earnings are contributed by Textiles sector Nearly 40 % of the Textiles produced in the country is exported 25 % share in world trade of cotton yarn Source: Ministry of Textile, IBEF 3
4 Textiles Scenario in India Textiles Production in India (in mn. sq. mtrs.) Textiles industry to reach US$ 110 bn. by 2012 Aim to secure 7% share in the global Textiles trade by 2012 Target of US$ 6 bn. foreign direct investment (FDI) by 2015 Item wise Textiles export Exports to reach US$ bn. in the next 25 years from current level of US$ 22 bn. Luxury & premium apparel brands market estimated at about US$ bn. and growing at about % Source: IBEF 4
5 Textiles Scenario in Madhya Pradesh One of the highest cotton producing State in India lac bales of production in Country s 6% cotton produced in MP More than 55 Textile mills in the State Textiles exports from Madhya Pradesh worth US$325 million per annum Rich tradition of weaving and knitting Handloom Clusters Power-loom Clusters Proposed Apparel Parks Important Textiles clusters in MP Source: Economic Survey of MP , TRIFAC 5
6 Textiles Scenario in Madhya Pradesh Type Textiles Industry in Madhya Pradesh No. of units Cotton / Man-made Fibre Textile Mills 55 Spinning Mills (Non-SSI) 43 Composite Mills (Non-SSI) 12 Spinning Mills (SSI) 8 Exclusive Weaving Mills (Non-SSI) 7 100% Export Oriented Units 10 Power Looms Handlooms Type Installed Capacity of Textiles Industry in Madhya Pradesh Spindles Rotors Looms (composite & exclusive weaving units) Power Looms Man-made Fibre Man-made Filament Capacity 1.51 million Nos Nos Nos million kg million kg. Several leading Textiles players are present in Madhya Pradesh 450 Production of Fibres in Madhya Pradesh Fabric from Mills sector (mn. sq. m.) Spun Yarn (mn. kg.) Man-made Fibre (mn. kg.) Source: MPSIDC, TRIFAC 6
7 Why Madhya Pradesh? Peaceful labour environment Policy Support from the State Govt. Strategic central location facilitates cost effective logistics Climatic conducive for cotton production Textiles business in Madhya Pradesh Large number of Engineering & Technical graduates passing out every year Low cost of setting up of business Skilled manpower for weaving, knitting and stitching Development of Textiles Infrastructure Readymade Garment Complex coming up at Indore at an investment of Rs million Indore: a cluster of readymade garments industry, over 1260 garment units Apparel Designing Centre established under TCIDs scheme Garment Cluster at Jabalpur Rs million Apparel Park in SEZ Indore - area of 133 acres Rs million CLC Textile Park at Pandhurna Park in Chhindwara over 60 acres of land Garment Textile Park at Pardeshipura in Indore over 40 ha. of land MP - Ideal location for Textile industry with right environment and excellent infrastructure Source: Economic Survey of MP , TRIFAC 7
8 Why MP: Policy Initiatives Promotion and Assistance for Textiles industries Setting up of Apparel Training / National level fashion designing technology institute Benefits under schemes such as Apparel Park Scheme, Textile Centre Infrastructure Development Scheme (TCIDS) Modernization of units through Technology Upgradation Fund Scheme (TUFS), Group Work Shed Scheme Special Package for Textile industry Units purchasing yarn produced within the State, to be given a "set off of 2% on Commercial Tax Development of Modern power loom clusters Construction of tar roads for smooth transportation to Cotton Mandi Electricity subsidy to Power Looms Development of the process house through private participation Establishing State level Textile Promotion Committee Source: 8
9 Why MP: Policy Initiatives Salient features of Technology Up-gradation Fund Scheme (TUFS) for Specified Textile Processing Machinery Provision of 4% interest reimbursement for spinning machinery; 5% for remaining sectors Provision to purchase second hand machinery for shuttle less Power Looms Margin money 20% to Power Loom units in lieu of 5% interest reimbursement subject to capital ceiling of Rs. 20 million Margin money 15% to SSI Textile units in lieu of 5% interest reimbursement 25% capital subsidy on purchase of new machinery and equipment for pre-loom and post-loom operations, handloom up gradation, etc. Additional investments such as land, factory building, margin money and pre-operative expenses by handloom units, will be assisted with 50% cap. Investments such as land, factory building, margin money and pre-operative expenses by apparel sector units eligible for reimbursement with 50% cap. Textiles industry with more than Rs. 5 million capital investments will be considered under category of thrust sector. Special grant of 25% to thrust sector industries with ceiling of Rs. 1 million in backward A districts, Rs. 1.5 million in backward B districts and Rs. 2.5 million in backward C districts. Source: MPSIDC, TRIFAC 9
10 Opportunities in Textiles Madhya Pradesh Textile Industry Vision 2012 To have 7% of spindles capacity in the country by 2012 Setting up knitting and processing units having capacity to produce 800 tons knit fabric per day To create dyeing and finishing capacity matching to knitting and processing units Projecting that 50% of the fabric to be used to produce garments within State would result into garment manufacturing to the tune of Rs million Setting up weaving capacity having 3000 shuttle-less looms in the State Growth Potential of Textile Industry in Madhya Pradesh Type Potential Addition Spindles 2 million Looms 3000 Nos. Fabric Processing Capacity 215 million mtr per day Knit Fabric 800 tons per day Organic Farming of Cotton Export to Europe Potential for over Rs. 100 billion investments in the Textiles industry in Madhya Pradesh. Source: MPSIDC, TRIFAC 10
11 Contacts Madhya Pradesh State Industrial Development Corporation Limited Address: AVN Towers,192 Zone -1,M.P Nagar, BHOPAL Telephone : (+91) (0755) Fax : (+91) ( 0755) sidc@sancharnet.in; mpsidc@sancharnet.in; md@mpsidc.org URL: Madhya Pradesh Trade and Investment Facilitation Corporation Limited Address: AVN Towers, Mezzanine Floor, 192 Zone -1, M.P. Nagar, BHOPAL Telephone : (+91) (0755) / / Fax : (+91) ( 0755) trifac@mptrifac.org; md@mpsidc.org URL: 11
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