India Is On Move

India fast emerging as manufacturing hubbeing projected. Further, a commercial complex, a
India's technological prowess coupled with a favorablebusiness centre, a conference hall and an exhibition
industrial climate is making the country a hub for notcentre for buyer-seller meets are also projected.
just software, but also the manufacturing sector, theLudhiana with its traditional strength in flat knit apparel is
Commerce and Industry Minister Kamal Nath reportedanother centre which has created a wide platform for
at the World Economic Forum held at Davos.small quantities and high value products. The city is
According to Kamal Nath, the hub of world economicpopular for any buyer who needs sweaters in woolen
activity is shifting from the Atlantic to the Indian Ocean.as well as cotton blends. Nearly all buying organizations
India's technological skills together with itsfunctioning with sweaters have vendors in the city.
attractiveness as a manufacturing centre are fastMany of the brands supplying from Ludhiana cover
making it the hub of not only IT-enabled services butSears, Target, Espirit, GAP, H&M, Tom Taylor,
also manufacturing.NEXT, to quote a few of the more design oriented
Superior quality manufacturing centers: Geared upbuyers. In addition, technologically, the center is
Indian Garment Industryequipped with processes to offer innovation and
The diversity of India can be discouraging for anyvalue-addition to flat knits, which is in huge demand
visitor, more so for a person who plans to start aamong the buyers. The hub is exporting nearly $18
business from such a huge country without an outlinebillion, which is growing rapidly. The leading exporters
from where to start. Over the years, the country hascover Oswal Group, Nahar Group, Vardhman,
provided numerous regional hubs with niche productGreatway, Goyal Knitwears, Mohini Exports and
specialization, making it more suitable for internationalBhandari Exports.
players to source and perform in India. Even for theWest
garment industry, the concept of hubs has received aThe central government intends to establish a
good acceptance with a few major areas developingRs.7-billion international convention centre in Mumbai,
as product specialists; - Delhi, Chennai, Bangalore,which will work as a hub for the textile industry, Textile
Tirupur and Jaipur are the most famous with otherMinister Shankersinh Vaghela said on the sidelines of
hubs being Ludhiana for flat knits and Amritsar for'Images Fashion Forum', in Mumbai.
woolen and warp knit fabric. Each area works as anJaipur for Handwork and Traditional Prints
independent performer, self sufficient in the technical,Jaipur is emerging as a small quantity high fashion
raw material and labor requirements of specificcentre for art work and handwork products. This city
products. Delhi is well known for its multi product foris ideal for the products with works like bandhini, block
fashion garments, Chennai for shirts, whereasprinting and hand embroidery to the western silhouette,
Bangalore is progressing in garments / trousers andbasically working with Indian fabric. Also, it is emerging
Tirupur a leader in exports of knitwear. Meanwhile,as the main hub for home furnishing and fashion
Jaipur is also developing as the ladies wear fashionaccessories, and it is well-known amongst Japanese
hub with specialized handwork and ethnic feel.buyers peeking for fashion items and boutique owners
Recently many Textile Apparel Parks (SEZ, Specialacross the globe. Some of the leading names cover
Economic Zones) are going to come up. Some ofGarment Craft, KK International, Goyal Fashions, The
them are mentioned below:Choice Fashions and Sopra International, to quote a
. In order to increase the growth of garment, hosieryfew.
and apparel industry in the state, the West BengalGujarat
government is establishing a multi-functional "GarmentThe Kandla Special Economic Zone (SEZ) has 11 units
Park" at a cost of Rs. 45 crores.that were established for sorting and grading used
. Recently, Textile Minister Shankarsinh Vaghelaclothing meant for re export to African countries.
informed the Parliament, that the Center has accordedUnder Open General Licence, the government relaxed
an approval to establish a special economic zoneimports of used clothing after the Kutch earthquake of
(SEZ) for textiles at Hassan, Karnataka.2001.
. Establishment of a Special Economic Zone (SEZ) atThe more than a half-a-century-old printing and dyeing
Amritsar and 16 new mega projects at a massiveindustry of Jetpur, surrounded with the industrial areas
investment of Rs 15981.17 crore was approved by theof Manavadar, Gondal and Shapar-Veraval, is setting
Punjab Government's Empowered Committee onup Rs 120-crore apparel park within the next six
Industries.months. The park will inculcate a new life in the ailing
There are about 700 units functioning in India's existingindustry well-known for its prints.
SEZs, offering employment to about one lakh persons,Likely to establish near Pithadia village, the apparel park
out of which 40% are women. Indian industrialist havewill have a huge treatment plant, washing plots, as well
so far spend about Rs 1500 crore ($ 340 million) inas printing and dyeing factories. While the State
these units and FDI has been Rs.500 crore ($113 million).Government has agreed to provide Narmada water
Exports from SEZs in 2004 were $ 3 billion (Rs 13,275for the printing and dyeing units, the Jetpur Printing and
crore), about 5% of India's total exports.Dyeing Units Association will bear the expense of
Really, development in India textile industry has beenbuilding the treatment plant with a capacity of around 5
inspiring. Production of fabrics has increased frommillion liters.
39844 million sq. meters in 2001-2002 to 43498 millionFurthermore, all 530 units which are currently scattered
sq. meters during 2004-2005. The per capita availabilityin the city will be transferred to the park, even as the
of cloth has also increased from 22.9 sq. meters inpipeline network to release treated water from the
1991-92 to about 31.0 sq. meters in 2003-04.plant to the gulf of Porbandar would solve the
As per the latest export figures available (in Rs) forenvironment problems. The expert and industrialist
April-August, 2005, except man made textiles (-16.4%),believe that the apparel park will be instrumental in
all sectors experienced a lucrative development i.e.increasing the turnover between Rs 190 crore and Rs
Readymade Garment (12.3%), Cotton textiles (0.3%),200 crore per annum with an addition of 100 new units,
Wool (30.5%), Silk (2.1%), Handicrafts (17.8%), Coirand will raise the production by at least 25 per cent in
& Coir manufactures (16.0%) and Jute Goodsthe first year itself. The park will generate employment
(13.7%).for additional 20,000 people from this area.
The government has permitted foreign equity'Khanga' & 'Kitanga' style of cotton dressing which
participation up to 100%, through automatic route, in theis mostly seen in the African sub-continent was made
textile sector with the only exclusion in knitwear/knittingat Jetpur and exported to African countries. Jetpur
sector, which is still set aside for SSI. From the SSIalone fulfilled 80 per cent of the need of
sector, the Government has taken again (which wasKhanga-Kitanga segment till 2001, but as low-priced
reserved) the woven segment of readymadeChinese products were introduced in the market,
garment. Pursuant to the pronouncement done in theJetpur's share decreased to 40 per cent.
Union Budget 2005-06, hosiery and knitwear has alsoAn eco textile park is going to be set up at Palsana,
been de-reserved from the SSI sector. Apparel ExportGujarat, on National Highway No.8, which will be the
Promotion Council is making an Apparel Internationalfirst leading public private project, where over 100
Mart at Gurgaon with the help of the government. Thetextile units can produce under the one roof. The
total area of the plot is 5 acres and an Apparelproject will be constructed at a projected price of
International Mart (AIM) Complex is being made withRs.115 crore, generating employment opportunities for
250-300 showrooms, which will be assigned to theover 20000 persons, which is likely to be completed by
exporters. This will offer a world class facility to theJuly 2007. The project will be supported by 40%
apparel exporters to promote their products and willsubsidy from the Union Government and information
work as a one stop shop for well-known internationalon infrastructural will be given by the State
buyers.Government.
An India Exposition Mart is being established at GreaterPradip Hi-Tech Textile Park Ltd, promoted by Pradip
Noida, so that important assistance may be offered toGroup has been planned to be built in 200 acres in
cottage and small scale handicrafts units/exporters inSanand near Ahmedabad, to manufacture garments
their promotional works. This Mart is an everlastingand fabrics for exports as well as home textiles, with
showcase on the lines of other major internationalan investment of Rs 720 crores. The Group plans to
Marts. The project is being invested totally from theinvest in different phases and is scheduled to start
industry on the basis of a bankable project. Though,operations from 2007 with separate units for weaving,
the Government is offering a support of Rs. 12 croresspinning and processing to get the final product, said
for the project.Pradip Karia, founder of the group. Around Rs 110
Twenty one Powerloom Service Centres (PSC) in thecrores will be initially invested of which 65 percent will
country are being re-harnessed for upgrading throughbe funded by four banks, said Karia. Around Rs 205
the ongoing delivery and commissioning of the dulycrores is planned to be raised through Initial Public
granted machineries and other equipments. SSIOffer (IPO) by August 2006 for further investments,
Powerloom units have been set up under TUFS forsaid Karia. This park will become the largest weaving
benefited for 12% upfront capital subsidy on theand spinning unit of western India, informed Karia.
pattern of other SSI units.South
The Government has planned a Hi-tech Weaving ParkTirupur the city of knitwear
Scheme, which will give capital subsidy on modernOf all the hubs, Tirupur, normally recognised as the
machinery and construction of Group Worksheds forknitwear city, has observed a quicker, rather
weavers. Five High-tech weaving parks at a total costincremental growth of the knitwear sector from India in
of Rs. 78 crores have been granted for Rabkavi,the last 10 years. It is mainly due to of the development
Vaigai, Palladam, Cauvery and Hyderabad. This willthat the city has experienced during this time. Today,
offer additional employment for 12,000 people.approximately every leading retailer is purchasing
Government has set up a new central sector scheme,knitwear from this city due to its cost effective
from 2005-06, namely "Integrated Handloomproduction. The totally incorporated nature of knitwear
Development Cluster Program", for making andproduction, from spinning to shipment, has observed
promoting handloom products. Under this, the ministrythis industry increase not only in quality but also
of textiles will consider 20 clusters in the first phase atvalue-addition and fast track fashion. Technology is a
a cost of Rs.40.00 crore. This will be a Central Sectormain motivator and vendors are spending in capacity
scheme with 100% Central grant to be liberatedand developed systems for larger gains. The Tirupur
directly to the executing agencies.apparel park, which is to come up very soon, is a
The Ministry of Textiles has reformed the TCID &self-sustaining center with every facility appealing to
APE Schemes into one well-organized "Scheme forinternational buyers. Some of names cover Eastman
Integrated Textile Parks" for pacing up the executionExports, SP Apparels, SCM, Best International, Centwin,
of the Schemes and to realize the vision of attainingNetwork Clothing and Stallion Garments, to name a
export target of $50 billion by 2010. The Scheme isfew.
made on Public-Private Partnership (PPP) andAs these centers develop on their individual strengths,
foreseeing covering a professional agency for projectefforts are in progress to increase other hubs in
execution. The main objective of the SITP is to offerdifferent states. At present, the Andhra Pradesh
the industry with world-class infrastructure facilities forGovernment has done a special endeavor to request
establishing their textile units. The scheme would ofmajority exporters from all over the country to invest
help to textile units for satisfying internationalin the State. They have also provided facilities that are
environmental and social standards.very appealing, like hire and fire policy for labor and
Northwage rates that are 15 per cent economical than
Delhi the multi product fashion destinationChennai. Furthermore, many apparel parks are in the
Union Minister of Textile, Shankersinh Vaghela said onpipeline in an effort to offer better facilities for
the sidelines of `Images Fashion Forum', in Mumbai, thateffective and global garmenting needs.
the government would spend a total sum of Rs 300-Netaji Apparel Park (NAP) is spread across 166 acres
400 crore over a period of one year for theon the Avanashi-Perumanallur National Highway, at
development of Delhi Haat kind of Haats across theNew Tirupur, and is India's first and largest apparel park
country and there would be at least one Haat in eachwhich now offers employment to nearly 7,000 people.
capital of the state.It is supported by the Tirupur Exporters' Association
On the payments made till date under the TUFS(TEA). NAP houses 60 industrial buildings with 20 lakh
scheme of the government, Vaghela reported that tillsq ft built-up areas. So far, Rs. 95 crores has been
date, Rs 31,000 crore worth of loans have been paidinvested on its infrastructure. The Center offered
out under TUFS and loans calculating to Rs 18,000nearly Rs.14 crores as grant.
crore have been allotted under the UPA government.As the park becomes fully functional, about 20,000
The government would also come up with 18 apparelmore people will get employment. The park possesses
parks in one and a half year under the Integrated2.2 MW captive power plant, telephone exchange,
Textile Park Scheme. According to him, each apparelbank, sewage treatment system and uninterrupted
park at an expected investment of Rs 100 crore iswater supply.
projected to employ 15,000 people and theThe leading center is Chennai, which has always been
government would widen subsidy for the parks.well-known for production of shirts, its specialty, and
Fashion is a strong point in the north with an appealingbasic products in large quantities. This centre has
combination of woven and knit choices as agained excellent growth in the last few years and the
value-addition. Many factories in Delhi - NCR region aremajor problem at present is the low margins offered in
working with an ability to manage different styles andbasic products. Though, the center has reacted well
fabrics on a regular basis. The labor in this region isand enhanced in fractures to increase capacity and
generally from outside and men manage the machinesproductivity. In joint venture with Sri Lankan and
with heavy focus on value-addition and embellishments.Indonesian firms many large companies are coming up
This is not to articulate that Delhi and its nearby areasin Chennai. Shirts calculated to 60 per cent of the
of Gurgaon, Manesar, Faridabad, Noida and Khandsaproduction in the city with underwear and lingerie
are only making ladies' and kids' fashion wear. Thereproducts. The larger exporters cover Rattha
are lots of companies who have spent a huge amountInternational, Leela Scottish, Meridian Apparels,
for technology determined factories for moreMedident India, PS Apparels and SM Apparels. The
structured and basic garments. Though, theselabour force is mainly women who are accepted to be
companies are the lead players who have a superiorvery committed, adding to the soaring productivity. The
position thought, particularly made infrastructure formain areas are developed in working efficiency, better
their buyers to offer them with multi products rathertechnology and product development.
than trailing business to other areas specialising suchEast
products.West Bengal establishing multi-functional Garment Park
Many such players in this area are Orient Craft, ShahiIn order to increase the growth of garment, hosiery
Exports, Modelama, Richa Garments, Orient Clothing,and apparel industry in the state, the West Bengal
SPL,Pearl Global, Matrix and Addi Industries, all ofgovernment is establishing a multi-functional "Garment
whom have made superior value in various productPark" at a cost of Rs 45 crores.
ranges and are servicing some of the best retailers /Declaring the state-of-the-art project to be completed
brands in the global market. Product Development isby 2007, West Bengal Industrial Development
becoming a focal point in Delhi and technology is mainlyCorporation (WBIDC) Chairman and State Industries
targeted on basic sewing and value¬ additionMinister, Nirupam Sen, reported to the media that the
machines. Even in the case of products that arestate government had already obtained about 8.5
offered in other areas, the focus is on value¬hectares land at Beliaghata in South-East Kolkata for
addition and multiplicity in product offerings.this reason and WBIDC and ICICI Winfra had been
Special Economic Zone (SEZ) establishment atselected as the Project Consultant.
Amritsar and 16 new mega projects at a massiveUnder the project a five-storey Standard Design
investment of Rs 15981.17 crore were approved byFactory (SDF), meant for establishing manufacturing
the Punjab Government's Empowered Committee onunits, and a three-storey Common Facilities Building
Industries. These projects would generate a total of(CFB) would be set up as common service and logistic
4.30 lakh jobs.support units for the manufacturers.
M/s DLF Universal Ltd would develop SEZ at Amritsar,Considering that the location of the park was ideal for
which would cover an area of 1000 acre. Otherthe garment industry, because of it having superior
projects approved by the Committee include SEZconnectivity with the airport, Kolkata port, railway
project on 2500 acres at Jalandhar and in Ludhiana, atstations and national highways, a scheme had also
an investment of Rs 1800 crore, providing 4000 jobs.been made to strengthen the approach road to the
Ludhiana warming uppark and its adjoining canal.
Textile projects at the cost of Rs 1500 crore will beThe park will be made in two phases, adding
set up by Ludhiana Integrated Textile Park Ltd, inphase-one of the 'dream project' would include three
Ludhiana district, providing jobs to about 85000 people.SDF buildings, the common facility building, a working
The Research and Development project in the field ofwomen hostel and other auxiliary service buildings.
agro industries with an investment of Rs 92 crore inTwo more SDF buildings would be added in
Ludhiana district will help generate employment forphase-two of the project and each SDF buildings in
91000 people. Another industrial park at Mohali and anphase-one would have nearly 1,20,000 square feet
integrated textile park at Ludhiana with an investmentsuper built-up space. One SDF building would be
of Rs 2037.61 crore and generating employment forreserved completely for smaller units, around 3,300
1,06,000 people is also going to be set up.sq.ft each, while other two SDF buildings would include
With a joint venture between Punjab Small Industriesmedium and large units of super built-up area of about
and Export Corporation Ltd and Apparel Exporters5,600 sq.ft and 11,300 sq.ft accordingly.
Association of Ludhiana, a 100 per cent exportAltogether, nearly 70 manufacturing units would be
oriented mega apparel park at Doraha on GT Road ingiven space in the first phase of the project, adding
Ludhiana is being planned. The projected apparel parkafter phase two was completed the park would given
will be proliferated over 100 acres of land, of which 82nearly 100 more units, which was projected to create
acres have been acquired and the remaining land willemployment for 8,000 workers.
be acquired in the coming months. Infrastructure for theThe construction of the project has already started
park will be established in a year's time. The park willand the first phase is projected to be completed by
become ready within the next two years. Already, 115September 2007.
companies are interested in establishing their units inGarment and hosiery manufacturing units of that
the park that will also be having road, rail and airportregion and their associations had showed strong
connectivity. A common captive power plant is alsoimportance for booking spaces at the SDF building.