September 2010

Weaving the Future Maharashtra Textile Sector

Maharashtra Profile
Percentage in Maharashtra
Economic

Maharashtra:
GSDP growth rate Industry growth rate Literacy Rate Urbanization 0 20 40 42 60 80 100 6.4 76.9 13.5

Highest State Domestic Product Highest aggregate bank deposits and gross credits Highest contribution to Indias corporate tax collections (61%) Most urbanized State

Social

Percentage of Maharashtra in India

Wine Industrial Auto & Auto Components Bio Tech Software Export Exports Economic Industrial output Employment GSDP contribution Social Geographical Area Population 0 Page 2 19 15.7 13 9.4 9.4 20 40 60 80 100 20 27 33 32 97

Maharashtra

has

20.6

of

Investment Of India ( Highest )

Source: RBI Report on Investment 2008-09 published in Sept. 2009

With 9.4% of Indias population, Maharashtra has 19% of industrial production.

* Maharashtras GSDP contribution to Indias GDP is at current prices

Source: Socio-Economic Review , Maharashtra 2009-10; Annual Survey of Industries 2007-08

Textile Sector

Maharashtra Profile
Road
Road Connectivity
Total Length of National Highway (in km): Total Length of State Highway (in km): Total Length of Major District Roads(in km): Total Length of Other District and Village Roads (in km):

India
70,548 1,31,899 4,67,763 26,50,000

Maharashtra
4,367 33,933 49,621 1,49,747

- Maharashtra has the largest (7%) road network in the country. - 97 % of the villages are well connected with all weather roads in the state.
Source: Socio-Economic Review , Maharashtra 2009-10; www.nhai.org, August, 2010

Railway

Railway Connectivity
Total Length of Railway network (in km):

India
64,000

Maharashtra
5,983

- The state encompasses 2 major railway zones; the Central and Western - 9.2 % of total railway network in the country - The railway route length per 1,000 sq. km of geographical area is 19.42 km in the State as against 19.70 km in the country. (as on 31st March, 2009)
Source: Socio-Economic Review , Maharashtra 2009-10

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Textile Sector

Maharashtra Profile
Airport
Airport Connectivity
Total No. of Airport: Total No. of International Airports: Total No. of Domestic Airports:

India
449 17 114

Maharashtra
22 3 4

-Maharashtra is well connected to major cities in the USA, EU, Asia and other Indian metropolitan cities. -The state has the highest number of airports in the country (6%).
Source: MIDC, AAI and MADC

Port

Port Connectivity
Coast-line (in km): No. of Major Ports: No. of Minor and intermediate Ports: Container traffic (in TEU):

India
7,517 13 200 6.30 million

Maharashtra
720 2 48 3.83 million

- JNPT in Maharashtra is India's largest container port (61%). - 21% of the total cargo traffic of the major ports in India is handled by the state (3rd highest)
Source: Socio-Economic Review , Maharashtra 2009-10

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Textile Sector

Maharashtra Profile
Power
Installed Capacity:

Power Facilities
Electricity Generation Capacity (in MkWh):

India
72,38,000 1,59,648

Maharashtra
83,008 17,266

- Maharashtra has the largest installed electricity generation capacity

Source: Socio-Economic Review , Maharashtra 2009-10

IT/ ITeS

IT/ITeS Facilities
Total no. of Industrial Training Institutes: Total no. of Industrial Training Centres: Total seating capacity:

India
2,133 5,906 11,15,628

Maharashtra
388 297 1,21,744

-Out of 1396 Government ITIS being developed in India in PPP mode, 266 are in Maharashtra - Indias 18% of ITIs is in the state with a 20 % seating capacity
Source: dget.nic.in, April 2010

SEZ

Special Economic Zones

Notified SEZs: Approved SEZs:

India
363 735

Maharashtra
58 144

- Highest number of approved SEZ in the country are in Maharashtra

Source: http://www.sezindia.nic.in/index.asp & Maharashtra Industries Department, September 2010

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Textile Sector
Source: dget.nic.in, April 2010

Global Textile Sector

Global Textile Industry

Global Textile Industry

1100

Global Textile Growth

9% 9% The global textiles market had total 9% 1000 revenue of USD1,037.6 Bn in 2009, with 900 7% 8% 800 a CAGR of 5.7% for 2005-09. 700 5% In comparison, the European and Asia600 Pacific markets grew with CAGR 3% 500 (Compounded Annual Growth Rate) of 400 1% 0.3% and 13.2% respectively respective 300 200 values of USD223.2 billion and -1% 100 -2% USD597.7 billion in 2009. -3% 0 The fabrics segment proved the most 2005 2006 2007 2008 2009 lucrative for the global textiles market Bn USD % Growth in 2009, with total revenues of Source: Datamonitor USD413.4 billion, equivalent to 39.8% of the market's overall value. In comparison, the apparel segment generated revenues of USD334.5 billion in 2009, equating to 32.2% of the market's aggregate revenues. Market Size (USD Bn)

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Textile Sector

% Growth (YoY)

Textile Sector Breakup

Region-wise Revenue Breakup Product-wise Revenue Breakup

Asia-Pacific 20.90% Europe 57.60% 21.10%

6.80%

Fabrics 39.80% Apparel Non-apparel Products Yarns

21.50%

Americas 32.20%

Source: Datamonitor

Source: Datamonitor

An anticipated CAGR of 5.7% for the five-year period 2009-2014, which is expected to drive the market to a value of USD1,369.8 billion by the end of 2014. Comparatively, the European and Asia-Pacific markets will grow with CAGRs of 0.9% and 9.1% respectively, over the same period, to reach respective values of USD233.3 billion and USD925.7 billion in 2014.
Textile Sector

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India Textile Sector

Indias position on a global canvas

India Textile Industry With China leading the global textile trade, India ranks 2nd with 8% of the total textile output of the world India contributes to nearly 4% of total textile exports and 3% of total apparel exports in the world. India has the highest number of looms - 1.8 million shuttle looms (at 45% of global capacity) and 200,000 shuttle-less looms (at 3% of global capacity) and 3.9 million hand looms (at 85% of global capacity). India has the second highest number of spindles in the world with 40 million spindles (at 23% of global capacity). Indian Textile Industry Contribution to IIP Contribution to GDP Contribution to Exports Employment
Source: Ministry of Textile, Annual Report 2009-10

Indias Textile cluster

Punjab

Gujarat West Bengal

MumbaiBhiwandi Malegaon

14% 4% 17% 35 Mn
Textile Sector
Tamilnadu

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Indian textile industry: a key contributor to the economic growth

Indian Textile Industry India is: Largest producer of raw cotton. Largest producer of Jute. (1900 Mn Kg) 2nd largest producer of cotton yarn. (2700 Mn Kg) 2nd largest producer of cellulosic fibre/yarn. 2nd largest producer of silk. (15 Mn Kg) 5th largest producer of synthetic fibre/yarn. (2000 Mn Kg) 8th Largest wool producer (51 Mn Kg)
25 20 15 10 5 0 2003-04 2004-05 2005-06 2006-07 2007-08 13.5 14 4% 10% 17.5 19.2 16%

India - Textile Market Trends

Indian Textile Growth

Market Size (USD Bn) 25% 22.2 30% 25% 20% 15% 10% 5% 0% % Growth (YoY)

Source: Ministry ofTextile

Indian Textile Export

120000.0 Export Value (Rs Crore) 100000.0 80000.0 60000.0 40000.0 20000.0 0.0 Silk, Wollen, Jute & Coir Handicrafts Man Made Textile Cotton Readymade Garments

Source: Ministry of Textile Page 11

Textile Sector

Maharashtra Textile Sector

Maharashtra Textile Sector

Maharashtra Textile Industry

Maharashtra contributes to about 10.4% to Indias textiles and apparels output. Cotton is available in bulk in Maharashtra which is one of the key factors that have enabled the state to establish a competitive edge . Vidarbha region has a predominant cotton production, while western region is famous for spinning mills. The major cluster for the industry are Kolhapur, Mumbai, Nagpur, Nashik, Pune, Sangli, Satara, Sholapur and Thane. The State has witnessed 122 major textile projects with an investment of USD 224 Million Largest number of the sectors 100% export oriented units, with a count of 560 are based in Maharashtra.

Source: IBEF Report

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Textile Sector

Maharashtra Textile Sector Industrial Scenario

Maharashtra Textile Industry
Maharashtra Key Textile Cluster and SEZs
Legend Notified SEZs 1 MIDC, Chincholi Dist. Solapur 2 MIDC,Yavtmal 3 MIDC, Nandgaon Peth, Dist-Amravati 4 MIDC, Butibori, Dist.Nagpur

Gondia

Notified SEZs Industry Cluster International Airports Domestic Airports Airstrips

Nagpur Amravati

Ozhar Nashik Shirdi Thane Aurangabad

Yavatmal

Gadchiroli

Upcoming Airports

Mumbai

Navi Mumbai

Rajgurunagar

Nanded Latur

Pune Baramati satara Sangli Ratnagiri kolhapur Sindhudurg Osmanabad Solapur

The major Textile hubs in Maharashtra are Bhiwandi, Malegaon, Mumbai, Amaravati & Solapur

FDI

The total FDI investment in the Textile sector till January 2010 was USD

224 Million

Source: Department Of Industries & Commerce, GoI

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Textile Sector

Maharashtra Textile industry Value Chain

Maharashtra is strong in all areas of value chain of textile industry right from raw material to garment manufacturing
Process Raw material Ginning Ginning mills Spinning Spinning mills Weaving Knitting Weaving units Knitting units Composite mills Cotton, Silk, Jute & Wool Fibre Yarn Fabric Processed fabric Garment Processing Processing units Stitching (Garment / Apparel) Apparel manufacturers

Unit

Farming

Output

Technical / Industrial / Functional Textiles

Solapur, Bhiwandi, Malegaon, Ichalkaranji, Nagpur are major hubs for powerloom sector in Maharashtra Maharashtra has abundant raw material availability, cost effective labor pool, growing domestic market & presence across value chain
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Textile Sector

Advantage Maharashtra
Presence across value chain (Yarn, fabric, processors, garmenters etc) reducing lead times in production Highest FDI in the Country Single Window Clearance Mechanism Strong MSME presence in textile sector Highest contribution to Indias GDP Proactive state policies encouraging textile in state Strong presence across value chain Presence of top textile players DMIC giving further boost to the sector Dhule Textile park is being developed under DMIC Indias financial hub Abundant Land Bank Strong Infrastructure Worldwide Connectivity (Ports,Airports) Abundant Natural Resources

Abundant Raw Material available in state pushing the cost further down

Proximity to international market via excellent port connectivity One of the best human resource pool because of traditional textile hubs in state

Advantage Maharashtra
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Skilled Manpower and premiere R&D Centers

Textile Sector

Key Players

Textile Industry Key Players

Company
Raymond Roopam Alok Morarjee Mandhana FIBRO Aditya Birla Jatin Cottons Sumangal
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Product Portfolio
Fabric, Garment Garment Yarn, Fabric, Garment, Fabric, Garment Yarn, Fabric, Garment Textile Chemicals Pulp, Fibre, Yarn, Fabric, Apparel Yarn, Fabric, Leather Fabric
Textile Sector

Company
Bombay Dyeing S Kumars Siyarams Century Cotton Aanan PVN Group Soma Textiles Ruby Mills Century Rayon

Product Portfolio
Fabric & Readymade Fabric, Apparel Yarn, Fabric, Garment Yarn, Fabric, Garment Fabric & Apparel Fabric Yarn, Fabric, Garment, Denim Yarn, Fabric, specialty fabric Yarn

Research Institutes
Bombay Textile Research Association, Mumbai
R&D activities at BTRA cover applied and basic research, process and product development, new and frontier areas of technology, engineering and microprocessorbased instrumentation, operational studies to improve and standardize mill working, testing and consultancy services, maintenance audit, energy conservation and additional energy sources for the Decentralized Sector. CICR was established to boost cotton research in India, since then the institute has Its regional offices in Sirsa & Coimbatore. Equipped with world class laboratories & other infrastructure its major activities include, to conduct basic and strategic research on cotton Established in 1963, it is the only national institute in the field of Wool Technology, is located about 35 km from Mumbai. Its major activities are Basic & Applied Research / Projects in Wool Related Technology, Formal Education & Vocational courses, Need Based Courses & Training at site & Consultancy, Ultra Modern Textile Testing (Physical & Chemical) The SASMIRA is a multi-functional institute. Its objective is to render scientific and technical assistance to textile and related industries by Research and Development Testing and Technical Services Technical Education & Training. Future thrust of SASMIRA would be on the R & D activities in the area of upgradation of Decentralised sectors, Eco-friendly processes and waste reutilization etc.
Textile Sector

Central Institute for Cotton Research, Nagpur

Wool Research Association, Thane

Synthetic & Art Silk Mills Research Association, Mumbai

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Textile Education Infrastructure

All Embracing Educational Support

Educational scenario for Textile sector Manpower strength in Maharashtra for Textile sector
Sector Institutions Capacity Admitted Students

Maharashtra produces world class technocrats and business managers to support and grow Engineering the industry Management
Institutes

661 299

1,88,220 21,585 1,19,574

1,68,648 20,649 1,04,230

Maharashtra has a strong skilled labor base Sciences Industrial Training 681 supporting the textile industry The state offers a strong educational infrastructure with technical institutions providing textile engineering courses across the state State has premier institutes like Indian Institute of Technology Bombay and National Institute of Fashion Technology (NIFT) Veermata Jeejabai Institute of Technology (VJTI) imparting world class technical education.

Textile Colleges in Maharashtra DKTE Ichalkaranji National Institute of Fashion Technology Anuradha College of Engineering, Chickhli, Buldana. College of Engineering and Technology, Akola VJTI, Matunga (East), Mumbai. JLD Institute of Engineering, Yavatmal.

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Textile Sector

Textile Sector Policy

State Policy & Regulatory Support

1. Providing Technological Upgradation support to the Textile sector under technological upgradation Fund (TUF) scheme. 2. Setting up of Textile Parks preferably in Vidarbha, Marathwada and Khandesh Region. 3. Rationalize debt equity ratio with special consideration in Marathwada, Vidarbha and Khandesh region. 4. Development of Infrastructure facilities with integration from fibre to garment manufacturing. 5. Pilot projects for powerlooms in Malegaon and Bhiwandi, Nanded and Nagpur. 1. Suitable incentive either in capital or in the form of Interest subsidy shall be provided to the Textile units including spinning and ginning pressing units to promote employment. 2. Credit based capital subsidy or suitable interest subsidy on capital investment and working capital shall be provided to the upcoming Textile units including spinning and ginning units to make them self reliance. 1. Government is also taking sector specific initiatives to promote, Cotton sector , Spinning Mills, Powerloom, Handloom, Sericulture and HRD 1. Apart from these state also offers broad package of various incentives to investors based on the location of the unit, investment made and employment generated.

State Textile Policy Thrust Areas

Key Incentives

Sectoral Incentives

Package Scheme of Incentives

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Textile Sector

Major Opportunities and Investments

Opportunities boundless
Maharashtra Textile Sector
Demand A large consumer pool
Domestic demand Export potential

Supply A low cost manufacturing base

Government Incentives Low cost labor base Skilled workforce Cost effective supplier base

Emerging Opportunities
Technical Textiles

Increased focus on Infrastructure

Garment Manufacturing for global brands

Value added yarns, fibers & fabric

Fashion Designing

Integrated textile operations governments incentives

utilizing

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Textile Sector

Maharashtra Textile Sector Key Contacts

MIDC The Prime Driver

Maharashtra Industrial Development Corporation (MIDC) a Govt. Of Maharashtra Undertaking

The prime organisation in Maharashtra bringing out the holistic development of the State Key Objectives
Planned Industrial Infrastructure Development

Key Activities
Dissemination of Investors Information MahaConnect Monthly Newsletter Ease of business: Single Window Clearance Maha e-Biz

Balanced Regional Development

Function as special planning authority Link between Govt. and Industry

Systematic Entrepreneur Facilitation

Acquisition and disposal of land Providing support Infrastructure

Mahindra & Mahindra, MIDC Page 27

IT Park, Pune,MIDC

CETP Kagal, MIDC

Water Supply Maintenance of Industrial Areas Drainage (effluent disposal) and CETP Schemes Other Services

Textile Sector

MIDC Development Model

MIDC : A leader in setting up several SEZ, parks and projects

MIDC
SEZ IT Parks Environment Projects
Established 13 Chemical Zone
Set up of Liquid Waste Management

Specialized Parks
Floriculture

SEZ developed by MIDC SEZ proposed by MIDC in JV SEZ developed through PPP

Developed - 32 IT parks

Proposed 4 Public IT parks

CETPs

Silver Zone

STPs

Textile

Food Parks

Wine Parks
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Textile Sector

Contact us at:

Dr. K. Shivaji
Chief Executive Officer Tel No : 91-022-26870800, 22616547 Fax No : 91-022-26871587 Email : ceo@midcindia.org

Investor Facilitation cell Rajesh Kulkarni General Manager, Marketing Tel No : 91-022-26870898 Fax No : 91-022-26871587 Email : rajeshkulkarni@midcindia.org

Head Office Maharashtra Industrial Development Corporation Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai-400 093. Principal Office Maharashtra Industrial Development Corporation 4(A), 12th floor, World Trade Centre Complex, 1 Cuffe Parade, Colaba, Mumbai -400005.

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Textile Sector