Sports, Youth & Cultural

Activities Department
Manufacturing Sports Apparel and
Merchandise
Table of
Contents
1 Project Concept 3

2 Market Potential 4

3 Growth Drivers 6

4 Gujarat Competitive Advantage 7

5 Gujarat Sports Policy 8

6 Project Information 10

7 Project Financials 12

8 Approvals and Incentives 13

Project Concept

The project involves setting up manufacturing

units of sports apparel and merchandise in USD 0.37 million
Gujarat, India. CAPEX required
Gujarat, with its favorable business climate, robust
infrastructure, and skilled workforce, offers a prime
location for establishing sports apparel and 14%
merchandise manufacturing units. Its strategic GP Margins
advantages enable cost-effective production and
seamless access to domestic and international
markets, presenting a lucrative opportunity for 27% IRR
manufacturers to contribute to the global sports Over a period of 10 years
industry and the textile industry.
The overall Indian sports market is expected to grow
to USD 94 billion (INR 781,030 crore) by 2027 at a 3.5 years
CGAR of 20.6% (2020-2027) Payback period
The growth in the market is due to cricket (success
of IPL), which has resulted in the creation of several
such leagues across various sports. 13,000 sq. ft.
Land required
The Indian government’s focus on improving fitness,
participation in sports and young talent identification
also plays an integral part in the growth of this sector

Sports market segments in India

Indian Sports
Market

Sports Apparel
Nutraceuticals
& Active Wear

Sporting
Sports Media
Goods

Fitness
Gaming
Centers

3 Manufacturing Sports Apparel and Merchandise

Market Potential

• The ‘sports apparel and merchandise’

segment is a significant share of the Indian Sports & Active Wear Market by
overall Indian sports market. Sports Revenue (USD Billion)
apparel and merchandise consists of
meticulously tailored clothing and CAGR: 17% 42.0
accessories designed for an array of
sporting disciplines and physical
activities. This purpose-driven attire is 35.9
crafted to optimize athletic performance
while affording unparalleled comfort to 30.7
both seasoned athletes and dedicated
fitness enthusiasts 26.2
• This segment of the sports market has 22.4
been on an upward path since 2020. It is 19.2
expected to grow to USD 42 billion (~INR
348,600 crore) by 2027 at a CGAR of 16.4
17% (2020-2027) 14.0
• Market expansion in the region has been
fuelled by increasing disposable incomes
and public health awareness. The ascent
of E-Commerce has propelled the
apparel and merchandise industry to
greater heights. Another contributing
factor is the rise of the ‘Athleisure’
segment within the apparel and
merchandise umbrella

Indian Sports Apparel Manufacturing by Region

6th
India is the 6th largest
exporter of apparel and
26% textiles products in the
world.
38%
5%
India has a share of 5%
of the global trade in
25% apparel and textiles.
11%

2nd
North South East West India is the 2nd largest
producer of polyester
Sportswear manufacturing is mainly centered in West
with 38% & North with 26% of manufacturing of globally.
apparels

4 Manufacturing Sports Apparel and Merchandise

Market Potential

Global Sports and Active Wear Market by Revenue (USD Billion)

CAGR: 6.8%

589.1
548.5
512.7
480.9
452.0
425.4
397.2
371.5

CY20 CY21 CY22 CY23 CY24 CY25 CY26 CY27

The global sportswear market is expected to reach USD 589.1 billion (INR 4,889,530
crores) by 2027, growing at a CAGR of ~6.8% during the period of 2020-2027.
Given the country’s focus on “Make in India” and various schemes promoting
sports, India is poised for investments to expand its current sportswear
manufacturing capacities and increase sportswear exports.

India’s sport apparel and merchandise

export overview Goods for Export
India exports a variety of sportwear products to
other nations.
Sportswear from India is exported to over 130 T-Shirts
countries.
Initiatives by the Government of India have led
to an increase in the Indian Sports and Sports
Merchandise Industry’s output. Caps
• The Market Access Initiative (MAI)
scheme and the Remission of Duties and
Exported Products (RoDTEP) scheme Athletic
Shoes

5 Manufacturing Sports Apparel and Merchandise

Growth Drivers

• Total IPL Viewership: The total viewership, including match coverages

and highlights, reached approximately 530 million
• ISL Contribution: The Indian Super League (ISL) witnessed a surge in
total viewership, reaching 130 million globally
• PKL Success: The seventh season of the Pro Kabaddi League (PKL)
garnered 1.2 million impressions and reached a cumulative audience of
352 million
• International Leagues Impact: Leagues such as NBA and EPL have a
significant impact on India's sports sector
Surging Interest • Record-breaking Cricket Match: The recent India-Pakistan cricket
and Growing match set a new record with match day sales of India jerseys, totaling
Viewership around USD 18 million (INR 150 crore)
• Initiative for Top-notch Sporting Events: Efforts to attract more high-
profile sporting events like NBA, Moto GP and NFL to India are
expected to boost the demand for sports apparel
• Olympic Success Influence: India's successful performance in the
Olympics has inspired increased interest and encouraged youth to
pursue sports as a viable career
The sports apparel market in India is anticipated to witness significant
growth, reflecting a desire for event-appropriate attire and fostering a sense
of unity and individual expression among sports enthusiasts.

Consumers are increasingly looking for personalized and unique products.

Customization and
Brands offering customizable sports apparel, whether in terms of design,
Personalization
color, or fit, can attract a dedicated customer base

Availability of India has a large pool of skilled labour,, which is essential for the
manufacturing of high-quality sports goods.
Skilled Labour at
Additionally, India also has a competitive labor cost advantage over many
Competitive other countries, making it an attractive destination for sports goods
Costs manufacturers

Government of India is playing a vital role in growth of the sports sector

Favourable through several initiatives and programs like Khelo India, Target Olympics
Central Scheme
Government The “Make in India” scheme promotes domestic manufacturing and provides
Policies/Actions incentives and subsidies to setup manufacturing units in India
Government of India increased sports budget by 11 % in 2023-24

The State Government of Gujarat has introduced a new Sports Policy

Favourable State
(2022-27).
Government
The State Government revised the Gujarat Garment and Apparel Policy-
Policies 2017.

Rise of E- E-commerce is growing rapidly in India, and this is providing a new platform
commerce for sports goods manufacturers to reach customers

6 Manufacturing Sports Apparel and Merchandise

Gujarat Advantage
Policies to
Attract Labour
Gujarat raised the minimum wage by
25%, to benefit workers. The
minimum daily wage of a skilled
worker in the urban area will be USD
4.9 (INR 410.8), while that of an
unskilled worker in the non-urban
area will be around USD 4.6 (INR
382.2). This will help attract
skilled labour to the State
Geographical
Location
Its location makes it an attractive
destination for export-oriented units
which assume a significant portion of
the sports goods manufacturing
sector.
Gujarat’s
Logistical
Prowess
Gujarat topped the Logistics Ease
Across Different States (LEADS)
2022 index, brought out by the
Commerce & Industry Ministry and
also host major ports like Kandla,
Bhavnagar, Mundra etc
Air Transport
in Gujarat
There are 14 domestic airports in
Gujarat that can facilitate both
inward and outward movement of
goods across the globe
7 Manufacturing Sports Apparel and Merchandise
Skill Dev.
Industry
Skill development industry in the state
is well-developed, with many technical
institutions (678 engineering
institutes) and training institutes
(11,167 vocational training
institutes).
Gujarat’s
Sports Policy
The Government intends to leverage
sports as a vehicle to achieve multi-
pronged benefits to society.
Cluster
Promotion
Gujarat, as part of its sport policy
2022-2027, plans to promote and
incentivize the production of sporting
goods.
Facilitate
Linkages
The State Government will facilitate
linkages with the existing industries,
e.g., textiles through development of
various SEZs and other infrastructure
across state
Gujarat Sports Policy

Gujarat Sports Government of Gujarat introduced the sports policy in 2022 where they
focused on 13 key pillar which cover the range of initiatives that will be
Policy implemented towards the development of sports ecosystem in the state

Governance and Sports Goods

Sports Infrastructure
Administration Manufacturing

Incentives, Rewards Sporting

Private Sector
and Support Competitions and
Participation
Events

Excellence Support Personnel Para and Special

Programme Development Sports

Upskilling and Increased Ethics and

Reskilling of Athletes Participation Integrity

New-age and Future-

ready Initiatives
8 Manufacturing Sports Apparel and Merchandise
Sports Policy

Key Highlights of the Policy

Sports Infrastructure Sports Incubator

1 New sports infrastructure in
Gujarat to be of Olympic
2 A first-of-its-kind incubator
for sports sector start-ups to be
standard set up in the State

High Performance Centers Para-Sports

3 Four new world-class High-
Performance Centres (HPCs)
4 Gujarat to set up India’s first
para-athlete focussed HPC
to come up in Gujarat

Grassroot Sports Sports Goods Manufacturing

5 Khel Mahakumbh to be Asia’s
largest grassroots sports talent
6 Gujarat to become the first
state in India to set up a sports
identification and development goods manufacturing cluster
programme

Tribal and Indigenous Sports Data Analytics and Sports

7 8
Science
State to have dedicated Data-analytics & Sports
programmes to promote sports science modules to be
among tribal and indigenous implemented through Sports
people University

Cash Awards International Events

9 Athletes & paraathletes to be
given equal and leading
10 Multiple single and multi-sport
international events to be
awards organised in the State

9 Manufacturing Sports Apparel and Merchandise

Project Information

Project at a glance

Set Up Manufacturing Units for Sports Apparel and

Project Name
Merchandise
Proposed Location Surat
Area 13,000 sq. ft.
Focus sector Sportswear Manufacturing, Sports

Surat can be chosen

as the proposed
location due to its
widespread presence Ahmedabad
across the key
clusters. Its strategic Dahod
position within the
Dholka
state of Gujarat further
offers an enticing Jetpur
opportunity for
venturing into the Mangro
l Surat
export of apparel and
merchandise.

Relevant Clusters
in Gujarat
Location 40 Million
Meters
Textiles Ahmedabad, Dholka, Surat Daily production from the
Surat Textile Industry.
SME Textile and
Ahmedabad, Dholka, Surat
Readymade Garments
>750,000 Power
Synthetic Textiles Surat, Mangrol
Looms & 400
Textile Processing Jetpur (District Rajkot)
Processing
Units in Surat
Upcoming Textile
Dahod
Cluster

10 Manufacturing Sports Apparel and Merchandise

Project Information

Project Site – SURAT (Gujarat)

AREA
462.2 Sq. Km.
Surat
2nd largest city of
Gujarat in terms of Area
and Population.

• Surat is renowned for its textile industry.

• It is known as the ‘Synthetic Capital of India’. It hosts over 65,000 power looms and
provides over 700,000 jobs.

• There are over 41,300 small and medium industries functioning in the district.
Nearly 24,000 units in small and medium enterprises are related to the textile industry.

• There are ~805 medium and large industries in Surat. It generates employment for
168,987 people in the district
• There are ! 500 texturizing and 400 processing houses

• Hajira and Magdalla Ports in the district provide logistical support to the industries for
their industrial operation.
o Magdalla port is only 2 km away from the state highway and 15 km away from NH-8
o Hajira port in Surat is close to the high-speed dual carriageway which is under
construction. The port is well connected with cities like Mumbai. Hajira is also known
as the ‘gateway port’ to serve the hinterlands of North, West and Central India as it
is situated in one of the most industrialized areas in the country

• The upgraded Surat airport is envisaged to offer direct air connectivity with important
destinations in India and abroad

11 Manufacturing Sports Apparel and Merchandise

Project Financials

Project Overview

Target product Sports Apparel

Capacity 100 sewing machines
Factory size 13,000 sq. ft.
Employment 200 employees
Factory working 8 hours a day, 26 days per month
Production 54,000 pieces per month
Project IRR 27%
Payback period 3.5 years

Project Cost Summary

Description Value (INR Cr)

Machinery 1.77
Miscellaneous Fixed Assets 0.91
Preliminary & Pre-operative Expenses 0.17
Contingency on capital items 0.11
Total 2.96

 The project necessitates a total space of 13,000 square feet, equivalent to 0.3 acres, with an
estimated production capacity of 54,000 apparel pieces per month
 The total cost of the project is estimated to be around USD 0.3 million (INR 2.96 Cr) which is in
line with project estimates of apparel manufacturing provided by Office of Development
Commissioner (MSME)

Machinery Requirements

Department Number of Machines Cost (INR Cr)

Sewing 126 1.02
Cutting 9 2.00
CAD 2 0.70
Embroidery 1 0.22
Washing 1 0.10
Finishing 20 0.12
Fabrics and Trims Section Equipment 4 0.04
Total 163 1.77

12 Manufacturing Sports Apparel and Merchandise

Approvals

Approvals For Sports Goods Manufacturing

Department to be approached and

S.No. Approvals/clearance required
1 Incorporation of company
2 Registration/Industrial license
3 Allotment of land
consulted
Registrar of companies
Secretariat if industrial assistance (SIA) for
large and medium scale industries
State industrial development corporation

No objection certificate (NOC)

4 under State pollution control board
air and water pollution control acts

5 Use and storage of explosives Chief controller of explosives

Code number for export and Regional office of director general of foreign
6
import trade
7 Consent to establish Forest & Environment Department
Certification of Electrical
8 Installation and PGVCL Electricity Energy and Petrochemicals Department
Connection
Urban Development & Urban Housing
9 NOC for Fire Department
Department
10 Building Plan Approval Industries & Mines Department
Tree Transit Permission and NOC
11 Revenue Department
for Tree Felling
Narmada, Water Resources, Water Supply
12 Water Connection
& Kalpsar Department

13 Registration for Factories License Labour & Employment Department

14 Consent to Operate Forest & Environment Department

15 Factory Plan Approval Labour & Employment Department
Labour & Employment Department
License for Contractors under
16
Provision of The Contracts Labour

17 Road Cutting Permission - R&B Road & Building Department

13 Manufacturing Sports Apparel and Merchandise

Incentives

Incentives For Sports Goods Manufacturing

S.No. Incentives Quantum of Assistance

For large Scale Industries

• Category 1
 General Sector: 10% of eligible Fixed Capital
Investment (FCI) (excluding land)
 Thrust Sector: 12% of FCI eligible (excluding land)
• Category 2
 General Sector: 8% of eligible FCI (excluding land)
 Thrust Sector: 10% of eligible FCI (excluding land)
• Category 3
 General Sector: 4% of eligible FCI (excluding land)
 Thrust Sector: 6% of eligible FCI (excluding land)
• The eligible capital subsidy will be given over a period
of 10 years from the Date of Commercial Production
in equal annual instalments subject to annual ceiling
of INR 40 crore
• If the total eligible capital subsidy is not disbursed
within period of 10 years due to upper ceiling of INR
40 crore per annum, for such unit the eligible period
will be extended further up to 10 years. The annual
Assistance of Capital ceiling will remain INR 40 crore per annum during
1
Investment Subsidy such extended period
• In case, if the total eligible capital subsidy is not
disbursable within period of 20 years due to upper
ceiling of INR 40 crore per annum, the total
entitlement of capital subsidy will be disbursed in
equal 20 yearly instalments without any upper ceiling
MSME Units
• Category 1: @25% of term loan amount up to INR 35
lakhs and additional INR 10 lakhs for investment INR
10 crore
• Category 2: @20% of term loan amount up to INR 30
lakhs and additional INR 7.5 lakhs for investment INR
10 crore
• Category 3: @10% of eligible term loan amount up to
INR 10 lakhs and additional INR 5 lakhs for
investment INR 10 crores
• 1% additional interest subsidy to differently abled
entrepreneur, SC/ST entrepreneur / Women
entrepreneur and registered startup in manufacturing
sector
14 Manufacturing Sports Apparel and Merchandise
Incentives

S.No. Incentives Quantum of Assistance

• 1% additional interest subsidy to young entrepreneur

below age of 35 years on the date of sanction of term
loan

• Category 1: Interest subsidy @7% of term loan

amount up to INR 35 lakhs p.a. for 7 years
• Category 2: Interest subsidy @6% of term loan
amount up to INR 30 lakhs p.a. for 6 years
• Category 3: Interest subsidy @5% of term loan
amount up to INR 25 lakhs p.a. for 5 years
Assistance for
2 • 1% additional interest subsidy to differently abled
Interest Subsidy
entrepreneur, SC/ST entrepreneur / Women
entrepreneur and registered startup in manufacturing
sector
• 1% additional interest subsidy to young entrepreneur
below the age of 35 years on the date of sanction of
term loan

Assistance for acquisition of appropriate technology from

Assistance for recognized institution for its product / process during the
3 Technology operative period of the scheme will be provided by way
Acquisition of 65% of the cost payable subject to a maximum of INR
50 lakhs, including royalty payment for first two years

Assistance of 75% of cost/expenditure incurred for any

Assistance for number of patent applications subject to maximum INR
4
Patent Registration 25 lakhs per applicant/Enterprise for obtaining Patent
registration

Exemption from
Eligible to obtain exemption from the payment of
5 payment of
electricity duty for a period of five years
Electricity Duty

• 75% cost of energy/water audit conducted by a

recognised institution/ consultant subject to maximum
INR 50,000/- for each will be reimbursed once during
Assistance for saving
the operative period of the scheme
6 in consumption of
• 25% cost of equipment recommended by the Auditing
Energy and Water
authority subject to maximum INR 20 lakhs one-time
assistance will be eligible during the operative period
of the scheme

15 Manufacturing Sports Apparel and Merchandise

Incentives

S.No. Incentives Quantum of Assistance

25% expenditure incurred on raising of fund through

Assistance for raising SME Exchange maximum to INR 5 lakhs one time after
7 Capital through SME successful raising of equity as per approved scheme by
Exchange SME Exchange during the operative period of the
scheme
• Government of India has introduced instruction to
financial institution to sanction Collateral-free loans up
to INR 2 crore by charging additional fee on such
loans
• Annual Service fees: 1st Year - 1.8% + Risk Premium
Assistance for
2nd Year onwards - 0.85% or as amended by
8 reimbursement of
CGTMSE (Credit Guarantee Fund Trust for Micro and
CGTMSE fees
Small Enterprises) Trust/RBI from time to time
• Assistance as reimbursement @ 100% annual
Service fees paid to Bank/Financial Institution by
entrepreneur for availing of collateral-free term loan
under CGTMSE, for the period of five years.
Assistance for Power Assistance @ 35% of charges paid for LT/HT service
9
Connection charges line, maximum limit up to INR 5 lakhs
The assistance @ 65% of rent paid by the enterprise
10 Assistance in Rent with maximum limit of INR 1,00,000/- (one lakh) Per
Annum
Assistance in Assistance of 65% of the capital expenditure related to
implementation of ICT facilities, maximum up to INR 5,00,000
11 Information and
Communication
Technology (ICT)
• State Level Exhibition – Assistance @75%, maximum
up to INR 50,000
• National Level Exhibition – Assistance @75%,
Assistance in
maximum up to INR 1 lakh
participation in
12 • International Level Exhibition (Inside India) –
Exhibitions (National
Assistance @75%, maximum up to INR 2 lakhs
and International)
• International Exhibition (outside India) - Assistance to
MSMEs to attend National & International Exhibitions
for 60% of stall rent up to INR 5 lakhs
Assistance in • Assistance to organisers – Assistance @60% of bill of
participation in electricity consumption during the exhibition and pre-
13
Exhibitions (in preparation period of the exhibition
Gujarat)

16 Manufacturing Sports Apparel and Merchandise

Incentives

S.No. Incentives Quantum of Assistance

Assistance in
implementation of
Assistance of 65% of the capital expenditure related to
13 Information and
ICT facilities, maximum up to INR 5,00,000
Communication
Technology (ICT)
Implementation of cleaner production technology in
place of existing process
• Up to 35% of the cost of plant and machinery with a
ceiling of INR 35 lakhs
• Up to 10% of the cost of plant and machinery with a
Assistance for ceiling of INR 35 lakhs for large projects
14 Environment Any other environment management project with use of
Management clean, efficient and innovative pollution control
equipment
• Up to 25% of the cost of plant and machinery with a
ceiling of INR 35 lakhs
• Up to 10% of the cost of plant and machinery with a
ceiling of INR 35 lakhs for large projects
• Up to 75% of fees of audit service with a ceiling of
INR 50,000 per audit, whichever is less
• Up to 25% of the cost of plant and machinery with a
ceiling of INR 35 lakhs
• Up to 10% of the cost of plant and machinery with a
ceiling of INR 35 lakhs for large projects
• Up to 25% of cost of system (Online Continuous Stack
Emission Monitoring system) of INR 5 lakhs,
whichever is less
• Industrial building of more than 2,000 sqm built-up
area which obtained green rating under IGBC/LEED
Assistance to
or GRIHA : Up to 50% of consulting charges or INR
Encourage “Green
15 2.5 lakhs, whichever is less
Practices and
• Up to 50% of cost of Equipment (Environment
Environmental Audit
Management System including setting up of
Environment Management Laboratory), ceiling of INR
10 lakhs
• Up to 35% of cost of equipment/system (Purchase of
new equipment/system related to safety, occupational
health or for environment compliances) with a ceiling
of INR 35 lakhs per cluster
• Up to 50% one-time capital subsidy on relevant
equipment/system or INR 75 lakhs, whichever is less
for Industries practicing at least 50% wastewater
recovery through zero liquid discharge
17 Manufacturing Sports Apparel and Merchandise
Incentives

S.No. Incentives Quantum of Assistance

Assistance up to 40% of eligible fixed capital investment

Financial Assistance in the project for Common Effluent Treatment Plant,
for Common Waste Management System, upgradation of existing
16
Environmental CETPs, common spray dryer, common multiple effect
Infrastructure Facilities evaporator etc. up to INR 50 crore

100% of course fees, maximum up to INR 10,000 per

trainee for a one week or for more duration of skill
upgradation for MSMEs in a training programme
Skill Development
17 conducted in institutions recommended by an Anchor
Support to MSMEs
Institute or as per existing provision in force in MES /
NCVT / GCVT / Sector Skill Council etc. in specific
sector
Financial assistance shall be given for per training
programme per candidate as under:
Assistance for Tuition • INR up to 15000/- for 121 hours and above training
18 fees for Enhancement duration
of Skill • INR up to 10,000/- for 61 to 120 hours training
duration
• Up to INR 5,000/- for 40 to 60 hours training duration

The enterprise will be eligible for subsidy @ 50% of all

Financial support for charges on the amount after deducting the assistance
19 received from Government of India for ZED Certification,
ZED certification
up to a maximum amount of INR 50,000

• For institutions/companies
Assistance to establish Eligible institutions can avail assistance of up to 30% of
20 R&D/Product the project cost of machinery and equipment maximum
Development Centre up to INR 5 crore for setting up Research & Product
Development centre in the state

• For institutions/companies
Assistance for Contract/Sponsored research work from
Assistance for
any industrial enterprise/Industrial association to
21 Contract/Sponsored
recognized R&D institution / technical colleges approved
Research Work by AICTE, at 50% of project cost, excluding cost of land
and building, subject to maximum INR 50 lakhs

18 Manufacturing Sports Apparel and Merchandise

Notes

19 Manufacturing Sports Apparel and Merchandise

 Sports Youth and Cultural Activities Department, Government of Gujarat

https://sycd.gujarat.gov.in/index.htm

Sports Authority of Gujarat

https://sportsauthority.gujarat.gov.in/

Industries and Mines department - Gujarat

https://imd.gujarat.gov.in/

Gujarat Industrial Development Corporation

https://gidc.gujarat.gov.in/

This project profile is constructed based on an initial analysis with the intention of offering prospective entrepreneurs an
initial assessment of the potential scope. However, it is strongly advised that a comprehensive feasibility study be
carried out prior to making a final investment decision.

For further details, please contact:

Sports, Youth & Cultural Activities Department,

Block No. 18, Floor, Udyog Bhavan,
2nd Government of Gujarat
Sector 11, Gandhinagar 382 010 2nd Block, 8th Floor, Sachivalaya,
Gandhinagar 382 010
+91-79-2325 6009, 2325 0492 / 93 +91-79-23251371
indextb@indextb.com secsyc@gujarat.gov.in
www.indextb.com https://sycd.gujarat.gov.in