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Setting up of Hosiery & Knitwear Processing Facility PDF Free Download

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Textile Sector
Government of Gujarat
Hosiery & Knitwear
Processing Facility
Setting up of
Contents
Project Concept
3
Market Potential
4
Growth Drivers
6
Gujarat
–Competitive Advantage
7
Project Information
11
- Project Location
- Utilities
- Understanding Processes
- Manpower
- Raw materials
- Machinery Suppliers
Project Financials
17
Approvals & Incentives
18
Key Department
Contacts
22
3
Project Concept
Introduction
Panipat fabric)
Tirupur
Surat
Kolkata
Kanpur
Ludhiana
►Once restricted to the hosiery/knitwear-hubs of
Tirupur and Ludhiana, the knitwear industry now
has several big and small units in places such as
Surat, Kanpur, Panipat, Kolkata etc.
►Domestic hosiery/knitwear players are innovating
and upgrading their production facilities –so as to
become competitive and sustain themselves amidst
local and global competition
►The focus of the Indian hosiery/knitwear industry is
now on non-cotton based fabrics such as viscose,
polyester, polymate –a shift from predominant
products catering only for the summer-spring
market
Hosiery & Knitwear Processing
►This project profile entails setting up a facility for processing of the hosiery/ Knitwear fabric. The
processing of fabric involves bleaching, dyeing, drying, etc. Further, value addition in processing may
include printing, cutting, stitching, embroidery, etc.
►The segment is very unorganized in nature and dominated by a large number of independent, small-
scale enterprises. These units can be broadly divided into following three segments which are Hi-
Tech Processing facilities attached to composite textile mills, Medium to Advanced power processing
facility by Non-SSI independent units, Small scale hand operated / motor operated primitive
technology low technology machines
►Grey fabric bleaching is generally carried out to impart whiteness by removing natural colouring
matter. The process of dyeing is carried out to improve the marketability of textile products and also
to suit the customer needs by adding colour. These two processes are generally carried out in open
tank, kier machines, jet dyeing machines, jiggers, soft flow dyeing machines etc. For hosiery goods,
it is carried out with winch machines, since it imparts very less tension during operation.
►To impart the required end use, finishing is the final process gives to the finished fabric and lastly the
printing process on fabric which is a science as well as an art. Textile auxiliaries such as chemicals
are used for all stages of the textile manufacturing process that is from pre-treatment to dyeing and
printing and finishing.
►Current trends of knotted readymade Garments increases the market potential for such project.
Leading buyers of processed fabrics are garment manufacturing units. Hence, processed fabrics
should be accordingly processed based on the need of the buyer.
4
Market Potential
Global Market for Hosiery
•The global hosiery market was valued at $40.5 Bn in 2022, and is projected to reach $62.4
Bn by 2032, growing at a CAGR of 4.5% from 2023 to 2032.
0
20
40
60
80
Till 2022 From 2023-2032
40.5
62.4
Market Size in US Bn $
https://www.alliedmarketresearch.com/hosiery-market
Global Market for Knitwear
0
20
40
60
80
100
120
140
160
2022 2029
105.45
156.8
•The global Knitwear market
was valued at $105.4 Bn in
2022, and is projected to
reach $156.8 Bn by 2029,
growing at a CAGR of
5.83% from 2022 to 2029
https://www.maximizemarketresearch.com/market-report/global-knitwear-
market/19993/#:~:text=Knitwear%20Market%3A%20Global%20Industry%20A
nalysis%20and%20Forecast%20(2023%2D2029),-
Knitwear%20Market%3A%20Global&text=Knitwear%20Market%20size%20was
%20valued,through%20out%20the%20forecast%20period.
5
Market Potential
Indian Market Scenario for Hosiery/Knitwear
•Knitwear players are innovating and upgrading their production facilities –so as to
become competitive and sustain themselves amidst local and global competition
•The focus of the Indian hosiery/knitwear industry is now on non-cotton based fabrics
such as viscose, polyester, polymate –a shift from predominant products catering only
for the summer- spring market.
•Export market for India’s knitwear is showing positive signs of growth. It is steadily
emerging as one of the fastest growing export segments. Textile accounts for 30% of the
total exports of the country, and knitwear comprises 45% of it; volume wise.
Knitwear
Hosiery
•The Indian hosiery market is a thriving segment of the textile industry, driven by the
popularity of comfortable and affordable products such as socks, stockings, and
undergarments.
•The India Hosiery market is growing at the CAGR rate of ~12% during the forecast years
2022-2028.
2017 2022 2028
CAGR:12%
https://www.kenresearch.com/industry-reports/india-hosiery-market
https://www.linkedin.com/pulse/knitwear-market-2023-share-growth-
analysis-report/?published=t
Growth Drivers
6
Large Consumer Base
India's substantial population provides a vast consumer
market for hosiery and knitwear products, offering
significant demand and growth potential.
Rising Disposable Income
The increasing disposable income of the middle class
enables higher spending on clothing, including a
preference for quality hosiery and knitwear items.
Government Initiatives
Supportive government policies, incentives, and
initiatives, such as "Make in India," aim to boost
manufacturing sectors, attracting investments and
facilitating business growth.
Export Opportunities
India's reputation as a textile exporter creates
opportunities for hosiery and knitwear manufacturers to
tap into international markets, benefiting from global
demand.
Technological Advancements
Adoption of modern technologies and machinery
enhances efficiency and quality, making the
manufacturing process more competitive and attractive
for investors.
Gujarat - Competitive
Advantage
7
Gujarat overview
6% of India’s
geographical area
And 5% of India’s
population
►9% of India’s GDP: GSDP at
current price ~US$ 269 Bn
►35% share of manufacturing
sector in State’s GDP
►18% of India’s industrial
output
►30% share in India’s total
exports
►40% cargo of the entire country
is handled by Gujarat Ports
►Huge base of MSMEs
(~830,000)
Gujarat has strong presence of industries such as Chemicals & Petrochem,
Textiles, Pharmaceuticals, Automobiles, Gems & Jewellery, Ceramics, etc.
Industrial Production Data
Gujarat enjoys the status of industrially
developed state of India with its 18.14% share to
Country’s industrial output, the largest among
the states of India in the year 2019-20.The Net
Value Added (NVA) has increased from ₹8,944.8
billion in 2010-11 to ₹1,902.57 billion in 2019-
20.As per Annual Survey of Industries, the
number of factories has increased from 26,842
in the year 2018-19 to 28,479 in the year 2019-
20, showing a growth of 6.10% over the previous
year.
Source: CEIC; https://gujecostat.gujarat.gov.in/
177 197 212 213 250
2586 2807 2868 2880 3171
0
1000
2000
3000
4000
0
100
200
300
400
Value (US$)
Value (₹Thousands)
Year
Per Capita Income
Value (INR Thousands) Value (USD)
60
61
62
63
63
64
65
66
67
68
69
54
56
58
60
62
64
66
68
70
Population (Millions)
Year
Population
Macroeconomic trend
Gujarat - Competitive
Advantage
8
Gujarat has emerged as one of the top states in India with excellent infrastructure for
technical education. The state currently has 350+ engineering colleges, 41 polytechnics and
770+ Industrial Training Institutes (ITI) inculcating quality education. The government
through its Gujarat Skill Development Mission is also providing training courses to the youth
and making them industry ready.
Talent pool
11
Institutes of
National
Importance
116
Graduate &
60
Post Graduate
Colleges
33,000+
Trained
technical
professionals
annually
113
diploma courses
41,000+
Trained Diploma
professionals
annually
Key advantages
Ease of doing business
1st Rank in Logistics Performance Index (LEADS Index) in 2018, 2019,
2021 & 2022
1st Rank in NITI Aayog’s Export Preparedness Index of states – 2020 &
2021
1st Rank in Good Governance Index (GGI) in 2021
Ranked among the top achiever state in ‘Ease of Doing Business’ ranking
2020
National Start-Up Rankings in 2021 (Start-Up Megastars), 2019 and
2018
Top performer by labour force participation rate and minimum man-days
lost due to labour unrest
Ranked among the top achievers in ‘Ease of Doing Business’ ranking
2020
Infrastructure & connectivity
Gujarat - Competitive
Advantage
9
Longest coastline
1,600 km
48 seaports
5,300 km
Railway
network
19 Airports
(including
2 intnl. airports)
Upcoming airport at
Dholera SIR
75,000+ km of road
network
7,873 km of national
highways
Power surplus State
48 GW total capacity
44% from renewables
Statewide water
network
62,778 km Narmada
Canal
120.000 km
distribution
1st statewide
extensive
piped natural gas
grid - 3,370 km
network
Ahmedabad-Mumbai
semi-highspeed rail
Bullet train
(upcoming)
Delhi-Mumbai
Industrial corridor -
DMIC covering 23/33
districts
239 GIDC
Industrial estates
with
Plug & play facility
1st Global
Business District
–GIFT City
1st Platinum rated
Green industrial city
- Dholera Semicon
City
Existing Ecosystem for Hosiery and Knitwear
10
10
Gujarat - Competitive
Advantage
•Understanding the existing ecosystem players in Gujarat's hosiery and knitwear sector is
crucial for those looking to establish manufacturing units. This knowledge facilitates
efficient supply chain collaboration by aiding in the sourcing of raw materials and access to
skilled labor.
•Furthermore, the listed manufacturers provide essential market insights and networking
opportunities. This empowers newcomers to navigate the local industry, gather intelligence,
and form advantageous partnerships to successfully establish and expand their
manufacturing units.
•Gujarat has presence of leading textile research and skill development institutes such as
Manmade Textile Research Association (MANTRA) Ahmedabad Textile Research Association
(ATIRA), National Institute of Design (NID), National Institute of
Manufacturers Location
Arvind Knits Kalol (Gujarat)
Duel Tex Surat
JM Knitwear Navsari
Ginza Industries Surat
Creative Mobus Fabrics Vapi
Best Knitting Mills Sarigam
Amarjit Singh & Co., Kadi (Gujarat)
Project Information
11
Location: Mega Textile Park: Vansi, Navsari
Porbandar
Dedicated Freight
Corridor (DFC)
To Bombay
To Delhi
Mundra
Kandla
Pipavav
Hazira
Gandhinagar
Ahmedabad
Vadodara
Surat
Navsari
State Highway
National Highway
300 mt
30 km
Railway Station
Navsari
30 km
Airport
Surat
55 km
Container Freight
Station - Hazira
71 km
Inland Container
Depot - Sachin
40 km
Dedicated Frieght
Corridor- Sachin
40 km
Area of Park:
1142 Acres
Project Information
12
Plug & Play Utilities in PM MITRA Park
►65 MLD water be supplied as potable
water
►Ground Level Storage Reservoir with
capacity of 75 lakh liter and Elevated
Level Storage Reservoir with capacity of
75 lac litre is proposed
►Common facilities like office complex,
commercial complex, ITI and skill
development center, Exhibition/
conventional center, Testing and
Research labs, hotel complex and
firefighting systems are proposed to
develop as common facilities.
►The estimated aggregate power demand
is 223 MW.
►Dakshin Gujarat Vij Company Limited
(DGVCL) is responsible for distribution
and bulk supply of power to the park.
►Warehouses shall be developed for storing
raw materials and finished goods of the
park.It is planned to develop the
warehouses over an area of about 8.52
acres
►Additionally, commercial parking facility
is proposed to be developed in 17 acres.
►Common Effluent Treatment Plant (CEPT)
with 60 MLD with deep sea discharge
facility to be developed in the park.
►A common steam generation facility is
proposed with usage of four 60 TPH
boilers.
Project Information
13
Fabric Processing and Knitted T-shirt making Process
Project Information
14
Manpower
•In Gujarat, a substantial pool of skilled weavers and artisans serves as the backbone of the
textile and apparel (T&A) sector, contributing to the production of high-quality textiles and
impeccable craftsmanship.
•The establishment of a hosiery and knitwear manufacturing unit in Gujarat requires
recruiting skilled personnel adept at operating knitting machines, understanding yarn
characteristics, and possessing expertise in garment assembly and quality control.
Availability of skilled Manpower
Gandhinagar
Ahmedabad
Rajkot
Bhavnagar
Vadodara
Surat
Manpower requirement in the proposed Hosiery/knitwear manufacturing unit
Profile Positions
Manager 1
Accountant 1
Computer operator 1
Clerk/ Typist 1
Peon Watchman 1
Dyeing master 1
Skilled labour 10
Semiskilled labour 8
Lab attendant 1
Boiler attendant 1
Electrician 1
Total 27
Project Information
15
Raw Material/Suppliers
Raw Material Requirement
The production of hosiery and knitwear involves the utilization of specific raw materials essential
for the processing stages. The primary raw material is yarn, typically made from various fibers
such as cotton, wool, synthetic fibers like polyester, and blends of these materials.
Caustic Soda
Hydrochloric
acid
Sulphuric
acid
Soda Ash
Glabour’s
Salt
Acetic
acid
Sodium Silicate
Common
Salt
Dye
fixing agent
Hydrogen peroxide
Optical
Whitening agent
Dyes
of different shades
Lisopal
Bleaching
Powder
Suppliers
Name Location
Dytex Industries Vatva, Ahmedabad
Monarch Dyes & Chemicals
Vatva, Ahmedabad
Hariram Industries Vapi
Aditya Exports Vapii
Colourtex group of companies Surat
Vayla agency Surat
Chemixco Trade Links Surat
The production of hosiery and knitwear involves the utilization of specific raw materials essential
for the processing stages. The primary raw material is yarn, typically made from various fibers
such as cotton, wool, synthetic fibers like polyester, and blends of these materials.
Gujarat is home to some of the leading Indian dyestuff and textile processing chemical based raw
materials. Bharuch, Dahej, Ankleshwar, Vapi and Ahmedabad’s Vatva are some of the existing hubs
having manufacturing base of these raw materials.
Project Information
Machinery and Suppliers
Machinery
SS winch machine
Baby
boiler
Spectrometer
Steam callendering
Testing
equipments
Fabric dyeing
vessels
Hydro-extractor
Computer
colour matching
Stentering
devices
Cylinder drier, tumble drier
Squeezing
mangle
Raising
machine
Wooden conveyor
Air
turning machine
Shearing
machine
Automatic Weft Straightener
and Open-width compaction
Indigenous
flat-bed screen
printing, foil
-transfer and
crushing machines
Automatic
fabric slitting,
squeezing, bio
-wash fluff
removing and impregnating
line
Suppliers of Machinery
Name Location
Prabhat Textile Corporation Ahmedabad
A.T.E. Enterprise Ahmedabad
Voltas Limited Mumbai
Bharat Machinery Works Ludhiana
Dyeing Machinery Works Ludhiana
Paradise Engineering Corp. Ludhiana
Dynamic Engineering Corp. New Delhi
Data Colour New Delhi
Vetech Equipment Ludhiana
17
Cost of setting up Hosiery/Knitwear Processing facility
►This project is based on single shift basis with 300 working days in a year. Time
period for achieving maximum capacity utilization is considered from 3rd year
from the date on which production is started.
►Cost of installation and electrification is taken @ 10% of cost of machinery and
equipment.
►Non-refundable deposits, project report cost, trial production, security deposit
with Electricity Board are classified under pre-operative expenses.
Project Financials
PROJECT COST
Project components & specifications Cost (₹Mn.)
Land and building
(built up area of 1000 sq. meters) 2.50
Plant and machinery 6.70
Other assets
(Furniture, fixtures and storage facilities) 0.20
Contingencies 0.40
Procurement and Production expense 0.25
Margin money for working capital 2.20
Total Project cost 12.25
Approvals & Incentives
18
Aatmanirbhar Gujarat Schemes 2022 (for Assistance to Industries)
Gujarat, as India's most industrialized state, plays a pivotal role in national manufacturing.
With a robust business ecosystem and government support, Gujarat attracts significant
investments. To align with the vision of Aatmanirbhar Bharat, the state focuses on
Aatmanirbhar Gujarat, emphasizing incremental industry support, green practices, and
decarbonization. The Aatmanirbhar Gujarat Schemes provide incentives to industries,
fostering entrepreneurship, innovation, and job creation. A key thrust is on Technical Textiles,
aiming to set global manufacturing benchmarks.
Aatmanirbhar Gujarat Scheme for assistance to MSMEs
Assistance of Capital Investment Subsidy to Micro enterprises
Category of taluka
Quantum of incentive
Category 1 (undeveloped)
25% of term loan amount up to
₹35 lakhs.
Category 2 (developing)
20% of term loan amount up to
₹30 lakhs.
Category 3 (developed)
10% of term loan amount up to
₹10 lakhs.
Assistance for Interest Subsidy to Micro, Small and Medium Enterprises in manufacturing sector
Category of taluka
Quantum of incentive
Category 1 (undeveloped)
Interest subsidy @7% on Term Loan with the maximum amount of
₹35 lakhs per
annum for a period of 7 years
Category 2 (developing)
Interest subsidy @6% on Term Loan with the maximum amount of
₹30 lakhs per
annum for a period of 6 years
Category 3 (developed)
Interest subsidy @5% on Term Loan with the maximum amount of
₹25 lakhs per
annum for a period of 5 years
Net SGST reimbursement to Micro, Small and Medium Enterprise (MSMEs)
Category of taluka
Quantum of incentive
Category 1 (undeveloped)
100% of net SGST for 10 years up to 7.5% of
eFCI p.a.
Category 2 (developing)
90% of net SGST for 10 years up to 6.5% of
eFCI p.a.
Category 3 (developed)
80% of net SGST for 10 years up to 5% of
eFCI p.a.
Approvals & Incentives
19
Aatmanirbhar Gujarat Scheme for assistance to Large Industries
and Thrust Sector
Assistance of Interest Subsidy
Category of
taluka General Sector Thrust Sector
Category 1
(undeveloped)
Interest subsidy @ 7% on Term Loan for 10
years up to 1% of eFCI p.a.
Interest subsidy @ 7% on Term Loan for 10 years up
to 1.2% of eFCI p.a.
Category 2
(developing)
Interest subsidy @ 7% on Term Loan for 8
years up to 1% of eFCI p.a.
Interest subsidy @ 7% on Term Loan for 10 years up
to 1% of eFCI p.a.
Category 3
(Developed)
Interest subsidy @ 7% on Term Loan for 6
years up to 1% of eFCI p.a.
Interest subsidy @ 7% on Term Loan for 8 years up
to 1% of eFCI p.a.
Net SGST reimbursement
Category of
taluka General Sector Thrust Sector
Category 1
(undeveloped)
100% of net SGST for 10 years up to 7.5% of
eFCI p.a.
100% of net SGST for 10 years up to 8% of
eFCI
p.a.
Category 2
(developing)
90% of net SGST for 10 years up to 6.5% of
eFCI p.a.
90% of net SGST for 10 years up to 7% of
eFCI
p.a.
Category 3
(Developed)
80% of net SGST for 10 years up to 5% of
eFCI p.a.
80% of net SGST for 10 years up to 5.5% of eFCI
p.a.
Source:- https://cmogujarat.gov.in/wp-content/uploads/2022/10/AatmaNirbhar-Gujarat_Industrial-Policy.pdf
Approvals & Incentives
20
Aatmanirbhar Gujarat Scheme for assistance to Mega Industries
Assistance
of Interest Subsidy
to
Mega
Industrial Units
Interest
subsidy will be eligible at @7% on Term Loan subject to
maximum
of
1.2% of Eligible Fixed Capital Investment p.a for 10 years.
In
any case, the Mega industrial unit shall have to bear a minimum 2
%
interest
levied on term loan by the financial institution.
Net
SGST reimbursement to
Mega
Industrial
Units
The
eligible projects will be eligible for reimbursement of net SGST at 100
%
of
net SGST subject to maximum 0.9% of eFCI p.a. for 20 years.
The
eligible period of 20 years shall be from the date of commencement
of
commercial
production.
Reimbursement
of SGST on
capital
goods
Eligible
Mega industrial units will be eligible for 100% reimbursement
of
Input
SGST paid on capital goods to the extent input tax credit is
admissible
under
Gujarat GST Act 2017.
The
reimbursement shall be provided in twenty equal annual instalments.
Approvals & Incentives
21
List of Approvals
S N Nature of Compliances Responsible Agency Timeline (days)
1 Registration for Factory license Labour and Employment Dept. 90 Days
2 Land Allotment GIDC 90 Days
3Permission for Bonafide
Industrial purpose 65B Revenue Dept. 90 Days
4 NOC for tree felling Forest & Env Dept. and
Revenue Dept. 60 Days
5 Building plan approval-UDD UDD 30 Days
6 NOC for fire dept. UDD 07 Days
7
Certification of Electrical
installation by Chief Electrical
Inspector
Energy And Petrochemicals
Department 30 Days
8Registration under shops &
Establishment act UDD 01 Day
9
Registration of principal
employers estb. under provision
of the contract labour
Labour and Employment
Department 30 Days
10
License for contractors under
provision of The Contracts
Labour
Labour and Employment
Department 30 Days
11 Factory Plan Approval Labour and Employment
Department 90 Days
12 Renewal of license under
factories act
Labour and Employment
Department 90 Days
13 Regt. For Profession tax Commissionerate of
Commercial Tax 01 Day
14 Building and Other Construction
Workers (BOCW)
Labour and Employment
Department. 15 Days
15 CTE / CTO GPCB 120 Days
Source: https://ifp.gujarat.gov.in/
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess
a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before
taking a final investment decision.
Ministry of Textiles
https://texmin.nic.in/
Office of the Textile Commissioner
https://txcindia.gov.in/
Industries & Mines Department
https://imd.gujarat.gov.in/
Industrial Extension Bureu
https://indextb.com/
Office of Industries Commissioner
https://ic.gujarat.gov.in
GIDC
https://gidc.gujarat.gov.in
NIFT, Gandhinagar
https://nift.ac.in/gandhinagar/
Investor Facilitation Portal
https://ifp.gujarat.gov.in/
22
Key Department Contacts
Relevant departments and useful links
Office of The Industries Commissionerate Block No. 1, 2nd
Floor, Udyog Bhavan, Gandhinagar 382 010. Gujarat. INDIA
Ph. : 23252683/23252617
Block No.18, 2nd Floor, Udyog Bhawan
GH-4, Sector 11, Gandhinagar - 382010
Gujarat, INDIA
+91-79-23256009, 23250492/93
+91-79-23250490
indextb@indextb.com
www.indextb.com
Contact Information:
Office of The Industries Commissionerate-
Address: Block No. 1, 2nd Floor, Udyog
Bhavan, Gandhinagar 382 010, Gujarat, INDIA
Phone: 23252683 / 23252617
Email: iccord@gujarat.gov.in