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Textiles: Project Opportunities in Gujarat

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Saturday, March 3, 2012

PROFILE:

The textile industry is primarily concerned with the production of yarn, and cloth and the subsequent design or manufacture of clothing and their distribution. The raw material may be natural or synthetic using products of the chemical industry. India Textile Industry is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world.

 

 

 

RESOURCES:

Gujarat is one of the leading industrial states in India and textile industry in particular had contributed in a big way to the industrialisation of the State. In fact, development of many industries likes, Dyestuff, Chemicals, Engineering/Foundry and Cotton farming is solely dependent on this sector. The State is well known for development of Hybrid Cotton, Ginning, power looms, composite mills, spinning units and independent processing Houses. Gujarat being the largest producer of cotton, has obtained tremendous opportunities towards higher and higher value addition product by setting up Modern Process Houses (with the technology of low polluting and less energy costs) in one hand and Knitwear/Ready-made Garments in a big way on the other to fulfil the domestic and international market. Investment opportunities may be, therefore, explored for Cotton Ring Spinning (25,000 spindles), Open End Spinning (1000 rotors), Modern Process House, Shuttleless Weaving (50 looms), Ready-made garments unit and Non-woven and Technical Textile unit with appropriate technology.Bandhani or Bandhej of Gujarat is one of the best tie and dye fabrics in India.Dhamadka and Ajrakh, Mashru are some of the other fabrics of Gujarat. Dhamadka is the art of printing fabrics with wooden blocks. Mashru is a mixed fabric, woven with a combination of cotton and silk. It was originally used by Muslim men, as they were prohibited from wearing pure silk.

 

GOVERNMENT POLICIES:

The Gujarat government is planning to come up with a policy to boost the textile and apparel industry in the state and help it remain competitive in the post-quota regime of the World Trade Organisation. Gujarat’s textile policy provides incentives that are more favourable for large textile units. It provides 25% capital subsidy on purchase of machineries. Custom duty on textile machinery is only 5%. Also, various human resource development activities for the textile industry have been initiated by state government. Subsidy at 50% of R&D expenditure is provided to industries carrying out research. Interest subsidy at 3% is provided for capital equipment for five years. Assistance is also provided for infrastructural development, market promotion and environment protection. Gujarat is also the largest producer and exporter of cotton, the production of which has been increasing over time. So raw material is plentiful. It is the largest producer of denim. Surat is a strong base for synthetic fibers and provides a big market.

 

 

OPPORTUNITIES FOR ENTREPRENEURS:

Gujarat has a large flourishing textile industry which contributes to the arts and crafts of India. Following are some of the identified projects in textile industry:

·       Pigment Binders for Textile Printing

·       Cotton Ginning and Pressing

·       Textile Dyeing & Printing mill

·       Sewing Thread Reels

·       Textile Weaving Mill

·       Cotton Yarn Dyeing

http://www.niir.org/profiles/profiles//z,,75,0,a/index.html

·       Jeans, Cotton Casuals & Shirts

·       Cotton Buds / Swabs

·       Carding Cloth

http://www.niir.org/profiles/profiles/z,,1b,0,a/index.html

Niir Project Consultancy Services (NPCS) provides you detailed project reports (DPR) on the above fields. Each detailed project reports cover all the aspects of business, from analysing the market, confirming availability of various necessities such as plant & machinery, raw materials to forecasting the financial requirements. The scope of the report includes assessing market potential, negotiating with collaborators, investment decision making, corporate diversification planning etc. in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the cash flow statement, projecting the balance sheet etc.

We also offer self-contained Pre-Investment and Pre-Feasibility Studies, Market Surveys and Studies, Preparation of Techno-Economic Feasibility Reports, Identification and Selection of Plant and Machinery, Manufacturing Process and or Equipment required, General Guidance, Technical and Commercial Counselling for setting up new industrial projects on the following topics.

Many of the engineers, project consultant & industrial consultancy firms in India and worldwide use our project reports as one of the input in doing their analysis.

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 NIIR Project Consultancy Services (NPCS)

106-E, Kamla Nagar, New Delhi-110007, India

Email: npcs.india@Gmail.com

Tel: +91-11-23843955, 23845654, 23845886

Mobile: +91-9811043595

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Source: NPCS Team

ABOUT NPCS

NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

Our various services are: Detailed Project Report, Business Plan for Manufacturing Plant, Start-up Ideas, Business Ideas for Entrepreneurs, Start up Business Opportunities, entrepreneurship projects, Successful Business Plan, Industry Trends, Market Research, Manufacturing Process, Machinery, Raw Materials, project report, Cost and Revenue, Pre-feasibility study for Profitable Manufacturing Business, Project Identification, Project Feasibility and Market Study, Identification of Profitable Industrial Project Opportunities, Business Opportunities, Investment Opportunities for Most Profitable Business in India, Manufacturing Business Ideas, Preparation of Project Profile, Pre-Investment and Pre-Feasibility Study, Market Research Study, Preparation of Techno-Economic Feasibility Report, Identification and Section of Plant, Process, Equipment, General Guidance, Startup Help, Technical and Commercial Counseling for setting up new industrial project and Most Profitable Small Scale Business.

NPCS also publishes varies process technology, technical, reference, self employment and startup books, directory, business and industry database, bankable detailed project report, market research report on various industries, small scale industry and profit making business. Besides being used by manufacturers, industrialists and entrepreneurs, our publications are also used by professionals including project engineers, information services bureau, consultants and project consultancy firms as one of the input in their research.

Our Detailed Project report aims at providing all the critical data required by any entrepreneur vying to venture into Project. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line.

And before diversifying/venturing into any product, wish to study the following aspects of the identified product:
  • Good Present/Future Demand
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We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.

Reasons for buying the report:
  • This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.
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  • The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decision.
The report contains all the data which will help an entrepreneur find answers to questions like:
  • Why I should invest in this project?
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  • What are the costs involved?
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The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product. The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction
  • Project Introduction
  • Project Objective and Strategy
  • Concise History of the Product
  • Properties
  • BIS (Bureau of Indian Standards) Provision & Specification
  • Uses & Applications
Market Study and Assessment
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Raw Material
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Personnel (Manpower) Requirements
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Plant and Machinery
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  • Miscellaneous Items
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Manufacturing Process and Formulations
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Infrastructure and Utilities
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Project at a Glance

Assumptions for Profitability workings
Plant Economics
Production Schedule
Land & Building
  • Factory Land & Building
  • Site Development Expenses
Plant & Machinery
  • Indigenous Machineries
  • Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets
  • Furniture & Fixtures
  • Pre-operative and Preliminary Expenses
  • Technical Knowhow
  • Provision of Contingencies
Working Capital Requirement Per Month
  • Raw Material
  • Packing Material
  • Lab & ETP Chemical Cost
  • Consumable Store
Overheads Required Per Month And Per Annum
  • Utilities & Overheads (Power, Water and Fuel Expenses etc.)
  • Royalty and Other Charges
  • Selling and Distribution Expenses
Salary and Wages
Turnover Per Annum
Share Capital
  • Equity Capital
  • Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals
  • Revenue/Income/Realisation
  • Expenses/Cost of Products/Services/Items
  • Gross Profit
  • Financial Charges
  • Total Cost of Sales
  • Net Profit After Taxes
  • Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements
  • Current Assets
  • Gross Working. Capital
  • Current Liabilities
  • Net Working Capital
  • Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets
  • ROI (Average of Fixed Assets)
  • RONW (Average of Share Capital)
  • ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios
  • D.S.C.R
  • Earnings Per Share (EPS)
  • Debt Equity Ratio
Annexure 7 :: Break-Even Analysis
  • Variable Cost & Expenses
  • Semi-Var./Semi-Fixed Exp.
  • Profit Volume Ratio (PVR)
  • Fixed Expenses / Cost
  • B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume
  • Resultant N.P.B.T
  • Resultant D.S.C.R
  • Resultant PV Ratio
  • Resultant DER
  • Resultant ROI
  • Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status
  • Equity Capital
  • Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks
  • Determined Capacity P.A of Products/Services
  • Achievable Efficiency/Yield % of Products/Services/Items
  • Net Usable Load/Capacity of Products/Services/Items
  • Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation
Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit
Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,
Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit
Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses
Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges
Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses
Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses
Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)
Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)
Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits
Annexure 35 ::Projected Pay-Back Period And IRR