PROJECT REPORT
2021
Garment Manufacturing
Prepared By:
Ashok Kr. Verma
Joint Director
Office of Development Commissioner
(MSME)
A – Wing, Nirman Bhavan, New Delhi
1
Contents
1. GARMENT MARKET OVERVIEW ....................................................................................... 3
GLOBAL GARMENT MARKET ............................................................................................................................................. 3
INDIAN GARMENT MARKET .............................................................................................................................................. 4
Domestic Market Size............................................................................................................................................ 4
India’s Garment Exports ........................................................................................................................................ 5
India’s Garment Imports ....................................................................................................................................... 6
2. GARMENT MANUFACTURING OVERVIEW ........................................................................ 7
TYPES OF GARMENTS ...................................................................................................................................................... 7
KEY RAW MATERIALS ...................................................................................................................................................... 7
GARMENT MANUFACTURING PROCESS ............................................................................................................................... 8
Spreading & Cutting .............................................................................................................................................. 8
Sewing ................................................................................................................................................................... 8
Finishing ................................................................................................................................................................ 9
Inspection .............................................................................................................................................................. 9
Packing & Dispatch ............................................................................................................................................... 9
Garment Testing ................................................................................................................................................... 9
GARMENT MANUFACTURING CLUSTERS IN INDIA ................................................................................................................ 10
SUITABLE LOCATIONS FOR GARMENT MANUFACTURING ...................................................................................................... 11
3. GARMENT FACTORY PROJECT DETAILS .......................................................................... 12
PROJECT OVERVIEW ..................................................................................................................................................... 12
PROJECT PROFITABILITY ................................................................................................................................................. 12
PROJECT COST DETAILING .................................................................................................. ERROR! BOOKMARK NOT DEFINED.
Miscellaneous Fixed Assets ................................................................................................................................. 13
Preliminary and Pre-Operative Expenses .............................................................................................................. 0
FINANCIAL ANALYSIS ......................................................................................................... ERROR! BOOKMARK NOT DEFINED.
Key Assumptions and Costing ............................................................................................................................. 13
Production and Sales .............................................................................................. Error! Bookmark not defined.
Machinery ........................................................................................................................................................... 16
Department ......................................................................................................................................................... 16
Number of Machines ........................................................................................................................................... 16
Cost (Rs. Crore) .................................................................................................................................................... 16
Operating Expenses .............................................................................................................................................. 0
Working Capital .................................................................................................................................................... 0
Utilities .................................................................................................................................................................. 1
Manpower Planning .............................................................................................................................................. 2
Profit and Loss Statement ..................................................................................................................................... 3
Balance Sheet ........................................................................................................................................................ 4
Cash Flow Statement ............................................................................................................................................ 5
Interest Calculation ............................................................................................................................................... 8
Break-even Points ................................................................................................................................................. 6
Depreciation and Taxation .................................................................................................................................... 7
KEY FINANCIAL INDICATORS ................................................................................................ ERROR! BOOKMARK NOT DEFINED.
Payback Period ...................................................................................................................................................... 9
IRR ......................................................................................................................................................................... 9
2
DSCR .................................................................................................................................................................... 10
Financial Ratios ................................................................................................................................................... 10
4. STATE GOVERNMENT INCENTIVES FOR GARMENT PROJECTS......................................... 11
ANDHRA PRADESH ....................................................................................................................................................... 11
GUJARAT .................................................................................................................................................................... 13
HARYANA ................................................................................................................................................................... 15
JHARKHAND ................................................................................................................................................................ 17
KARNATAKA ................................................................................................................................................................ 19
MADHYA PRADESH ....................................................................................................................................................... 21
TELANGANA ................................................................................................................................................................ 23
UTTAR PRADESH .......................................................................................................................................................... 26
5. ANNEXURE ..................................................................................................................... 0
HSN CODES OF GARMENTS ............................................................................................................................................. 0
NIC CODES OF GARMENTS ............................................................................................................................................. 12
GARMENT TESTING FACILITIES ........................................................................................................................................ 13
GARMENT MACHINERY SUPPLIERS ................................................................................................................................... 14
LEADING INDIAN FABRIC MILLS ....................................................................................................................................... 15
3
1. Garment Market Overview
Global Garment Market
The global garment market is estimated at US$ 1,280 billion in 2020. EU-27, China and USA are
the three largest global markets with a share of 17%, 14% and 13%, respectively.
Table 1: Global Garment Market 2020
Region
Value In US$ bn.
Share
EU
-
27
219
17%
China
173
14%
United States
171
13%
Japan
83
6%
India
55
4%
Brazil
34
3%
Canada
27
2%
RoW
517
40%
World
1,280
Source: Wazir Advisors
The global garment trade stood at US$ 482 billion in 2019, with China as the largest exporter.
India is the 6
th
largest exporter of garment in the world.
Table 2: Leading Global Garment Exporters
Country
Exports
in US$ bn.
Share
China
1
50
31%
Bangladesh
4
1
8%
Vietnam
3
4
7%
Germany
2
4
5%
Italy
2
4
5%
India
16
3%
Turkey
16
3%
Spain
14
3%
France
12
2%
USA
5
1%
R
oW
146
30%
Total
48
Source: United Nations Commercial Trade Database
The global garment demand has been growing at a year-on-year growth rate of about 4% from 2010.
However, the impact of Covid pandemic in 2020 led to approx. 30% decline in demand. The long term
growth trend of garment segment remains intact and it is expected to recover in next couple of years.
4
Indian Garment Market
India is among a few countries that has a large domestic demand as well as competitive in exports.
Presence of strong raw material base in terms of cotton and polyester fibres and large fabric
manufacturing capacities in the country have given a thrust to the garment sector.
Domestic MarketSize
India’s domestic garment market was estimated to be US$ 68 billion in 2019 which has grown at an
annual growth rate of 9% in last 5-years.
Source: Wazir Advisors
In terms of value, men’s wear is the largest segment followed by women’s wear and kid’s wear
Figure 2: Indian GarmentMarket Segmentation
Source: Wazir Advisors
Men's
wear
42%
Women's
wear
39%
Kid's wear
19%
43
47
51
56
62
68
2014
2015
2016
2017
2018
2019
Figure 1 India’s GarmentMarket (In US$ bn.)
5
The market is dominated by ethnic garments (sarees, salwar-kameez-duppatta, etc.) but the western
wear categories are growing at a much faster rate.
Figure 3: Category wise Indian Garment Demand and Growth
Key Categories 2014 2019
CAGR
Share 2019
Ethnic Wear
13.76
22.16
10%
33%
Bottoms
5.29
8.05
9%
12%
Innerwear
3.63
6.22
11%
9%
Men's Shirts
3.51
5.10
8%
8%
Outerwear
2.76
4.28
9%
6%
T
-
Shirts (Men’s/Boys)
2.46
4.24
12%
6%
Denim
2.69
4.06
9%
6%
Suits & Blazers
2.45
3.84
9%
6%
Women Tops & Dresses
1.45
2.77
14%
4%
Uniforms
1.73
2.63
9%
4%
Active wear
0.56
1.09
14%
2%
Others*
2.57
3.37
6%
5%
Total
42.85
67.80
Source: Wazir Advisors
India’sGarmentExports
India’s garment exports were US$ 12.3 billion in 2020. It declined by almost 25% from 2019 value
because of reduced global demand in wake of COVID pandemic.
Figure 4: India’s Garment Exports (In US$ bn.)
Source: DGCIS, Govt. of India
USA is the largest market for India followed by United Arab Emirates and United Kingdom.
15.7
16.3
12.3
2018
2019
2020
6
Table 3: India’s Major Garment Markets
Markets
Trade Value (US$ Mn.)
USA
3,292
United Arab Emirates
1,515
United Kingdom
1,122
Germany
799
Spain
526
France
505
Others
4,541
Total
12,300
Source: DGCIS, Govt. of India
India’s Garment Imports
Garment worth US$ 900 mn. were imported in 2020 in India covering very cheap products from China to
high-end luxury garments.
Figure 5: India’s Garment Imports (In US$ bn.)
Source: DGCIS, Govt. of India
China is the biggest supplier to India followed by Bangladesh.
Table 4: India’s Major Garment Markets
Markets
Trade Value (US$ Mn.)
China
343
Bangladesh
298
Spain
68
Viet Nam
34
Sri Lanka
27
Indonesia
15
Others
115
Total
900
Source: DGCIS, Govt. of India
1.1
1.2
0.9
2018
2019
2020
7
2. Garment Manufacturing Overview
Types of Garments
There are two types of garments described according to the type of fabric used:
Key Raw Materials
Garment manufacturing requires fabric as the main input and several types of accessories for functional
and aesthetic purposes. Fabric variety to be used depends on the type of garment, its price, season for
usage, etc. In terms of fibres, cotton, polyester, viscose, linen, and their various blends are quite
popular. Accessories that are used in garment production include sewing threads, buttons, zips, laces,
hooks, labels, etc.
Woven Apparel Knitted Apparel
Shirts
Trousers
Dresses
Denims
Kurtas
Skirts
T-Shirts
Jerseys
Dresses
Sweaters
Cardigans
Skirts
8
Garment Manufacturing Process
Garmenting Process Flow Chart
Spreading & Cutting
Spreading is the process of laying fabric layers on a table, one on top of another so as to form a
“lay”. The fabric from the stores is issued to the cutting room daily in advance which is stored in
the cantilever rack provided next to the cutting tables. The fabric rolls are loaded on to the roll
holders.
The fabric is spread manually by spreaders or by a semi-automatic or automatic spreading
machine. After spreading, layers are cut with the help of straight knife cutting machines and
end cutters. In order to cut across on such a wide table, a mobile cutting machine guiding rail is
used. This rail is a “mobile” guide that is used along with a straight knife cutting machine having
a foldable handle bar.
Sewing
The production system to be implemented in the factory would be an Assembly Line System
whereby a group of operators would work on a product depending on the product type.
Operation sequences for sewing room operations would define the sequence of the operations
Spreading
Cutting
Sewing
Finishing
Garment Inspection
Folding & Packing
Dispatch
9
for the reference styles in the projected product mix, along with machine type and work-aids
required. Stitching quality and production are of immense importance; hence imported
machines are suggested which are capable of producing high quality end product at good
speeds. All the sewing machines would be procured from reputed sewing machine suppliers.
The line will have quality checks after every set of operations. All pieces will also be checked
fully at the end of the line before they are moved on to the finishing department
Finishing
In the finishing stage the sewn products are checked for any faults or defects. These if reparable
are mended or else the piece is rejected. The pieces are then ironed and packed, after a few
more check points. In case the pieces have any soiling/staining a stain removal station helps in
cleaning the same.
Inspection
The garment pieces produced are checked thoroughly for various types of defects such
asBroken Needle, Fly, Hole, Thick Yarn, Thin Yarn and Barre
Packing& Dispatch
After inspection, the defective products are sent for correction while the other products are wrapped in
polythene bags and sent for packing in suitable form as per the buyers’ specifications. After packing, the
final products are dispatched.
Garment Testing
Garment testing assess the quality of garment and workmanship, using a no. of quality control checks
and tests, including:
Colour shading
Colour fastness check (Rub test)
Symmetry check
Size fitting test
Adhesive check
Fabric weight test
Fasteners fatigue and zip quality test
Waterproof test
Down feather leakage test
Seam slippage test
Care labelling
Needle damage check
Barcode scanning test
Burn test
Mold contamination prevention
Metal contamination prevention
Ventilation test
Garment Manufacturing
Clusters in India
The Indian garment manufacturing industry is 60
units operating
in specific clusters across the country. The organized part of the industry is dominated
by export oriented garment manufacturing units.
Figure 6
: India's Key Garment Manufacturing Clusters
10
Clusters in India
The Indian garment manufacturing industry is 60
-
70% unorganized which is characterized by MSME
in specific clusters across the country. The organized part of the industry is dominated
by export oriented garment manufacturing units.
: India's Key Garment Manufacturing Clusters
70% unorganized which is characterized by MSME
in specific clusters across the country. The organized part of the industry is dominated
Suitable Locations
for Garment Manufacturing
Garment manufacturing happens in e
market oriented. The success factors for garment business lies mainly in availability of trained manpower
and presence of supply chain (fabrics, accessories, dyeing facilities, etc.) in the
suitable
locations for garment manufacturing in the country are given below
11
for Garment Manufacturing
Garment manufacturing happens in e
very
state of India. Some focus on exports while some are domestic
market oriented. The success factors for garment business lies mainly in availability of trained manpower
and presence of supply chain (fabrics, accessories, dyeing facilities, etc.) in the
regi
locations for garment manufacturing in the country are given below
:
state of India. Some focus on exports while some are domestic
market oriented. The success factors for garment business lies mainly in availability of trained manpower
regi
on. Some of the
12
3. Garment Factory Project Details
Project Overview
Target product Basic Polo T-shirt
Capacity 100 sewing machines
Factory size 13,000 sq. ft. (on rent)
Employment 200
Factory working 8 hours a day, 26 days per month
Production 54,000 pieces per month
Project cost Rs. 2.96 Crores
Promoter’s contribution Rs. 1.18 Crores (40%)
Bank Finance Rs. 1.78 Crores (60%)
Working capital 26% of sales revenue
Project Profitability
3
rd
year numbers:
Sales Rs. 16.34 crores
EBITDA Rs. 2.28 crores (14%)
Cash profit Rs. 1.49 crores (9%)
Break Even Point 23%
Cash Break Even Point 21%
Return on Equity 63%
Return on Capital Employed 35%
Payback period 3.5 years
Average DSCR 3.20
Post Tax project IRR 27%
Project Cost Summary
Description Value (Rs Cr)
Machinery 1.67
Miscellaneous Fixed Assets 0.48
Preliminary & Pre-operative Expenses 0.17
Contingency on capital items 0.11
Total 2.96
13
Key Assumptions
Year 1
Year 2
Year 3
Onwards
Machinery Utilization
70%
90%
95%
Line Efficiency
40%
45%
55%
Description
Value
Garment rejection
2%
Embroidered pieces
50%
Electricity cost (Rs./KW
-
Hr)
7.00
Water consumption per person per day (Lts.)
50
Water Cost (Rs/1000 Lts.)
40.0
Monthly Fuel Consumption (Rs. Lakhs.)
0.5
CAD paper, layer paper, numbering stickers, Needles, Oil etc.
(Rs./Machine/Year)
3,000
Repair & Maintenance (Rs./Machine/Year) 1,000
Embroidery (thread & fusing) (Rs./Piece) 0.75
Rental (Rs./sq.ft/month) 11
Provision for contingency (in project cost) 5%
Interest on Term Loan
11.00%
Interest on Working Capital Financing
11.00%
Corporate Tax
17.16%
MAT Rate
17.47%
Annual Changes in Prices
Sales price
2.5%
Salary & Wage
s
3.0%
Shed Rental
2.0%
Fabrics, Trims & all other inputs
2.0%
Working Capital
Norms
Margin Money (as % of working capital)
25%
Raw Material (Months)
1
Work In Process (Months)
0.25
Finished Goods (Months)
0.5
Debtors (Months)
3.0
Creditors
(Months)
2.0
14
Input costs and Sales Price projections
Costing
(Rs./Piece)
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Fabric
(
270 gsm
pique)
145.00 147.90 150.86 153.88 156.95 160.09 163.29 166.56 169.89 173.29
Trims 13.00 13.26 13.53 13.80 14.07 14.35 14.64 14.93 15.23 15.54
Testing 0.50 0.51 0.52 0.53 0.54 0.55 0.56 0.57 0.59 0.60
Sales Value:
With
Embroidery
245.00 251.13 257.40 263.84 270.43 277.20 284.12 291.23 298.51 305.97
W/o
embroidery
235.00 240.88 246.90 253.07 259.40 265.88 272.53 279.34 286.32 293.48
Avg price 240.00 246.00 252.15 258.45 264.92 271.54 278.33 285.28 292.42 299.73
Input costs
Rs. Crore Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Fabric 270 gsm
pique
5.04 7.43 9.78 9.97 10.17 10.38 10.59 10.80 11.01 11.23
Trims 0.45 0.67 0.88 0.89 0.91 0.93 0.95 0.97 0.99 1.01
Testing 0.02 0.03 0.03 0.03 0.04 0.04 0.04 0.04 0.04 0.04
15
Consumables
Rs. Crore Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Consumables 0.02 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03
Repair and
Maintenance
0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
Embroidery
Consumables
0.01 0.02 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03
Total 0.04 0.06 0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07
Production and Sales
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Annual Output
(pcs)
354,462 512,703 661,451 661,451 661,451 661,451 661,451 661,451 661,451 661,451
Less: Rejected
garments (pcs)
7,089 10,254 13,229 13,229 13,229 13,229 13,229 13,229 13,229 13,229
Annual
production
(Lakh pcs)
3.47 5.02 6.48 6.48 6.48 6.48 6.48 6.48 6.48 6.48
Monthly
production
(Lakh pcs)
0.29 0.42 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54
Daily
production
(Pieces /
machine)
16.23 18.26 22.32 22.32 22.32 22.32 22.32 22.32 22.32 22.32
Revenue (Rs.
Crore)
8.34 12.36 16.34 16.75 17.17 17.60 18.04 18.49 18.96 19.43
16
Machinery
Department
Number of Machines
Cost (Rs. Crore)
Sewing
126
1.02
Cutting
9
0.20
CAD
2
0.07
Embroidery
1
0.22
Washing
1
0.10
Finishing
20
0.12
Fabrics and Trims Section Equipment
4
0.04
Total
1298
1.67
Sewing Machines
Total
Machines
Cost/ Machine (Rs. Lakh)
Total Cost (Rs. Lakh)
SNLS
50
0.28
14.05
DNLS
1.01
5.06
5TO/L
0.60
3.01
4TO/L
25
0.64
15.97
4TO/L CT
0.84
4.20
3TF/L FT
2.23
11.13
3TF/L
15
1.47
22.12
B/T
1.75
5.26
B/A
2.41
9.64
B/H
2.63
10.51
Total
121
14
100.94
Other Sewing Machine
Inline Sewing Vaccum Table
0.26
1.31
Sewing Total
126
102.26
17
Cutting Machines
Total Machines
Cost/ Machine (Rs. Lakh)
Total Cost (Rs. Lakh)
Straight Knife
0.73
1.46
Band Knife
2.76
2.76
End
Cutter
0.25
0.25
Fusing Machine
5.48
5.48
5 Digit Numbering Machine
0.04
0.09
Lay Table
4.96
9.93
CAD
3 Head/4 Head Plotter
3.65
3.65
CAD Software and Key
3.91
3.91
Total
11
27.51
Embroidery Machines
Total Machines
Cost/ Machine
(Rs. lakh)
Total Cost (Rs. Lakh)
Embroidery Machine
21.90
21.90
Finishing Machines
Total Machines
Cost/ Machine (Rs. lakh)
Total Cost (Rs. Lakh)
Vaccum Iron
18
0.25
4.43
Stain Removal Station
0.85
0.85
Conveyor Needle Detector
6.23
6.23
Fabric
& Trims
Fabric Inspection Machine
2.63
2.63
Light Box
0.44
0.44
Electronic Weighing for Fabric
0.44
0.44
GSM Cutter and Scale
0.06
0.06
Total
24
15.08
Miscellaneous Fixed Assets
Utilities Nos. Value (Rs Lakhs)
Racks 7 1.36
Pallets 30 1.11
Table 30 1.99
Trolley 10 0.98
Bins 10 0.14
Center Table 30 1.34
Operator chair 100 0.90
Furniture and Fixture 5.00
IT Infra 5.00
Electrical Works 20.00
Misc. 10.00
Total 47.82
Preliminary and Pre-Operative Expenses
Preliminary & Pre-operative Expenses
Estimated Cost
(Rs. Lakhs)
Company Formation and Legal Expenses
5.00
Up Front Fees of Term Loan
0.90
Insurance
0.90
Raw Material & Training
1.00
Recruitment Expenses
1.00
Salary and Wages during Pre
-
Operative
period
8.40
3 Months Rental Deposit
0.04
Total (Rs. Cr.)
17.24
Operating Expenses
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Fabrics 5.04 7.43 9.78 9.97 10.17 10.38 10.59 10.80 11.01 11.23
Trims 0.45 0.67 0.88 0.89 0.91 0.93 0.95 0.97 0.99 1.01
Consumables 0.03 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06
Testing 0.02 0.03 0.03 0.03 0.04 0.04 0.04 0.04 0.04 0.04
Wages & Salaries 2.02 2.67 2.90 2.99 3.08 3.17 3.27 3.36 3.47 3.57
Factory shed rental 0.17 0.18 0.18 0.18 0.19 0.19 0.19 0.20 0.20 0.21
Utilities 0.12 0.14 0.15 0.16 0.16 0.16 0.17 0.17 0.17 0.18
Admin & Staff Expenses 0.05 0.07 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08
Repairs & maintenance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
Total Expenses 7.91 11.24 14.07 14.38 14.69 15.02 15.35 15.68 16.03 16.38
Working Capital
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Raw Material 0.46 0.68 0.89 0.91 0.93 0.95 0.97 0.99 1.01 1.03
WIP 0.16 0.23 0.29 0.30 0.31 0.31 0.32 0.33 0.33 0.34
Finished Goods 0.35 0.52 0.68 0.70 0.72 0.73 0.75 0.77 0.79 0.81
Debtors 2.08 3.09 4.09 4.19 4.29 4.40 4.51 4.62 4.74 4.86
Creditors 0.92 1.36 1.79 1.82 1.86 1.89 1.93 1.97 2.01 2.05
Current Assets 3.06 4.52 5.95 6.10 6.24 6.39 6.55 6.71 6.87 7.03
Current Liabilities 0.92 1.36 1.79 1.82 1.86 1.89 1.93 1.97 2.01 2.05
Net Working Capital 2.14 3.16 4.17 4.28 4.39 4.50 4.62 4.74 4.86 4.98
Increase in Working Capital 2.14 1.02 1.01 0.11 0.11 0.11 0.12 0.12 0.12 0.13
Margin Money 0.53 0.79 1.04 1.07 1.10 1.12 1.15 1.18 1.21 1.25
Increase in margin money 0.53 0.26 0.25 0.03 0.03 0.03 0.03 0.03 0.03 0.03
Bank Finance 1.60 2.37 3.13 3.21 3.29 3.37 3.46 3.55 3.64 3.74
Increase in Bank Finance 1.60 0.77 0.76 0.08 0.08 0.09 0.09 0.09 0.09 0.09
Interest on Working Capital
0.18 0.26 0.34 0.35 0.36 0.37 0.38 0.39 0.40 0.41
1
Utilities
Power Cost
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Machine
Utilization
70% 90% 95% 95% 95% 95% 95% 95% 95% 95%
Units Consumed
79,498
102,211
107,890
107,890
107,890
107,890
107,890
107,890
107,890
107,890
Power cost
(Lakhs/annum)
5.56 7.30 7.86 8.01 8.17 8.34 8.51 8.68 8.85 9.03
Water Cost
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year
10
Consumption (L)
1,528,800
2,527,200
2,815,800
2,815,800
2,815,800
2,815,800
2,815,800
2,815,800
2,815,800
2,815,800
Water Cost (Rs.)
61,152
103,110
117,182
119,526
121,916
124,355
126,842
129,379
131,966
134,606
Total
(Rs. Lakhs)
0.61 1.03 1.17 1.19 1.21 1.24 1.26 1.29 1.32 1.34
Fuel Cost Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Year
10
Total
(Rs. Lakhs)
6.00 6.12 6.24 6.37 6.49 6.62 6.76 6.89 7.03 7.17
Total Utility Cost Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Year
10
Total
(Rs. Crores)
0.12 0.14 0.15 0.16 0.16 0.16 0.17 0.17 0.17 0.18
2
Manpower Planning
Unit
Factory Workers and Staff
200
Average Monthly Wages and Salary
12,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Wage & Salary
cost (Rs.
Crores)
2.02 2.67 2.90 2.99 3.08 3.17 3.27 3.36 3.47 3.57
Annual Admin
and staff
expenses
500,000 700,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000
3
Profit and Loss Statement
P&L - Rs. Crore Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenue 8.34 12.36 16.34 16.75 17.17 17.60 18.04 18.49 18.96 19.43
Expenses
Fabrics 5.04 7.43 9.78 9.97 10.17 10.38 10.59 10.80 11.01 11.23
Trims 0.45 0.67 0.88 0.89 0.91 0.93 0.95 0.97 0.99 1.01
Consumables 0.03 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06
Testing 0.02 0.03 0.03 0.03 0.04 0.04 0.04 0.04 0.04 0.04
Wages and Salaries 2.02 2.67 2.90 2.99 3.08 3.17 3.27 3.36 3.47 3.57
Factory Shed Rental 0.17 0.18 0.18 0.18 0.19 0.19 0.19 0.20 0.20 0.21
Utilities 0.12 0.14 0.15 0.16 0.16 0.16 0.17 0.17 0.17 0.18
Admin Staff Salaries 0.05 0.07 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08
Repair and Maintenance 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
Total Expenses 7.91 11.24 14.07 14.38 14.69 15.02 15.35 15.68 16.03 16.38
EBITDA 0.43 1.12 2.28 2.38 2.48 2.59 2.70 2.81 2.93 3.05
EBITDA% 5% 9% 14% 14% 14% 15% 15% 15% 15% 16%
Depreciation 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25
Interest On Term Loan 0.20 0.20 0.18 0.14 0.10 0.06 0.02 - - -
Interest On WC loan 0.18 0.26 0.34 0.35 0.36 0.37 0.38 0.39 0.40 0.41
Total Interest 0.37 0.46 0.52 0.49 0.46 0.43 0.41 0.39 0.40 0.41
PBT (0.19) 0.42 1.50 1.63 1.76 1.90 2.04 2.17 2.27 2.38
PBT % -2% 3% 9% 10% 10% 11% 11% 12% 12% 12%
Tax Payable - 0.07 0.26 0.29 0.31 0.33 0.37 0.39 0.42 0.44
PAT (0.19) 0.34 1.24 1.35 1.46 1.57 1.67 1.77 1.86 1.95
PAT % -2% 3% 8% 8% 8% 9% 9% 10% 10% 10%
4
Balance Sheet
Balance Sheet - Rs Cr. Pre-Op. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Sources of Funds
Equity 1.18 1.72 1.97 2.23 2.25 2.28 2.31 2.34 2.37 2.40 2.43
Reserves & Surplus (0.19) 0.15 1.39 2.74 4.19 5.76 7.44 9.21 11.06 13.01
Unsecured Loans - - - - - - - - - -
Long term Loan 1.78 1.78 1.42 1.07 0.71 0.36 0.00 - - - -
Short Term Loan 1.60 2.37 3.13 3.21 3.29 3.37 3.46 3.55 3.64 3.74
Total 2.96 4.90 5.92 7.81 8.91 10.12 11.44 13.23 15.13 17.11 19.18
Application of Funds
Capital Expenditure 2.96
Net Block 2.17 1.92 1.67 1.42 1.17 0.92 0.67 0.42 0.17 (0.08)
Current Assets 3.12 4.82 7.39 8.77 10.27 11.88 13.96 16.14 18.41 20.78
Less : Current Liabilities 0.92 1.36 1.79 1.82 1.86 1.89 1.93 1.97 2.01 2.05
Other Assets 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.53
Total 2.96 4.90 5.92 7.81 8.91 10.12 11.44 13.23 15.13 17.11 19.18
5
Cash Flow Statement
Cash Flow – Rs. Cr. Pre-Op. Year 1
Year 2
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Inflows
Promoters contribution 1.18 0.53 0.26 0.25 0.03 0.03 0.03 0.03 0.03 0.03 0.03
Profit Before Depreciation, Interest & Tax
0.43 1.12 2.28 2.38 2.48 2.59 2.70 2.81 2.93 3.05
Increase in Term Loans 1.78 - - - - - - - - -
Increase in Bank Borrowings 1.60 0.77 0.76 0.08 0.08 0.09 0.09 0.09 0.09 0.09
Total Cash Inflows 2.96 2.57 2.15 3.28 2.48 2.59 2.70 2.81 2.93 3.05 3.17
Outflows
Capital Expenditure 2.96
Increase in Working Capital 2.14 1.02 1.01 0.11 0.11 0.11 0.12 0.12 0.12 0.13
Repayment of Term Loans - - 0.36 0.36 0.36 0.36 0.36 - - - -
Interest 0.37 0.46 0.52 0.49 0.46 0.43 0.41 0.39 0.40 0.41
Tax - 0.07 0.26 0.29 0.31 0.33 0.37 0.39 0.42 0.44
Total Cash Outflows 2.96 2.51 1.91 2.15 1.24 1.24 1.24 0.89 0.90 0.94 0.97
Opening Cash Balance - - 0.06 0.30 1.43 2.67 4.03 5.49 7.42 9.44 11.55
Net Flows - 0.06 0.24 1.13 1.24 1.35 1.46 1.92 2.02 2.11 2.20
Closing Balance - 0.06 0.30 1.43 2.67 4.03 5.49 7.42 9.44 11.55 13.74
6
Break-even Points
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Sales 8.34 12.36 16.34 16.75 17.17 17.60 18.04 18.49 18.96 19.43
Variable Cost
Raw Material 0.03 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06
Utilities ( Power, Fuel, and Water )
0.06 0.07 0.08 0.08 0.08 0.08 0.08 0.08 0.09 0.09
Interest on Working Capital 0.18 0.26 0.34 0.35 0.36 0.37 0.38 0.39 0.40 0.41
Total Variable Cost 0.27 0.38 0.48 0.49 0.50 0.51 0.52 0.54 0.55 0.56
Contribution Cost
Contribution 8.07 11.98 15.87 16.27 16.67 17.09 17.52 17.96 18.41 18.87
Fixed Cost
Wages & Salaries 2.02 2.67 2.90 2.99 3.08 3.17 3.27 3.36 3.47 3.57
Rent 0.17 0.18 0.18 0.18 0.19 0.19 0.19 0.20 0.20 0.21
Factory Overheads 0.06 0.07 0.08 0.08 0.08 0.08 0.08 0.08 0.09 0.09
Interest on Term Loan 0.20 0.20 0.18 0.14 0.10 0.06 0.02 - - -
Depreciation 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25
Total 2.69 3.36 3.59 3.64 3.70 3.76 3.82 3.90 4.00 4.11
Net Profit 5.37 8.62 12.28 12.62 12.98 13.33 13.70 14.06 14.40 14.75
Break Even Point (%) 33% 28% 23% 22% 22% 22% 22% 22% 22% 22%
Break Even Sales (Rs. Cr.) 2.79 3.47 3.70 3.75 3.81 3.87 3.93 4.01 4.12 4.24
Cash Break Even Sales (Rs. Cr.) 2.53 3.21 3.44 3.49 3.55 3.61 3.67 3.76 3.86 3.98
Cash Break Even Point 30% 26% 21% 21% 21% 21% 20% 20% 20% 20%
7
Depreciation
Description
Rate of
Depreciation
Cost of Asset Contingency
Add
proportionate
PPOE
Total SLM
Land 0% - - - - -
Factory Building 3% - - - - -
Plant & Equipment 10% 1.67 0.08 0.13 1.88 0.19
Other Fixed Assets 10% 0.48 0.02 0.04 0.54 0.06
Total 2.15 0.11 0.17 2.43 0.25
Depreciation SLM
(Rs. Cr.)
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Depreciation per year 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25
Overall
Gross Value 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43
Commulative dep 0.25 0.50 0.75 1.00 1.25 1.50 1.76 2.01 2.26 2.51
Net Asset Value 2.17 1.92 1.67 1.42 1.17 0.92 0.67 0.42 0.17 0.08
Depreciation WDV - Phase 1 (Rs. Cr.)
Rate of
Depreciation
Year 1 Year 2
Year 3 Year 4 Year 5
Year 6 Year 7 Year 8 Year 9
Year
10
Land 0.0% - - - - - - - - - -
Factory Building 10.0% - - - - - - - - - -
Plant & Equipment 15.0% 0.28 0.24 0.20 0.17 0.15 0.13 0.11 0.09 0.08 0.07
Other Fixed Assets 15.0% 0.08 0.07 0.06 0.05 0.04 0.04 0.03 0.03 0.02 0.02
Total Depreciation - WDV
0.36 0.31 0.26 0.22 0.19 0.16 0.14 0.12 0.10 0.08
8
Interest Calculation
Total Loan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Outstanding amount at the beginning of year
1.78 1.78 1.42 1.07 0.71 0.36
Loan Issued 1.78 - - - - -
Principal Repayment - - 0.36 0.36 0.36 0.36 0.36
Outstanding amount at the end of year 1.78 1.78 1.42
1.07
0.71 0.36 0.00
Interest on loan 0.20 0.20 0.18 0.14 0.10 0.06 0.02
Taxation
Rs. Cr.
Year
1
Year
2
Year
3
Year
4
Year
5
Year
6
Year
7
Year
8
Year
9
Year 10
Taxable Income 0.30 0.36 1.49 1.66 1.83 1.99 2.15 2.30 2.43 2.55
Nil Type of tax to be paid Nil MAT MAT MAT NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
MAT
Tax Payable under
MAT
@21.342%
(0.03) 0.07 0.26 0.29 0.31 0.33 0.36 0.38 0.40 0.42
MAT/Normal
Tax payable as per
normal provisions
(0.05) 0.06 0.26 0.28 0.31 0.34 0.37 0.39 0.42 0.44
Normal Tax payable - 0.07 0.26 0.29 0.31 0.34 0.37 0.39 0.42 0.44
MAT credit amount - 0.01 0.01 0.00 - - - - - -
Cumulative MAT credit - 0.01 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
Max. MAT - setoff - - - - 0.00 0.01 0.01 0.02 0.02 0.02
Balance MAT Credit at
the Starting Of Year
- - - - 0.02 0.01 0.00 (0.01) (0.03) (0.04)
MAT set-off yearly - - - - 0.00 0.01 0.00 - - -
Net Tax Payable - 0.07 0.26 0.29 0.31 0.33 0.37 0.39 0.42 0.44
9
Payback Period
Payback Period (Years) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cash profit 0.06 0.59 1.49 1.60 1.71 1.82 1.92 2.02 2.11 2.20
Cumulative cash profit 0.06 0.65 2.14 3.74 5.45 7.27 9.19 11.21 13.32 15.52
Project cost 2.96
Payback Year 3.5
Internal Rate of Return (IRR)
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
PAT (0.19) 0.34 1.24 1.35 1.46 1.57 1.67 1.77 1.86 1.95
Depreciation & Amortization 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25
Interest 0.37 0.46 0.52 0.49 0.46 0.43 0.41 0.39 0.40 0.41
Total Inflow 0.43 1.05 2.01 2.09 2.17 2.25 2.33 2.41 2.51 2.61
Outflow
Capital Expenditure 2.96 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Change in net working capital
2.14 1.02 1.01 0.11 0.11 0.11 0.12 0.12 0.12 0.13
Total Outflow 5.10 1.02 1.01 0.11 0.11 0.11 0.12 0.12 0.12 0.13
Net Inflow (4.66) 0.03 1.01 1.98 2.06 2.14 2.21 2.29 2.39 2.48
Project IRR (post-tax) 27%
10
Debt Service Coverage Ratio (DSCR)
DSCR Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Profit after Tax (0.19) 0.34 1.24 1.35 1.46 1.57 1.67
Add Depreciation 0.25 0.25 0.25 0.25 0.25 0.25 0.25
Add Interest on Term Rupee Loan 0.20 0.20 0.18 0.14 0.10 0.06 0.02
Total Cash In Flow 0.25 0.79 1.67 1.74 1.81 1.88 1.95
Installment for Term Rupee Loan - 0.36 0.36 0.36 0.36 0.36 -
Add Interest on Term Rupee Loan 0.20 0.18 0.14 0.10 0.06 0.02 -
Total Cash Out Flow 0.20 0.54 0.50 0.46 0.42 0.38 -
Annual DSCR 1.30 1.47 3.36 3.80 4.32 4.96 -
Average DSCR 3.20 6-year
Maximum DSCR 4.96
Minimum DSCR 1.30
Financial Ratios
Ratios Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
ROE -16% 20% 63% 60% 65% 69% 73% 76% 78% 81%
ROCE 4% 17% 35% 37% 40% 43% 46% 50% 53% 57%
EBITDA to Capital Employed
8% 18% 32% 33% 34% 35% 36% 37% 37% 38%
11
4. State Government Incentives forGarment Projects
Andhra Pradesh
S.No
Type Investment Bracket/unit eligibility Quantum of Incentives
1
Credit-linked capital
subsidy
(except spinning and
modern ginning)
• Ultra Mega projects ( >500 crores investment or
employing 5,000 people)
• 10% of FCI with a cap of Rs. 50 crores
• Mega projects (>200 crores investment or
employing 2,000 people)
• 20% of FCI with a cap of Rs. 30 crores
• Others • 20% of FCI with a cap of Rs. 15 crores
2
Credit-linked interest
subsidy
Either 12.5% or the
bank
prime lending rate or the rate of interest actually charged, whichever rate is less, will
be taken as the applicable rate of interest; interest subsidy cap @12.5%; admissible for 7 years only inclusive
of 2 years for implementing the project
Sector Interest subsidy
• Spinning and modern ginning • 7.5%
•
Weaving, dyeing and processing, knitting,
garments/ made-ups, machine carpeting, machine
embroidery, technical textiles and other activities
like crimping, texturizing, twisting, winding, sizing,
etc.
• 8%
3
Power cost
reimbursement
• Spinning and modern ginning • @ Rs.1 per unit for a period of 5 years
• Other categories (including technical textiles) • @ Rs. 2 per unit for a period of 5 years
4
Capital and Operational
Assistance for Green
Measures
50% of FCI with a ceiling of Rs. 50 Crores, Reimbursement of 50% of Operational and Maintenances expenses
for first five (5) years from the date of operation of CETP; For establishing external infrastructure facilities,
GoAP will provide financial assistance of up to 50% of expenditure incurred, with maximum limit of 10 crore;
will be provided for establishment CETPs.
12
5 Integrated textile park
Park will have a minimum extent of 500 acres with plug
and play facilities including CETP and marine outfall. It will
be connected to the nearest port through corridors to
facilitate import and exports
Subsidy of 50% of development expenses, up to a
maximum of Rs. 10 Lakhs per Acre. GoAP will also
dovetail the incentives offered by GoI for
development of the park.
6
Employment Based
Incentives for 5 years on
monthly bases
(for domicile worker)
(Spinning and ginning are
excluded)
• Ultra Mega projects
Rs. 3,750 per women and Rs.3,000 for men for 5
years or 100% Net SGST accrued to the state for a
period of 10 years or 100% of the FCI whichever
is earlier
• Mega projects
Rs. 2,500 per women and Rs. 2,000 for men for 5
years or 100% Net SGST accrued to the state for a
period of 7 years or 100% of the FCI whichever is
earlier
• Others
Rs. 1,000 per employee for units
providing
employment of 500 and above for 5 years or
100% Net SGST accrued to the state for a period
of 5 years or 100% of the FCI whichever is earlier
7
Skill development /
training (One time grant)
• Mega and Ultra mega projects 50% of training cost up to Rs.10,000 per trainee
• Others 50% of training cost up to Rs. 7,500 per trainee
8
Capital Subsidy for Green
Measures (ETPs)
• Mega projects 50% of FCI limited to Rs. 30 crores
• Ultra mega projects 50% of FCI limited to Rs. 50 crores
• Others 50% of FCI limited to Rs. 20 crores
9
Land and Infrastructure
Support (Except modern
ginning and spinning)
50% reimbursement of the Land cost limited to 5% of FCI, whichever is less for units established in Andhra
Pradesh Industrial Infrastructure Corporation Industrial Parks/ APIIC.
13
Gujarat
S.No Type Quantum of Assistance
1
Credit-linked interest
subsidy
•
5% per annum subject to a maximum of Rs. 7.5 Cr. per year for 5 years
• Eligible investment-Land, Building and Plant and Machinery; also includes investment in value
addition activities such as washing and garment processing
2 Power subsidy
•
Subsidy @ Rs.1/unit for 5 years from date of commencement of commercial production
• In case of expansion, subsidy will be provided only for the additional facilities
• Subsidy will be available on the electricity purchased from state electricity power distribution
licensee.
3 Payroll assistance
•
For new
garment
units having minimum 75 machines and generating at least 150 domicile jobs,
payroll assistance of 50% of wages will be provided up to Rs. 4000/- for female and Rs. 3200/- for
male worker per month for 5 years
• In case of expansion, above incentives will be available only for additional workers. Minimum
machineries and job generation remain same (75 and 150, respectively)
• Provision of Ramp-up period of 6 months for new applicants
4 Plug and Play Systems
•
GIDC will develop readymade sheds (along with adequate
support infrastructure) for
garment
factories in selected locations and provide them on long term lease or rental basis
• Direct benefit to garment unit of 50% of the project cost including construction of building & shed
excluding land cost up to Rs. 10 crores. Maximum eligible area per machine will be 150 Square feet.
5 Mega garment park
•
Up to 50% of the total cost of the project with a maximum limit of Rs. 10 crore
• 100% stamp duty exemption only once, for developer and first purchaser of individual unit
• Park must accommodate a minimum of 20 garment units with 75 machines each
• Developer needs to hold at least 20% equity participation in project
6 Dormitories
Assistance to GIDC
• GIDC will develop dormitories in selected locations and provide them on rent (minimum lock in 10
years) or long term lease basis
• Dormitories to be operated by leasing entity itself
• GIDC will decide nature of dormitory, rentals etc. on case to case basis
• State government will provide rent assistance of 50% to enterprises
Assistance
to private developers (individual units or parks)
• 50% project cost subject to a maximum of Rs. 5 Crore
• Dormitories to be developed for min 250 workers with a max built up area of 50 sq. ft./ person
14
7
Skill development/
training
Setting up of training
institution
• Assistance up to 85% with a ceiling of Rs. 3 crore of the project
• Eligible investment- Building, equipment and machinery (including installation), electrification,
furniture, etc. excluding land cost
Setting up of training centers
• Assistance of 50% subject to a maximum of Rs. 20 lakhs per center
• Eligible investment- Equipment and machinery, electrification and necessary furniture
Reimbursement of tuition fee to trainees for
garment
production courses
• 50% of total fee charged by institution subject to a limit of up to Rs. 7,500 per trainee (Rs. 10,000/-
for middle level management courses)
15
Haryana
S.No Type Quantum of Assistance
1
Interest subsidy on
term loan for new and
existing units
• MSME in garmenting/ knitting/embroidery/technical
textiles
• 6% or Rs. 10 lakh per year
• MSMEs in ginning, cotton spinning, power loom in B, C,
D category blocks
• 5% or Rs. 10 lakhs for 5 years
not to exceed the amount of net VAT/SGST
paid
2 Power subsidy
• Micro and Small Enterprises in C, D category
• Rs. 2/ unit for 3 years from the date
of release of electricity connection
• Medium and Large units
• Exemption from open excess
charges of 93 paisa/unit
3
Employment
generation subsidy
One time support of Rs. 10,000 for capacity building of persons belonging to the State in B, C, D category
blocks
4 VAT
Investment subsidy with a cap of 100% of Fixed Capital
Investment (FCI) provided for
(for existing units ,expansion should include
at least 50% additional investment in plant
and machinery)
• C, D categories
• 75% of net paid VAT/SGST for first 7
years, 35% for the next 3 years
• B Category
• 50% for first 5 years, 25% for next 3
years
5 Stamp duty
Refund on purchase/lease of land for establishment of
enterprise, after start of production, for 5 years from filing of
EM/IEM
• 100%
• C and D category
• B Category • 80%
16
6
External development
charges (EDC)
50% exemption in B, C, D category blocks
7 Mandi fees 100% exemption in case of ginning enterprises in B, C, D category blocks
8 Electricity duty
100% exemption for 10 years only for new enterprises in B,C, D categories from the date of release of
electricity connection
9 Transfer property tax Exemption for dyes and chemicals purchased from outside the State
10
Environment
compliance
50% financial support, max Rs. 25 lakh on capital cost for setting up new Effluent Treatment Plant, air pollution
control devices to macro and small enterprises
11
Credit-linked interest
subsidy
@5% up to a max of Rs. 5 lakhs per year for 3 years to micro and small units for technology up-gradation
12 Energy audit
Reimbursement of 75% of cost of energy audit, max Rs. 2 lakh and 50% subsidy on cost of capital goods for
conserving energy, max Rs. 20 lakh for MSME (only if there is at least 15% reduction in average monthly
electricity consumption before conducting an audit)
17
Jharkhand
S.No Type Investment Bracket/unit eligibility Quantum of Assistance
1
Capital Investment
Subsidy (CIS)
All
20% of the investments made in P&M, cap of Rs. 50
crore
SC/ST/Women/Handicapped Entrepreneur residents of
Jharkhand
Additional 5%
2 Interest Subsidy
•
Interest subsidy of 7% or 50% of the interest rate, whichever is lower, subject to max. Rs. 1 crore on total
loan availed by new units for 5 years
• Reimbursement of guarantee fee charged under the Credit Guarantee Trust for Micro and Small
Enterprises (CGTMSE) scheme to Micro and Small Enterprises (MSEs)
3 VAT
Incentive of 100% of net VAT payable for 7 years, 40% for next 3 years with a ceiling of 100% of total
fixed capital
investment made, for new units; units qualified to be new by expansion/ modernization/ diversification will also
be entitled for the incentive
4 Stamp duty 100% reimbursement of stamp duty and transfer duty for execution of lease/lease cum sale/ sales deed
5 Power tariff Reimbursement of 50% of power tariff for 7 years
6 Electricity duty 100% exemption for 7 years
7 Mandi fees No Mandi tax will be levied on raw materials
8 Quality certification Assistance of 50% of the expenditure incurred up to a maximum of Rs. 10 lakh
9 Patent registration Assistance of 50% of the expenditure incurred, max Rs. 10 lakh per patent
10 Cluster development Grant of 15% of the grant released by the Government of India
11 Export subsidy
•
For MSE exporters, assistance of 75% of stall charges, max Rs. 2,25,000 per fair/exhibition; 75% of air fare
by economy class, max Rs. 50,000
• For women, assistance of 90% of stall charges, max Rs. 2,70,000 per fair/exhibition; 75% of air fare by
economy class, max. Rs. 60,000 (exporters availing travel support from Central Government shall not be
18
eligible)
Eligible for incentives under Jharkhand Export Policy 2015
12 Dormitory assistance Assistance up to 50% of cost of land, max Rs. 50 lakh (1 acre for 1000 workers)
13 Skill development
One-time support of Rs. 13,000 or actual cost of training per person, for capacity building of persons belonging to
the State
14 Wage subsidy
• Subsidy of Rs. 5,000 per month per worker for 7 years
For SC/ST women, subsidy of Rs. 6000 per month per worker for 7 years
15
ESI/ EPF
reimbursement
Reimbursement to employer up to Rs. 1000 per person per month towards expenditure on ESI/EPF for 5 years
16
Incubation center
support
Support of Rs. 50 lakhs annually for first 5 years (maximum 10 institutions can be granted in the first year); special
incentive of Rs. 10 lakh for incubator for every successful start-up
For establishment of Mega textile/garment park (size more than 75 acres)
For establishment of Mega textile/garment park (size
more than 75 acres)
19
Karnataka
S.No. Type of Subsidy Sector MSMEs Large Units
S.No.
Type of Subsidy
Remarks
Zone 1 Zone 2 Zone 3
Zone
4
Zone 1 Zone 2 Zone 3 Zone 4
1
Credit Linked Capital
Subsidy (% of Fixed
Asset)
25% 20% 15% Nil 20% 15% 10% Nil
Additional 5% subsidy for
SC/ ST / persons with
disabilities/ Minority / Ex-
servicemen / women
2
Interest subsidy on
term loan (for first 5
years)
Nil Nil Nil Nil 5% 5% 5% Nil
3
Power Subsidy (for 5
years)
Only for Micro &
Small enterprises
Rs.1
/unit
Rs.1
/unit
Rs.1
/unit
Nil Nil Nil Nil Nil
4
Wage Subsidy per
worker per month
(for 5 years)
Only for Medium &
Large Enterprises.
Rs.
1,500
Rs.
1,000
Rs.
1,000
Nil Rs. 1,500
Rs. 1,000
Rs. 1,000
Nil
-
For new employment
generation.
-For Karnataka Domicile
workers.
-Min. Employment for
Medium Enterprises: 200
-Min. Employment for
Large Enterprises: 500
5
Stamp Duty
Exemption
100% 100% 100% Nil 100% 100% 100% Nil
6
Concessional
Registration Charges
Rs. 1
per Rs.
1000
Rs. 1
per Rs.
1,000
Rs. 1
per Rs.
1,000
Nil
Rs. 1 per
Rs. 1,000
Rs. 1 per
Rs. 1,000
Rs. 1 per
Rs. 1,000
Nil
7
ESI/ EPF
Reimbursement (for 5
75% 75% 75% Nil Nil Nil Nil Nil
20
years)
8
Training Subsidy (Per
Trainee)
Nil Nil Nil Nil
Rs.
11,000
Rs.
11,000
Rs.
11,000
Rs.
11,000
21
Madhya Pradesh
S.
No
Type Quantum of assistance
1. Interest subsidy 5% for 7 years for P&M
2.
Investment
promotion subsidy
•
Earlier MP state used to provide VAT/CST assistance to large scale industry, after implementation of GST
it is being replaced by “Investment Promotion Assistance”
• Eligibility: Investments in plant & machinery more than 10 crores
• An annual investment promotion assistance for a period of 7 years calculated on the basis of 4
parameters
• Investment in plant and machinery
• Yearly capacity utilization
• Yearly exports share(25% - 75%)
• Yearly average number of employees (100 – 2,500)
• The actual assistance is calculated based on various slabs of the above parameters. The calculation model
is given in attached excel
• As per the stated conditions, the maximum assistance can be up to 72% of investment in plant and
machinery in certain cases
• Maximum assistance is limited to Rs. 150 crores
3.
Employment
generation incentive
5,000/
-
per worker per month for 5 years.
This incentive period will be 10 years from the date of commercial production, however incentives will be
provided only to workers who have been hired till 8
th
year from the date of commercial production.
Conditions for incentive: The company must appoint 50% of workers from MP domicile within 1 year , 75% MP
workers within 3 years and 90% MP workers within 5 years to get the benefits.
4. Training incentives 13000/- per worker for domicile workers for 5 years
5.
Stamp duty and
registration fee
exemption
100% reimbursement for leased land in industrial areas developed by state
6.
Electricity duty
exemption
100% exemption for 7 years
7. Power tariff Fixed power cost of 5/- per unit for 5 years
22
8. Land development fee 50% exemption for leased land in industrial areas developed by state
9.
Environment
compliance related
schemes
Small, Medium, Large &
Mega industries shall be provided a capital subsidy of 50% up to a maximum of Rs. 25
lakh for investment in setting up of waste management systems (such as ETP, STP etc.), pollution control devices,
health and safety standards, water conservation/harvesting etc.
10. Industrial Park 15% of the expenditure on establishment / development of industrial park up to a maximum limit of Rs. 5 crores
*Benefits will be awarded to only those units which are established in
the notified Industrial Area or Industrial
Areas developed by
AKVN/TRIFAC.
** units eligible for this policy will not be eligible for other incentives available in Industrial Policy 2014 (Amended in 2017).
*** Total incentive available is limited to 200% of investment in P&M and building
P&M*: Plant & Machinery excluding land, building, industrial safety equipments, DG Sets, Environment Protection equipments, R&D
equipments, Transformers, Storage Tank, Godown and Fire Fighting equipments.
23
Telangana
S.No Type Quantum of Assistance
1 Capital Assistance
For new units: Units promoted by SC/ST entrepreneurs or PWD shall get an additional capital subsidy of
5% subject to the caps (also increased by 5%)
Category Quantum(for conventional textiles) Quantum (for technical textiles)
A1 25% (cap of Rs. 1 cr) 35% (cap of Rs. 2.5 cr)
A2 25% (cap of Rs. 3 cr) 35% (cap of Rs. 5 cr)
A3 25% (cap of Rs. 5 cr) 35% (cap of Rs. 10 cr)
A4 25% (cap of Rs. 10 cr) 35% (cap of Rs. 20 cr)
A5 25% (cap of Rs. 20 cr) 35% (cap of Rs. 40 cr)
For existing units, 20% of cost of plant and machinery up to Rs. 5 crore
2
Energy, Water and
Environmental Conservation
Infrastructure
•
Assistance of up to 40% of cost of equipment with a ceiling of Rs. 50 lakhs under each category
separately
• CETP: Assistance of 50% of project cost up to Rs. 10 crore at cluster level/industrial parks. For
handloom clusters, assistance up to 70% with a cap of Rs. 2 cr.
• Rebate in local body taxes like property tax, IALA levies, etc.
3 Interest Subsidy
• 75% of the interest rate applicable on loans subject to a cap of 8% p.a. for 8 years (including
moratorium of 2 years) or the period of repayment of the loan
4 Stamp Duty Reimbursement 100% of the stamp duty/transfer duty paid during purchase of land, lease of land/shed/buildings.
5 VAT/CST/SGST concession
Reimbursement is available for tax collected on end product/intermediate product within the entire
value chain to the extent of 100% of VAT/CST/SGST for a period of 7 years or up to the realization of
100% fixed capital investment, whichever is earlier
24
6
Power Tariff Subsidy (for 5
years)
@Rs. 1/unit for ginning and pressing mills
Category Subsidy
A1, A2 Rs. 1.00/unit
A3 Rs. 1.50/unit
A4 Rs. 1.75/unit
A5 Rs. 2.00/unit
Additional Rs. 0.50/unit benefit across all categories for
technical textiles
7 Environment Compliance
Up to 50% subject to max. Rs. 50,000 for each category separately. Available to all existing units with
conservation infrastructure and are into commercial production for a min period of 3 years
8 Acquisition of New Technology
Up to 50% of investment in technology development, subject to a max of Rs. 10 lakh per
process/product
9 Transport Subsidy
For export
-
intensive textile/
garment
units
–
reimbursement of fright charges towards import of raw
materials and export of finished products either by road/rail, from project location to port/dry port
• Year 1 and 2: 75%
• Year 3 and 4: 50%
• Year 5: 25%
Transport subsidy at above rates for 5 years for “Deemed Exports” i.e. supply of goods from within the
State to other units within/outside State provided that the goods are ultimately exported
10
Design, Product Development
and Diversification Assistance
20% of the annual expenditure limited to R
s. 2 lakhs per year. Assistance can be availed twice during
operative period of the scheme (The assistance is not available for processing units with generic
products as output with no scope for design and diversification)
11 Land
In ever new Textile/
Garment
park, anchor client(s) and first movers will be extended rebate of 50% of
the cost, with an upper limit of rebate being Rs. 20 lakh per acre. An additional rebate of 25% with a cap
of Rs. 10 lakhs per acre for technical textiles unit.
25
12 Built-Up Space
Rental subsidy of 25% for first 5 years for the built up spaced created by the Government in textile and
garment parks, to be used mainly by the MSMEs
13 Environmental Infrastructure
•
Where a unit develops its own ETP or waste treatment plant or w
ater recycling plant, capital
subsidy of 50% of the project cost with a cap of Rs. 10 crore.
• For a CETP or ETP, rebate on O&M charges as:
• Year 1 and 2: 75%
• Year 3 and 4: 50%
• Year 5: 25%
14 Other Infrastructure
Support infrastructure like roads, power, water will be provided to standalone units by contributing
50% of cost of infrastructure from IIDF with a ceiling of Rs. 1 crore subject to:
• Location is beyond 10 km from existing Industrial Estates having vacant shed
• Cost is limited to 15% of the eligible fixed capital investment
15
Development of Worker
Housing/Dormitories
Rebate on 60% of the land cost and land conversion charges (upper limit Rs. 30 lakhs per acre)
16
Capacity Building and Skill
Development Support
•
One time support of Rs. 3,000 per employee will be reimbursed incurred in skill towards
training infrastructure in garment design and development:
• Up-gradation and training the local manpower. For units employing more than 1000 persons,
training subsidy will be Rs. 5,000 per person
• Assistance to autonomous institutions: 75% assistance subject to max Rs. 1 crore towards
infrastructure creation
• New/existing center intending to upgrade their facilities: 50% of investment subject to
max. Rs. 20 lakhs per center
17 Fiber to Fabric Incentive
A unit with production of textile fiber to fabric as an integrated family will be eligible for additional 5%
subsidy on items like capital investment and power tariff
18
Returning Migrant’s Incentive
Scheme
Provisi
on of 50% of capital investment limited to Rs. 2 crore or 50% of the required beneficiary group
contribution, required to be borne by weaver group to develop Textile Parks, GoI and MSME Cluster
Development. Only those groups will be eligible that has at least 60% of members as weavers who has
migrated.
26
Uttar Pradesh
S.No Subsidy Type Quantum of Assistance
1 Land Cost Subsidy
50% of land cost up to 5% of total project cost (30% of land cost in GB Nagar district)
Subsidy is for land bought from govt. agencies like UPSIDC, SIDA, LIDA, etc.; govt. will ensure functional ETP in area.
2
Stamp Duty
Exemption
•
100% exemption for textile units set up in Bundelkhand, Poorvanchal, Madhyanchal and Paschimancha
(75% exemption for GB Nagar district)
• 100% exemption for the land purchased for developing infrastructure facilities*
• 100% of exemption for the sericulture chaaki, koya production, threading units
3 Capital Subsidy
25% of plant & machinery as per the following cap:
Investment (Rs. cr.) Or Minimum Employment Subsidy cap (Rs. crores)
<= 10 50 2
>10 but <=50 200 10
>50 but <=100 300 20
>100 but <=200 500 40
>200 1000 100
4 Interest Subsidy
7% for 7 years for TUFS eligible machinery up to Rs. 1.5 crores per annum per unit (Rs. 75 lakhs per annum per unit
for GB Nagar district)
5% for 5 years for infrastructure development up to Rs. 1 crore per unit
5% for 5 years for quality development up to Rs. 1 crore per lab/ tool room
2.5% additional subsidy to SC/ ST/ Women/ specially enabled entrepreneurs holding more than 75% equity in the
company (Total additional interest subsidy is capped at 7.5% and total interest subsidy can not be more than
27
payable interest)
5
SGST
Reimbursement
•
90% reimbursement for Textile units in MSME
• Textile units not in MSME:
• 90% reimbursement in poorvanchal and Bundelkhand
• 75% reimbursement in Madhyanchal and Pashchimanchal
• 60% reimbursement in GB Nagar district
Up to annual upper limit of 25% of FCI (Land, building, construction and P&M) or actual tax deposited whichever is
less for a period of 10 years
Facility of interest-free loan equal to the sum of VAT & CST or amount deposited to the extent of State’s share
under GST, under the previous textile policy, will continue to the eligible units as before.
6 Electricity Duty 100% exemption for 10 years
7 EPF Subsidy
50% reimbursement of employer’s EPF contribution for 5 years for units not covered under “Employees Provident
Fund Scheme Reforms / Pradhan Mantri Rojgar Protsahan Yojana” (Units employing > 100 workers)
60% reimbursement of employer’s EPF contribution for 5 years for units not covered under “Employees Provident
Fund Scheme Reforms / Pradhan Mantri Rojgar Protsahan Yojana” (Units employing > 200 workers)
28
Garmenting units that get E.P.F. reimbursement for 3 years under the “Employees Provident Fund Scheme Reforms
/ Pradhan Mantri Rojgar Protsahan Yojana”, will be given benefit by the State Govt. for 2 more years.
8 Others
•
Mandi fee exemption: Purchase of raw materials will be exempted for a period of 5 years for all textile
units.
• Freight subsidy for garment exporters:
• 75% for first 2 years
• 50% for next 2 years
• 25% in the 5
th
year
9
Training cost
subsidy
Difference of actual training cost and central government subsidy up to 25% of project cost
5. Annexure
HSN Codes of Garments
HSN Codes Description
61 Knitted garment
6101 Men orBoys overcoats, etc.Knit or crochet
610120 Overcoats, capes, cloaks, anoraks, etc. Of Cotton
610130 Overcoats, car-coats, etc. Of man-made fibres
610190 Overcoats, etc. Of other textile materials
6102 Womenorgirls overcoats, etc., Knit or Crochet
610210 Overcoat, etc. Wool/Fine animal hair
610220 Overcoat, Car-coat,Capes, etc. Of Cotton
610230 Overcoat,etc. Of Manmade fibres
610290 Overcoat, etc. Of other textile materials
6103 Mens or boys Suits, ensemble, etc., KNIT OR CROCH
610310 Suits
610311 Men’s, boys suits, of wool, fine animal hair, knit, Suits :-- Of wool or fine animal hair
610312 Men’s, boys suits, synthetic fibres, knit, Suits :-- Of synthetic fibres
610319 Men’s, boys suits, of materials nes, knit, Suits :-- Of other textile materials
610322 Ensemblesof Cotton
610323 Ensemblesof Synthetic fibres
610329 Ensemblesofothertextile materials
610331 Jacketsand Blazers of Wool/Fine animal hair
610332 Jacketsand Blazers of Cotton
610333 Jacketsand Blazers of Synthetic Fibres
610339 Jacketsand Blazers ofother textile material
1
HSN Codes Description
610341 Trousers,Shorts, etc. Of Wool/Fine animal hair
610342 Trousers,Shorts, etc. Of Cotton
610343 Trousers,Shorts, etc. Of Synthetic Fibres
610349 Trousers,Shorts, etc. Of other textile materials
6104 Women’sor Girls Suits, ensemble, etc., Knit or Crochet
610413 Suitsof Synthetic Fibres
610419 Suitsofother textile material
610422 Ensembles of cotton
610423 Ensembles of synthetic fibres
610429 Ensembles of other textile materials
610431 Jackets of wool or fine animal hair
610432 Jackets of cotton
610433 Jackets of synthetic fibres
610439 Jackets of other textile materials
610441 Dresses of wool or fine animal hair
610442 Dresses of cotton
610443 Dresses of synthetic fibres
610444 Dresses of artificial fibres
610449 Dresses of other textile materials
610451 Skirts and divided skirts of wool or fine animal hair
610452 Skirts and divided skirts of cotton
610453 Skirts and divided skirts of synthtc fibres
610459 Skrts and divided skrts of other txtl matrls
610461 Trousers,bib and brace overalls,breeches and shorts of wool/fne animal hair
2
HSN Codes Description
610462 Trsrs,bibs,brc ovrlls,brchs,shrts of cotn
610463 Trousers,bib and brace overalls,breeches and shorts of synthetic fibres
610469 Trousers,bib and brace overalls,breeches and shorts of other textile materials
6105 Mens or boys shirts, knitted or crocheted
610510 Mens/boys shirts of cotton
610520 Mens/boys shirts of man-made fibres
610590 Shirts of othr textile material
6106 Womens or girls blouses & shirts, knit or croch
610610 Blouse etc of cotton
610620 Blouse etc of man-made fibres
610690 Blouses etc of othr textile materials
6107 Mens or boys underpants, pgs, etc, knit or croch
610711 Underpants and briefs of cotton
610712 Underpants and briefs of manmade fbrs
610719 Undrpnts and briefs of othr textile matrls
610721 Nightshirts and pyjamas of cotton
610722 Nightshirts and pyjamas of manmade fibres
610729 Nightshirts and pyjamas of othr txtl matrls
610791 Bathrobs dressing gown etc.of cotton
610799 Bathrobs etc.of other textile materials
6108 Womens or girls slips, pjs, etc, knit or crochet
610811 Slips and petticoats of man-made fibres
610819 Slips and petticoats of other txtl matrls
610821 Briefs and panties of cotton
3
HSN Codes Description
610822 Briefs and panties of man-made fibres
610829 Briefs and panties of other textle matrls
610831 Nightdresses and pyjamas of cotton
610832 Nightdresses and pyjamas of man-made fibres
610839 Nightdresses and pyjamas of othr txtl matrls
610891 Negliges,bathrobes, etc. of cotton
610892 Negliges,bathrobes, etc. of man-made fibres
610899 Negliges, bathrobes, etc. of othr txtl matrls
6109 T-shirts, singlets, tank tops etc., knit or crochet
610910 T-shirts etc of cotton
610990 T-shirt etc of other textile materials
6110 Sweaters, pullovers, vests etc, knit or crochet
611011 Jerseys, pullovers, cardigans etc of wool
611012 Jerseys etc of kashmiri goats
611019
Jerseys, pullovers, cardigans, waistcoats and similar articles; knitted or crocheted, of
fine animal hair other than that of Kashmir (cashmere) goats
611020 Jerseys etc of cotton
611030 Jerseys etc of man-made fibres
611090 Jersey etc of other txtl matrls
6111 Babies garments & accessories, knit or crocheted
611120 Babies garments etc of cotton
611130 Babies garments etc of synthic fbrs
611190 Babies grmnts etc of othr txtl matrls
6112 Track suits, ski-suits & swimwear, knit or crochet
611211 Track suits of cotton
4
HSN Codes Description
611212 Track suits of synthetic fibres
611219 Track suits of othr txtl matrls
611220 Ski suits
611231 Mens/boys swimwear of synthtc fbrs
611239 Mens/boys swimwear of othr txtl matrls
611241 Womens/girls swimwear of synthtc fbrs
611249 Womens/girls swmwear of othr txtl matrls
6113 Garments, knit etc, coated etc rubber, plastic etc
611300 Grmnts,made up of knttd/crchtd fabrics of hdng no. 5903 5906 or 5907
6114 Garments nesoi, knitted or crocheted
611420 Other garments of cotton
611430 Other garments of man-made fibres
611490 Othr grmnts of othr textile materials
6115 Pantyhose, socks & other hosiery, knit or crochet
611510 Graduated compression hosiery for example, (stockings for varicose veins)
611511
Panty hose etc., synthetic fibre yarn <67 dtex/sy, knit, Panty hose and tights :
-
Panty
hose and tights :-- Of synthetic fibres, measuring per single yarn less than 67 decitex
611512
Panty hose etc., synthetic fibre yarn >67
dtex/sy, knit, Panty hose and tights :
-
Panty
hose and tights :-- Of synthetic fibres, measuring per single yarn 67 decitex or more
611519
Panty hose etc of materials nes, knit, Panty hose and tights :
--
Of other textile
materials
611520
Womens full, kn
eelength hosiery, yarn <67 dtex/sy,knit, Women's full
-
length or knee
-
length hosiery, measuring per single yarn less than 67 decitex
611521 Of synthetic fibres, measuring per single yarn less than 67 decitex
611522 Of synthetic fibres, measuring per single yarn 67 decitex or more
611529 Of other textile materials:
611530 Other womens full-length or knee-length hosiery, measuring per single yarn less than
5
HSN Codes Description
67 decitex
611591 Hosiery nes, of wool or fine animal hair, knit, Other :-- Of wool or fine animal hair
611592 Hosiery nes, of cotton, knit, Other :-- Of cotton
611593 Hosiery nes, synthetic fibres, knit, Of synthetic fibres
611594 Of wool or fine animal hair
611595 Of cotton
611596
Hosiery and footwear; without applied soles, of
synthetic fibres, knitted or crocheted
(excluding graduated compression hosiery, panty hose, tights, full or knee-length
hosiery measuring per single yarn less than 67 decitex)
611599 Other hosiery of other textile materials
6116 Gloves, mittens and mitts, knitted or crocheted
611610 Gloves mittens and mitts impregnated cotd/ covrd wth plstc/rubr, knitd/crochtd
611691 Other gloves,mittens and mitts of wool or fine animal hair
611692 Other gloves etc of cotton
611693 Other gloves etc of synthetic fibres
611699 Othr gloves etc of other textile materials
6117 Made-up clothing access nesoi, parts etc, knit etc
611710 Shwl,scrv,muflr,mantlas,veils and the like
611720 Ties, bow ties and cravats, of textile material, knit, Ties, bow ties and cravats
611780 Other clothng accessories,knitd/crchtd
611790 Parts of garments,knitd/crchtd
62 Woven garment
6201 Mens or boys overcoats, cloaks etc, not knit etc
620111 Overcoats,raincoats,carcoats,capes,cloaks and smlr artcls of wool/fine animal hair
620112 Ovrcots,rncots etc and smlr artcls of cotn
6
HSN Codes Description
620113 Overcoats,raincoats,carcoats,capes,cloaks and similar articles of man-made fibres
620119 Overcoats,raincoats,carcoats,capes,cloaks and similar articles of other txtl mtrls
620191 Othr smlr artcls of wool/fine animal hair
620192 Other smlr artcls of cotton
620193 Other smlr artcls of man-mde fbrs
620199 Othr smlr artcls of othr textl materls
6202 Womens or girls overcoats etc, not knit or croch
620211 Overcoats,raincoats,carcoats,capes,cloaks and smlr artcls of wool/fine animal hair
620212 Overcoats,rncots etc andsmlr artcls of cotn
620213 Overcoats,raincoats,carcoats,capes,cloaks and similar articles of man made fibres
620219 Overcoats,raincoats,carcoats,capes cloaks and smlr artcls of other textile materials
620291 Other garments of wool or fine animal hairof heading 6202
620292 Other garments of cotton of hd 6202
620293 Other garments of man-made fibres of heading no. 6202
620299 Othr grmnts of othr txtl mtrls of hdg6202
6203 Mens or boys suits, ensembles etc, not knit etc
620311 Suits of wool or fine animal hair
620312 Suits of synthetic fibres
620319 Suits of other textile materials
620322 Ensembles of cotton
620323 Ensembles of synthetic fibres
620329 Ensembles of other textile materials
620331 Jakets and blazrs of wool/fine anml hair
620332 Jackets and blazers of cotton
7
HSN Codes Description
620333 Jackts and blazers of synthetic fibres
620339 Jackets and blazers of other textile matrls
620341
Trousers,bib and brace overalls breeches and shorts of wool/fine anml hair,mens/boys
620342 Trousers bib and brace overalls breeches and shorts of cotton for mens and boys
620343 Trousers,bib and brace,overalls,breeches and shorts of synthetic fibrs,mens or boys
620349
Trousers bib and brace overalls,breeches and shorts of other txtl materials
-
mens/boys
6204 Womens or girls suits, ensemb etc, not knit etc
620411 Suits of wool or fine animal hair
620412 Suits of cotton
620413 Suits of synthetic fibres
620419 Suits of other tixtile materials
620421 Ensembles of wool or fine animal hair
620422 Ensembles of cotton
620423 Ensembles of synthetic fibres
620429 Ensembles of other textile materials
620431 Jackets of wool or fine animal hair
620432 Jackets of cotton
620433 Jackets of synthetic fibres
620439 Jackets of other textile materials
620441 Dresses of wool or fine animal hair
620442 Dresses of cotton
620443 Dresses of synthetic fibres
620444 Dresses of artificial fibres
8
HSN Codes Description
620449 Dresses of other textile materials
620451 Skrts and dvded skrts of wool/fine anml hair
620452 Skirts and divided skirts of cotton
620453 Skirts and divided skirts of synthetic fibrs
620459 Skrts and dvded skrts of other txtl matrals
620461 Trousers,bib and brace overalls,breeches and shorts of wool or fine animal hair
620462 Trousers,bib and brace overalls, breeches and shorts of cotton
620463 Trousers,bib and brace overalls, breeches and shorts of synthetic fibres
620469 Trousers,bib and brace overalls,breeches and shorts of other textile materials
6205 Mens or boys shirts, not knitted or crocheted
620510 Mens, boys shirts, of wool or hair, not knit, Of wool or fine animal hair
620520 Mens or boys shirts of cotton
620530 Mens or boys shirts of man-made fibres
620590 Shirts of other textile materials
6206 Womens or girls blouses, shirts etc not knit etc
620610
Blouses, shirts
and shirt
-
blouses; women's or girls', of silk or silk waste (not knitted or
crocheted)
620620 Womens or girls blouses,shirts and shirt blouses of wool/fine animal hair
620630 Blouses,shirts and shirts-blouses of cotton
620640 Blouses,shirts etc of man-made fibres
620690 Blouses,shirts etc of othr txtl materials
6207 Mens or boys undershirts etc, not knit or croch
620711 Underpants and briefs of cotton
620719 Undrpnt and briefs of othr txtl materials
620721 Nightshirts and pyjamas of cotton
9
HSN Codes Description
620722 Nightshrts and pyjms of man-made fibres
620729 Nightshrts and pyjms of othr txtl matrls
620791 Othr smlr grmnts of cotn for mens/boys
620792 Mens, boys dressing gowns etc manmade fibre, not knit, Other :-- Of man-made fibres
620799 Other smlr garments of other txtl matrls
6208 Womens or girls slips etc, not knit or crochet
620811 Slips and petticoats of man-made fibres
620819 Slips and petticoats of othr txtl matrls
620821 Nightdresses and pyjamas of cotton
620822 Nightdresses and pyjamas of man-made fibres
620829 Nightdresses and pyjamas of othr txtl matrls
620891 Other smlr garments of cotton
620892
Singlets and other vests, briefs, panties, negligees, bathrobes, dressing gowns etc.;
women's or girls', of man-made fibres (not knitted or crocheted), excluding
incontinence or other sanitary garments or garment liners of heading no. 96.19
620899 Other garments of other textile materials
6209 Babies garments & accessories, not knit or croch
620910 Babies garments, accessories of wool or hair, not knit, Of wool or fine animal hair
620920 Babies grmnts and clothng accssrs of cotton
620930 Babies grmnts and clothng access of syn fibr
620990 Babies garments and clothing accessories of other textile materials
6210 Garments, of felt etc, or fabric impregnated etc
621010 Garments,made up of fabrics of heading no.5602 or 5603
621020
Garments; overcoats, raincoats, car
-
coats, capes, cloaks and similar articles, men's or
boys', of the fabrics of heading no. 5602, 5603, 5903, 5906 or 5907 (not knitted or
crocheted)
10
HSN Codes Description
621030
Garments; overcoats, raincoats, car
-
coats, capes, cloaks and similar articles, women's
or girls', of the fabrics of heading no. 5602, 5603, 5903, 5906 or 5907 (not knitted or
crocheted)
621040
Garments; men's or boys', n.e.c.
In
item no. 6210.2, of the fabrics of heading no. 5602,
5603, 5903, 5906 or 5907 (not knitted or crocheted)
621050
Garments; women's or girls', n.e.c.
In
item no. 6210.3, of the fabrics of
heading no.
5602, 5603, 5903, 5906 or 5907 (not knitted or crocheted)
6211 Track suits, ski-suits & swimwear, not knit etc.
621111 Swimwear for mens or boys
621112 Swimwear for womens or girls
621120 Ski suits
621132 Othr grmnts of ctn for mens or boys
621133
Track suits and other garments n.e.c.; men's or boys', of man
-
made fibres (not knitted
or crocheted)
621139 Othr grmnts of othr txtl mtrls fr mns/boys
621141
Womens, girls garments nes, of wool or hair, not knit, Other garments,
women's or
girls' :-- Of wool or fine animal hair
621142 Othr grmnts of cotton fr womens or girls
621143
Track suits and other garments n.e.c.; women's or girls', of man
-
made fibres (not
knitted or crocheted)
621149 Other garments of other textile materials
6212 Bras, girdles, garters etc., knitted etc or not
621210 Brassieres
621220 Girdles and panty-girdles
621230 Corselettes
621290 Othr artclsandprts of hd6212 w/n kntd/crchtd
6213 Handkerchiefs
621320 Handkerchiefs of cotton
11
HSN Codes Description
621390 Handkerchiefs of other textile materials
6214 Shawls, scarves, mufflers, mantillas, veils etc.
621410 Shawls,scrvs,mufflers etc of slk/slk wste
621420 Shawls,scarves etc of wool/fine anml hair
621430 Shawls,scrvs,mufflers etc of synthtc fbrs
621440 Shawls scrvs,mufflrs etc of artificial fbrs
621490 Shawls,scrvs etc of other txtl materials
6215 Ties, bow ties & cravats, not knitted or crocheted
621510 Ties,bow ties and cravats of silk/silk waste
621520 Ties,bow ties and cravats of man-made fibres
621590 Ties,bow ties etc of other txtl materials
6216 Gloves, mittens and mitts, not knit or crocheted
621600 Gloves,mittens and mitts
6217 Made-up cl access nesoi, garment etc parts nesoi
621710 Accessories for artcls of apparel
621790 Parts of garments/of clothng accessories
12
NIC Codes of Garments
NIC Codes Description
141 Woven Garment
143 Knitted Garment
13
Garment Testing Facilities
S.No
Testing Labs
Websites
1.
Bureau Veritas Industrial Services
https://www.bureauveritas.co.in/
2.
Eurofins Product Testing India
https://www.
eurofinsdiscoveryservices
.co
m
/
3.
Intertek India
https://www.
intertek
.co
m
/
4.
Modern Testing Services India
https://www.mts
-
global.com/
5.
SGS India
https://www.
sgsgroup
.
in
/
6.
Spectro Analytical Labs
https://www.
spectro
.
in
/
7.
Tamtex Third Party Inspection Company
https://www.
tamtexindia
.com/
8.
TUV India Pvt. Ltd.
https://www.tuv
-
nord.com/
9.
TUV SUD Pvt. Ltd.
https
://www.tuvsud
.com/
10.
UL India
https://www.
ulttc
.com/
14
Garment Machinery Suppliers
S.No.
Machinery Suppliers
1.
EH Turel Company
2.
Garment and Leather Technics Pvt. Ltd.
3.
Gurukrupa Impex
4.
HC Anand
5.
HSW
6.
IIGM
7.
Indo Machines
8.
Kanwal Machine House
9.
Krishna Sewing Machines
10.
Launmark India Pvt. Ltd.
11.
Macro Agencies Pvt. Ltd.
12.
Magnum
13.
Master Enterprises
14.
New Tech Garment Machinery
15.
Perfect Sewing Machines
16.
RK Sewing Machines
17.
RS Technologies
18.
Sodhi Sewing System Co.
19.
Sonigra Machinery India
Pvt. Ltd.
20.
Star Whites Industries
21.
Stitch World India
22.
Swastik Enterprises
23.
Unitech Garment Machinery
24.
Vetech Equipments
25.
Vikas Trading Corporation
26.
Vishal Enterprises
27.
Welco Garment Machinery Pvt. Ltd.
28.
Weltex
Industries
15
Some Indian Fabric Mills
S.No.
Fabric
Mill
1
Arvind Mills
2
BSL
3
Diamond Textile
4
Donear India
5
HC Anand
6
IIGM
7
JJ Exporters
8
Kamadgiri Fashion Ltd.
9
KG Denim
10
Magnum
11
Malwa Industries Ltd.
12
Nahar Fabrics
13
Nandan
Denim
14
Orbit Exports
15
Rajasthan Spinning Weaving Mills Ltd.
16
Raymond Group
17
Shri Dinesh Mill
18
Siyaram Silk Mill
19
Usha Spinning and Weaving Mills Ltd.
20
Vardhman Textiles Ltd.