Silk Fabric & Garment Manufacturing Unit in Dehradun

Transcription

1 Silk Fabric & Garment Manufacturing Unit in Dehradun SERICULTURE Government of Uttarakhand

2 Contents Advantage India Uttarakhand Key Credentials Uttarakhand Competitive Advantage Project Information Project Outline Plant Capacity & Production Manpower Requirement Cost Estimation Infrastructure Availability Policies, Schemes & Incentives Key Contacts Page 2

3 Advantage India (1/4) INDIAN SERICULTURE INDUSTRY Sericulture is an agro-based labour intensive industry and refers to the rearing of silk producing organisms in order to obtain silk Globally, Asia is regarded as the main producer of silk as it produces over 95 % of the total global output India has been ranked as the second major and largest raw silk producer in the world as it contributes about 18% to the total world raw silk production, with an annual silk production of around 28,000 Metric Tons* Sericulture and Silk Textiles Industry is one of the major sub-sectors comprising the textiles sector The major activities involved in a sericulture industry are: Cultivation of silkworm food plants, Rearing of silkworms for the production of raw silk, Reeling the cocoons for unwinding the silk filament and Other post cocoon processes such as twisting, dyeing, weaving, printing and finishing In India, it is a village-based industry practiced in about 53,814 villages and provides employment to about 6 million people moreover it is capable of providing continuous income to farmers Sericulture suits both marginal and small scale land holders because of its low investments, high assured returns, short gestation period, rich opportunities for enhancement of income and creation of family employment round the year Sericulture is unique in its vast employment and income generating potentialities; From a mere traditional practice, it has now shaped into a viable agroindustry Silkworm--the caterpillar larva of the domesticated silk moth Silkworm Cocoon Page 3 Bombyx mori *

4 Advantage India (2/4) KEY GOVERNMENT INITIATIVES Central Silk Board Central Silk Board (CSB), is a statutory body under the Ministry of Textiles, Government of India, established for the development of sericulture and silk industry in the country* It is under the administrative control of the Ministry of Textile, Government of India and is an apex agency to oversee the growth and development of silk industry in India The vision of CSB is to See India emerge as the global silk leader and aligned to this vision statement, the Board has planned its programmes and strategies for all the three distinct sectors viz., Silkworm Seed production Farm sector/pre-cocoon sector Industry or Post-cocoon sector The CSB coordinates and assists in the following: Promotion of the development of silk industry by measures it thinks fit Undertaking, assisting and encouraging scientific, technological and economic research in sericulture and silk sectors Production of basic and commercial silk-worm seed for supplementary assistance to various states Improvement of raw silk marketing and brand promotion Advising the central government on all measures relating to the development of silk industry including import and export of raw silk Collection of sericulture statistics from various states Preparation of reports related to silk industry for Ministry of Textiles, Government of India Page 4 *Central Silk Board

5 Advantage India (3/4) SECTOR ADVANTAGES Low Gestation, High Returns Eco-friendly Activity Satisfies Equity Concerns High Employment Potential Provides vibrancy to village economies Women friendly Occupation Ideal Programme for Weaker Sections of the Society Page 5 *

6 Advantage India (3/4) SECTOR ADVANTAGES (1/2) Low Gestation, High Returns Estimated investments of Rs.12,000 to 15,000 (excluding cost of land and rearing space) is sufficient for undertaking mulberry cultivation and silkworm rearing in one acre of irrigated land. Mulberry takes only six months to grow for commencement of silkworm rearing. Mulberry once planted will go on supporting silkworm rearing year after year for years depending on inputs and management provided Five crops can be taken in one year under tropical conditions By adopting stipulated package of practices, a farmer can attain net income levels up to Rs per acre per annum Eco-friendly Activity As a perennial crop with good foliage and root-spread, mulberry contributes to soil conservation and provides green cover Waste from silkworm rearing can be recycled as inputs to garden Dried mulberry twigs and branches are used as fuel in place of firewood and therefore reduce the pressure on vegetation/forest Being a labour intensive and predominantly agro-based activity, involvement of smoke-emitting Developmental programmes initiated for mulberry plantation are mainly in upland areas where un-used cultivable land is made productive Mulberry can also be cultivated as intercrop with numerous plantations Mulberry being a deep-rooted perennial plant can be raised in vacant lands, hill slopes and watershed areas Currently, only about 0.1 % of the arable land in the country is under mulberry cultivation can attain net income levels up to Rs per acre per annum Satisfies Equity Concerns Benefits of sectoral value-addition primarily accrue to rural households. Cases of landless families engaged in cocoon production using mulberry contracted from local farmers are common in some states Page 6 *

7 Advantage India (4/4) SECTOR ADVANTAGES (2/2) High Employment Potential 60 lakh people are engaged in various sericulture activities in the country It is estimated that Sericulture can generate 11 man days per kg of raw silk production (in on-farm and off-farm activities) throughout the year This potential is par-excellence and no other industry generates this kind of employment, specially in rural areas, hence, sericulture is used as a tool for rural reconstruction Provides vibrancy to village economies About 57 % of the gross value of silk fabrics flows back to the cocoon growers with share of income to different groups % to cocoon grower, 6.8% to the reeler, 9.1% to the twister, 10.7% to the weaver and 16.6% to the trade Women friendly Occupation Women constitute over 60 % of those employed in down-stream activities of sericulture in the country. This is possible because sericulture activities starting from mulberry garden management, leaf harvesting and silkworm rearing is more effectively taken up by the women folk. Silk reeling industry including weaving is largely supported by women Ideal Programme for Weaker Sections of the Society Sericulture can be practiced even with very low land holding. Acre of mulberry garden and silkworm rearing can support a family of three without hiring labour. Features such as low gestation, high returns make sericulture an ideal programme for weaker sections of the society. Vast tracts of forest based tasar food plantations available in the country, if judiciously exploited for rearing tasar silkworms, can offer supplementary gainful employment for tribal Page 7 *

8 Uttarakhand Key Credentials (1/2) UTTARAKHAND STATE OVERVIEW Raw silk production of Uttarakhand will be about about 33 metric tons by the end of only in Mulberry Uttarakhand, Himachal Pradesh, Jammu and Kashmir are major temperate region states in north India that are producing high quality bivoltine mulberry silk Uttarakhand produces all four kind of silk viz., mulberry, oak tasar, eri and muga Raw silk production of temperate region of Uttarakhand is about 5% of total bivoltine raw silk produced in India in a calendar year SERICULTURE IN UTTARAKHAND PRESENT PRODUCTION LEVEL (Approx.) Mulberry cocoon production (Metric Ton) 245* Oak tasar (Lac Nos) 5 Muga cocoon (Nos) Eri cocoon (Nos) Silk Fabric Production (Metres) Raw Silk Production (MT) 33 Silk yarn production by UCRF (Kgs) 3000 Weavers associated with UCRF ~49 Silk Weaver in the state ~200 Traditional Weavers in the state ~1000 *Uttarakhand is presently producing mainly mulberry raw silk.. Page 8 *Data Provided By Department of Sericulture

9 Uttarakhand Key Credentials (2/2) UTTARAKHAND SNAPSHOT GSDP Increased at CAGR of 11.17% ( *) Total population (Mn) 10* Male Population (Mn) Female Population (Mn) Operational PPP projects ( 129 No) (April 2018)* FDI inflows (Apr - Dec 2017), stood at around US$ 652 mn * MAJOR PRODUCTION CLUSTERS IN UTTARAKHAND Category Districts Mulberry Oak tasar Eri cocoon (Nos) Silk Fabric Production (Metres) Raw Silk Production (MT) Silk yarn production by UCRF Silk Exchange Dehradun, Haridwar, Udham Singh Nagar, Nainital, Bageshwar, Pauri, Garhwal Chamoli, Rudraprayag, Pithoragarh, Bageshwar, Dehradun Nainital and Udham Singh Nagar Dehradun Dehradun Dehradun, Udham Singh Nagar, Pauri, Garhwal Dehradun Silk Park Page 9 *

10 Uttarakhand Competitive Advantage (1/2) ADVANTAGE: UTTARAKHAND The major raw material i.e. silk yarn, pure wool etc. is available locally in different parts of Uttarakhand The state has a stable political environment with successive governments that have been committed towards creating a progressive business environment. Availability of Raw Material Stable Political Environment Ease of Doing Business Adequate Research Institutes Under its Ease of Doing Business initiative, the State has implemented a web based Single Window Clearance System, allowing investors to avail the necessary State Government approvals Sate has research oriented institutes, such as, Regional Sericulture Research Station, Central Silk Board, Dehradun, DCTSC, Central Silk Board, Dehradun etc. The Industrial electricity tariff in Uttarakhand is one of the lowest across the States. The electricity supply is reliable. Low Industrial Electricity Tariff Evolving industrialisation facilitating growth Uttarakhand is one of the fastest growing states in India. The state s GSDP increased at a compound annual growth rate of 11.17% ( *) Farmers Working on Harvesting Silkworm Cocoon Page 10 *

11 Uttarakhand Competitive Advantage (2/2) Machines (looms) Used in Silk Production KEY PLAYERS POST COCOON Uttrakhand Co-operative Resham Federation Dehradun Appropriate Technology India Rudraprayag RAW MATERIAL PRODUCER MULBERRY PRE COCOON (Approx.) Number of Farmers 6000* Area Under Plantation 3000 Hectares* Annual Production (Cocoon) 245 MT Biovoltine* Page 11 *Data Provided By Department of Sericulture

12 Project Information PROJECT AT A GLANCE Project Name Silk Fabric & Garment Manufacturing Unit in Dehradun* Location Unit Capacity Focus Sector Project Timelines Infrastructure Growth Centre Selakui, Dehradun* The annual rated capacity of the plant will be assumed after finalization of the unit. One powerloom produced about 25 Mtr fabric per day and one handloom can produce 6-8 Mtr handloom product per day* Textile & Handloom Sector* 5-6 months* Infrastructure is available in form of Pre existing sheds in Selakui, Dehradun which can be lease out to interested investor* PROJECT SITE DEHRADUN The project envisions setting up of silk garment & Handloom production unit at Dehradun Dehradun is the capital city of Uttarakhand, a state in the northern part of India Located in the Garhwal region, it lies 236 kilometres (147 mi) north of India's capital New Delhi and 168 kilometres (104 mi) from Chandigarh Uttrakhand is the only state to produce all four types of cocoon viz Mulberry, oak tasar, Muga and Ericulture Because of its high quality Bivoltine cocoons of international grade, Uttrakhand is known as the Bowl of Bivoltine Silk in India 6 Tehsils 17 Towns 764 Villages 6 Blocks Second most populous district of Uttarakhand (out of 13), after Haridwar Page 12 *Data Provided By Department of Sericulture

13 Project Outline (1/2) PROJECT COMPONENTS Production Units For Silk Garment Manufacturing CFC (Common Facility Centre) Unit, Handloom Production Unit, Human Resource, Sampling Unit, Order Analysis Department, Style Analysis Report Computer Aided Design Department, Production Planning And Control Department, Raw Material Source Department, Workflow Of The Purchase And Logistics Department, Ware House, Testing Laboratory Department, Fabric Store And Inspection Department, Cutting Department, Computerized Embroidery Department, Industrial Engineering Department, Sewing Department, Washing Department, Finishing Department, Packaging And Dispatch Department Cost of Land for the Project Land Allotted : 4000 square feet* Rate of Land (For Leasing) : Rs. 1,00,000 per year* Total Cost of Land : Rs. 10,00,000 for 10 years* Machines (looms) Used in Silk Production Page 13 *Data Provided By Department of Sericulture

14 Project Outline (2/2) PROJECT DEMAND Projected Demand As of now, there is no public or Government silk garment unit in the state On the other hand Uttarakhand Co-operative Resham Federation is producing about 3000 Kgs of raw silk per annum By setting up garment unit, the raw material demand can be filled in local level within the state rather than exporting outside the state This will also help in employment generation for the state The silk production chain below represents the process reeling and spinning to silk to final garment finishing and marketing Silk Garment Production Process Silk Garment Production Chain Silk Spinning Silk Reeling Raw Silk Marketing & Storage Silk throwing or twisting Silk Weaving Silk dyeing Handloom Powerloom Printing Finishing Marketing of silk fabrics Page 14 *Data Provided By Department of Sericulture

15 PLANT CAPACITY AND PRODUCTION PROGRAMME (1/2) PLANT AND PRODUCTION DETAILS Plant Capacity Production Programme The annual rated capacity of the plant will be assumed after finalization of the unit. One powerloom produces about 25 Mtr fabric per day and one handloom can produce 6-8 Mtr handloom product per day therefore annually 90, lac Mtr silk fabric can be produced The plant is expected to operate at 95% of its rated capacity in the first year and at full capacity starting from the second year and then after Raw Material Utilities The main material is silk yarn, and its annual requirement will be based on proposed unit setup and its capacity. The major raw material i.e. silk yarn, pure wool etc. is available locally in different of Uttarakhand The major utilities required by the plant are electricity and water. The estimated annual requirement of utilities of the plant at 100% capacity utilization Farmers Working on Harvesting Silkworm Cocoon Page 15 *Data Provided By Department of Sericulture

16 PLANT CAPACITY AND PRODUCTION PROGRAMME (2/2) PLANT AND PRODUCTION DETAILS - INDICATIVE Engineering Description of Machines for Quantity Remarks Setting Up of Silk Fabric & Garment Manufacturing Unit in Dehradun Twisting Machine 1-50% subsidy under Central Sector Scheme of Central Silk Board MOT (Ministry of Textile), GOI (Government of India0 Power Looms/ Nos 1 Single Needle Machine 1 Double Needle Machine 1 Flate Lock Machine 1 Yarn Overlook Machine 4 Button Stitching Attaching 1 Button attaching machine 1 Fabric Cutter Machine 2 Fabric Cutter Table 1 Pattern table Machine 1 Chair, Trolley, VIP Table Rack etc. CATD 1-50% Lacs subsidy under Central Sector Scheme of Central Silk Board MOT, GOI Other Local machine Misl. Page 16 *Data Provided By Department of Sericulture

17 MANPOWER REQUIREMENT AND ESTIMATED (1/2) - Indicative SNO Description Required 1 Manager 01 2 Assistant Manager 01 Sub Total 02 Twisting Unit 1 Twister 01 2 Winding Operator 01 3 Double Machine Operator 01 Sub Total 03 Garment Unit 1 Textile Designer 01 2 CATD designer 01 3 Production head (supervisor) 01 4 Finance and Administration head Sales person 02 Store keeper 01 Accountant 01 Driver 02 Sub Total 10 Page 17 *Data Provided By Department of Sericulture

18 MANPOWER REQUIREMENT AND ESTIMATED (2/2) - Indicative SNO Description Required Handloom Production 1 Master Twister 01 2 Loom Operator (Power Looms) 02 3 Automatic Embroidery Operator 02 4 Skilled labor 30 5 Unskilled Labor 05 6 Guard 02 Sub Total 42 Employees Benefit (25% of Basic Salary) Handloom Unit 1 Coordinator 01 2 Master Weaver 02 Sub Total 03 1 Calendaring machine Operator 01 CFC 2 Master Dyer 02 Sub Total 03 1 Multi Tasking Staff 05 Sub Total 68 Page 18 *Data Provided By Department of Sericulture

19 Project Cost Estimation - Indicative INITIAL INVESTMENT COST Sr. No. Type of cost Total (in INR) 1 Building and Civil Works 10,00,000 2 Plant Machinery and Equipment 70,00,000 3 Office Furniture and Equipment 2,00,000 4 Vehicle 10,00,000 5 Pre-production Expenditure* 5,00,000 Miscellaneous Expenditure 6 Total Capital investment 97,00,000 PRODUCTION COST Sr. No. Type of cost Total (in INR) 1 Raw Material and Inputs 25,00,000 2 Utilities 5,00,000 3 Maintenance and repair 5,00,000 4 Labor direct 150,00,000 5 Labor overheads 5,00,000 6 Administration Costs 5,00,000 7 Land lease cost 1,00,000 8 Deprecation (Machinery, furniture etc.) 7,00,000 9 Total Operating Costs 203,00,000 TOTAL PROJECT COST Sr. No. Type of cost Total (in INR) 1 Total Capital investment 97,00,000 2 Production cost 203,00,000 3 Total Production cost 300,00,000 Page 19 *Data Provided By Department of Sericulture

20 Infrastructure Availability Connectivity of Dehradun with the major towns Rail Air Dehradun Railway Station is the nearest railhead of the Northern Railways.The railway station is situated at a distance of about 15 km from the plant location in Selaqui, Dehradun Major cities like Delhi, Kolkata, Varanasi, Ujjain and Indore are connected by regular as well as frequent train services from the main city Located around 50 km from Selaqui, the Jolly Grant Airport, also known as Dehradun Airport, connects the city to almost all major domestic destinations The airport also has easy access to the holy towns of Rishikesh (20 km) and Haridwar (30 km) Road Dehradun is well connected by road with all major towns of Uttarakhand and other cities like New Delhi, Lucknow, Agra, etc. Connecting buses are available at New Delhi, Lucknow, Haldwani, Almora, Nainital, and Chandigarh. Private taxis and car rentals are also available in all these towns. Page 20

21 Policies, Schemes & Incentives (1/4) Central Government Incentives Particulars Description Central Sector Scheme on Sericulture Post Cocoon Post cocoon sector assumes greater importance during ISDSI CSS Plan as it directly determines the quality of the end product, however high the production of quality raw material, i.e. silkworm cocoons The emphasis for the Sector during XII would be to employ appropriate methods and measures to produce gradable silk Quality of the silk produced from charkha and cottage basins needs to be improved further for better value realization Towards this purpose, the improved package of practices and machineries developed by Central Silk Technological Research Institute, Bangalore, would be disseminated to the field by incentivising investments and filling gaps in critical areas. This apart, many of the existing machineries would be replaced to take up the post cocoon activities for the improved varieties of cocoons produced from the new breeds The CSTRI has also been in the process of continuously developing new techniques and technologies, dissemination of which will be done in post cocoon sector for enhancing the quality and productivity matching international standards. Develop cost effective affordable post cocoon machineries along with the package of practices and transfer the same to the field at the minimum possible time An exclusive post cocoon research centre would be opened in Varanasi to extend post cocoon support to the silk clusters of the zone Quality based pricing mechanism would be instituted to larger areas to ensure that quality products are appreciated in the market Pedal cum power operated improved devices with solar power attachment will be developed and popularized to suit the rural based primary producers A dedicated R&D team to develop improved and cost effective machineries and package of practices for Vanya sector has already been put in place. The team is expected to improve the quality of vanya silk significantly by the end of ISDSI CSS Plan period Page 21 *Central Silk Board

22 Policies, Schemes & Incentives (2/4) Central Government Incentives Industrial Development Scheme 2017 Central Capital Investment Central Capital Investment Incentive for access to credit 30% of the investment in plant and machinery Central Comprehensive Insurance Incentive Reimbursement of 100% insurance premium on insurance of building and Plant & Machinery for a maximum period of 5 years from the date of commencement of commercial production/ operation Page 22

23 Policies, Schemes & Incentives (3/4) State Government Incentives Mega Industrial and Investment Policy 2015 Coverage: New & Existing Projects undergoing expansion (falling within identified Industrial Estates: Large projects (50 Cr to 75 Cr), Mega Projects (75 Cr to 200 Cr), Ultra Mega Projects (Above 200 Cr) Interest Subsidy 7% for 5 years Investment Interest Cr 25L Max Cr 35L Max >200 Cr 50L Max SGST Concession* Large: 30% Mega / Ultra Mega: 50% Stamp Duty 50% Exemption ETP Subsidy 30% (up to 50 lacs) Extra Employment 500 P.M. per P.M. per Female Land Registration Fees Land registration per 1000/- Power Assistance Rebate of 1/- per unit on the power bill and 100% rebate on electric duty for 7 years Land Rates Rebate Rebate of 15%, 25% and 30% on SIIDCUL prevailing land rate for Large, Mega and Ultra Mega Projects respectively *With the advent of GST, the current provision of reimbursement of VAT now stands discontinued. However, SGST share (30% for large and 50% for mega and ultra-mega units) after adjustment of ITC on sale (B2C) will be reimbursed Page 23

24 Policies, Schemes & Incentives (4/4) State Government Incentives MSME POLICY 2015 Interest Subsidy Category A: 10% (Max 8 lacs/yr/unit) Category B, B+: 8% (Max 6 lacs/yr/unit) Category C: 6% (Max 4 lacs/yr/unit) Capital Subsidy Category A: 40%(Max 40 lacs) Category B, B+: 35% (Max 35 lacs) Category C: 30% (Max 30 lacs) Category D: 15% (Max 15 lacs) Transport Subsidy % of Annual Turnover (Per year/ unit) or Inbound/ Outbound Logistics Cost whichever is less Category A: 7% (Max 7 lacs/yr/unit) Category B, B+: 5% (Max 5 lacs/yr/unit) Stamp Duty Category A, B, B+, C: 100% Category D: 50% SGST Concession* Category A: 100% for the first 5 yrs and 90% thereafter Category B, B+: 100% for the first 5 yrs and 75% thereafter Power Bill Rebate Category A: Sanctioned Load up to 100 KVA: 100% for 5 yrs and 75% thereafter; If Load>100 KVA: 60% Category B, B+: Sanctioned Load up to 100 KVA: 100% for 5 yrs and 60% thereafter; If Load>100 KVA: 50% *With the advent of GST, the current provision of reimbursement of VAT now stands discontinued. However, the net SGST after adjustment of ITC on sale (B2C) will be reimbursed. Page 24

25 Key Contacts DIRECTORATE OF SERICULTURE UTTRAKHAND Address Nodal Person Directorate of Sericulture Uttrakhand, Prem Nagar, Dehradun Name: Shri Anand Kumar Yadav Designation: Director Website ID Fax Phone Investment Facilitation Centre / INVESTMENT FACILITATION CENTRE Address Website ID Directorate of Industries Industrial Area, Patel Nagar, Dehradun, Uttarakhand Toll Free Phone ,