INVEST IN FURNITURE MANUFACTURING SECTOR
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1 INVEST IN FURNITURE MANUFACTURING SECTOR
2 Indian Scenario Furniture manufacturing in India has a good potential The furniture industry in India comprises primary of hotel, household (bedroom, kitchen, living) and office furniture. 10% Kitchen 7% Seating Local players can tap the demand which is currently managed through imports Imported furniture (Value in USD Mn, Share in Furniture imports to India in %) 15% Living 7% Seating Italy 39,8% Malaysia 61,12% Others 106,21% 20% Work Station China 304,59% Source: NSDC, Human resource and skill requirements in the Furniture and Furnishing sector 41% Bedroom Furniture worth USD 0.53 bn was imported in Major source countries were China and Malaysia. Major furniture products from these countries were Wooden furniture (excluding for offices, kitchens, bedrooms and seats) Source: INTRACEN, PwC analysis There is a high growing demand for furniture products in India. Organized furniture manufacturing sector is witnessing high growth trends in India India has shifted from being a net importer to a net exporter in the last 5 years. Organised furniture manu. Output (USDMn) Household demand 4.2 mn units additional housing demand by 2020 Hotel demand 113,622 branded hotel rooms in growing at 14%* per annum. Office demand 35 mnsq. ft. incremental prime office space absorption in top 8 cities in 2015*** Imports Exports Furniture demand is estimated to be ~$18.63 bn*** growing at a rate of ~13% CAGR** Source: Cushman and Wakefield analysis, CBRE analysis, HVS analysis *Between2009and2013;**Between2009and2013;***In2013 Source: INTRACEN, PwC analysis
3 Gujarat Scenario Gujarat is positioned to become a hub for furniture production Growth in population along with purchasing power and tourist arrivals (hotel demand) are positive drivers for the demand in these states. State Population (mn) (2016) Growth (%) GDP per capita (USD) 2016 Growth (in USD)(%) Total Tourists (2015) (mn) Growth (%) Gujarat , Rajasthan Madhya Pradesh , Positive growth Negative growth Source: Census, Socio Economic Survey, India Tourism statistics, PwC analysis Organised furniture manufacturing has grown at a high rate in the last few years in Gujarat Organised manufacturing is a ~USD 109 mn industry growing at ~9.36% CAGR (in USD terms) in the 6 years till Organised furniture manufacturing output of Gujarat (USD mn) Share of Gujarat s output to India s output has increased from 2.79% (in 2009) to 4.08% (in 2015) Organised furniture manufacturing output share of Gujarat (%) % 4.08% Source: Annual Survey of Industries, PwC analysis Source: Annual Survey of Industries, PwC analysis
4 SIPC Kandla Modern Industrial Zone at Kandla Advantage Gujarat SIPC Kandla is located in one of the most preferred state for making investment in India Salient features Developed industrial plots with infrastructure for Furniture industry Competitive price 60 year lease term 2 to 50 acre plot size Port based industrial development. ~11.4% 2nd largest contributor to India s GDP Source: Central Statistics Oce, Ministry of Statistics and Programme Implementation, Government of India. (At constant prices ) Land use plan of SIPC Kandla LAND USE AREA (ACRES) % LAND USE ~25% Contribution to NationalExports Green Industrial Ancillary Service Area Industrial Colony INDUSTRIES ~19% Ranks 1st in terms of Manufacturing output contribution to India Source: Annual Survey of Industries, ~41% Source: Gujarat Maritime Board Proportion of National Maritime Cargo handled by Gujarat Ports ( ) More Than 50 Public Transport & Logistics Roads + Flood Protection Embankment TOTAL % Railway Siding Rank 3 No. 1 NCAER State Investment Potential Index (2016) and Economic Freedom Index Source: NCAER (N-SIPI 2016), Fraser Institute (2013) Implementation of Ease of Doing Business Reforms (2016) Rank 3 Source: World Bank, DIPP
5 Advantage Deendayal Port SIPC Kandla is located at just 3 kms from Deendayal Port No. 1 Major port in India Deendayal Port is the largest importer of raw Timber in India Deendayal Port is the largest major port in India which handled ~9% of the overall national cargo handled during by major ports in India MUMBAI CHENNAI KOLKATA VIZAG DEENDAYAL PORT Availability of Facilities J.N.P.T Trade at Major Ports in India ( ) PARADIP Source: Deendayal Port Trust Deendayal Port serves as a critical gateway port for the western and north-western hinterland of India on international trade routes to the Middle East, Europe, Africa etc. The Chabahar Port agreement will help in establishing a shorter trade route via ship, rail, and road for moving freight between India, Russia, Iran, Europe and Central Asia; the proposed new route will provide savings in Transportation time and Cost and provide access to landlocked nations of Central Asia and Afghanistan. NCR Gateway for key domestic and international markets Dry cargo berths Wharf cranes Warehouses Liquid storage tanks Deendayal Port J.N.P.T Mumbai Primary Catchment Area Secondary Catchment Area HM cranes Weigh bridges Container berths CCTV coverage of operational area Opportunity to cater large hinterland including NCR and Western India region
6 Why SIPC Kandla Excellent Connectivity SIPC Kandla is well connected with Road, Rail, Air and Sea transport Raw material availability 70 % of the timber imported in India is through Deendayal Port Kutch region has been identified as an Imported Timber Conversion Zone with over 2,000 timber players. World class infrastructure Power Supply: 72 MW Internal roads width: 36m, 30m, 24m, 18m Logistic Park: Truck parking terminal Desalination plant for water supply Sewage Treatment Plant Railway Siding Smart infrastructure Renewable energy Security through Surveillance cameras Smart Street lights Smart waste management Public wi-fi 3 kms from Deendayal Port Adjoining NH 141 Railway siding terminal is proposed for providing last mile rail connectivity 22 kms from Kandla Airport and 75 kms from Bhuj Airport
7 CORPORATE ADDRESS Administration Office Building, Deendayal Port Trust, Gandhidham Follow us on:
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