Ludhiana Integrated Textile Park:

A Step In The Right Direction

Presented by

Preeti Jaiswal

94972238296

People knew how to weave even 27000 years ago

Chinese textile was considered to be the most significant in international trade

silk from China has reached ancient Greece and Rome along a trade route called the Silk Road in the latter part of the second century B.C. and Egypt in 1000 B.C

During the middle ages, the production and trading of the plant called ‘woad’, an important source of dye, was a highly developed industry

During the fifteenth century, Trade Fairs in southern France provided a place for the active exchange of wools from England and silks from the Middle East.

India earns about 27% of its total foreignexchange through textile exports.

Further, the textile industry of India alsocontributes nearly 14% of the total industrialproduction of the country.

It also contributes around 3% to the GDP of thecountry.

India textile industry is also the largest in thecountry in terms of employment generation.

It not only generates jobs in its own industry,but also opens up scopes for the other ancillarysectors.

India textile industry currently generatesemployment to more than 35 million people.

It accounts for 21% of the total employmentgenerated.

India contributes to about 25% of share in the world trade of cotton yarn

India has second highest spindle age in the world after China

USA

UAE

UK

Germany

France

Italy

Russia

Canada

Bangladesh

Japan

Madura Garments (Indian Rayon) Arvind Mills Ltd Raymond Ltd Alok Industries Ltd Wels pun India Ltd Bombay Dyeing Sportking India Ltd Vardhman India Ltd Sangam India Ltd Prorogue India Ltd Wills Lifestyle (Itc) Oswal woolen mills ltd

OSWAL WOOLLEN MILLS LTD.

It was established in 1949

It is manufacturing all type of blended worstedyarn, weaving yarn, lois, shawls etc.

The company is proud to have highly popularbounded products of knit wear MONTECARLO and CANTERBURY.

OWM has seven units in different locations inLudhiana engaged into differentmanufacturing and trading activities.

NAHAR GROUP OF COMPANIES

Established in December 1980, the company is now as ISO 9002 certificate holder company .

It is engaged in manufacturing of all type of cotton, acrylic and blended yarns, as well as knitted fabrics and garments

NAHAR INDUSTRIAL ENTERPRISES LTD.

This company was incorporated in September1983

It is manufacturing edible oils, toilet soap, fattyacids, citric acid, glycerin, oxygen gas andsolvent, extracted rice oil, vanaspati, sugar androlling mill.

Group turnover is Rs. 2500 crore.

Export market: U.S.A., United Kingdom,Germany, Russia, Japan, Australia, NewZealand, Holland, Thailand, South Africa,Singapore, Taiwan, Canada, Egypt, Israel andBangladesh.

No strike/accident situation and near zero staffturnover.

Important brand names are “MONTECARLO” and “CANTERBURY”.

OWM were the proud recipient of the “bestexhibited products” award from theinternational wool secretariat for twoglamorous brands.

Product portfolio: spinning, knitting, fabricsprocessing, hosiery garments, knitwear, sugar,infrastructure development and informationtechnology.

COTTON COUNTY is there emerging ready towear brand.

First gold trophy in export in 1989.

First silver trophy in Hosiery in 1990 exportaward consecutively for five years (1989 to1994) for export of woolen hosiery garments.

International award for excellence performancein export in 1993.

Silver trophy for 2nd highest performance in1998-1999

ISO 9002 received in 2001

Constitution:-

Public Ltd. Company

Year Of Establishment:-

1949

Locations:-

Registered office:-

G.T. Road, Sherpur,

Ludhiana. 141003

Punjab (India)

Miller Ganj, Ludhiana-141003.

Industrial Area-A, Ludhiana-141003.

G.T. Road, Sherpur, Lidhiana-141003.

107, Cochrane Basin Road, Chennai.

Plot No. 222, Sector 18, Gurgaon.

List of Boards of Directors:-

Mr. Jawahar Lal Oswal Chairman-cum- Managing Director

Mr. Amarjeet Singh DirectorMr. Dinesh Oswal Director

Mr. Kamal Oswal DirectorMr. Sandeep Jain Executive

DirectorMr. Dinesh Gogna Executive

Director

Dr. (Mrs.) H.K. Bal Additional Director

Mr. O.P. Sahni Additional Director

Mr. K.S. Maini Additional Director

Dr. Suresh Kumar Additional Director

QUALITY CONTROL

HUMAN RESOURCE DEPARTMENT

FINANCE DEPARTMENT

MARKETING DEPARTMENT

EXPORT DEPARTMENT

Wool/ Acrylic Top

Yarns:- Weaving wool

Hand knitting yarns

Hosiery yarns

Textile Fabrics:- Blankets

Scarf’s

Gents Lohis

Woolen Shirting (only for defense)

Shawl

Woolen Suiting

Hosiery Knitwear Products:-

Lady Cardigans

Pullovers

Woolen Vests, Undergarments for Men

Monte Carlo and Canterbury are popular brands of international quality are segments of OWM’s products.

Strengths of the company

Good brand equity

Many persons are working here for more than50 yrs. This shows commitment of employeestowards their org.

Good training programs by OWM for theiremployees.

Member of wool mark and ISO 9002

Laboratories for testing the quality of theproduct

Weakness of the company

Lack of professionalism

OWM is dependent upon foreign producers forgreasy wool.

Depend on the third party for sale and thedistribution of the product.

OPPURTUNITIES

Fabrication for various companies likes NIKE,MARKS AND SPENCER, GAP, WILLS, etc.

Manufacturing of kids garments

Expanding the business in Finance sector

THREATS

Mushrooming and upcoming of small hosieries inLudhiana

Seasonal demand for their major product i.e.pullovers

Current Ratio = Current Assets / Current Liabilities

particulars 2005-06 2006-07 2007-08 2008-09

Current

assets

1623847836.

99

2054367059.

73

3012928901.

28

3042264850.

28

Current

liabilities

696940555.2

6

1118567185.5

4

904430343.0

1

989732755.2

2

Current

ratio

2.32996606 1.836606 3.3313 3.073825

Particulars 20205-06 2006-07 2007-08 2008-09

Current asset 1623847836.99 2054367059.73 3012928901.28 3042264850.28

Inventories 945095070.20 1148313056.12 1280082836.54 1291590568

Liquid asset 6787525766.79 906054003.61 1732846064.74 1750674282.28

Liquid

liabilities

696940555.26 1118567185.54 904430343.01 989732755.22

Liquid ratio 0.973903 0.810013 3.189683 1.768835

Particulars 2005-06 2006-07 2007-08 2008-09

Sales 2472961178.43 3220067937.67 4421351683.06 5381435172.58

Cost of goods

sold

1474790342.97 1688065834.95 3124632693.50 3703374580.92

Gross Profit 998170835 1.532E+09 1.297E+09 1.678E+09

Net Sales 2472961178.43 3220067937.67 4421351683.06 5381435172.58

Gross Profit

Ratio

0.403634 0.475767 0.293286 0.311824

Particulars 2005-06 2006-07 2007-08 2008-09

Earning Per Share 6.31 5.63 8.54 9.51

Ludhiana Integrated Textile ParkA Step In The Right Direction

To measure the awareness level of industrialist regarding the park.

To analyze the costs and benefit of the park to the industry.

To highlight the areas of improvement regarding the establishment of the park.

Lack of proper infrastructure for the knitwear industry, it facing problem in attracting international buyers.

The city has poor transportation system, road are full of traffic. No quickly services at the railway station.

There are no facilities for foreign buyers, no conference hall, exhibition, no proper entertainment for foreign buyers.

Lack of management, training and R&D facilities.

Integrated textile park is basically developed to make the system in organized manner and boost to the export. This is a scheme under ministry of textile were they want to provide world class facility to the manufacturer.

This will be eco friendly or green space will be maintained

Lotus Integrated Tex Park (Barnala)

Rhythm Textile & Apparel Park Ltd. (Nawanshahr)

Ludhiana Integrated Textile Park Ltd. (Ludhiana)

Objective of the scheme

Primary objective of the SITP is to provide the industry with world class infrastructure facilities for setting up their textile units.

SITP would create new textile parks of international standards at potential growth centers.

Each ITP would normally have 50 units. The no. of entrepreneurs and the resultant investments in each ITP could vary from project to project

Each ITP would normally have 50 units. The no. of entrepreneurs and the resultant investments in each ITP could vary from project to project. However, aggregate investment in land factory buildings and plant & machinery by the entrepreneurs in a park shall be atleast twice the cost of common infrastructure proposed for the park.

The ITPs may also be set up in SEZs in which case the special provisions of SEZs would be applicable for them. In case these are set up outside SEZs, proposal may be pursued with the Ministry of Commerce & industry to declare the ITP as SEZ if it is so desired.

The scheme targets industrial clusters/ locations with high growth potential which required strategic interventions by way of providing world-class infrastructure support

An ITP will have the following componentsGroup A- LandGroup B- Common Infrastructure like compound wall, roads

drainage, water supply, electricity supply including captive power plant effluent treatment tele-communication lines etc

Group C- Buildings for common facilities like testing laboratory design center , training center, trade center, display center, warehousing facility, raw material depot, one packaging unit, crèche, canteen, workers hostel, offices of service providers, labourrest and recreation facilities, marketing support system.

Group D- Factory building for production purposesGroup E- Plant & Machinery

Asmeeta TEXPA in the Mumbai Metropolitan Region (MMR) First integrated Textile park

Greenfield Textile Park near Ahmedabad First private integrated textile park

The Knitwear club of Ludhiana has created a Special Purpose Vehicle (SPV) called Ludhiana Integrated Textile Park Ltd.

57.18 acres of land was registered for the development of the park in the name of the company

The park will be developed on 60 acres of land with the provision of further extension.

It will be a cluster of around 80 units of Knitwear/ Textile Industry.

Total investment in the cluster will be around Rs.1500 Crores.

About 1,25,000 persons will get direct or indirect employment.

The project will have the provision for excellent roads, sewerage, captive power plant, effluent treatment plant, storm water, lights, trade center and sophisticated research & development center.

S. No. Name Position

Mr Vinod Kumar Thapar Director

Mr Narinder Krishan Miglani Director

Mr Sudharshan Kumar Jain Director

Mr Suraj Bhan Jain Director

Mr Jagmohan Singh Director

Mr Bahadur Chand Nagpal Director

Mr Dinesh Lakra Director

Mr Darshan Dawar Director

Mr Jaswant Takkar Director

Mr Surinder Kumar Palta Director

The proposed site for integrated Textile Park is along the National Highway No -1 (NH1) i.e. G.T road approximately 16 km from Ludhiana city

S. No. Activity No of UnitsProduction Capacity per

Day

Circular Knitting 7 36,000 Kg

Flat Knitting- Manual 25 16,000 pieces

Flat Knitting- Computerised 10 3,000 pieces

Garmenting

Miscellaneous

18

31

50,000 pieces

Total 86

S No Items

Amount

(Rs. Lacs)

% of Project Cost

1 Land 3567.60 28.98%

2 Factory buildings 4989.60 47.62%

3 Common Infrastructure 1765.48 10.45%

Site Development & Compound 365.00

Roads 388.00

Storm water drainage 1.46

Water supply 249.00

Effluent conveyance & treatment 134.00

Electrical distribution 444.00

Landscaping 39.00

4 Common Facilities 1323.00 9.56%

5 Design & Project Engineering Fees 4020.00 3.39%

Project Cost eligible under SITP 12050.00 100.00%

Pre-operative expenses 1050.00

S.No Sources Amount in (lacks) Share %

1 Equity Capital & Non-Refundable

Deposits

3760.00 28.70%

2 Grant under SITP 4000.00 30.54%

3 Term Loans 5340.00 40.76%

Total 13100.00 100%

COMMON INFRASTRUCTURE

SUPPORT FACILITIES OTHER INFRASTRUCTURE FACILITIES

1.WATER SUPPLY 1.CONFERENCE HALL 1.DISPENSARY

2.ROAD NETWORK 2.EXHIBITION CENTREFOR BUYER-SELLER MEETS

2.HOTEL

3.STREET LIGHTING 3.TRANING CENTRE 3.RESTAURANTS4.

4.GOVT OFFICES 4.R&D 4.CLUB

5.TELECOMMUNICATION

5.POLICE STATION 5.POSTAGE FACILITY

6.REPAIR SHOP

7.TESTING LABORATORY

Research gap

Need for research

Research Design

The Project is based on Descriptive Research Design

Sampling Plan

Universe: All the manufacturers regarding textile

Population: The entire industrialists dealing in textile item of Ludhiana.

Sampling units: Any textile related goods manufacturers

Sample size: 50 industrialists

Sampling procedure: Convenience Sampling (time, link)

Time

A lot of companies were not ready to give information about them.

Reach

As the sample size is small compared to the total population the outcome cannot be generalized.

yes66%

no34%

know about the park

yes

no

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Govt agency Internet Electronic media Print media Industry association

others

me

an

source of information

mean

0

0.05

0.1

0.15

0.2

0.25

road network water supply electricity training inst testing lab govt.support extra benefit

me

an

facilities

mean

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Infrastructure Recognition Eco of scale Mark prosp Exp prosp subsidies

me

an

benefits of park

Mean

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Training & develp Tech upgradation Expansion cost Contribution Others

me

an

cost associated

Mean

on time

no

2.61

2.262.16

3.71 3.65

0

0.5

1

1.5

2

2.5

3

3.5

4

lack of proper planning Bureaucratic nature corruption in govt dept single window system less enthusiastic

me

an

reasons for delay

0.32

0.22

0.12

0.34

00

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Development cost Capital cost Machinery cost Money blockage cost Others

me

an

cost due to delay

Mean

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

me

an

positive changes

Mean

strongly satisfy, 3

probably satisfy, 10

neutral, 15

probably dissatisy, 2

dissatisfy, 1

0

2

4

6

8

10

12

14

16

satisfaction

resp

on

ses

strongly satisfy

probably satisfy

neutral

probably dissatisy

dissatisfy

The project is really beneficial for SMEs.

Govt. is taking good initiative to boost the export and make the sector organized one.

Many people are not aware about this park

And the most common means of information is industrial association.

People are aware about the facilities that will be provided.

People believe that the park will be not completed on time.

The reason for this delay is corruption in the govt. departments

The cost of the project is increasing due to the delay.

The cost due to delay is money blockage cost. Most of the people have neutral feeling towards

the project.