Technotex India 2011, Mumbai 25th -27th August, 2011 Opportunities in the Technical Textile Sector – Karnataka Department of Handlooms and Textiles, Government of Karnataka

Index State Profile & Textile Industry Snapshot Technical Textiles Profile - Global and Indian The Industry in Karnataka – Mapping Factor Conditions Government Initiatives Raw Material Availability Infrastructure/Logistics Market Linkage Skilled manpower Policy Framework / Government Initiatives Investment Opportunities

State Profile & Textile Industry- A Snapshot

Bangalore, Mangalore, Hubli, Belgaum, Shimoga, Mysore, Gulbarga State’s Profile State Capital Bangaluru Area (sq. km.) 191,791 Population 2011 6,11,30,704 Population density (per sq.km.) 319 Per capita income 2008-09 (Rs.) Rs. 35,555/- Number of districts/Towns/Villages 30/270/27028 Literacy Rate (2011) 75.60% Percentage of urban population (%) 35% Prominent cities Bangalore, Hubli-Dharwad, Belgaum, Shimoga, Mangalore, Mysore, Gulbarga, Bellary Major Airports Bangalore, Mangalore, Hubli, Belgaum, Shimoga, Mysore, Gulbarga Major Ports Mangalore

Investment Snapshot - Textiles The total investment in textile sector stood at Rs 3500 Crores for the last decade During the last 3 years the textile industry has seen an investment of more than Rs. 4000 Crores The total export contribution from Textile sector is over Rs. 6000 Crores

Technical Textiles Profile – Global and Indian

Technical Textiles Profile World Scenario Mobiltech leads at 23.00% followed by Indutech at 16.90% and Sportstech at 14.98% Together these three form more than 55% of the World Market World Scenario Indian Scenario Packtech constitutes largest market segment at 40.25% followed by Clothtech at 15.38% Together these two form more than 55% of the Indian Market Indian Scenario

Technical Textile-Karnataka

The Industry in Karnataka – Mapping

Mapping The Technical Textiles sector is majorly concentrated in and around Bangalore Presently, Industries are moving to other parts of Karnataka due to the logistic/infrastructure support that are being provided by the Government

Factor Conditions- Technical Textiles Government Initiatives Raw Material Availability Infrastructure / Logistics Market opportunities Skilled manpower

Land Bank Land Bank Creation through KIADB Status Land(in Acres) Land Notified u/s 28(1) 54395 Land Notified u/s 28(4) 27869 Total 82264 Total Land Identified 114756

Factor Conditions – Government Initiatives Single window clearance for Mega Projects. A new encompassing policy for the sector covering all value chain of textiles A professional agency, IL&FS Clusters, has been appointed by GoK for implementing the textile policy and is assisting the industry in structuring and implementation of the projects Establishment of Fashion hub at Bangalore which will be unified buying/selling platform for the textile industry

Raw Materials Cotton Silk Wool Petroleum based SEZ at Mangalore Particulars Production Cotton(2007-08) 10.36 Lakh Bales Silk(2007-08) 8241 Tonnes Wool(2004-05) 5.3 million Kgs Petroleum based SEZ at Mangalore Belgaum – Polyester bsaed cluster

Factor conditions - Market Linkage S No. Technical Textiles User Industry Sectorial Data Karnataka's GDP Growth(Last 5 years) Investment in Global Investors Meet 2010(Rs. in Crores) 1 Agrotech Agriculture, Forestry and Fishing 12.80 2049 2 Buildtech Building and Construction Construction 13.12 2942 3 Geotech Geotextiles, Civil engineering 4 Hometech Components of furniture, household textiles and floor coverings Trade, Hotels and restaurants 14.68 Real State, Business Servising and ownership of dwellings 19.00 5 Protech Personal and property protection *Data Source: Govt. of Karnataka

Factor conditions - Market Linkage S No. Technical Textiles User Industry Sectorial Data Karnataka's GDP Growth(Last 5 years) Investment in Global Investors Meet 2010(Rs. in Crores) 6 Indutech Filtration, cleaning and other industrial usage Industrial Production 15.26 243416 7 Oekotech Environmental protection 8 Packtech Packaging 41196 9 Mobiltech Automobiles, shipping, railways and aerospace Transport 19.76 1121

Factor conditions - Market Linkage S No. Technical Textiles User Industry Sectoral Data Growth%(Last three years) Value of Exports(Rs. in Crores) Investment During Last 3 years(Rs. in Crores) 10 Clothtech Technical components of shoes and clothing(Exports) Readymade Garments, Silk and Woolen products 15.16 5970.95 3900 11 Sporttech Sport and leisure 12 Meditech Hygiene and medical Emerging as the medical tourism hub of India 1467

Type of Institutes (Textiles) Factor Condition: HRD: Educational infrastructure S No. Type of Institutes No.s 1 R&D Centers 103 2 Universities 11 3 Engineering Colleges 135 4 Health Education 114 5 Polytechnics 181 6 Industrial Training Institutes 600 7 International Schools 13 S No. Type of Institutes (Textiles) Total 1 Engineering Colleges (B Tech Textiles) 4 2 Apparel Training & Design Centre 8 3 UG/PG Degree Colleges in Fashion & Tex course 50 ILFS Clusters 9 5 ITI Training Centers (with Textile related courses) 66 6 Polytechnics 20 7 RUDSET Institutes Reputed NGOs/ VTPs Weavers Service Centre 10 Power loom Service Centre 11 Garment Training & Design Centers Fairly good spread of educational infrastructure, both in general and textiles, across the State

Factor Conditions – Skill Development Focused efforts to create a pool of skilled manpower for the industry Over than 60,000 candidates trained between 2008 – 2011 100 dedicated Skill Development Centers approved in under Policy Training support being provided to 240 private skill development centers

Policy Framework

Policy Framework – Suvarna Vastra Neethi(2008-13) Making Textile industry in Karnataka Competitive Manpower Development Strengthening exisitng set ups & New capacpitites (PPP) basis Strengthening of Value chain Though Garmenting is a key strength, Policy supports integrated / activity wise development Geographical Dispersion Dispersing industry from expensive Metros to backward areas Infrastructure Development Cluster based development strategy & Mega Projects Status Capacity Building Marketing / Design / Product Development & Trade Compliance Support Institutional Linkages IT enabled placement linkage in coordination with industry & institutes Professional Handholding IL&FS appointed as SMA to support industry & Government Fiscal Incentives Zone & Development Based Packaged for SME & Mega Projects

Support under the Policy/GoK initiatives Credit linked Capital Subsidy Entry Tax reimbursement, Stamp Duty Land Acquisition - Cost / Charges Reimbursement Common Infrastructure for Greenfield Textile Parks Power Subsidy (Garmenting, Spinning & Power loom Units) Support for environmental infrastructure Human Resource Development Support for Capacity Building & Standards and Compliances Special need based incentives for Mega Projects on a case - case basis 22

Investment Opportunities

Opportunities Available Setting Units Cluster Parks Mega Projects Reimbursement based Fiscal incentives (Zone dependent up to approx. Rs. 50 Lacs + Power subsidy during the policy period) Milestone based development grant (amounting to Rs. 12.00 crores) + Reimbursement based Fiscal incentives to Units within Need Based assistance – Proposals invited from industry Should be investment / employment intensive Projects proposals worth Rs.500 crores in the technical textiles sector received by GoK… 24

Industrial Development Investment Pentagram Investor Friendly Govt. and policies Among Top 5 industrialized state Industrial Development Availability of Skilled and non skilled manpower High Infrastructure Growth Rich Natural Resource

Department of Handlooms and Textiles, Government of Karnataka Cordially invites to Karnataka Pavilion Thank You IL&FS Clusters 309/2, Lakhshya Tower Koramangala, Bangalore Phone: +91 80 22540426 Email: girish.kamath@ilfsindia.com sanjib.nayak@ilfsindia.com Commissioner for Textile Development & Director of Handloom Textiles 14/3A, R.P Building, 3rd Floor, Nrupathunga Road, Bangalore. Ph: +91 80 22271628 www.textile.kar.nic.in Project Director (KAP) 14/3A, R.P Building, 3rd Floor, Nrupathunga Road, Bangalore Ph: +91 80 22711692 E-mail: pdsvntex@gmail.com