CMIE’s CapEx database reveals, readymade garments industry is expected to witness a healthy completion of projects in 2015-16. During the year, nine projects envisaging an aggregate investment of Rs 5.1 billion are likely to be executed.
RMG industry rides upward growth curve
Of these, one project by Mandhana Industries has already been commissioned in June 2015. The company invested a Rs one billion on setting up a new garment manufacturing unit at Baramati, Maharashtra. This unit has an annual garment manufacturing capacity of four million pieces. Project completion in the industry is likely to remain healthy even in 2016-17. During the year, four projects at an investment of Rs 6.5 billion are expected to be commissioned.
Under the Scheme of Integrated Textile Parks (SITP) by Ministry of Textiles, three integrated apparel parks are expected to be commissioned. EIGMEF (Eastern India Garment Manufacturers & Exporters Federation) Apparel Park is developing an integrated apparel park at Kolkata, West Bengal. On completion by September 2016, an annual capacity to manufacture 19.8 million pieces of garments would be installed at this park. The project is expected to create a direct and indirect employment for 8,000 people and 12,000 people, respectively.
Rajasthan Integrated Apparel City is likely to invest Rs1.9 billion on setting up an integrated apparel park at Bhiwadi, Rajasthan. The park is expected to be ready by March 2017. West Bengal Hosiery Park Infrastructure (WBHPIL), is in the process of setting up a hosiery park at Haora, West Bengal. The company is likely to spend Rs 850 million on the park which will be built over 100 acres of land. It is expected to accommodate 170 small and medium garment manufacturing units. The park is likely to be commissioned by March 2016.
With an increase in overseas demand for knitwear, KPR Mill plans to invest Rs 1.8 billion on setting up a green-field garment manufacturing facility at Tirupur, Tamil Nadu. This facility will have a capacity to produce 36 million garments per annum. The project is scheduled to get completed in March 2016. Woodlands is expected to invest Rs 600 million on setting up a new garment manufacturing unit at Greater Noida, Uttar Pradesh. Commercial operations at this unit are expected to start in July 2015. Dollar Industries plans to set up a fully-integrated thermal-wear and outer-wear manufacturing plant at Ludhiana, Punjab.
Ashapura Intimates Fashion is developing a lounge-wear manufacturing facility worth Rs 270 million at Vapi, Gujarat. The company will install an annual garment manufacturing capacity of seven million units at this facility. On completion by December 2015, this project is expected to generate an employment opportunity for 2,000 people. Lovable Lingerie plans to invest Rs 228.4 million on its capacity expansion project located at Bangalore, Karnataka. By March 2017, the company will enhance the plant’s annual inner-wear manufacturing capacity by 2.5 million units to 5.5 million units. So far, the company has invested Rs 216.2 million on the project.
Under the North East Region Textile Promotion Scheme (NERTPS), Ministry of Textiles is planning to develop apparel and garment making centres at Guwahati in and Gangtok in Sikkim. Each centre will come up at an investment of Rs 181.8 million and will have three units, each having 100 machineries to manufacture garments. Each centre is expected to generate a direct employment opportunity for 1,200 people. With an investment outlay of Rs 120 million, KGI Clothing is setting up a garment manufacturing plant at Chittoor, Andhra Pradesh. Bhandari Hosiery Exports also aims to invest Rs 120 million on its brown-field project located at Ludhiana, Punjab. By March 2016, the company plans to expand its annual multi-faceted fabric manufacturing capacity from 1.3 thousand tons to 3.3 thousand tons.
