Many states across India are doing their best to attract the textile and garment industry. And few of the states are already succeeding in getting big apparel exporters and textile companies.
Madhya Pradesh (MP) is one such state. It is having well-known apparel manufacturing hubs like Indore (for majorly the domestic market) and a few of the top companies like Pratibha Syntex, Pithampur; Maral Overseas of LNJP Bhilwara Group (spinning and knitting operations near Indore); Grasim Ltd. (spun-dyed speciality fibre at Nagda); Century Yarn And Denim, Khargone; Trident Ltd. (spinning operations) and Vardhman Fabrics (both in Budhni); Vardhman Yarns, Satlapur; Sagar Manufacturers (yarn giant) at Tamot (Goharganj) and Goodwill Fabrics, Gwalior.
The state is again in the limelight from the textile and apparel industry’s point of view.The companies are investing there since few of the companies are coming up with big investments.
Ludhiana-based Vardhman Group is investing Rs. 800 crore in spinning and this project is expected to complete in the next one-and-a-half years. Tirupur-based Best Corporation has started construction of its unit near Ujjain which is its first-ever in MP. The company is investing Rs. 60 crore in the garment factory which will be having initially 1,000 stitching machines.
Another textile company that has also announced to invest more in the state is Sagar Group, which is also the leading group of MP. The company’s top management recently disclosed this information in a meeting with the state’s Chief Minister Shivraj Singh Chouhan. Sudhir Kumar Agrawal, Chairman of the Group told that the company is establishing textiles and food processing units at Tamot in Raisen district. There will be an investment of Rs. 600 crore in the projects and 2,500 people would get jobs in the two units.
Though the company refused to disclose more details about the expansion programme,it is being said that investment in the textile division will be ‘reasonable’.
The main reasons for the fresh investment are easy and very cost-effective availability of land and availability of labour as well. For example, Best Corporation has been allotted 15 acres of land on 75 per cent subsidy compared to the market price of land. On the ground level, the State Government is highly supportive of the industry.
S. Pal, Director, Vardhman Group shared with Apparel Resources, “Along with polices, the major positive aspect is the supportive attitude of the State Government. Policies related to textile industry in the state are like a complete package for the companies.”
आज मंत्रालय में प्रतिभा सिंटेक्स के एमडी श्री सुरेश चौधरी व श्रेयस्कर चौधरी, सागर ग्रुप के चेयरमैन श्री सुधीर अग्रवाल और गोल्डी सोलर प्रा.लि. के एमडी कैप्टन ईश्वर ढोलकिया ने भेंट की। समस्त उद्योगपतियों से प्रदेश में निवेश की संभावनाओं व उद्योगों को बढ़ावा देने को लेकर चर्चा हुई। pic.twitter.com/ai4CJoHdc4
— Shivraj Singh Chouhan (@ChouhanShivraj) March 1, 2021
“Our first factory in MP is at Nagziri, very near to Ujjain city, which is not only well-connected but also has good labour availability. As Tirupur is facing labour saturation, MP was the best option for us to start a new unit,” said A. Rajkumar, MD, Best Corporation.
Though it is also an accepted fact that as of now the mid-level management professionals (specific to the garment industry) will be arranged from outside and over the years, the number will grow organically.
Ashok Juneja, President, The Textile Association (India) was recently in MP for a textile industry-related event. He shared his observations, “As far as major investments in the state are concerned, existing players of the state are more aggressive. The companies like Vardhman and Trident have enough land pool in the state, so it is viable for them to invest in MP compared to making a fresh start in any other state.”
Sources confirmed Apparel Resources that one more big company is also coming up with a new plant. They requested not to disclose the company name as approvals and allied things are under process.
The state also has some strong availability of resources for the textile industry like it is amongst the top 10 states of India producing cotton. Since 2008, NIFT is also operational at Bhopal with UG and PG courses. Similarly is NID, Bhopal.
It is also pertinent to mention here that as far as incentives or subsidies are concerned for the textile and apparel industry in the state, it has almost all common schemes which other states too have like land premium related rebate, tax delinked investment assistance which is offered to large scale industries ranging from 40 per cent to 10 per cent of investment in plant and machinery with a minimum investment of Rs. 1 crore, reimbursement of stamp duty and registration fee on the execution of land lease documents, infrastructure development subsidy at 50 per cent with a maximum limit of Rs. 1 crore each for developing water, power and road infrastructure for private or undeveloped Government land.
Similarly, it also offers skill development and training expenses reimbursement assistance of Rs.13,000 per new employee which shall be provided for 5 years for MP domicile employees. Power supply at a fixed rate of Rs. 5 per unit on new electrical connection, for 5 years from the date of commercial production is also available.
Another hub in the making
Jabalpur, a big city of MP,has been selected for garment industry under the One District One Product (ODOP) scheme and around 80 SME units have been started in recent months. The city has an old but unorganised garment industry; now local administration is trying to give an organised structure and Government is coming up with a Garment and Fashion Design Cluster at Lema Garden, Gohalpur. Though the cluster is totally producing garments for domestic market but training of marketing as well as export is also being provided to the local manufacturers.
IIM and State working together on policies and ease of doing business
Another good thing is that the State Government is making corporates part of policymaking. Just two months back, the State Government associated with the Indian Institute of Management (IIM), Indore for reviewing its industrial policy and developing ‘Brand Madhya Pradesh’. IIM will also help the state in evaluating parameters of ease of doing business and perform impact analysis and third-party verification of various schemes of the states.
Last year, in February, the State Government announced to come up with a new textile policy and it will be interesting to see how both companies and Government, enthusiastically and aggressively shape the future of the industry.