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Similar to 14. NECS 2016 _ Opportunities in handloom,textiles & apparels Mr.R.E.Zeliang
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14. NECS 2016 _ Opportunities in handloom,textiles & apparels Mr.R.E.Zeliang
- 1. Finance Advisory Consulting OPPORTUNITIES IN TEXTILES, HANDLOOM AND APPARELS NORTH EASTERN DEVELOPMENT FINANCE CORPORATION LTD. (NEDFi) Presentation By Shri. R. E. Zeliang, DGM
- 3. Finance Advisory ConsultingTextile Sector –Few Facts •Textile Industry has vast presence in economic life of the country. • Contribute about 5% of the country’s GDP • Textile export is about 14% of the total country export • India has 2nd largest Textile Manufacturing capacity after China • India is the 2nd largest cotton consumer after China • The sector is the second largest employer after agriculture. • Indian textile Industry is estimated at around $108 billion.
- 4. Finance Advisory ConsultingOpportunities Industry outlook The textile industry is expected to reach $223 Billion by 2021 from current $108 Billion Employment Textile Industry expected to provide direct employment to 45 million from current 15 million by 2021 Market for North East 1. Production Hub for textile like Bangladesh 2. Opening up of Border through Bangladesh, China, Myanmar, Nepal/ Bhutan. Rising Govt. focus and favourable policies to support the Industry Under Union Budget 2015-16, GOI has allocated around USD 584.49 million for Textile Industry
- 6. Finance Advisory Consulting • Under the “Make in India” initiative of Hon’ble PM – Stress is given on: • Skill, Scale and Speed • Zero Defect (Product) • Zero Effect (Environment)
- 7. Finance Advisory Consulting • The reservoir of handloom Skills is concentrated in the North Eastern States • Weaving practiced by most Women • More than 200 ethnic group with unique cloth designs • 70% unorganised • International recognition e.g. Eri, Muga Silk, traditional design in Modern Fashion • Designers are coming up with new design North East
- 8. Finance Advisory ConsultingChallenges 1. Lack of standardization in process and practices 2. Lack of proper infrastructure and equipment for production 3. Lack of quality control norms and procedures 4. Lack of Capacity to produce in large volumes 5. Non availability of proper accessories which add value to products 6. Non availability of need based designer input 7. Lack of awareness on market trend and demand 8. Lack of marketing skill 9. Lack of co-ordination among producers for aggregation and marketing 10. Deficiency in Supply chain management 11. Lack of capital
- 9. Finance Advisory Consulting Strategies Few of the strategies could be:- • Achieving Scale Across the Value Chain • Change from Unorganised to Organised • Capacity building • Skill, Quality and Productivity • Product Design and Diversification • Innovation and R&D • Partnership/collaboration –Govt, Institution, Firm, Craftsmen • Implementation of Govt. Schemes and Policies • Attract Investment into the Sector •Marketing Platforms • Incentives e.g. Taxation • E-marketing…Maheela-e-haat etc
- 10. Finance Advisory Consulting Initiatives by Ministry of Textile for North East India •The Govt. has undertaken a Rs 1,038 crore scheme in the North East to boost textile exports, increase jobs and curb migration of workers. •Funded by Ministry of Textiles under the “North –East Region Textile Promotion Scheme (NERTPS), the project is also aimed at developing, modernising the textile sector of the region. •Under the NERTPS the textile ministry is providing Rs. 18.00 crores for each state of the region for setting up of a Apparel and Garment making Centre (AGMC). •Each AGMC will provide direct employment to 1200 to 1500 people, mostly women and take care of skill upgradation and marketing of finished products. •Each unit is expected to meet the demand for uniforms and garments of the Police, Security and Paramilitary forces and of school children and civilians.
- 11. Finance Advisory Consulting Initiatives by Ministry of Textile for North East India • Though Cotton production in the region is very less, however, silk like Eri, Muga is abundant. •Special Scheme for Promotion of Geo Textiles in the North Eastern states will facilitate use of Geo Textiles, to increase the durability of road and reduce maintenance expenditure stabilisation of Hills etc. Recent Example is the use of Geo Textile in Assam Agartala Road. •North East India is strategically located to be the gateway to South East Asian Countries with 98 % of it’s boundary with neighbouring countries like China, Bangladesh, Myanmar, Nepal and Bhutan. •Opening up of Borders through Bangladesh would be of Immense help. •Transport of products through Bangladesh to Tripura and Rail Connectivity as well as proximity to port is big opportunity for the Industry.
- 12. Finance Advisory ConsultingNEDFi’s Intervention •Skill Development Trainings Natural Dye Training Cloth Mat Project Handloom Design Training CPLT – Centre for Practical Livelihood Trainings •Marketing support:- By sponsoring entrepreneurs to various fairs and exhibitions (B2B) •Business Facilitation centers:- To counsel the entrepreneurs and provide bank linkages
- 13. Finance Advisory Consulting NEDFi INITIATIVE UNDER CSR A. Incubation of Craft:- 1. explore, identify and adopt new crafts 2. standardization in product and process 3. adopt appropriate technology - quality and productivity. B. Capacity Building & Production :- 1. build capacity of craft-persons in the adopted crafts. 2. facilitate and enable artisans in production, aggregation and packaging of goods. C. Promotion/Marketing :- 1. Marketing of the identified produce through exhibition, showrooms, e-platform etc. 2. Establish norms in its dealings with craftsperson.
- 14. Finance Advisory ConsultingRelevant NEDFi’s Schemes of Finance Sl. No. Name of the scheme Nature & Extent of Assistance Promoter’s Contribution Interest Rate 1 PROJECT FINANCE Rupee term Loan (RTL) 35-40 % of the project cost PLR +1-3% p.a. 2 NORTH EAST ENTREPRENEURS DEVELOPMENT SCHEME (NEEDS) RTL (75 %) Of Project Cost 25 % of the total project cost 8% p.a. 3 JUTE ENTERPRISE DEVELOPMENT SCHEME (JEDS) RTL (75%) Of Project Cost 25 % of the total project cost 8 % p.a. 4 WOMEN ENTERPRISE DEVELOPMENT SCHEME (WEDS) RTL (75%) Of Project Cost 25 % of the total project cost 8 % p.a. 5 SCHEME FOR NORTH EAST HANDLOOM AND HANDICRAFTS (SNEHH) RTL (75%) Of Project Cost 25 % of the total project cost 8 % p.a.
- 15. Finance Advisory Consulting Venture Capital • NEDFi in association with Ministry of DoNER has initiated the launch of “ North East Venture Fund” , a dedicated venture capital fund for the North East. • The corpus of the fund will be Rs 100 crore. Rs. 45 crore from Ministry of DoNER, Rs 30 crore from NEDFi and remaining Rs 25 crore from other institutions. • Investment will be done in enterprises, both in early stage and growth stage. • To operationalise the fund, NEDFi Trustee Limited and NEDFi Venture Capital Limited has already been incorporated
- 16. Finance Advisory ConsultingVenture Capital (Contd…) •Investment focus of the fund will be in various fields including but not limited to: •IT & ITES •Food Processing •Healthcare •Tourism •Aggregation of services etc. •The fund is targeted to be launched by November 2016, after registration with SEBI.