Brandix India Apparel City (BIAC) Asia's most competitive manufacturing destination

Transcription

1 Brandix India Apparel City (BIAC) Asia's most competitive manufacturing destination

2 BIAC is promoted by Brandix, a top Asian apparel co. Leading Apparel company Global retailer clientele Experienced leaders ~$ 750 Mn revenues 25% CAGR Employs 48K associates Manufacturing plants in 3 countries (Sri Lanka, India, Bangladesh) Ethical manufacturing Garments without Guilt Priyan Fernando Chairman Senior Advisor, BCG Ashroff Omar ED/ CEO Non-exec Board member, John Keells & CSE 1 Aslam Omar ED/ Head- TAC 2 CEO, Phoenix Ventures Feroz Omar ED/ Head- BIAC 1

3 BIAC is a world-class Integrated Textile Park New Delhi Karnataka Kerala Telangana BIAC Andhra Pradesh Tamil Nadu Vishakhapatnam Vicinity to port Labor pool Vicinity to cotton, yarn World-class infrastructure 1000-acre textile park with world-class infrastructure, developed and managed by Apparel industry veterans Exports >250M USD per annum Employs >18,000 people 2

4 BIAC has attracted world-class tenants BIAC tenants Product category Tenant Products Nationality Knit fabric Ocean India Cotton Fabric SL Knit apparel Brandix Apparel India 1 Ladies Underwear SL Knit apparel Brandix Apparel India 2 Ladies, Mens underwear, t-shirts Knit apparel Seeds Intimate Apparel Bras China, SL, USA Accessories, trims Pioneer Elastic India Elastic China Knit apparel Quantum Clothing Ladies innerwear UK, Japan Accessories, trims Accessories, trims Accessories, trims Shore to Shore Tags & Labels SL, USA Vardhaman Yarn & Threads Dyeing of sewing threads SL India S&S industries Bra underwires USA Ancilliary Screenline printing Printing services SL Knit apparel Brandix Apparel India 3 Yoga pants SL Ancilliary Ribest (Yama) ribbons Bows and ribbons China Ancilliary ITL Tags & labels S. Africa Ancillary Visipak Packing material India 3

5 BIAC: Asia's most competitive manufacturing destination Most cost competitive 1 Proven results 5 2 Large, efficient labor pool The 5 Star BIAC Advantage Plug-n-Play infra with aggressive start-up 4 3 Integrated cluster; worldclass lead times Leverage India advantage in a hassle-free environment 4

6 Cost: BIAC is the most cost competitive among Asian peers BIAC labour costs among lowest across Asia China (Shenzhou) Productivity % BIAC advantaged on other factor costs as well Lower fabric cost Lower fabric costs due to availability of local raw material (e.g., cotton) Vietnam India (Tirupur) Cambodia BIAC B desh (Dhaka) % 50% 55% 65% 50% US$ / month Import duty advantage Fiscal concessions FTA with Japan Duty-free, license-free import of raw materials and machinery (new & used) Interest subsidy on term loans up to 12.5%. Power Subsidy at the rate of INR 1/- to INR 1.5/- for a period of 5 years. Capital subsidy at the rate of 20% of fixed Assets Exemption from all local tax excise duty, service tax, VAT, etc. Lower initial investment due to common infra. & double-shift operation

7 Labor: High-quality labor in abundant supply Highly trainable and superior quality Abundant labor supply: ~260K women %, no. of hours Labor pool size (000s) Efficiency (%) BIAC India (Tirupur) Annual Absenteeism Attrition (%) (%) Vietnam 8 5 Bangladesh No. of hours KM 146 < 50KM 118 Target labor profile Gender: Women Education: Matriculation Age: Typically first employment require no unlearning No competing industries 6

8 Integrated cluster: Near 100% self-sufficiency in knits Inside BIAC Park: Vertically Integrated Cluster Apparel Dyeing Printing Packaging Logistics Yarn Outside cluster (planned to shift within park) Knitting Fabric Dyeing Sewing and Packing Thread Elastics Lace Labels Knit garments 50 km from Vizag Port; Full connectivity to major US, EU and Asian ports Present in park Planned in park 7

9 LACE Example: BIAC cluster reduces lead time, enabling order fulfillment in 2 weeks 1 Order placed for 150K units 4 Production commences 6 Air freighted Day 1 Day 4 Day 12 Day 13 Day 15 Vertically integrated supply chain 2 PO raised for supplies FABRIC 150K units 5 7 In stores manufactured SUPPLIER 3 PACKAGE PO fulfilled in 3 days BAI receives materials within 3 days from suppliers 8

10 Integrated cluster: Solid lead-time advantage today US East Coast US West Coast Vizag US: days Chittagong US: days Shanghai US: days Vizag US: ~ 32 days Chittagong US: ~ 32 days Shanghai US: days Not a deep sea port 1. Only feeder vessels China Shanghai China Shanghai To US East Coast days India Vizag Bangladesh Chittagong ~7 days Colombo ~7 days ~ 28 days Investments planned to improve port infra India Vizag Colombo Bangladesh Chittagong ~8 days ~7 days Singapore days days To US West Coast Lead-time advantage expected to improve in future 9

11 BIAC enables aggressive start-up time Brandix Facilitation for Set up 1-2 months Incorporate the company Income tax registration Bank account opening Sub-lease agreement signing with BIAC months Submit the project report Office of Development Commissioner On the spot approval and issuance of LOP Unit approval committee meeting Construction 6-9 months Obtain post construction approvals Move to permanent facility Move to permanent facility in 12 months 10

12 Aggressive start-up: BIAC supports operating units throughout their ramp-up journey A Pre-production Obtain licenses Fast track approvals & incorporation (60 days) Shell cos. set up for advance approvals C Production in rented facility Set-up own factory Interim facility Ready to use, 33,000 sq.ft. buildings till permanent facility ready E Production in "permanent'' building Plug-N-Play Infrastructure Fully functional ETP, WTP and power facilities Adequate spare capacity BIAC support B F HR support Hire first set of employees Hire & train HR team Help with training design Coaching on labour mgmt D Project Mgmt Services Support with contractor services, quality and on-time delivery of buildings, govt. approvals Strong operational team with 5-star service levels Highly experienced customer facing teams; high standard of compliance Best-in-class urban living infrastructure; 200 acres for future social infrastructure needs 24-hour resolution of operational issues Committed to add any service to help you succeed 11

13 Power ETP Water Ramp-up: BIAC has world-class Plug-n-Play infra sufficient for 1000-acre park Capacity 60M; installed 20M L /day US $6M invested Adequate supply from East Godavari river Capacity 56M; installed 22M L / day US $15M invested Marine discharge; standards above govt. spec. No pre-treatment required at plant 200MW capacity Connected to national grid Pay-per-use structure reduces initial investment and business risk 12

14 Social infrastructure 5-star service: BIAC is committed to providing a worldclass experience Best-in-class urban living infrastructure Committed to 5-star service levels 1 End-to-end services to ensure tenant success (e.g., approvals, HR, project mgt) 2 High standards of compliance Residential Hostels, villas Recreational Swimming Pool Cafeteria Gymnasium, sports facilities Community hall 3 55 member strong organization to ensure strong support to tenants 4 Committed to add any service that will help you succeed (e.g., schools, clinics) Chinese speaking staff, culture consultant Chinese cooks, cuisine in hostels 13

15 BIAC: World class facilities in the park today 14

16 Thank you Most cost competitive 1 Proven results 5 Plug-n-Play infra with aggressive start-up 4 The 5 Star BIAC Advantage Leverage India advantage in a hassle-free environment 3 2 Large, efficient labor pool Integrated cluster; world-class lead times Sandeep Nair Head Sales & Marketing, India sandeepn@brandix.com 15