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PL - A1 Location Analysis

The document outlines a mid-term assignment focused on the plant layout for a women's skirt garment industry, detailing objectives, location analysis, and demographic insights for potential sites in Haryana, Tamil Nadu, Gujarat, and other regions. It emphasizes the importance of strategic placement for optimizing workflow and minimizing costs, while also highlighting the competitive advantages and labor availability in each location. The analysis aims to position the garment industry for growth and sustainability within the apparel market.

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Renu Gupta
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0% found this document useful (0 votes)
19 views35 pages

PL - A1 Location Analysis

The document outlines a mid-term assignment focused on the plant layout for a women's skirt garment industry, detailing objectives, location analysis, and demographic insights for potential sites in Haryana, Tamil Nadu, Gujarat, and other regions. It emphasizes the importance of strategic placement for optimizing workflow and minimizing costs, while also highlighting the competitive advantages and labor availability in each location. The analysis aims to position the garment industry for growth and sustainability within the apparel market.

Uploaded by

Renu Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 35

MID-TERM ASSIGNMENT

Plant Layout
Garment- Skirt

Submitted to Submitted by
Dr. Jai Kishan Sambharia Ananya Mishra (BFT/20/209)
Associate Professor, DFT Khushei Sharma (BFT/20/202)
NIFT Gandhinagar Niharika Sharma (BFT/20/211)
Pratiksha (BFT/20/211
INTRODUCTION
Industry Apparel

Garment Skirt

Category Women’s Wear

Weave Woven

Location Gurugram

No. of Workstations 300

OBJECTIVE
Industry aims to establish a reputable position as an esteemed apparel manufacturer Our
vision is driven by a relentless pursuit of exceptional customer service, proficiency in
manufacturing, and active engagement of our employees. We passionately navigate the
business landscape, guided by integrity, empathy, compassion, and unwavering precision.
Industry is guided by a mission to create a sustainable and ethical supply chain, from
sourcing raw materials to manufacturing and distribution while also providing fair wages and
safe working conditions for all employees.
1. PLANT LOCATION

Plant location refers to the strategic placement of a manufacturing facility to optimize


workflow, minimize transportation costs, and maximize efficiency in the production process.
It involves considering factors like proximity to suppliers, transportation networks, and
access to skilled labor.

1.1 Background Research


In our strategic decision-making process for establishing a garment industry plant, we
meticulously chose five key locations: Faridabad, Gurugram, Tiruppur, Surat, and Kolkata.
Our selection criteria revolved around several pivotal factors that would ensure the success
and efficiency of our venture. These considerations included the specific market demands for
women's apparel, the prevailing economic conditions, accessibility to quality raw materials,
cost-effective transportation options, well-connected urban centers, thriving trade zones, the
overall site economics, and the availability of a skilled and ample labor force. By carefully
evaluating these aspects, we aim to position our garment industry for optimal growth and
competitiveness in these diverse and promising markets.

1.1.1 Faridabad, Haryana


Labor Transportatio Min. Cost of
Raw Materials Market Competition
Availability n Costs Production

Access to textile Competition from Skilled and Cheaper as Relatively


clusters in nearby neighboring cities like semi-skilled labor located near the competitive,
regions like Gurugram, which is a is readily national capital Land costs
Panipat and major industrial and available in can be higher
Ludhiana manufacturing hub in surrounding areas
North India

1.1.2 Gurugram, Haryana


Market Labor Transportation Min. Cost of
Raw Materials
Competition Availability Costs Production

Similar to Prominent Wages can be Benefits from its Labor and


Faridabad, has industrial & relatively proximity to the infrastructure are
access to nearby manufacturing higher than in national capital advantageous
textile hubs center other regions

Stiff competition Abundant Reducing Higher living


from other apparel Skilled Labor transportation costs, can affect
manufacturers costs overall
production cost
1.1.3 Tiruppur, Tamil Nadu
Market Labor Min. Cost of
Raw Materials Transportation Costs
Competition Availability Production

Major textile Highly competitive Skilled labor May have higher Relatively
hub with vast market especially force specialized transportation costs low
supply of raw for knitwear and in the garment for reaching northern compared to
materials & casual clothing industry markets but well many other
fabric connected to ports for regions
exports

1.1.4 Surat, Gujarat


Market Labor Min. Cost of
Raw Materials Transportation Costs
Competition Availability Production

Easy access to Faces competition Skilled labor Proximity to major Labor and
various types of from other textile force specialized ports helps reduce costs overall
fabrics and garment in the garment for exports, higher costs production
manufacturing industry is for reaching northern costs are
clusters in Gujarat available markets competitive

1.1.5 Kolkata, West Bengal


Market Labor Min. Cost of
Raw Materials Transportation Costs
Competition Availability Production

Access to raw Faces competition Skilled labor is Good transportation Offers


materials, but from other textile available, labor connectivity but may competitive
may not have as and garment costs are have higher costs for labor costs
extensive textile manufacturing competitive. reaching western and and
manufacturing clusters in Gujarat southern markets. reasonable
clusters as some living costs.
other cities

1.2 Locational Analysis


Locational analysis is the process of evaluating and selecting the optimal location for a
manufacturing facility. It involves considering various factors such as proximity to raw
materials, transportation networks, labor availability, market access, and cost considerations.
The goal of locational analysis is to identify a location that maximizes operational efficiency,
minimizes costs, and supports the overall strategic objectives of the company.

1.2.1 Haryana
Haryana is a favorable state for setting up a garment industry due to its strategic location,
skilled labor force, and well-developed infrastructure. Cities like Gurugram and Faridabad
are key industrial hubs with access to transportation networks and a supportive business
environment.
The textile sector in Haryana is a significant contributor to the state's economy. Haryana is
known for its textile clusters in cities like Panipat, Sonipat, and Faridabad. These clusters
specialize in various textile activities such as weaving, knitting, dyeing, printing, and garment
manufacturing. The state government has taken initiatives to promote the textile sector by
providing infrastructure support, skill development programs, and incentives to attract
investment. Haryana's textile sector offers opportunities for employment, entrepreneurship,
and growth in the garment industry.
Industrial Policy of Haryana according to Haryana State Industrial & Infrastructure
Development Corporation Ltd. (HSIIDC) lays particular emphasis on further strengthening
the base of the manufacturing sector besides knowledge based & high tech industries,
efficient use of energy, conservation of resources and pragmatic environmental policies for
sustainable development and the objective of the policy is to:
● Reestablish industry as a key driver of economic growth.
● Create wealth for the residents of the state and improve the quality of their life.
● Generate employment and entrepreneurial opportunities across all sectors of the
economy.
● Facilitate spatial dispersal of economic activities particularly in economically and
socially backward regions of the state.
● Ensure sustainable development through investments in key sectors of the economy.
Industrial land prices in Haryana range from ₹2.25 Cr to ₹60 Cr.
The power consumption in Haryana increased from 41,944.000 GWh in 2021 to 46,231.000
GWh in 2022. The electricity rates in Haryana are: 0 to 50 units: Rs. 2.00 per unit, 51 to 150
units: Rs. 2.50 per unit, 151 to 250 units: Rs. 5.25 per unit, 251 to 500 units: Rs. 6.30 per
unit, 501 to 800 units: Rs. 7.10 per unit.

(a) Demographic Analysis


Total Population: As per the latest available data, Haryana has a population of approximately
2.54 crore (25.4 million) people.
Age Composition: Haryana has a diverse age composition, with a significant proportion of
the population falling in the working-age group. The state has a relatively young population,
with a substantial number of individuals in the age range of 15-59 years.
Per Capita Income: Haryana is one of the economically prosperous states in India, with a
relatively higher per capita income compared to the national average. The per capita income
in Haryana is influenced by sectors such as agriculture, industry, and services.
Educational Level: Haryana has made significant progress in terms of education. The state
has a considerable number of schools, colleges, and universities, providing educational
opportunities to its residents. The literacy rate in Haryana is above the national average.
Occupational Structure: Haryana's economy is characterized by a diverse occupational
structure. The state has a mix of agricultural, industrial, and service sectors. Agriculture,
manufacturing, automobile, IT, and tourism are some of the key sectors contributing to the
state's economy.
(b) Trade Area Analysis
Haryana is a state in India that contributes 3.86% to the country's GDP. The state's Gross
State Domestic Product (GSDP) is estimated to be US$140 billion in 2023-2034. Haryana's
main industries are: Automobile manufacturing, IT services.
Haryana is a major exporter of ready-made garments, cars, and IT services. In 2019, Haryana
exported $1.34 billion in ready-made garments. In 2019-20, Haryana exported $467.9 million
in cars. Haryana is the fifth largest exporter of IT services in India.
Haryana's exports grew by 13% in 2022-2023. The state's GSDP growth rate is estimated to
be 7.1% in 2022-2023.

(c) Competitive Analysis


Haryana has a competitive advantage in the textile sector due to its abundant raw materials
and skilled labor. The state is the fourth-largest producer of cotton in India, contributing 6%
of the country's total production. The main cotton-producing districts are Sirsa, Fatehabad,
Bhiwani, Hisar, and Jind. Already present industries of Haryana are Shahi Exports Pvt Ltd,
Pee Empro Exports Pvt. Ltd., Pearl Global Industries Ltd., Matrix Clothing Pvt. Ltd., and
many more.
Haryana's textile sector employs around one million people. The state exports readymade
garments worth US $2 billion annually.
Haryana's textile hub is the city of Panipat, known as the "city of weavers". The city is a
global center for handloom products.
Haryana's textile policy aims to attract investment worth Rs 4,000 crore and generate 20,0000
new jobs in the state. The policy includes offering industrial plots on lease for 33 years with a
five per cent increase in annual lease rent.
The Indian fashion market is expected to grow at a compound annual growth rate (CAGR) of
11-12% to reach $115-125 billion by 2025.

1.2.2 Tamil Nadu


Boasting at least one-third of the textile business in the country, with 2,032 spinning mills
(total mills in India: 3,542), 5.63 lakh powerlooms (India: 24.86 lakh), 1.55 lakh handlooms
(India: 23.77 lakh), and nearly 15,000 garment units (close to one lakh units nationally), TN
is regarded as numero uno in textiles and garments. It also supplies to global brands.
Furthermore, the state's strategic location near major ports, such as Chennai and Tuticorin, is
advantageous for importing raw materials and exporting finished products. This proximity
helps reduce transportation costs and facilitates efficient logistics. Tamil Nadu's rich textile
heritage ensures a steady supply of raw materials like cotton, silk, and synthetic fibers,
supporting a reliable production chain.
The government's active support is another key factor. Tamil Nadu offers various incentives
and subsidies, including tax breaks and access to credit facilities, to attract investments in the
textile and garment sector.
SIMA vice chairman Durai Palanisamy said Tamil Nadu’s strengths are not just in cotton and
cotton blended textile products, but also in man-made cellulose fibre, such as viscose. The
State accounts for almost 75% of the country’s man-made cellulose yarn production.
Policies of successive governments and spirit of entrepreneurs have sustained this industry
over the years, according to Ravi Sam, chairman, Southern India Mills’ Association (SIMA).
“Tamil Nadu was the first State to bring in a textile policy. It promoted the development of
industries in backward districts. The continued focus by entrepreneurs, for generations,
investing in upscale technology, productivity and quality, have all helped,” he said. Today, the
textile and clothing sector is a major employment generator .
The Tamil Nadu government announced a special scheme on Saturday through which it has
extended benefits and subsidies to man-made fibre (MMF) yarn, MMF fabric from recycled
materials and technical textiles manufacturing units in the state.
For about 12 industrial estates including those at Ambattur and Thirumazhisai, prices for the
industrial plots have been fixed at 2016-17 rates. For eg, per acre cost has been fixed at
₹25.07 crore at Ambattur against the current market price of ₹43.86 crore and at ₹7,67 crore
at Thirumazhisai against a market price of ₹13.41 crore.

(a) Demographic Analysis


Analyzing the apparel industry in Tamil Nadu from a demographic perspective involves
looking at factors related to the workforce, consumers, and the industry's impact on the state.
Here's a detailed breakdown:
1. Labor Force: Tamil Nadu has a large and skilled labor force, which is one of the key
strengths of its apparel industry. The workforce is diverse in terms of age and gender.
2. Gender: The apparel industry often employs a significant number of female workers,
especially in garment manufacturing units. This provides employment opportunities &
empowerment to women in the state.
3. Education: Many workers in the apparel industry have varying levels of education, from
primary to higher secondary. Vocational training programs are also available to enhance skill
sets.
4. Migration: The industry attracts labor from different parts of Tamil Nadu and neighboring
states, leading to a diverse workforce. This migration can impact urbanization and living
conditions in certain areas.

(b) Trade Area Analysis


A trade area analysis for the apparel industry in Tamil Nadu involves assessing the
geographical regions where the industry operates, the target market, and factors influencing
trade within these areas. Here's a breakdown:

Geographical Coverage:
1. Domestic Market: The apparel industry in Tamil Nadu serves both urban and rural areas
within the state. Major cities like Chennai, Coimbatore, and Madurai are key urban markets.
Additionally, smaller towns and rural areas are also important for sales, particularly for
traditional and functional clothing.
2. National Market: Tamil Nadu's apparel products are distributed and sold across India. The
industry has a significant presence in pan-Indian retail chains and online marketplaces. Key
metropolitan cities like Mumbai, Delhi, and Bengaluru are also target markets.
3. Export Markets: Tamil Nadu is a major hub for textile and apparel exports. It caters to
international markets, including the United States, the European Union, the Middle East, and
Southeast Asia. Ports like Chennai and Tuticorin facilitate exports.

Target Market Demographics:


1. Age and Gender: The target market for the apparel industry is diverse, encompassing
consumers of all ages and genders. This includes clothing for men, women, and children.
2. Income Levels: The industry caters to a wide income range. High-end boutiques target
affluent consumers, while there's a vast market for affordable and value-for-money clothing.
3. Lifestyle and Fashion Preferences: Consumers have varied fashion preferences influenced
by factors like urban or rural living, cultural backgrounds, and lifestyle choices.
4. Seasonal Variations: Apparel sales can vary seasonally. For example, demand for winter
clothing differs from summer wear.

Factors Influencing Trade:


➢ Competitive Landscape
➢ Supply Chain
➢ Regulations and Tariffs
➢ Consumer Behavior
➢ Economic Factors
➢ E-commerce
➢ Cultural Sensitivity
➢ Sustainability
In conclusion, a trade area analysis of the apparel industry in Tamil Nadu involves
understanding the geographical reach, target market demographics, and various factors that
influence trade, from competition to regulations and consumer behavior. This analysis helps
businesses make informed decisions regarding market expansion, product development, and
marketing strategies.

(c) Competitive Analysis


Key Players:
1.Local Manufacturers: Tamil Nadu is home to numerous textile and apparel manufacturers,
particularly in cities like Tiruppur, Coimbatore, and Chennai. These include both large
corporations and small to medium-sized enterprises (SMEs).
2.National Brands: Major Indian apparel brands, such as FabIndia, Raymond, and Titan, have
a presence in Tamil Nadu. They often have exclusive stores or franchise outlets.
3.International Brands: International fashion brands like Zara, H&M, and Adidas have
established a strong presence in urban areas of Tamil Nadu through their retail stores.

1.2.3 Gujarat
Gujarat presents an advantageous environment for establishing a garment industry, thanks to
its strategic geographical location, highly skilled workforce, and robust infrastructure. Cities
such as Ahmedabad and Surat serve as prominent industrial centers, benefiting gujarat has a
flourishing textile sector that contributes not only to India’s arts and crafts but also to the
country’s economy. So, let’s take a look at how and why Gujarat is the country’s textile
capitam excellent transportation connectivity and a conducive business climate for
entrepreneurs in the garment sector.
Gujarat, often known as the “Textile State of India,” has one of the country’s most thriving
textile industries. The Denim Capital of India generates over 3% of the country’s GDP.
Gujarat has managed to preserve its historic history and culture, which is one of the major
reasons for the textile industry’s success. “Gujarat has long been known as the “Manchester
of India,” and it will continue to be so in the future since it produces maximum cotton,” says
R R Patel, Proprietor, Gayatri Textile Machines.
Gujarat is home to brands like Arvind Mills and Praful, and the state creates the best textiles
owing to a perfect combination of skilled labor, a wide range of raw materials, a seamless
blend of yarns, and the application of traditional techniques.
Gujarat has many ginning, spinning, weaving and processing units. Ahmedabad is one of the
most important processing sectors. Surat is India’s largest man-made fabric manufacturer.
Rajkot has many ginning and spinning units. Even the technical textile sector is increasing in
the state. If we talk about textile machinery business, Ahmedabad, Rajkot and Surat have
many engineering units.Surat is one of the biggest markets for our sectional warping and
filament sizing machine.”

For the assistance of Gujarat’s garment and apparel industries, the Gujarat government has
introduced the “Gujarat Garment and Apparel Policy 2017.” Over the next five years, the
initiative intends to create 100,000 new employment, increase exports, and attract investment
in the garment sector. Any company with at least 150 new machinery (cutting and sewing)
and at least 300 staff is eligible to participate in the scheme.
“The government has provided enough support to the state, especially to the technical textiles
sector. The central govt runs programmes such as TMTT (Technology Mission for Technical
Textiles), while state governments supports us to their own programmes,” mentioned Thakkar
Gujarat also has harbored several associations for garment industrialists , “Gujarat garment
manufacturers Association (GGMA)”. GGMA, established in 1990 with just only 150
members, is now having over 1500 members as of date. GGMA is fortunate to receive an
able support both from state and central government. We have renowned fashion design
Institutes like NIFT providing excellent designers. Our visionary state government, having
realized the potential in the sector, has set up apparel parks at strategic locations and is also
planning for domestic apparel parks which will go a long way in improving the progress of
the industry. (Indian Textile Journal, 6-9, 2023)

(a) Demographic Analysis


Total Population: As per the latest available data, Gujarat has a population of approximately
6.03 crore (60.3 million) people.
Age Composition: Gujarat exhibits a diverse age composition, featuring a significant
proportion of its population within the working-age range. The state hosts a relatively
youthful demographic, with a substantial number of individuals aged between 15 and 59
years.
Per Capita Income: In 2021, GDP per capita for Gujarat was 281,804 INR, lakhs. GDP per
capita of Gujarat increased from 117,398 INR, lakhs in 2012 to 281,804 INR, lakhs in 2021
growing at an average annual rate of 10.32%. With some other relevant figures like
employment rate of 1.82%, employing 2,69,41,738 Persons and a labor participation rate of
48.37%
Educational Level: The education department of the state pays special attention to the
improvement of elementary education in Gujarat. The state government has also launched the
district primary education program for making primary education compulsory and free for all
students up to a certain age limit. Literacy rate in Gujarat has seen an upward trend and is
78.03 percent as per latest population census. Of that, male literacy stands at 85.75 percent
while female literacy is at 69.68 percent.
Occupational Structure: The occupational structure of Gujarat is characterized by a diverse
range of employment sectors. The state's economy encompasses various industries, including
agriculture, manufacturing, services, and trade. This multifaceted occupational landscape
reflects the state's economic dynamism and the diverse employment opportunities it offers to
its residents.

(b) Trade Area Analysis


Being a land of enormous diversity and cross-cultural influences, Gujarat started Trade way
back while Kutchi Businessman settled in Oman and the Greek and Roman art influences of
second and third Century reinforced the connection between Gujarat and other countries.
Exchange of Goods was a part of Trading as per archeological excavations with foreign
exchange material found in Gujarat. The Industrial Policy acts as a catalyst to face the
challenges to manage the inevitable volatility of Industrial Cycles. The remarkable resilience
of the Economy of Gujarat as the fastest growing state in the country, the fundamentals of its
Economy is strong and vibrant. It is the largest producer (35%) and exporter (60%) of cotton
and is the third largest denim producer in the world. It offers India’s 12% textile exports.
Known as the ‘Manchester of the East’ and ‘Denim City.’ Gujarat’s six percent of total
Industrial Production comes from the textile industry.
High on Exports with impressive performance, Gujarat’s Export share in India is highest
contributing to an average over 14% share in India.
The Government is encouraging SEZ (Special Economic Zones) , considered as growth
engines that can boost manufacturing, augment exports and generate employment. These
include multi product SEZs and sector specific SEZs covering textiles, pharma, engineering,
chemicals, ceramics, gems and jewelry and IT/ITES sectors.

1.2.4 West Bengal


West Bengal, located in eastern India, presents a compelling opportunity for establishing an
apparel industry. Kolkata, the state's capital, serves as a pivotal commercial and industrial
center, boasting robust infrastructure, including the Kolkata-Haldia Port, an international
airport, and an extensive road and rail network. This infrastructure provides seamless
connectivity for both domestic distribution and international trade.
Historically, West Bengal has played an important role for the development of the textile and
apparel industry and till date it is a major manufacturer of hosiery products, garments and
technical textiles. In 2019 – 20 this state has exported textiles and apparel worth ~USD 1 Bn.

The region benefits from a skilled and experienced workforce, thanks to its historical
association with the textile and apparel sector. Kolkata's numerous technical institutes and
vocational training centers ensure a steady supply of qualified labor. Moreover, West Bengal's
significant population creates a substantial local market for apparel products, enhancing the
industry's growth prospects.
Setting up a garment manufacturing plant in West Bengal, India, holds immense promise
within its dynamic economic landscape. With Kolkata as its bustling capital, West Bengal
offers a strategic location for the garment industry. The state boasts an extensive network of
road, rail, and sea routes, facilitated by the Kolkata-Haldia Port, ensuring seamless
transportation of materials and finished goods.
West Bengal's greatest asset is its skilled workforce, deeply rooted in the textile and apparel
sector due to historical ties. The presence of technical institutes and vocational training
centers in Kolkata ensures a readily available pool of talented labor.
The state provides access to both a vast domestic market, courtesy of its substantial
population, and lucrative international markets, particularly in Southeast Asia and the Middle
East. Kolkata's robust infrastructure and proximity to key markets make it an attractive
choice for manufacturers.
West Bengal has the right combination of the factors required for the growth of the sector.
Some of the key points have been highlighted below:
1. Raw material availability: West Bengal is the largest supplier of raw jute, third largest
supplier of Mulberry silk and a major supplier of Purified Terephthalic Acid (PTA) which is
the raw material for manufacturing of polyester fiber.
2. Availability of skilled manpower: It grooms ~700 Grads and Postgrads for this industry
every year. The educational institutes of West Bengal groom Graduates and Postgraduates in
other streams (mechanical, electrical, electronics, civil engineers, industrial engineering,
business management, IT etc.) which supports the growth of the sector. The TVET
institutions and training centers provide skilled manpower for the shop-floor level.
3. Market access: The West Bengal government has targeted to double its textile industry in
the state to INR 70,000 Crores1 by 2024-26. This state is also the gateway to Bangladesh
which imported textiles worth USD 8.82Bn in 20202
4. Power and Water: The State is self-sufficient with respect to power and water. It is now in
a position to export power to other states after meeting its internal demand fully. It has drawn
up ambitious plans for installing 100 MW Grid Connected Ground Mounted Solar PV Power
Plant and Grid Connected Rooftop Solar PV Power Plants.3
5. Industrial Infrastructure: A number of textile parks and apparel parks are functional / under
implementation. Paridhan Garment Park (Ph 1 & Ph 2)and Regent Garment & Apparel Hub
(Ph 1) are already operational. Other major parks include EIGMEF Apparel Park, Kona
Integrated Garment Park, West Bengal Hosiery Park, Integrated Textile Park. Government
has also planned to come up with more textile parks / clusters including apparel hubs in
Nungi and Metiabruz.
6. Logistics and transportation:16 National Highways are connecting the State with rest of the
India and two upcoming Asian highways will connect the State with Nepal, Bhutan and
Bangladesh. Upcoming Amritsar Kolkata Industrial Corridor is expected to boost industrial
linkages of West Bengal with 20 cities across seven states in India. Two large container and
bulk handling river ports exist at Kolkata and Haldia. One deep seaport is coming up at
Tajpur. The State has two international airports at Kolkata and Bagdogra. Apart from this the
domestic airport in Durgapur caters to major metros in India. The state also has planned to
operationalize Coochbehar, Balurghat and Malda airports in near future.
7. Policy Support: Government of West Bengal has taken major policy reforms for the Ease
of Doing Business (EoDB) which includes automation of the approval processes, digitization
of the processes, increasing the tenure of validity of approvals, simplification of the
processes, single window clearance system, ‘No Bandh’ regime, time bound service delivery
etc. The state shall also support Water and Electricity supply, skill development initiatives
ETP development etc. The industry can also benefit under the PLI scheme as per GoI
guidelines.

The Government of West Bengal has identified the following areas as strategic thrust areas
for attracting new investment in the textile and apparel sector in the next three to five years.
1. Scaling up readymade garment sector
2. Diversifying into technical textiles
3. Development of complete value chain for man-made fiber-based textiles and apparel
4. Strengthening and upgrading weaving, knitting and hosiery industry
5. Developing the support ecosystem – textile auxiliaries and machinery
6. Setting up of a designing and technology facilitation center
7. Promotion of cleaner production system

The West Bengal government actively promotes industrial development, offering incentives,
subsidies, and a supportive regulatory framework. This, coupled with the state's pro-business
environment, makes it an enticing investment destination.
Investors must also consider factors such as infrastructure, utilities, logistics, environmental
compliance, and competitive analysis. A well-structured financial plan and risk assessment
are essential to navigate potential challenges.

(a) Demographic Analysis


1. Population: West Bengal is one of India's most densely populated states, with a population
exceeding 90 million people. A large population provides a significant labor force for the
garment industry, ensuring a diverse range of skills and experience levels.
2. Per Capita Income: The state's per capita income varies across urban and rural areas. In
urban centers like Kolkata, it is relatively higher due to greater economic opportunities, while
rural areas have lower incomes. Understanding these income disparities can help tailor
product offerings and marketing strategies for different market segments.
3. Educational Structure: West Bengal has made progress in education, with a literacy rate of
approximately 77%. The state boasts several universities and technical institutes, providing
access to a skilled and educated workforce, especially in fields relevant to the garment
industry such as design, engineering, and management.
4. Organizational Structure: West Bengal's organizational structure consists of a mix of large
textile conglomerates, medium-sized manufacturers, and numerous small-scale garment units.
The presence of established textile and garment clusters, such as in Howrah and Hooghly,
provides access to specialized suppliers and support services.
5. Urban vs. Rural Dynamics: Kolkata and its suburbs have a more urbanized and educated
workforce, making them suitable for managerial and technical roles. Rural areas offer
cost-effective labor options, particularly for labor-intensive production processes.
6. Gender Participation: The garment industry often employs a significant number of female
workers. West Bengal generally has a favorable gender ratio, contributing to a diverse
workforce.
7. Age Distribution: West Bengal's age distribution is balanced, with a substantial
working-age population, making it conducive to labor-intensive industries like garment
manufacturing.

1.2 Analysis
Factors Faridabad Gurugram Surat Tiruppur Kolkata
Availability of raw materials 5 5 5 5 4
Market Scenario 5 5 4 4 5
Labor Availability 5 5 5 5 5
Low Transport Cost 5 5 3 4 3
Min. Cost of Production 4 5 5 5 4
*Scale : 1 is the lowest, 5 is the highest

The location analysis for our garment industry plant in Gurugram reveals significant
advantages, including proximity to Delhi's consumer market, excellent transportation
infrastructure, and access to a skilled labor force. However, high real estate costs, competition
for space, occasional infrastructure challenges, and environmental concerns need careful
consideration to ensure a successful setup.

2. DEPARTMENT AND ACTIVITY FLOW CHART & DIAGRAM


A department flow chart outlines the process and movement of materials, resources, and
information from one department to another, highlighting the interdependencies and
interactions between departments.
An activity flow chart illustrates the sequence and flow of activities within a specific
department or area of a manufacturing facility. It shows the step-by-step progression of tasks
or processes, along with the inputs and outputs at each stage. This flowchart helps in
visualizing the workflow, identifying bottlenecks, and optimizing the layout for improved
productivity and efficiency.
Flowchart: Departmental Flow Chart
2.1 Department Flow Chart

A. Merchandising Department B. Sampling Department


C. Fabric and Trims Store
D. Spreading Department
E. Cutting Department
F. Sewing Department

G. Finishing Department
H. Washing Department

I. QA Department
2.2 Department Flow Diagram

Flowchart: Flow of Material

2.3 Activity Flow Chart


An Activity Flow Chart in the context of plant layout refers to a visual representation of the
sequential steps and processes involved in the movement and handling of materials and
resources within a manufacturing or industrial facility. It serves as a valuable tool for
optimizing plant layout design, efficiency, and logistics. Typically, an Activity Flow Chart
outlines the pathways that raw materials, components, and finished products follow
throughout the plant, highlighting key workstations, storage areas, and transportation routes.
This chart helps plant managers and engineers identify potential bottlenecks, streamline
workflows, and minimize unnecessary delays or handling, ultimately enhancing productivity
and resource utilization. By providing a clear and concise overview of the plant's operational
flow, Activity Flow Charts play a pivotal role in achieving an efficient and well-organized
plant layout. (Sharma and Mor, 1-2)
2.4 List of Departments

S No DEPARTMENTS

1 Merchandising & PPC

2 Sampling

3 Fabric & Trims Store

4 Lab Testing

5 Spreading/ Cutting

6 Sewing

7 Washing & Finishing

8 Packing

9 QA

10 IE

11 Maintenance

12 IT & Admin

13 Utility (UPS, Boiler Room, ETP)

14 Common Area (Creche, Locker Room, Canteen)

3. ACTIVITY RELATIONSHIP DIAGRAM AND CHART

In the context of the apparel industry, an activity relationship chart can be used to map out the
various stages involved in clothing production, from design and material procurement to
manufacturing and quality control.
The activity relationship chart typically uses symbols and arrows to indicate the flow of tasks,
their dependencies, and decision points. It helps apparel manufacturers to visualize and
streamline their production process, identify areas for improvement, allocate resources
efficiently, and reduce lead times.
3.1 Plant Service Activities
Administration Production Personnel Physical Plant

Chief Executive Ventilating


PPC Health & Medical Facilities
Officer Equipment

Fabric & Trims Food Service Air Conditioning


Managing Director
Store (Canteen/Pantry/ Kitchen) Equipment

Power Generating
General Manager Spreading & Cutting Rest Rooms
Equipment

Maintenance
Conference Room Sewing Recreational Area
Workshops

Fire Protection
Reception Area Washing Lavatory
Area & Equipments

Stairways & Fire


Merchandising Finishing Locker Area & Creche
Exits

Design & P.D. Packing Parking Elevators

Sampling Quality Assurance Water Dispenser Area

R&D and CAD IE & Maintenance Time Keeper

Lab Testing Logistics

IT & Admin
3.2 Activity Relationship Chart

Fig: Activity Relationship Chart


3.3 Activity Relationship Diagram
Degree of Closeness
S
Activity
No
A E I O U X

3, 4, 12,
1 Merchandising & PPC 2, 6, 7 5, 8 - 9, 10, 11 13
14

4, 8, 12, 3, 5, 10,
2 Sampling 1 6, 7 9 13
14 11

1, 6, 7,
3 Fabric & Trims Store 5 4 9 2, 8, 10 13
11, 12, 14

1, 2, 7, 8, 5, 6, 9,
4 Lab Testing - 3 - 13
11, 12, 14 10

7, 10, 12,
5 Spreading/ Cutting 3, 6 1, 11 9 4, 2, 8 13
14

1, 5, 9,
6 Sewing 2 - 3, 12, 14 4, 7, 8 13
10, 11

3, 4, 5,
7 Washing & Finishing 1, 8 9 11 6 13
10, 12, 14

2, 4, 12, 5, 6, 9,
8 Packing 7 1 - 13
14 10, 11

1, 4, 8,
9 QA 6 7 2, 3, 5 11, 12, 14 13
10

5, 7, 12, 1, 2, 3,4,
10 IE 6 11 - 13
14 8, 9, 10

3, 4, 9,
11 Maintenance 6 5, 10 7 1, 2 , 8 -
12, 13, 14

1, 2, 3, 4,
12 IT & Admin - - - 5, 6, 7, 8, - 13
9, 10, 11

1, 2, 3,
4, 5, 6,
Utility (UPS, Boiler
13 - - - - - 7, 8,
Room, ETP)
9,10,11,
12,14

1, 2, 3, 4,
Common Area (Creche, 5, 6, 7, 8,
14 - - - - 13
Locker Room, Canteen) 9, 10, 11,
12
Table: Worksheet for Activity Relationship Diagram
Fig: Activity Relationship Diagram

4. AREA CALCULATION
Area calculation is crucial when setting up a garment plant as it determines the facility's
capacity, layout efficiency, and cost-effectiveness. Properly allocated space ensures smooth
workflow, accommodating machinery, storage, and personnel. Accurate calculations optimize
resource utilization, enhance productivity, and enable compliance with safety regulations,
contributing to the plant's success and competitiveness in the textile industry.
Area calculation has been done in the excel sheet attached below:
A1 G-6 OB & Area
4.1 Operation Breakdown, Output calculation and Line setup
4.2 Sampling Department
4.3 Storage ( Fabric & Trims )

4.4 CAD Department


4.5 Cutting Department

4.6 Sewing Department


4.7 Finishing Department

4.8 QC Department

4.9 Department Offices


4.10 Auxiliary Department

4.11 Warehouse

4.12 Other Personnel


4.13 Parking

4.14 Training Department

4.15 Maintenance Department


4.16 Full Area
REFERENCES

Indian Textile Journal, editor. “Gujarat: Nurturing a rich textile culture.” Indian Textile
Journal, vol. III, 2022, pp. 3-6,
https://indiantextilejournal.com/gujarat-nurturing-a-rich-textile-culture/

GGMA - The Gujarat Garments Manufacturer Association (ggma.in)

Gujarat Official State portal - Gujarat State Portal | State Profile | Demography
(gujaratindia.gov.in)

Gujarat Population 2022 | Sex Ratio & Literacy rate 2023 (census2011.co.in)

HSIIDC:https://hsiidc.org.in/industrial_policy#:~:text=Government%20of%20Haryana%20h
as%20notified,environmental%20policies%20for%20sustainable%20development.

Uhbvn:https://uhbvn.org.in/staticContent/documents/Tariff.pdf

Method to Generate Activity Relationship Chart in Facility Layout Problems


Https://Www.Ijspr.Com/Citations/V13n3/Ijspr_1303_144.Pdf

“Setting up Textile and Apparel manufacturing units in West Bengal.” MSME & TEXTILES
DEPARTMENT, vol. II, no. 2, 2022, pp. 3-11
.https://wbmsme.gov.in/sites/default/files/cms/tenderpdf/1674280994RFP307.pdf

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