brandix india apparel city (biac) · pdf filebiac is a world-class integrated textile park...
TRANSCRIPT
BIAC is promoted by Brandix, a top Asian apparel co.
Leading Apparel company Global retailer clientele Experienced leaders
• Priyan Fernando
• Chairman• Senior Advisor, BCG
• Ashroff Omar
• ED/ CEO
• Non-exec Board member,
John Keells & CSE1
• Aslam Omar
• ED/ Head- TAC2
• CEO, Phoenix Ventures
• Feroz Omar
• ED/ Head- BIAC
1
• ~$ 750 Mn revenues
– 25% CAGR
• Employs 48K associates
• Manufacturing plants in 4
countries (Sri Lanka, India,
Bangladesh,Haiti)
• Ethical manufacturing –
Garments without Guilt
BIAC is a world-class Integrated Textile Park
1000-acre textile park
with world-class
infrastructure,
developed and managed
by Apparel industry
veterans
• Exports >250M USD
per annum
• Employs >18,000
people
Andhra
Pradesh
New Delhi
Telangana
Karnataka
Tamil NaduKerala
BIAC Vishakhapatnam
Labor pool
Vicinity to
cotton, yarn
Vicinity to port
World-class
infrastructure
2
BIAC has attracted world-class tenants
3
Product category Tenant Products Nationality
Knit apparel Brandix Apparel India 1 Ladies Underwear SL
Knit apparel Brandix Apparel India 2Ladies, Mens underwear,
t-shirtsSL
Knit apparel Brandix Apparel India 3 Yoga pants SL
Ancilliary ITL Tags & labels S. Africa
Knit fabric Ocean India Cotton Fabric SL
Accessories, trims Pioneer Elastic India Elastic China
Accessories, trims Prime Elastics Elastic India
Knit apparel Quantum Clothing Ladies innerwear UK, Japan
Ancilliary Ribest (Yama) ribbons Bows and ribbons China
Accessories, trims S&S industries Bra underwires USA
Ancilliary Screenline printing Printing services SL
Knit apparel Seeds Intimate Apparel Bras China, SL, USA
Accessories, trims Shore to Shore Tags & Labels SL, USA
Accessories, trimsVardhaman Yarn &
ThreadsDyeing of sewing threads India
Ancillary Visipak Packing material India
BIAC: Asia's most competitive manufacturing destination
4
Most cost competitive
Large, efficient labor pool
Plug-n-Play infra with
aggressive start-up
Integrated cluster; world-
class lead times
The 5 Star
BIAC Advantage
4
1
2
3
5Proven results
Leverage India advantage in a hassle-free environment
Cost: BIAC is the most cost competitive among Asian
peers
350
230
175
200
160
110
0 100 200 300 400
B’desh
(Dhaka)
BIAC
India
(Tirupur)
Vietnam
China
(Shenzhou)
Cambodia
US$ / month
BIAC labour costs among lowest across
Asia
70%
55%
50%
65%
50%
55%
Productivity
Lower fabric
cost
• Lower fabric costs due to availability
of local raw material (e.g., cotton)
Import duty
advantage• FTA with Japan
Fiscal
concessions
• 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 –GST, etc.
BIAC advantaged on other factor costs as well
Lower initial investment due to common infra. & double-shift operation
Labor: High-quality labor in abundant supply
6
Highly trainable and superior quality
90
24
65
4
20
75
60
8
90
50
60
5
65
55
0
20
40
60
80
100
%, no. of hours
No. of
hours
60
Absenteeism
(%)
Annual
Attrition (%)
Efficiency
(%)
45
Vietnam
Bangladesh
India (Tirupur)
BIAC
Abundant labor supply: ~260K women
0
100
200
300
Labor pool size (000s)
264
< 50KM
118
50 - 100KM
146
Target labor profile
• Gender: Women
• Education: Matriculation
• Age: 18 – 35
• Typically first employment
– require no unlearning
• No competing industries
Integrated cluster: Near 100% self-sufficiency in knits
Knitting Sewing and PackingYarn
Thread Elastics Lace
Printing Packaging
Labels
Logistics
Knit
garmentsOutside
cluster(planned to
shift within
park)
Present in park
Planned in park
Inside BIAC Park: Vertically Integrated Cluster
Fabric
Dyeing
Apparel
Dyeing
50 km from Vizag Port; Full connectivity to
major US, EU and Asian ports
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Example: BIAC cluster reduces lead time, enabling
order fulfillment in 2 weeks
PO raised
for supplies
Order placed
for 150K units
Day 1 Day 4
PO fulfilled in 3 days
Day 12 Day 13 Day 15
Production
commences
1
2
3
46 Air freighted
150K units
manufactured5 In stores7
SUPPLIER
PACKAGE
Vertically integrated supply chain
FABRIC
LA
CE
BAI receives materials within
3 days from suppliers
8
BIAC enables aggressive start-up time
Submit the project report
On the spot approval and
issuance of LOP
Construction
Sub-lease agreement signing
with BIAC
Obtain post construction
approvals
Incorporate the companyIncome tax registration
Bank account opening
Office of Development Commissioner
Unit approval committee meeting
Move to permanent facility
1-2
months
1-1.5
months
6-9
months
Brandix Facilitation for Set up
Move to permanent facility in
12 months
9
Aggressive start-up: BIAC supports
operating units throughout their ramp-up journey
Pre-production
Production
in "permanent''
building
Production in rented
facility
Set-up own factory
Obtain licenses• Fast track approvals &
incorporation (60 days)
• Shell cos. set up for advance
approvals
HR support• Hire first set of employees
• Hire & train HR team
• Help with training design
• Coaching on labour mgmt
Interim facility• Ready to use, 33,000 sq.ft.
buildings till permanent
facility ready
Project Mgmt Services• Support with contractor
services, quality and on-time
delivery of buildings, govt.
approvals
Plug-N-Play Infrastructure• Fully functional ETP, WTP and
power facilities
• Adequate spare capacity
BIAC
support
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
A
B
EC
D
F
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Ramp-up: BIAC has world-class Plug-n-Play infra –
sufficient for 1000-acre park
Pay-per-use structure reduces initial investment and
business risk
• 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
Wate
rP
ow
er
ET
P
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• 200MW capacity
• Connected to national grid
5-star service: BIAC is committed to providing a world-
class experience
Committed to 5-star service levelsBest-in-class urban living infrastructure
• End-to-end services to ensure tenant
success (e.g., approvals, HR, project mgt)
• High standards of compliance
• 55 member strong organization to
ensure strong support to tenants
• Committed to add any service that will
help you succeed (e.g., schools, clinics)
– Chinese speaking staff, culture
consultant
– Chinese cooks, cuisine in hostels
1
2
3
4So
cia
l in
fra
str
uctu
re
• Residential
– Hostels, villas
• Recreational
– Swimming Pool
– Cafeteria
– Gymnasium, sports facilities
– Community hall
12
Thank you
14
Most cost competitive
Large, efficient
labor pool
Plug-n-Play infra with
aggressive start-upIntegrated cluster;
world-class lead times
The 5 Star
BIAC Advantage
Leverage India advantage in a hassle-free
environment
4
1
2
3
5Proven results
Contact
Saravanan C
+91 9000661355
www.brandixapparelcity.com