Estimated Investment in the Park


The Total Expected Investment in the Park would exceed Rs 32683.41 Lacs which is presented in the Table below :

SN Particulars Amount( Rs. Lacs)
1 Land ,Factory Building & Plant & Machinery 29376.39
2 Common Facilities & Infrastructure 3307.02
Total Area 32683.41

Operational & Financial Assessment of the Entrepreneurs

  • A detailed operational and financial assessment of the entrepreneurs has been carried out with a view to ascertain their textile/other business experiences as well as their financial strength.
  • Almost all the entrepreneurs are existing players in the textile industry. All the entrepreneurs have the financial resources to invest in the Project.

Financial Assessment of the SPV

Since the SPV proposes to raise external debt for part funding the Project outlay, the financial assessment of the SPV includes determining the likely cost of services that would need to be recovered by the SPV from the Textile Units as well as the financial impact of the proposed financing structure of the project including special covenants related to Debt Service Reserve Account and / or common Debt Service fund etc. The SPV would also charge the Industrial Units a mark-up over its operating cost to built-up a cash reserve in order to meet any temporary cash deficits in future


Financial Assessment of a typical Unit

  • Each weaving unit in the Park would comprise of 12 Looms and other supporting facilities to be set up in a factory of built up area 5000 sq.ft
  • The units would be able to generate cash profits after bearing the recurring cost of the common infrastructure charged by the SPV
Key Indicators Weaving Sizing &Warping Garmenting
EBIDTA Margin 26.50% 22.80% 23.12%
PAT Margin 10.68% 10.83% 10.60%
Debt/Equity 1.06 1.31 0.65

Criteria

Compliance to the conditions laid down by PAC in the meeting held on 25th November 2005 The Project complies with all the criteria as laid down by Project Approval Committee (PAC) under SITP as described in the table below:

SN Criteria Compliance by the Project
1.
No. of Entrepreneurs Aggregate minimum investment in land, factory building and Plant & Machinery (Rs. in Crore)
50 and above 100
Between 25 and 49 150
Between 5 and 24 300
  • Numbers of entrepreneurs: 85
  • Aggregate investment in Land factory buildings and Plant & Machinery: Rs 29376.39 Lacs and therefore compliance
2. No single entrepreneur shall possess more than 20% of the are earmarked for industrial use within the Park Compliance
3. Aggregate investment in land, factory buildings and Plant & Machinery by the entrepreneurs in a Park shall be atleast twice to the cost of common infrastructure proposed for the Park
  • Aggregate investment in Land, factory buildings and Plant & Machinery :Rs. 29376.39 Lacs
  • Cost of Common Infrastructure: Rs 3307.02 Lacs and therefore Compliance

Expected Employment Generated

  • Direct Employment : 890 Employees (approx)
  • Indirect Employment : 1334 Employees (approx)

Estimated Production/ Sales

The Combined Out put of all of the units in the park would aggregate to Rs 907 Crores Per Annum.