Hindupur Vyapar Apparel Park Ltd.

	India - Heritage in Textiles
	Indian textiles have a legendary heritage through the ages. Some of the best attires of Greeks & Romans were draped with Indian textiles. European settlers exchanged silver & gold for Indian textiles, which became the fashion statement of the period. Calico, Pajamas, Gingham, Dungaree, Chintz & Khaki - these apparel names are Indian contributions to the English language.
	India - Today
	India today, is a fast emerging economic super power. With a population of a strong 300 million and the world's largest middle class population, it unleashes the latent strength of popular consumerism while reshaping both business & the way of life. With the surging trend in all sectors, International Trade Journals have rightly billed India as one of the fastest growing economies in the world.
	Indian Textile Industry - An overview
	The Textile & Clothing industry is equally sharing the trends in this economic uptrend.  T & C sector, accounts for nearly 4% of the Gross Domestic Product, 14% of the country's industrial production and 27% of the export earnings. Being the world's largest producer of silk, India's ranking in cotton crop production is a significant 15% of the global yield. Would you ever imagine that Textiles & Clothing is next only to Agriculture in terms of market-reach? The T & C sector has been at the forefront of socio-economic development while providing employment to nearly 35 million Indians amongst which include a substantial number of women. Thanks to the fast growing consumer class and increasing disposable incomes, per capita domestic consumption of textiles & apparels is expected to have a volume growth from about 20 meters to 32 meters and value growth from 25 billion US Dollars to 45 billion US dollars by the year 2010. India's cotton textile & garment industry has immense export potential. Cost competitiveness backed by international quality is driving the penetration of Indian basic yarns and grey fabrics in global commodity market, as a result of which apparels can be manufactured in relatively small batch lots. This flexibility offers larger variety of casual wear and leisure garments at cost effective levels. With a projected two fold increase in the size of the global textile market in the next 4 years, the National Textile Policy has targeted India's export revenues to 50 billion US dollars by the year 2010. Besides natural fibers like cotton, jute & silk, synthetic raw material products such as polyester staple fiber, polyester filament yarn, acrylic fiber and viscose fiber are produced in a mass scale. That presents the wide canvas of the Indian textile scene with wider opportunities.
	Andhra Pradesh & Hindupur - Logistic advantages:
	Andhra Pradesh a major contributor in the Textile & Clothing segment located in the Southern part of the country is one of the most progressive states of India . The state, as a whole, produces good quality cotton of over 2.6 million bales with a comparatively higher output per hectare in India. With around 70 cotton spinning mills , 9 open end spinning mills, 1050 weaving units and over 100 Textile processing centers, ….. Andhra Pradesh is truly an entrepreneurial haven of the Textile & Clothing industry. Hindupur, a deceptively quiet town but holding out a vast potential for industrial development, is an important landmark in the textile map of Andhra Pradesh. Logistically, this town located in the National Highway No.7 along the Bangalore- Hyderabad route, is a perfect setting for new ventures. It is just 120 Kilometers from Bangalore and 300 Kilometers each from Hyderabad & Chennai - all hi-tech meritocratic cities of India. So much so, Hindupur offers the best combination of all desirables Industrial land at affordable prices Adequate basic infrastructure like Water & Power Fast & frequent connectivity by transport & communication networks. Skilled & dedicated labor force available at semi-urban & rural wage rates Proximity to textile research institutions in Hyderabad, Chennai & Bangalore. Presence of quality educational institutions in Sri Krishnadevaraya University, Jawaharlal Nehru Technological University and Sri Satya Sai University located in the home District of Ananthapur itself Well equipped health care centers nearby Interesting "get-away" destinations like Alur waterfalls, Penukonda forts and the  historic Lepakshi temple with its enchanting murals.
	No wonder then, the Government chose Hindupur for setting up an Industrial Park.  Apart from textile majors like Super Spinning Mills and Precot Mills a host of industries from different sectors have set up shop in Hindupur and in the resident Ananthapur District. This also includes prominent players like Ultratech Cements, Penna Cements, Wipro - Fluid power division, Gomathy alloy castings, Prime Granites, Surya Coach, Rayalaseema Technologies, Kerikera Food Products Pvt Ltd., etc., apart from a number of medium & small scale industries. Hindupur seems to have a traditional tryst with the textile industry. 10,000 handloom units and 2,500 power loom units in & around Hindupur would bear out this claim. When you think of Dharmavaram pure silk saris, you cannot miss out on Hindupur, which is an important production centre for this exotic variety of women's wear.
	Textile Industry - Incentives & Packages With the fresh set of Central & State Government initiatives, the outlook for the Textile & Clothing industry, looks all the more brighter.
	First & foremost, there is no license required for setting up textile units. All matters are expeditiously handled by a Single window clearing agency Synthetic segment gets a boost with the reduction in excise duty and cuts in import duty on man made fiber and filament yarn. There is a Fillip for technology upgradation through increased budgetary allocation to the TUFS - the Technology Upgradation Fund Scheme. The Central Government offers 5% interest subsidy for 6 years or 20% cash subsidy upto 2 Million Rupees investment for the Small Scale Industries - the SSIs. This will help existing units upgrade their facilities and new units to plan for latest technology. There are other benefits for Small Scale Industries as well. The Andhra Pradesh State Government also offers interest subsidy for 5 years for investments upto 2.5 million Rupees.The SSIs located in the D+ zone with an investment of 2.5 Million Rupees become eligible for 35% Special area subsidy It is not SSIs alone that stand to benefit. There is a Special package of incentives for mega projects investing 100 Crore Rupees (about 22 million US dollars) or generating employment for 2500 people. Most importantly, the incentive package gives thrust to SITP - the Scheme for Integrated Textile Parks, which welcomes public-private partnership for setting up world class infrastructure, targeting textile industry clusters and locations with high growth potential. 40% Infrastructure development funding from the Govt of India under the SITP scheme, is truly a boon to the investors  Labor laws are proposed to be liberalized for Special Economic Zones and Textile Parks Yarn depots are planned in different parts of the country to ensure uninterrupted supply to the weavers Introduction of "Handloom Mark" on the lines of "Wool Mark" to promote quality Additional concession in power tariff for garmenting, processing & weaving units Special grants for providing employee infrastructure and training No stamp duty & registration charges for land acquisition Octroi refund for 15 years ..... and there are a whole lot of additional measures on the anvil to facilitate inflow of Foreign Direct Investments.
	Hindupur Vyapar Apparel Park Ltd.
	Emerging in the backdrop of such a promising scenario, is the innovative project for an integrated Textile cum SEZ Apparel park - the Hindupur Vyapar Apparel Park Ltd. - HVAPL in short.  Located just 6 kilometers from Hindupur town, HVAPL is designed to be a self-reliant textile city. Just visualize a world class integrated textile facility: The state-of-art Rapier and Air jet weaving looms Preparatory equipment Sizing machines Cone Dyeing plants Cone extractors Radio frequency dryers Fabric processing and finishing equipment. The manufacturing spectrum will cover processing of yarn, weaving of fabrics, processing of grey cloth, production of 100% cotton checks with compact yarn & denim, furnishing fabrics, apparels and made-ups. The master plan for the 73.1 acre plot of HVAPL envisages setting up of 171 textile & ancillary manufacturing units with supporting physical and community infrastructure. The layout of the "Textile-park" is based on sound town planning guidelines:  23 % area is for common utilities like internal & arterial roads with footpath & street lighting, water supply system, storm water drainage system, septic tanks, electrical distribution system, telecommunication network, non-hazardous waste storage and disposal facility, common effluent treatment plant and fire fighting equipment. 6% area would be occupied by common facilities such as Administrative Block,  Product Information & Exhibition Centre, Training and Design Institute, Laboratory, Canteen and First aid centre. 57% area is earmarked for factory buildings A liberal 13% area provided for lung space and green areas. Special facilities for handling precious cargo, Inland container depot with full time customs service, offshore banking and International trading desk, are all well thought-out features for business facilitation. Welfare services would include community center, health care center, guest house, and daily transport from the Textile Park to the town. Appropriate to the nature of each manufacturing activity, the built-up area and layout of the industrial sheds are planned by project specialists. All in all, every single facility at HVAPL will carry the technical validation of qualified & reputed professional organizations.
	SEZ advantages:
	As a designated Special Economic Zone, Hindustan Vyapar Apparel Park Ltd., will enjoy a multitude of special advantages, especially in the aftermath of export quota abolition under WTO regulations: Treated as a foreign enclave capital goods, raw materials, consumables and spares imported by the SEZ units will be exempted from customs duty. The export procedures will also be much simpler. State Government commercial taxes, duties & levies would be reimbursed Similarly, there will be an exemption from Central Government taxes & duties on product sales Vendors to the units in the SEZ also stand to benefit. Their supplies will be eligible for DEPB or duty drawbacks. 100% Foreign Direct Investment permitted in the manufacturing sector 100% Income Tax holiday Full repatriation of profit without any dividend balancing provisos Three years time permitted to achieve positive results in net foreign exchange earnings 360 days time limit allowed to realize export proceeds No stipulation of "Minimum Value addition content" in the products sold Repacking, repairing, reconditioning, re-labeling and even minor re-processing is allowed Job work is permissible in the Domestic Traffic Area Units inside the SEZ Products are subject to self-certification by the manufacturers No statutory routine examination and appraisal of the consignments Overseas banking facility in the campus would ensure "No loss foreign exchange conversion" Government incentives & grants will mean substantial savings in project cost and operational expenses.
	HVAPL - Investment & Project promotion Let us now get an idea about the Financing mode of this attractive project.
	The total capital outlay of the project is estimated at 266 Crore Rupees (about 59 Million US dollars), including investments on Land, Factory buildings, Plant & Machinery and Common infrastructure & facilities. The proposed funding pattern is through 25% contribution from the promoters 37% in the form of Infrastructure finance granted by the Government of India under the Scheme for Integrated Textile Parks, and balance 38% through term loans and market borrowings Vyapar Industries Ltd., Mumbai, a renowned export house of yarn and ready made garments is teaming up with other textile entrepreneurs of the Hindupur region, in the promotion of this Special Purpose Vehicle registered as Hindustan Vyapar Apparel Park Ltd., under the Companies Act 1956. The promoters would subscribe to the project in 2 forms -equity share capital & non-refundable deposits, both of which will meet part of the project cost. The present Directors of HVAPL are existing players in the industry and have a proven track record of successfully establishing Textile parks, one of which is already operational in Maharashtra. HVAP has entered into a lease agreement with Vyapar Industries Ltd., the owners of the land, for developing it into a textile park Each of the planned 171 units will have to contribute 1.3 million to 1.8 million Rupees (about 29,000 to 40000 US dollars) as equity share capital or non-refundable deposit towards meeting the capital cost of the project HVAP would build, operate & maintain the entire infrastructure including factory buildings. After allotment of shares, a Leave & License Agreement would be entered into between HVAP and the subscribers. Subscribers will be shareholders of the company. They will be licensees for commercial engagement & enjoyment of the allocated premises & common facilities, towards conducting textile related activity. Each of the entrepreneurs will have to contribute towards debt servicing by way of Equated Monthly Installment computed in proportion to the land allocated to them  Infrastructure Leasing & Financial Services Ltd., have been appointed as Project Management consultant for overall design, development, implementation & monitoring of the project. ILFS have already recommended the project for approval by the Project Approval Committee of the Ministry of Textiles under the Scheme for Integrated Textile Parks. Other financial institutions associated with the project are the Central Bank of India, HDFC, State Bank of India, IFC Washington, ORIX Japan, CCF Finance, IPL Singapore and quite a number of others as well. The project which was kicked off in December 2005, is right on schedule and is expected to be completed by mid 2007 as per plans.
	Conclusion:
	Backed by such an enviable portfolio, HVAPL now invites investors to be a part of this ambitious mission. "Subscribe to Prosper" is the mantra.