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उद्योग एवं विदेशी निवेश
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FINAL REPORT
“Impact Assessment of Technology
Upgradation Funds Scheme / Amended TUFS”
Prepared For:
October 16
th
2020 Table of Contents
2
DISCLAIMER
The Consultant (Technopak Advisors Pvt Ltd) has received the financial assistance under the
Research Scheme of NITI Aayog (RSNA-2018) to prepare this report. While due care has been
exercised to prepare the report using the data from various sources, NITI Aayog does not confirm
the authenticity of data and accuracy of the methodology to prepare the report. NITI Aayog shall
not be held responsible for findings or opinions expressed in the document. This responsibility
completely rests with the Consultant (Technopak Advisors Pvt. Ltd.)
Any use which a third party makes of the work, or any reliance on or decisions to be made based
on it, are the responsibility of such third parties. Decisions made or actions taken as a result of
the Consultant’s work shall be the responsibility of the parties directly involved in the decisions
or actions.
Technopak and its directors, employees, agents and consultants shall have no liability (including
liability to any person by reason of negligence or negligent misstatement) for any unauthorised
disclosure, statements, opinions, information or matters (expressed or implied) arising out of,
contained in or derived from, or of any omissions from the information package and any liability
whatsoever for any direct, indirect, consequential or other loss arising from any use of this report
and/or further communication in relation to this report.
This study has been carried out with financial support of NITI Aayog, Government of India, and
conducted by Technopak Advisors, 5
th
Floor, Lemon Tree Convention Centre, Sector 61,
Gurugram – 122011. Table of Contents
3
1. TABLE OF CONTENTS
1. TABLE OF CONTENTS ................................................................................................ 3
2. EXECUTIVE SUMMARY ............................................................................................. 6
2.1 Research Methodology ....................................................................................................... 6
2.2 Major Findings of the Study ................................................................................................ 7
2.3 Technology Upgradation Assessment (Machinery Report) .............................................. 11
2.4 Recommendations ............................................................................................................ 13
3. PROJECT OVERVIEW ............................................................................................... 15
3.1 Objectives.......................................................................................................................... 15
3.2 Approach and Methodology ............................................................................................. 16
3.2.1 Data Quality Assurance ........................................................................................... 17
3.2.2 Qualitative Analysis [Key Informant Interviews (KIIs)] ........................................... 18
3.2.3 Quantitative Analysis [Unit Holder Survey (UHS)] .................................................. 19
3.3 TUFS OVERVIEW ................................................................................................................ 21
3.3.1 Overall Scheme Overview ....................................................................................... 21
3.3.2 Intended Contribution to Scheme’s Outcomes ...................................................... 22
3.4 Demand Analysis - Beneficiaries under RTUFS ................................................................. 23
3.4.1 Number of Beneficiaries under RTUFS ................................................................... 23
3.5 Demand Analysis - Beneficiaries under RRTUFS ............................................................... 25
3.5.1 Number of Beneficiaries under RRTUFS ................................................................. 25
3.6 Demand Analysis - Applications under ATUFS* ................................................................ 27
3.6.1 Number of Applications under ATUFS .................................................................... 27
3.6.2 Number of Beneficiaries under ATUFS ................................................................... 31
4. IMPACT OF TUFS (INCLUDES LITERATURE OVERVIEW, KII ANALYSIS, UHS ANALYSIS)36
4.1 Investments....................................................................................................................... 37
4.2 Financial Performance ...................................................................................................... 54
4.3 Production and Productivity ............................................................................................. 71
4.4 Exports .............................................................................................................................. 91
4.5 Employment Generation................................................................................................. 113 Table of Contents
4
4.6 Cost Savings .................................................................................................................... 141
4.7 Quality ............................................................................................................................. 149
5. ANALYSIS OF MACRO-ECONOMIC FACTORS AFFECTING TEXTILE VALUE CHAIN ..... 155
5.1 Investments in Textiles and Apparels ............................................................................. 155
5.2 Exports ............................................................................................................................ 157
5.3 FDI Investment in Textile and Apparel............................................................................ 159
5.4 Promoting domestic machinery manufacturing ............................................................. 160
6. TECHNOLOGY UPGRADATION ASSESSMENT (MACHINERY REPORT) ...................... 161
6.1 Study of machinery Specifications and recommendations on ATUFS machinery list .... 161
6.1.1 Primary Research, Methodology and Limitations ................................................ 161
6.1.2 Recommendations on ATUFS Machines Listing .................................................... 163
6.2 Current Technology (Machinery) Level in India in Textile & Apparel ............................. 164
6.3 Global Benchmarking – Comparison with competing countries on technology level ... 171
6.4 Evaluation Matrix for Technology assessment of Textile Segments .............................. 174
7. ADDITIONAL QUESTIONS FOR THIS PROJECT ........................................................ 177
8. ISSUES AND CHALLENGES ..................................................................................... 183
9. OVERALL SUMMARY OF FINDINGS ....................................................................... 185
9.1 Impact of TUFS ................................................................................................................ 185
9.2 Macroeconomic factors .................................................................................................. 190
9.3 Technology Upgradation Assessment ............................................................................ 193
10. RECOMMENDATIONS........................................................................................... 195
11. LIMITATIONS OF THE STUDY ................................................................................ 198
12. APPENDIX ............................................................................................................ 199
Appendix 1- Machinery Recommendations ............................................................................ 199
Appendix 2- KII List of Machine Manufacturers and other Stakeholders ............................... 239
Appendix 3- List of Expert Panel of 17 from the overall KII list .............................................. 241
Appendix 4- List of total KIIs of 62 (Key Informant Interviews) .............................................. 242
Appendix 5- Data Quality Assurance measures ...................................................................... 245
Appendix 6- Detailed Sampling Plan ....................................................................................... 247
Appendix 7- Deep dive into UHS Analysis ............................................................................... 257
Appendix 8- Implementation Mechanisms for ATUFS ............................................................ 299 Table of Contents
5
Appendix 9- Questionnaire for Industry Associations ............................................................ 300
Appendix 10- Questionnaire for Industry Experts .................................................................. 303
Appendix 11- Questionnaire for Machinery manufacturers .................................................. 306
Appendix 12- Questionnaire for Lending Agency ................................................................... 308
Appendix 13- Questionnaire for UHS (Unit Holder Survey) – Beneficiaries ........................... 310
13. LIST OF EXHIBITS .................................................................................................. 317
14. LIST OF ABBREVIATIONS/TERMINOLOGIES ........................................................... 328
Executive Summary
6
2. EXECUTIVE SUMMARY
India’s Textile and Apparel (T&A) sector contributes ~7% to the industry output in value terms
and ~2% to the country’s GDP. In 2019, Domestic T&A sector’s revenue is estimated at USD 85
billion and Exports revenue at USD 36 billion. While domestic market has been growing @ 10%
for last 5 years; exports growth has remained flat for last 5 years. With the potential India offers
in international trade, the current share of only 4.3% leaves a lot of market unaddressed. The
COVID pandemic also presents a unique opportunity to India’s T&A sector to increase its share in
the international market.
Technology Upgradation was first launched in 1996 to plug the technology gaps in the textile
sector. The scheme has undergone several modifications over the years with recent revision
made in 2016. The scheme today aims to promote exports, generate sizeable employment and
at the same time promote zero effect and zero-defect manufacturing.
This study has been conducted by NITI Aayog to analyse the “Impact of Technology Upgradation
Fund Scheme (TUFS)” under various parameters. The impact has been measured for technology
upgradation, employment generation, cost savings and quality. In addition, challenges and issues
related to the scheme has been understood and analysed. The study assesses the role played by
TUFS in the T&A sector and makes recommendations.
The overall approach for the study is a mixed method approach including primary and secondary
data collection from various stakeholders across the value chain. The steps included meta-
analysis of TUFS, Key Informant Interviews (KIIs), Unit Holder Survey (UHS), compilation and
analysis of findings and writing the report.
2.1 Research Methodology
A primary research study was conducted wherein 667 surveys (559 TUFS beneficiaries + 108 non
beneficiaries) from 8 states were conducted. The study also conducted 62 KIIs across 11 cities in
India. The information on various financial, operational aspects are collected as part of the survey
etc.
The final list of 62 KIIs were finalised jointly with NITI Aayog. Sampling method for UHS was
stratified random sampling with quotas allocated by the NITI Aayog team. The population size for
the survey was based on the geographical spread, segment type, scheme type and scale type.
Executive Summary
7
2.2 Major Findings of the Study
Overall Summary - Key Findings
Given below is summary of impact analysis of TUFS schemes on various parameters as witnessed by the 559 TUFS
beneficiaries.
Exhibit 1: Summary of UHS Analysis for impact of TUFS
Summary of impact analysis of TUFS schemes for interviews done with 13 industry experts.
Exhibit 2: Summary of KII Analysis for impact of TUFS
Executive Summary
8
Overall, TUFS had a positive impact on the performance of the Indian textiles industry both for
Beneficiaries as well as Non-Beneficiaries. As per findings, the scheme played a major role in
improving technology levels, increasing investments, production, product quality, exports and
increasing employment generation. Overall, non-beneficiaries showed lower positive impact
than the beneficiaries on all 7 parameters.
1. Impact on Investments
✓ The scheme had a positive impact on investments, with approx. 80% of the investment in
the textile sector emerging from the scheme from 1999 to 2016.
✓ The impact on project investment though positive has been moderate in terms of scale,
with only 2% projects reporting investments to the tune of Rs 50 Cr and more. While 44 %
beneficiaries reported investments in the scale of Rs 1-20 Cr, 39% investments were less
than Rs 1 Cr.
✓ Non beneficiaries have also witnessed a moderate increase in investments with 76%
investments in the scale of Rs 1-20 Cr.
✓ 80% of KIIs agreed that TUFS had positive impact on investments. After removal of
spinning under TUFS, weaving is now the leading segment taking TUFS advantage to
attract investments.
2. Impact on Financial Performance (Sales, Net Profit, and Average Sales Price)
✓ The primary research finds positive impact on sales, profit etc across all segments and
impact is of higher magnitude in weaving. KIIs indicated that scheme subsidy is
instrumental in improving financial performance of the companies, given that many of
textile companies operate with low profit margins. This can be attributed to reduced cost
of capital, improved margins and turnover of the textile companies.
✓ Overall, 89% beneficiaries have witnessed an increase in annual sales. In Weaving
segment, highest number of respondents (92%) have witnessed increase in sales. Around
50% of respondents in Knitting, Weaving and Processing have witnessed an increase in
sales >10%. In Rajasthan, Punjab and Haryana, more than 90% respondents have
witnessed increase in annual sales due to TUFS.
✓ Overall, 85% beneficiaries have witnessed an increase in net profit with weaving segment
having highest positive response (87%). While majority of states reported profits, 20%
respondents in Tamil Nadu, 14% in Karnataka and 13% in Uttar Pradesh have witnessed
decline in net profits.
✓ Overall, 81% beneficiaries have witnessed an increase in per unit sales price. 71%
respondents in weaving segment have witnessed increase in sales price >6%.
✓ Overall non-beneficiaries have reported lower financial performance than beneficiaries.
Broadly, respondents from Processing and Punjab have witnessed decline in Annual sales,
Net Profits and Sales Price.
✓ As per the KII analysis, 85% found positive impact on sales, 77% on profit and 54% on sales
price. Executive Summary
9
3. Impact on Production and Productivity
✓ TUFS Scheme had a significant impact on increasing production and improving
productivity. Beneficiaries gained significantly in terms of productivity improvement,
waste reduction, cost saving, resource efficiency etc. due to investment in upgraded
technology.
✓ More than 85% beneficiaries witnessed an increase in production volume. In weaving
segment, more than 75% beneficiaries witnessed an increase in production volume of
greater than 5%. More than 90% beneficiaries opined that TUFS enhanced the overall
productivity, whereas more than 85% opined that TUFS helped significantly in improving
the product quality. Over the schemes, the highest increase in production volume was
exhibited during ATUFS scheme with 46% of the respondents suggesting an increase
>20%.
✓ Most of the non-beneficiary respondents from all sectors have witnessed growth in
production volume
✓ All the KII experts opined that TUFS had a significant impact on production and
productivity respectively, whereas as per expert panel, everybody opined that TUFS had
a significant impact on production and productivity.
4. Impact on Exports
✓ TUFS benefitted most companies in terms of product development and innovative
practices due to addition of technologically advanced machines. Exports in textile and
apparel industry grew along with increase in production and overall competitiveness.
However, total exports in T&A sector has witnessed a decline of CAGR 1.9% between 2014
and 2019. India’s exports of textile fibers have declined by 9% from 2014 to 2019. Yarn
and fabric exports have declined by 4% and 1% respectively in the same period.
✓ Overall, 75% beneficiaries have witnessed an increase in value of exports. Majority of the
segments witnessed an increase in exports’ value. Technical textile segment had the
highest positive response of 82% for export increase. Across the schemes, the highest
increase in value of exports was exhibited during ATUFS ~ 83% of the respondents
suggesting an increase in value of exports.
✓ Overall, 76% beneficiaries have witnessed an increase in volume of exports. Highest
change in volume of exports has been observed by Weaving and Garmenting segments.
✓ 69% of KII experts opined that TUFS had a significant impact on exports.
✓ Overall non-beneficiaries have reported lower change in exports than beneficiaries.
✓ Overall textile and garments export out of India have remained stagnant in last 5 years at
approx. USD 37 Bn. Exports market is affected by many other external factors such as FTA,
cost competitiveness, speed to market etc. Hence, we believe it is difficult to directly
correlate TUFS impact on exports.
Executive Summary
10
5. Impact on Employment Generation
✓ TUFS contributed positively to employment generation and helped in the growth of
income and improving livelihood of the workers. Since its launch, the scheme provided
employment to approx. 8.4 lacs people in factory sector, with approx. 1.6 lacs people
employed after RTUFS. No. of people engaged in the operational factories has witnessed
an increasing trend in the last 5 years, so have the wages per worker in T&A industry.
✓ Approx. 70% beneficiaries witnessed increase of total manpower after upgrading the
technologies under the scheme. 76% respondents in Weaving segment have seen
manpower addition. Among states, in Rajasthan and Uttar Pradesh ~90% respondents
have witnessed an increase in total manpower due to TUFS. During ATUFS scheme, 74%
respondents have witnessed an increase in labour.
✓ As per KIIs, more than 70% stakeholders opined that TUFS helped in promoting
employment generation.
6. Impact on Cost Savings
✓ TUFS scheme contributed significantly to the improvement of cost efficiencies and
resource efficiencies of the textile units. Majority of companies across all segments
witnessed cost reduction between 1% and 10%.
✓ As per UHS analysis, 76% of the beneficiary respondents indicated an increase in cost
savings per unit, vis-à-vis 78% of the non-beneficiary respondents. Units have also been
able to increase their cost savings and resource efficiencies to significant extent.
However, 21% beneficiary respondents in Processing segment have witnessed a decrease
in cost savings.
✓ As per KII analysis, 76% respondents opined that TUFS had a significant impact on cost
savings, whereas all expert panel opined that the scheme had a positive impact on cost
savings.
7. Impact on Quality
✓ TUF Scheme has helped companies to improve their product quality and value addition
by shifting to technologically upgraded machines. Factors such as product development,
value addition, quality improvement and innovative practices also helped in improving
Unit Value Realization (UVR) of textile sector.
✓ The product quality has improved significantly across various segments as reported by
the companies; enabled due to the TUFS. 89% of the beneficiaries opined that the scheme
led to improvement in product quality.
✓ KII analysis indicates that 82% respondents opined that TUFS had a positive impact on
improving quality of the products, whereas 100% of expert panel believed that the
scheme had a positive impact on quality.
Executive Summary
11
2.3 Technology Upgradation Assessment (Machinery Report)
Study of machinery Specifications and recommendations on ATUFS machinery list
Technopak team conducted 16 interviews with leading machinery manufacturers and industry
stakeholders. There are 469 machines and 590 machine manufacturers, which are approved
under ATUFS.
Technopak categorized the 469 machines listed under ATUFS into 2 categories, based on their
role in the manufacturing process:
• Core Process machines (285), which perform a major function, and
• Ancillary process machines (184), which have a supporting role.
• This classification is subjective and may require further deliberations along with the
stakeholders.
The study analyses the Core process machines, and provides technical recommendations on their
speed for each textile segment. In some cases, like weaving and knitting, Technopak has given
speed recommendations separately for MSME (Unorganized sector) and Non-MSME (Organized
sector).
Current Technology (Machinery) Level in India in Textile & Apparel
As per UHS analysis, only 24% of the beneficiaries felt that technology levels in India match global
standards, while the balance 76% felt that there is a gap between Indian and global standards.
As per KII analysis, 70% respondents opined that India has achieved global technology levels only
in spinning, while in all other segments we are lagging behind. The larger players in the organised
sector match global technology standards across segments, but their share in the industry is very
small. Hence, the overall standard of technology level in the industry is much lower than global
standards. Executive Summary
12
Global Benchmarking of Technology Level
Technopak conducted primary research with 17 industry experts (KII) to compare the technology
level in each segment in India with 5 other competing nations viz. China, Vietnam, Turkey,
Bangladesh and Pakistan.
Exhibit 3: Global Benchmarking of Technology Level
India is losing in capitalising the advantage of technology investment in Spinning, as the
downstream segments of Weaving, Knitting, Processing and Garmenting are unorganised and
fragmented.
Evaluation Matrix for Technology assessment of Textile Segments
An evaluation matrix with the following six parameters was developed for technology assessment
of all the textiles segments: Spinning, Weaving, Knitting, Processing, Garmenting and Technical
Textiles:
1. Percentage Machine cost in total project cost
2. Absolute capex required for viable project (INR Crores)
3. Current technology level in India
4. Return on Investment
5. Trade surplus/ deficit (in USD Mn)
6. Technology Obsolescence* (Number of years)
Recommendations have been given for TUFS subsidy, based on the ranking from this evaluation
matrix.
Executive Summary
13
2.4 Recommendations
• Promotion of TUFS
TUFS over the years has been regarded as a successful scheme for promoting investment in the
sector. But over the last 4-5 years, the scheme has lost its relevance and popularity. Technopak
suggests that the scheme should be revised and promoted afresh within the industry. It will help
re-energize the industry with fresh investments and technology upgrades.
• Balancing the production capacity of Textile value chain
Downstream investments into weaving, knitting and processing will help the industry in value
addition, especially in exports. It is estimated that 35% of the yarn produced in India is exported
due to lack of weaving and processing capacities. TUFS should be focused on building and
upgrading Weaving, Knitting and Processing capacities, to capture this gap and increase value
addition.
• Higher Subsidy for Weaving, Knitting and Processing
A higher allocation and subsidy for Weaving, Knitting and Processing sectors is proposed. The
recommendations are:
• Allocation: Weaving: 20%; Knitting: 20% and Processing: 30-40%
• Capital Subsidy: Increased to 15% for Weaving, Knitting and Technical Textiles and 20-
25% for Processing
It is recommended that spinners can be targeted in India to invest in Weaving / Knitting/
Technical Textiles and Processing. Spinners have the raw material availability and better financial
strength than standalone weavers, knitters and processors.
• Focus on Man Made Fiber (MMF) value chain
MMF has better potential for growth in both domestic and international markets. Within MMF
value chain, fabric segment can be focused. Clusters with MMF value chain production may be
focused for TUFS benefit.
• Differential Technology Specifications for MSME
MSME sector does not have financial capabilities to upgrade to best technology levels.
Differential technology specifications slab is proposed for MSME segment under ATUFS
machinery listing for some of the machines.
• Promote Technical Textile under TUFS
Technical textiles; especially Medical Textiles, should be given special impetus under TUFS to
promote more investments and latest technology use. Subsidy budget for technical textiles can
be 20% of total TUFS subsidy. Capital Subsidy for technical textiles may be kept at 15%.
• Timely Disbursement Executive Summary
14
All the industry stakeholders talked about the delay in disbursement at various stages of TUFS,
which hampers the basic impact of the scheme. For the future, the disbursement should be done
without any delay, with streamlined processes for approvals at each stage. TUFS cases need to
be cleared faster to regain the confidence of industry in TUFS.
• Technical Think Tank with industry participation
We propose that a strong Think Tank with serious industry participation from various
stakeholders should be created to advise and deliberate on all technology aspects of TUFS. This
Think Tank can consist of government officials, industry leaders, machinery experts, technical
consultants. This will help in addressing technology related issues and making the
implementation process faster.
• Updating Machine list under ATUFS
Current machine listing needs updating as per the current technology standards and industry
requirements. Some recommendations have been given by Technopak but a more detailed study
is required to finalize it. This should be done on a continual basis for the industry to benefit from
the latest technology developments.
• Promote Industry 4.0 technology
Separate list of machines, technology, and software to be included under ATUFS. Separate
budget may be allocated for this segment under ATUFS. Garment segment can be promoted in
this budget.
• Promote Domestic Machine Manufacturers
Sourcing of machines from domestic textile machine manufacturers should be promoted under
TUFS. This can be done through higher subsidy provision for domestic manufacturers. Domestic
machine manufacturing ecosystem needs to be improved significantly by promoting R&D and
innovation for developing state-of-the-art machines. This can be promoted through mega textile
parks for machine manufacturing. Encourage JVs (Joint Ventures) and FDIs (Foreign Direct
Investment) from European and Japanese machine manufacturers. Devise a special scheme with
liberal policies and long-term benefits for machine manufacturing including R&D and plug and
play facility.
Project Overview
15
3. PROJECT OVERVIEW
3.1 Objectives
TUFS has been under implementation for almost two decades now. Despite generating positive
interests in the unit holders/manufacturers, and acting as a catalyst for increasing investments
in the Indian textile industry, there is trepidation about the penetration and effectiveness of the
scheme, and whether the scheme is able to achieve its intended objectives or not. To understand
the impact of the scheme, NITI Aayog wanted to conduct an “Impact Assessment of Technology
Upgradation Fund Scheme” to assess the holistic impact of the scheme. A study had been
initiated to evaluate the impact of TUFS on parameters such as technology upgradation,
investments, financial performance, productivity and production, exports, employment
generation, cost savings, and quality.
Below are the objectives that Technopak Advisors analysed in this project.
Exhibit 4: Project Objectives Project Overview
16
3.2 Approach and Methodology
The overall approach is a combination of primary and secondary data collection from various
stakeholders across the value chain and previous evaluation reports (literature review). The
approach has been defined in below steps:
Field study and methodology involved collecting data through primary research. For the purpose
of this study, primary research is a combination of Key Informant Interviews (KIIs) and Unit Holder
Surveys (UHS).
Exhibit 5: Study Approach & Methodology Project Overview
17
3.2.1 Data Quality Assurance
Data Quality Assurance
A multi - pronged robust process for quality control was followed during data collection. The
following aspects were considered:
• The field investigators were engaged for conducting the Unit Holder Surveys with at least
3 years of experience in conducting similar surveys/interviews. Two-step training
(classroom and on-the-field training) was conducted for all field investigators
• Pilots were conducted on 8% (50 out of 648) of the sample size for Unit Holder Surveys to
fine tune the inquiry tools. A brief on the learnings from such a pilot exercise and
subsequent improvements in the tools/questionnaires was shared with NITI Aayog
• 100% data collected was validated using a validation checklist - missing data points were
recollected
• In case of Unit Holder Surveys, at least 50% data was verified on telephone and if not
verified via phone, back checks were undertaken to ensure at least 50% data verification
• Use of mobile - based real-time data collection and validation tools were done to ensure
efficiency and accuracy in data collection
Project Overview
18
3.2.2 Qualitative Analysis [Key Informant Interviews (KIIs)]
For the purpose of this study, Technopak interviewed 62 KIIs to understand the impact of TUF
Scheme on Indian textile industry. Summary of the stakeholders is given below:
Exhibit 6: Stakeholder wise and City wise sampling of KIIs
Note:
1
Delhi NCR includes New Delhi, Noida, Gurgaon, Ghaziabad and Faridabad Project Overview
19
3.2.3 Quantitative Analysis [Unit Holder Survey (UHS)]
An in-depth Unit Holder Survey (UHS) was conducted to assess the key impact of the scheme.
The population size for the survey was based on the geographical spread, segment type, scheme
type and scale type.
The sampling plan was based on “Stratified random sampling with quotas suggested in the ToR
(Terms of Reference).”
Technopak partnered with a research agency (Azul Research Advisory and Support Services) to
conduct face to face interviews and telephonic interviews. In total, 667 UHS were conducted as
part of this study (TUFS beneficiaries - 559 and non-beneficiaries - 108).
Approach for Quantitative Analysis – Overall Sampling Approach – Unit Holder Survey
Primary research of unit holders includes both 559 beneficiaries & 108 non-beneficiaries.
Segmentation of the sample size is based on the following four parameters:
1. State Wise
2. Segment Wise
3. Scheme Wise
4. Scale Wise
Exhibit 7: State wise sampling of UHS
Project Overview
20
Exhibit 8: Segment wise sampling of UHS
Exhibit 9: Scheme wise sampling of UHS beneficiaries
Exhibit 10 Scale wise sampling of UHS
MSME,
534
Non-MSME,
133 Project Overview
21
3.3 TUFS OVERVIEW
3.3.1 Overall Scheme Overview
Ministry of Textiles (MoT) launched Technology Upgradation Fund Scheme (TUFS) w.e.f. 1.4.1999
with an objective to catalyse capital investment for technology upgradation and modernization
of the Indian textile industry. This scheme is effective up to March, 2022. A budget provision of
INR 17,822 Cr. has been approved for a period of seven years, i.e., from 2015-16 to 2021-22 to
meet the committed liabilities of INR 12,671 Cr. and INR 5,151 Cr. for new cases under the
scheme. The budget outlay for past 5 years has been as follows:
Since its inception, the scheme has been revised multiple times over the years:
2016-17
(Acual)
INR 2,621 Cr.
2017-18
(Actual)
INR 1,904 Cr.
2018-19 (BE)¹
INR 2,300 Cr.
2018-19 (RE)²
INR 622 Cr.
2019-20 (BE)
INR 700 Cr.
2020-21 (BE)
INR 763 Cr.
ATUFS
(Amended
TUFS)
2016 -2022
RRTUFS
(Revised
Restructure
d TUFS)
2012 -2016
RTUFS
(Revised
TUFS)
2011 -2013
Black Out
Period
2010 -2011
MTUFS
(Modified
TUFS)
2007 -2010
TUFS
1999 -
2007
Note:
1
Budgeted Estimate
2
Revised Estimate Project Overview
22
3.3.2 Intended Contribution to Scheme’s Outcomes
In order to meet the requirements of organized textile industry for making it globally competitive,
a need for amendment of TUF scheme was realized. The intended objective of the amendment
was to increase the investment, productivity, quality, employment and exports in textile industry
through an efficient credit linked investment subsidy scheme. The scheme was also expected to
focus on import substitution. The following projections were anticipated under the proposed
ATUFS:
Exhibit 11: Anticipated Projections under A-TUFS
S. No. Particulars
Garmenting/
Technical
Textiles
(15% CIS)
Weaving for brand new
shuttle-less loom
(including weaving
preparatory and knitting)
and/ processing (10% CIS)
Total
1 No. of Cases 6,082 11,181 17,263
2
Investment
(Rs. Crores)
36,260 59,690 95,950
3
Term Loan
Sanctioned Amount
(Rs. Crores)
23,569 38,798 62,367
4
Term Loan eligible
under TUFS
(Rs. Crores)
21,756 35,814 57,570
5
Anticipated Subsidy
Claim Under the
Proposed Schemes
(Rs. Crores)
2,690 3,581 6,271
6 Employment 3,051,292 511,124 3,562,416
Source: ToR, NITI Aayog
Project Overview
23
3.4 Demand Analysis - Beneficiaries under RTUFS
3.4.1 Number of Beneficiaries under RTUFS
Geography-Wise and Scale-Wise
Exhibit 12: No. of Beneficiaries (RTUFS) - Geography and Scale Wise
State
MSME Share
Non-
MSME
Share Total Share
No. % No. % No. %
Gujarat 1,683 88% 230 12% 1,913 52%
Punjab 496 83% 103 17% 599 16%
Tamil Nadu 201 62% 125 38% 326 9%
Maharashtra 193 66% 100 34% 293 8%
Haryana 97 82% 21 18% 118 3%
Rajasthan 50 48% 55 52% 105 3%
Other 145 42% 204 58% 349 9%
Total 2,865 77% 838 23% 3,703 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat and Punjab had 68% of total beneficiaries during RTUFS. The share of MSMEs in Gujarat
was 88% during RTUFS
Note: Demand analysis indicates the popularity of the TUFS scheme among the unit holder. The popularity of the scheme is
measured by analysing the number of applications and beneficiaries under various TUFS Schemes. Project Overview
24
Segment-Wise and Scale-Wise
Exhibit 13: No. of Beneficiaries (RTUFS)- Segment and Scale Wise
Segment
MSME Share
Non-
MSME
Share Total Share
No. % No. % No. %
Weaving/ Knitting 1,644 93% 122 7% 1,766 48%
Garmenting 522 91% 54 9% 576 16%
Processing 292 62% 181 38% 473 13%
Spinning 123 32% 262 68% 385 10%
Technical Textiles 178 63% 104 37% 282 8%
Other 106 48% 115 52% 221 6%
Total 2,865 77% 838 23% 3,703
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Weaving/ Knitting had 48% of total beneficiaries during RTUFS. The share of MSMEs for
Weaving / Knitting segments was 93% Project Overview
25
3.5 Demand Analysis - Beneficiaries under RRTUFS
3.5.1 Number of Beneficiaries under RRTUFS
Geography-Wise and Scale-Wise
Exhibit 14: No. of Beneficiaries (RRTUFS)- Geography and Scale Wise
State
MSME Share
Non-
MSME
Share Total Share
No. % No. % No. %
Gujarat 669 60% 449 40% 1,118 28%
Punjab 688 85% 120 15% 808 20%
Tamil Nadu 430 56% 337 44% 767 19%
Maharashtra 200 55% 164 45% 364 9%
Haryana 128 68% 60 32% 188 5%
Rajasthan 67 44% 86 56% 153 4%
Uttar Pradesh 59 67% 29 33% 88 2%
Other 182 39% 280 61% 462 12%
Total 2,423 61% 1,525 39% 3,948
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat and Punjab had 48% of total beneficiaries during RRTUFS. The share of MSMEs in Gujarat
and Punjab was 70% during RRTUFS Project Overview
26
Segment-Wise and Scale-Wise
Exhibit 15: No. of Beneficiaries (RRTUFS)- Segment and Scale Wise
Segment
MSME Share
Non-
MSME
Share Total Share
No. % No. % No. %
Garmenting 985 90% 108 10% 1,093 28%
Processing 450 66% 230 34% 680 17%
Spinning 143 23% 488 77% 631 16%
Multi-Activity 129 26% 375 74% 504 13%
Technical Textiles 250 58% 183 42% 433 11%
Weaving/ Knitting 302 71% 122 29% 424 11%
Others 164 90% 19 10% 183 5%
Total 2,423 61% 1,525 39% 3,948
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Garmenting and Processing had 44% of total beneficiaries during RRTUFS. The share of MSMEs
for Garmenting and Processing segments was 81% of total beneficiaries during RRTUFS Project Overview
27
3.6 Demand Analysis - Applications under ATUFS*
3.6.1 Number of Applications under ATUFS
Geography-Wise
Exhibit 16: No. of Applicants (ATUFS) - Geography-Wise
State No. of Applicants Share (%)
Gujarat 6,294 52%
Karnataka 186 2%
Maharashtra 1,493 12%
Punjab 1,209 10%
Rajasthan 349 3%
Tamil Nadu 1,227 10%
Uttar Pradesh 274 2%
Other 1,041 9%
Total 12,073 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat, Maharashtra, Punjab, and Tamil Nadu have attracted the highest demand for ATUFS
applications
*As on 25
th
May 2020 Project Overview
28
Segment-Wise
Exhibit 17: No. of Applicants (ATUFS) - Segment-Wise
Scale – Wise
Exhibit 18: No. of Applicants (ATUFS) - Scale-Wise
Segment No. of Applicants Share (%)
Weaving 6,304 52%
Garmenting 1,682 14%
Processing 1,304 11%
Technical Textiles 1035 9%
Multi-Activity 951 8%
Other 797 7%
Total 12,073 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Scale No. of Applicants Share (%)
MSME 10,512 87%
Non-MSME 1,561 13%
Total 12,073 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Weaving, Garmenting, and Processing have witnessed higher demand for ATUFS
Higher demand for ATUFS has come from MSME sector i.e 87% of total, contrary to previous TUF
scheme Project Overview
29
Geography-Wise and Scale-Wise
Exhibit 19: No. of Applicants (ATUFS) - Geography and Scale Wise
State
MSME Share Non-MSME Share Total
No. % No. % No.
Gujarat 5,776 92% 518 8% 6,294
Karnataka 122 66% 64 34% 186
Maharashtra 1,365 91% 128 9% 1,493
Punjab 1,082 89% 127 11% 1,209
Rajasthan 254 73% 95 27% 349
Tamil Nadu 997 81% 230 19% 1,227
Uttar Pradesh 231 84% 43 16% 274
Other 685 66% 356 34% 1,041
Total 10,512 87% 1,561 13% 12,073
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat, Maharashtra, Punjab, and Tamil Nadu have higher no. of ATUFS applications, and have
witnessed greater percentage of applications from MSME sector vis-à-vis Non-MSME sector Project Overview
30
Segment-Wise and Scale-Wise
Exhibit 20: No. of Applicants (ATUFS) - Segment and Scale Wise
Segment
MSME Share Non-MSME Share Total
No. % No. % No.
Weaving 5,992 95% 312 5% 6,304
Garmenting 1,523 91% 159 9% 1,682
Processing 952 74% 331 26% 1,283
Technical Textiles 731 67% 352 33% 1,083
Multi-Activity 637 67% 314 33% 951
Other 677 88% 93 12% 770
Total 10,512 87% 1,561 13% 12,073
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
The 3 segments that have witnessed the highest no. of ATUFS applications have also witnessed
greater percentage of applications from the MSME sector vis-à-vis Non-MSME, with weaving
segment having the highest share of 95% Project Overview
31
3.6.2 Number of Beneficiaries under ATUFS
Geography-Wise
Exhibit 21: No. of Beneficiaries (ATUFS) - Geography-Wise
State No. of Beneficiaries Share (%)
Gujarat 392 47%
Karnataka 19 2%
Maharashtra 131 16%
Punjab 38 5%
Rajasthan 26 3%
Tamil Nadu 176 21%
Uttar Pradesh 10 1%
Other 51 6%
Total 843 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat, Maharashtra, and Tamil Nadu have the most beneficiaries for ATUFS applications
*As on 25
th
May 2020 Project Overview
32
Segment-Wise
Exhibit 22: No. of Beneficiaries (ATUFS) - Segment-Wise
Scale – Wise
Exhibit 23: No. of Beneficiaries (ATUFS) - Scale-Wise
Segment No. of Beneficiaries Share (%)
Weaving 600 71%
Garmenting 15 2%
Processing 111 13%
Technical Textiles 13 2%
Other 104 12%
Total 843 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Scale No. of Beneficiaries Share (%)
MSME 730 87%
Non-MSME 113 13%
Total 843 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Weaving, Processing and Others have witnessed most beneficiaries for ATUFS
More beneficiaries for ATUFS have been availed by MSME sector i.e. 87% of total, contrary to
previous TUF scheme Project Overview
33
Geography-Wise and Scale-Wise
Exhibit 24: No. of Beneficiaries (ATUFS) - Geography and Scale Wise
State
MSME Share Non-MSME Share Total
No. % No. % No.
Gujarat 347 89% 40% 11% 392
Karnataka 19 100% 0% 0% 19
Maharashtra 127 97% 4% 3% 131
Punjab 30 79% 7% 21% 38
Rajasthan 14 54% 11% 46% 26
Tamil Nadu 153 87% 20% 13% 176
Uttar Pradesh 7 70% 3% 30% 10
Other 33 65% 16% 35% 51
Total 730 87% 113 13% 843
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat, Maharashtra, and Tamil Nadu have higher no. of ATUFS beneficiaries, and have
witnessed greater percentage of beneficiaries from MSME sector vis-à-vis Non-MSME sector Project Overview
34
Segment-Wise and Scale-Wise
Exhibit 25: No. of Beneficiaries (ATUFS) - Segment and Scale Wise
Segment
MSME Share Non-MSME Share Total
No. % No. % No.
Weaving 552 92% 48 8% 600
Garmenting 14 93% 1 7% 15
Processing 89 80% 22 20% 111
Technical Textiles 7 54% 6 46% 13
Other 68 65% 36 35% 104
Total 730 87% 113 13% 843
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
The 2 segments that have witnessed the highest no. of ATUFS beneficiaries have also
witnessed greater percentage of beneficiaries from the MSME sector vis-à-vis Non-MSME,
with weaving segment having the highest share of 92% Project Overview
35
Summary
Gujarat and Punjab had 68% of total beneficiaries during RTUFS. The share of MSMEs in
Gujarat was 88% during RTUFS. Weaving/ Knitting had 48% of total beneficiaries during
RTUFS. The share of MSMEs for Weaving / Knitting segments was 93%.
Gujarat and Punjab had 48% of total beneficiaries during RRTUFS. The share of MSMEs in
Gujarat and Punjab was 70% during RRTUFS. Garmenting and Processing had 44% of total
beneficiaries during RRTUFS. The share of MSMEs for Garmenting and Processing segments
was 81% of total beneficiaries during RRTUFS.
Higher demand (no. of applications) for ATUFS has come from 4 states, namely, Gujarat,
Maharashtra, Punjab, and Tamil Nadu majorly from MSME sector. Weaving segment
witnessed highest number (52% of total) of applications under ATUFS majorly from MSME
sector.
Contrary to previous TUFS, actual beneficiaries under ATUFS are also more from MSME sector.
No. of beneficiaries were higher in 3 states, namely, Gujarat (highest at 47%), Maharashtra,
and Tamil Nadu. These geographies witnessed greater percentage of beneficiaries from the
MSME sector vis-à-vis Non-MSME sector ~ Gujarat - 89%, Maharashtra - 97%, and Tamil Nadu
- 87. Gujarat, Maharashtra, and Tamil Nadu combined together had 84% of total ATUFS
beneficiaries. Weaving witnessed highest number of beneficiaries under ATUFS ~ 71 % of
which 92% beneficiaries were from MSME sector. Higher no. of beneficiaries for ATUFS has
come from MSME sector ~ 87% of total. Impact of TUFS
36
4. IMPACT OF TUFS (INCLUDES LITERATURE OVERVIEW, KII ANALYSIS, UHS
ANALYSIS)
Exhibit 26: Parameters covered under UHS Analysis
Impact of TUFS
37
4.1 Investments
Past Trend Analysis - Literature Review
• Technopak Advisors Evaluation Report of TUFS (2006)
As per the report, TUF Scheme had a positive impact on investments. Maximum investments
were made in spinning, composite upgradation, processing and weaving sectors. Technical
textiles grew at a CAGR of 50%. None of the sectors showed negative growth on availing TUF
Scheme.
• CRISIL Evaluation Report of TUFS (2010)
In spinning segment approx. 70% of the investments were made towards technology
upgradation/machinery replacement. Whereas, in weaving, knitting and garmenting, higher
investments were made towards adding capacities. As per the report, the industry needed an
investment of INR 47,000 Cr. between 2009-10 and 2011-12 and extra INR 143,000 Cr. in the
12
th
five-year plan to meet the expected growth in demand.
• Comptroller and Auditor General of India on Technology Upgradation Fund Scheme (2015)
Investments of only INR 1,31,228 Cr. were attracted during the XI Five Year Plan, as against
targeted investment of INR 1,50,600 Cr. The shortfall in attracting investments was in spite of
increase in financial allocation from INR 10,273 Cr. to INR 15,404 Cr.
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
As per the report, Indian textile industry witnessed a significant amount of investment of INR
61,231 Cr. (as on 29.07.2015) through RTUFS & RRTUFS. Spinning accounted for highest share
of investments (25%), followed by processing (11%) and weaving (8%). Gujarat attracted
maximum share in investments under the scheme (29%), followed by Punjab (17%). More than
60% beneficiaries used their investments in adding capacities by using upgraded technologies,
while others replaced their old machineries with the new ones. Within the scheme benefits,
Interest reimbursement (IR) with capital subsidy (CS) benefit together attracted 70% (INR 3,551
Cr.) of the total investment in weaving segment and more than 90% investment in processing,
garmenting & technical textile segments. Weaving segment attracted approx. 70% (INR 3,551
Cr.) of the total investment and processing, garmenting & technical textile segments attracted
more than 90% of the investments - availing interest subsidy and capital subsidy benefits. 82% Impact of TUFS
38
of the total investments within RTUFS & RRTUFS were done by Non-MSME units, which
constitute only 24% of total number of RTUFS & RRTUFS beneficiaries. As mentioned in the
graph below, most of the investment in textile sector has been happening under TUFS ever
since TUFS scheme started in 1999. Total investment under TUFS was approx. 80% of total
investment in textile sector. During RTUFS and RRTUFS period, investment under TUFS has
reduced to 64% of total investment. This trend clearly indicates that TUFS scheme is widely
used by the industry for making investments for capacity addition or new projects
Investment under TUFS - Current Scenario
Exhibit 27: Investment Trend under TUF Scheme
Average investment from the industry during TUFS is INR 16,175 Crores per year (1999-2019).
Average investment in RTUFS, RRTUFS and ATUFS is Rs 13.7 Cr, Rs 5.1 Cr and Rs 4.2 Cr
respectively. Investments have reduced over the years in all the segments.
Note: ‘ 2010-11 Budgeted subsidy exhausted due to overwhelming response * 2015-16 Data not available
Source: Ministry of Textiles, Technopak Analysis Impact of TUFS
39
RTUFS RRTUFS ATUFS
INR 37,516 Crores INR 23,715 Crores INR 54,833 Crores
Exhibit 28: Investment Trend under TUF Scheme Segment-wise
8,694
3,528
4,791
86
2,637
6,532
1,962
177
1,314
1,819
2,078
333
18
997
Spinning Weaving/ KnittingProcessing Garmenting Technical Textiles
Investments in INR Crores
RTUFSRRTUFSATUFS
Source: Technopak Analysis
Summary of Total Investments Impact of TUFS
40
KII ANALYSIS
88%
12%
Significant ImpactNo Response
Base: 17
Source: Technopak Analysis
92%
8%
Significant ImpactNo Response
Base: 13Source: Technopak Analysis
Total Respondents Expert Panel*
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry
Exhibit 29: Increase in Investments
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry. Out of 17 respondents, 14 (88%) answered that TUFS had a
positive impact on Investments. Out of 13 expert views, 12 (92%) opined that TUFS had a
significant impact on Investments.
Impact of TUFS
41
UHS ANALYSIS
Beneficiaries
Project Investment
Out of 556 respondents to the question, 44% witnessed project investment between INR 1 and
20 crores. 39% of the respondents witnessed investment increase of < INR 1 Crores.
Exhibit 30: Project Investment (in Cr.)
64% of technical textiles’ respondents have witnessed project investment over INR 1 crore. 45%
of knitting sector’s respondents have witnessed investments between INR 1-5 crores. 46% of the
respondents in weaving have indicated increase in project investment greater than 1 crore.
Processing sector is another sector which is witnessing high investments above INR 5 crores (23%
of 64 respondents).
Exhibit 31: Project Investment - Segment Wise
39%
26%
18%
4% 2%
11%
0%
10%
20%
30%
40%
<1 1-5 5-20 20-50 > 50 No data
% Share of Respondents
Source:TechnopakAnalysis,Base-556;Orangeindicateshighest%
47%
43%
39%
45%
35%
17%
24%
21%
26%
45%
22%
22%
29%
26%
21%
17%
10%
8%
22%
27%
26%
2%
9%
10%
6%
7%
3%
1%6%
4%
2%
5%
8%
11%
6% 9% 8%
19%
12%
38 282 31 64 51 48 42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-556 Impact of TUFS
42
Among states, Karnataka, Maharashtra and Rajasthan have witnessed major investments INR 1-
20 Crores. Project Investments in Gujarat are primarily in INR 0-1 Crores (60% of the 206
respondents.
Exhibit 32: Project Investment - Geography Wise
Across schemes, the investments have reduced as 43% of the respondents are saying the project
investments during ATUFS is INR 0-1 Crores.
Exhibit 33: Project Investment - Scheme Wise
60%
22%
11% 10%
28%
6%
51%
45%
13%
44%
55%
37%
22%
31%
32%
17%
3%
22%
32%
36% 33%
38%
9%
24%
4%
7%
3%
3%
2%
13%
1%
7%
2%
4%
6%
4% 5%
18%
4%
13% 11%
6% 4% 2%
206 27 38 86 46 32 79 42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-556
42%
39%
30%
26%
25%
28%
16%
22%
14%
1%
8%
4%
1%
4%
3%
13%
4%
23%
276
200
80
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
ATUFS
RRTUFS
RTUFS
% Share of Respondents
<1 1-55-2020-50>50 No data
Source:TechnopakAnalysis,Base-556 Impact of TUFS
43
Machinery Investment
Out of 559 respondents to the question, 70% witnessed an increase in machinery investment
<INR 5 crores.
Exhibit 34: Machinery Investment (In Cr.)
58% of Technical textiles’ respondents have witnessed machinery investments over INR 1 crore.
45% of Knitting sector’s respondents have witnessed machinery investments between INR 1-5
crores. 43% of the respondents in weaving have indicated increase in machinery investment
greater than INR 1 crore. This indicates investments were of small scale. Processing sector is
another sector which is witnessing high investments above INR 5 crores (17% of 66 respondents).
Exhibit 35: Machinery Investment - Segment Wise
43%
27%
15%
2% 1%
12%
0%
10%
20%
30%
40%
<1 1-5 5-20 20-50 > 50 No data
% Share of Respondents
Source:TechnopakAnalysis,Base-559;Orangeindicateshighest%
45% 46%
39%
45% 45%
27%
33%
24%
27%
45%
24%
16%
35% 23%
21% 13%
9%
24% 21%
23%
2%
6%
2% 2%
2%
3%
1%
3% 2%
2%
5%
8%
11% 13% 14% 12% 15% 14%
38 282 31 66 51 48 43
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-559 Impact of TUFS
44
Among states, Rajasthan has witnessed major machinery investments between INR 1-20 Crores.
Punjab has witnessed significant machinery investments between INR 5-20 Crores. Investments
in Gujarat are primarily in INR 0-1 Crores range (60% of the 209 respondents).
Exhibit 36: Machinery Investment - Geography Wise
Across schemes, the machinery investments have reduced as 46% of the respondents are saying
the machinery investments during ATUFS is INR 0-1 Crores.
Exhibit 37 Machinery Investment - Scheme Wise
60%
33% 34%
19%
28%
9%
54%
43%
13%
48%
39%
48%
20%
34%
30%
19%
5%
15%
21%
20%
35%
34%
9%
21%
0%
3%
1%16%
3%
7%
0%
3%
7%
3%
1%
2%
21%
4%
13% 11%
3% 3%
7%
209 27 38 86 46 32 79 42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-559
46%
42%
33%
27%
24%
33%
11%
24%
6%
2%
2%
4%
1%
2%
1%
13%
6%
24%
276
203
80
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
ATUFS
RRTUFS
RTUFS
% Share of Respondents
<1 1-55-2020-50>50 No data
Source:TechnopakAnalysis,Base-559 Impact of TUFS
45
Change in Number of Machineries
Out of the 559 respondents to the question, 33% (19% and 14%) witnessed increase in the
number of machineries between 5 and 20%.
Exhibit 38: Increase in No. of Machineries
Spinning’s respondents have witnessed the highest increase (39%) in number of machineries
>20%. Garmenting, Knitting and others have also witnessed a high increase in number of
machineries >10%.
Exhibit 39: Increase in No. of Machines (%) - Segment Wise
35%
19%
14%
20%
4%
8%
0%
10%
20%
30%
40%
<5% 5-10% 10-20% >20% No Change No data
% Share of Respondents
Source:TechnopakAnalysis,Base-559;Orangeindicateshighest%
13%
39%
42% 41%
24%
35%
30%
21%
24%
6%
17%
20%
6%
9%
13%
11%
16%
11%
35%
19%
16%
39%
15%
26% 17%
14%
25% 35%
5% 3%
6%
3%
8%
2%
8% 9%
3%
12%
8% 6% 7%
38 282 31 66 51 48 43
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
<5% 5-10%10-20%>20% No changeNo data
Source:TechnopakAnalysis,Base-559 Impact of TUFS
46
Among states, Rajasthan, Tamil Nadu and Uttar Pradesh have witnessed high percentage
increase in machineries of >20% due to TUFS. Gujarat has witnessed lesser increase in
machineries (0-5%) responded by 57% of the 209 respondents.
Exhibit 40: Increase in No. of Machines (%) - Geography Wise
Across schemes, the highest increase in machineries was exhibited during RRTUFS scheme with
44% of the respondents (19%+25%) suggesting changes greater than 10%.
Exhibit 41: Increase in No. of Machines (%) - Scheme Wise
57%
26% 24% 26% 24%
9%
23%
17%
5%
26%
45%
33%
26%
22%
16%
24%
11%
41%
24%
14% 33%
3%
10%
2%
6%
4%
8%
17%
9%
56%
47%
48%
6%
2% 6%
1%
10%
14%
4%
10%
7%
3% 3%
209 27 38 86 46 32 79 42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<5%5-10%10-20%>20%No changeNo data
Source:TechnopakAnalysis,Base-559
42%
29%
29%
8%
22%
18%
20%
19%
13%
16%
25%
20%
4%
2%
5%
10%
2%
16%
276
203
80
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
ATUFS
RRTUFS
RTUFS
% Share of Respondents
<5% 5-10% 10-20% >20% No change No data
Source:TechnopakAnalysis,Base-559 Impact of TUFS
47
Non-Beneficiaries
Project Investment
Out of 108 non beneficiaries who responded to the question, 57% witnessed project investment
between INR 1 and 20 crores.
Exhibit 42: Project Investment (in Cr.)
71% of Garmenting respondents have witnessed project investment between INR 1-20 crores.
32% of Processing sector’s respondents have witnessed investments between INR 5-50 crores.
48% of the respondents in weaving have indicated increase in project investment between INR
1-20 crores.
Exhibit 43: Project Investment - Segment Wise
19%
34%
23%
2% 3%
19%
0%
10%
20%
30%
40%
<1 1-5 5-20 20-50 > 50 No data
% Share of Respondents
Source:TechnopakAnalysis,Base-108;Redindicateshighest%
30%
50%
5%
14% 14%
28%
41%
50%
29%
20%
20%
17% 27%
21%
14% 60%
3%
5%
3%
14%
20%18%
33%
23%
14%
29%
40 6 22 28 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
48
Among states, 80% non-beneficiaries respondents of Maharashtra have witnessed major
investments INR 5-20 Crores. Project Investments in Gujarat are <INR 1 Crore.
Exhibit 44: Project Investment - Geography Wise
50%
20%
33%
45%
11%
47%
87%
67%
20%
27%
67%
47%
13%
33%
27%
9%
7%
9%
11%7%
9%
50%
11%
80%
13%
18 9 15 10 15 15 15 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
49
Machinery Investment
Out of 108 non beneficiaries who responded to the question, 70% witnessed an increase in
machinery investment <INR 5 crores.
Exhibit 45: Machinery Investment (In Cr.)
59% of Processing segment’s respondents have witnessed machinery investments between INR
1-20 crores. 17% of Knitting sector’s respondents have witnessed machinery investments
between INR 5-20 crores. 33% of the respondents in weaving have indicated increase in
machinery investment between INR 1-20 crores.
Exhibit 46: Machinery Investment - Segment Wise
42%
28%
12%
1% 2%
16%
0%
10%
20%
30%
40%
50%
<1 1-5 5-20 20-50 > 50 No
Investment
% Share of Respondents
Source:TechnopakAnalysis,Base-108;Redindicateshighest%
53%
67%
14%
46%
43%
20%
23%
50%
29%
14%
20%
10%
17%
9%
11%
14%
40%
5%
14%
20%
15% 17%
23%
14% 14%
40 6 22 28 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving Knitting ProcessingGarmenting Technical
Textiles
including non-
woven
Others
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
50
Among states, 80% non-beneficiary respondents in Rajasthan has witnessed machinery
investments between INR 1-5 Crores. Haryana has witnessed significant machinery investments
between INR 5-20 Crores. Investments in Gujarat are less than INR 1 Crore.
Exhibit 47: Machinery Investment - Geography Wise
50%
53%
40%
67%
13%
47% 45%
22%
40%
33%
80% 13%
27%
56%
7%7%
33% 9%
9%
11%
9%
50%
11%
60%
7%
18 9 15 10 15 15 15 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
51
Change in Number of Machineries
Out of the 108 non-beneficiaries who responded to the question, 38% witnessed increase in the
number of machineries greater than 20%.
Exhibit 48 Increase in No. of Machineries
Garmenting’s respondents have witnessed the highest increase in number of machineries >20%.
Processing segment has also witnessed a high increase in number of machineries >10%.
Exhibit 49 Increase in No. of Machines (%) - Segment Wise
24%
12%
10%
38%
3%
13%
0%
10%
20%
30%
40%
<5% 5-10% 10-20% >20% No changeNo data
% Share of Respondents
Source:TechnopakAnalysis,Base-108;Redindicateshighest%
30%
17%
27%
21%
14%
13%
33%
5%
7%
14%
40%
5%
18%
11%
14%
20%
35%
33% 32%
50%
29%
40%
3%5%
14%
15% 17%
14%
11%
14%
40 6 22 28 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
<5%5-10%10-20%>20%No changeNo data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
52
Among states, majority Punjab’s non beneficiary respondents have witnessed highest percentage
increase in machineries of >20% due to TUFS. Gujarat has witnessed lesser increase in
machineries (0-5%) responded by 50% of the 18 respondents.
Exhibit 50: Increase in No. of Machines (%) - Geography Wise
50%
7%
20%
53%
40%
33% 20%
7%
7%
13%
27%
22%
13% 27%
27%
44%
73%
20%
93%
27%
7%
45%
10%
13%
50%50%
18 9 15 10 15 15 15 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<5%10-20%5-10%>20%No changeNo data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
53
Summary of Impact on Investments
Literature review indicates that most of the investment in textile sector has been happening under
TUFS ever since TUFS scheme started in 1999. Total investment under TUFS was approx. 80% of total
investment in textile sector from 1999 to 2016.
As per the KII analysis, 82% opined that TUFS had a positive impact on investments, whereas as per the
expert panel 92% believed that TUFS had a significant impact on investments.
During the UHS survey, out of 556 beneficiaries, 44% witnessed project investment between INR 1 and
20 crores, whereas out of 108 non beneficiaries, 57% witnessed project investment in the same range.
The impact on project investment though positive has been moderate in terms of scale, with only 2%
projects reporting investments to the tune of Rs 50 Cr and more. While, 44 % beneficiaries reported
investments in the scale of Rs 1-20 Cr and 39% are less than Rs 1 Cr. 88% beneficiaries have witnessed
an increase in the number of machineries due to the investments done during TUFS. Impact of TUFS
54
4.2 Financial Performance
Past Trend Analysis - Literature Review
• Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
Domestic turnover across all segments varied between 0 % and 69% - at an average of 33%.
The increase in total annual turnover was on an average at 36%. Average increase in operating
profits was at an average of 15% across all the segments - varying between 0% and 30%,
whereas average increase in net profit was approx. 8%. As a result, it was evident that TUF
Scheme had a positive impact on the financial performance of the segments.
• Technopak Advisors Evaluation Report of TUFS (2006)
As per the report, under 20% Credit Linked Capital Subsidy Scheme, the domestic turnover of
companies increased significantly - more than 60% of organizations increased their turnover by
more than 50%. After installing modern machineries under TUFS, domestic turnover of half of
the companies grew by more than 100%. Segments such as garmenting, weaving, knitting,
made-ups and processing witnessed small increase in net profit. Jute industry witnessed net
profit increase to a very high level. In spinning, approx. one-third of the replies were for no or
low increase in net profit.
• NCEUS Evaluation Report on Impact of TUFS on the Unorganized Sector (2009)
An important barrier in the adoption of upgraded technology was lack of financial resources
with the units. In several cases, the cost of technology made it difficult for small units to obtain
modern technology. A large number of SSI units reported difficulty in obtaining sufficient funds
from banks and financial institutions. There was also lack of awareness about the credit
guarantee scheme. Factors such as lack of awareness and information about the availability of
technology, desire to avoid risk of adoption of upgraded technology, low level of indigenous
R&D, inadequate management skills and non-availability of technically qualified manpower to
operate upgraded machineries were some of the other barriers. TUFS was not very effective
from the point view of small units.
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
Companies witnessed improved financial health because of reduced cost of capital and
improved margins & turnovers of the textile companies. Since then, the propensity of on time Impact of TUFS
55
loan repayment improved, reducing the number of loan defaulters. As per RBI financial stability
reports, reduction in no. of loan defaulters overall decrease in the share of stressed advances
of banks for textile industry.
Impact of TUFS
56
KII ANALYSIS
82%
12%
6%
Significant ImpactNo ResponseInsignificant Impact
Base: 17
Source: Technopak Analysis
85%
8%
8%
Significant ImpactNo ResponseInsignificant Impact
Base: 13*
Source: Technopak Analysis
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry.
•Sales ~ Out of 17 respondents, 14 (82%) answered that TUFS had a positive impact on
Sales. Out of 13 respondents, 11 (85%) opined that TUFS had a significant impact
•Profits ~ Out of 17 respondents, 12 (70%) answered that TUFS had a positive impact on
Profit, whereas as per the expert panel, out of 13, 10 (77%) opined that TUFS had a
significant impact on Profit
•Average Sales Price ~ Out of 17 respondents, 8 (47%) answered that TUFS had a positive
impact on Average Sales Price, whereas as per the expert panel, Out of 13 respondents,
7 (54%) opined that TUFS had a significant impact
Total Respondents Expert Panel*
Exhibit 51: Increase in Sales Impact of TUFS
57
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry
70%
18%
12%
Significant ImpactInsignificant Impact
No Impact No Response
Base: 17
Source: Technopak Analysis
77%
15%
8%
Significant ImpactInsignificant ImpactNo Response
Base: 13*
Source: Technopak Analysis
Exhibit 52: Increase in Profits
Total Respondents Expert Panel*
47%
29%
6%
18%
Significant Impact Insignificant Impact
No ImpactNo Response
Base: 17
Source: Technopak Analysis
54%
31%
8%
8%
Significant ImpactInsignificant Impact
No Impact No Response
Base: 13
Source: Technopak Analysis
Exhibit 53: Increase in Average Sales Price Impact of TUFS
58
UHS ANALYSIS
Beneficiaries
Annual Sales
Of the 513 respondents to the question, the annual sales have risen with most annual sales of
>20% were reported by 31% of respondents. 36% of the respondents reported sales increase less
than 10%.
Exhibit 54: Change in Annual Sales
Majority of the segments have similar rise in annual sales. Among segments, in Weaving segment,
highest number of respondents have witnessed increase in sales. Relatively, Technical Textiles
has witnessed more increase in sales because this is not a commodity product. Greater than 10%
respondents in Knitting and Spinning segments have witnessed decrease in Annual sales.
Exhibit 55: Change in Annual Sales - Segment Wise
13%
23%
18%
31%
3% 6%0% 2% 2% 1% 0%
0%
10%
20%
30%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Annual SalesDecrease in Annual Sales
Source:TechnopakAnalysis,Base-513
10%
3%
14%
2% 2%
7% 5%
6%
5%
3%
10%
12% 2%
11%
84%
92%
83%
89% 86%
90%
84%
31 262 29 61 51 41 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513 Impact of TUFS
59
Among states, more than 90% respondents Rajasthan, Punjab and Haryana have witnessed
increase in annual sales due to TUFS. 16% respondents in Tamil Nadu have witnessed decline in
annual sales.
Exhibit 56: Change in Annual Sales - Geography Wise
Across schemes, both RTUFS and ATUFS have witnessed increase in annual sales as responded
by 92% respondents.
Exhibit 57: Change in Annual Sales - Scheme Wise
2%
8% 7%
16%
6%
4%
6%
12%
5% 3%
3%
10%
88%
92%
86%
79%
93% 97%
76%
88%
194 25 36 76 43 32 67 40
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513
5%5%
1%
4%
10%
7%
92%
85%
92%
25418673
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513 Impact of TUFS
60
Net Profit
Of the 257 respondents to the question, net profit increase >6% has been witnessed by 63% of
the respondents.
Exhibit 58: Change in Net Profit
Majority of respondents have witnessed an increase in net profit with weaving segment having
highest positive response. In Processing, Garmenting and Technical Textile segments ~85%
respondents have witnessed increase in net profits. Nearly 29% respondents in Knitting segment
have either witnessed no change or decline in net profit. Except weaving and processing, >10%
respondents in the other segments have witnessed decline in profits. Net profits increment can
be attributed to productivity improvement and wastage reduction.
Exhibit 59: Change in Net Profit - Segment Wise
19% 19%
15%
29%
3%
7%
1% 1% 2% 4% 1%
0%
10%
20%
30%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Net ProfitDecrease in Net Profit
Source:TechnopakAnalysis,Base-513
13%
6%
11%
7%
10% 10%
16%
6%
7%
18%
7%
4% 5%
8%
81%
87%
71%
86% 86% 85%
76%
31 266 28 58 51 41 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513 Impact of TUFS
61
Among states, in Rajasthan, Punjab and Haryana more than 90% respondents have witnessed
increase in net profits due to TUFS. 20% respondents in Tamil Nadu, 14% in Karnataka and 13%
in Uttar Pradesh have witnessed decline in net profits.
Exhibit 60: Change in Net Profit - Geography Wise
Across schemes, both RTUFS and ATUFS have witnessed increase in net profits as responded by
~85% respondents. 13% respondents during RRTUFS have witnessed decline in net profits.
Exhibit 61: Change in Net Profit - Scheme Wise
5% 4%
14%
9%
3%
20%
13%
6%
4%
8%
11%
5%
6%
9%
3%
89% 91%
78% 80%
95%
90%
70%
85%
197 23 37 79 43 31 64 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513
6%
13%
3%
7%
5%
9%
86%
81%
88%
25518375
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513 Impact of TUFS
62
Sales Price
Of the 509 respondents to the question, the response has been highly positive and the increase
in sales price has been witnessed across all segments in per unit sales price. 44% of the
respondents have witnessed per unit sales price increased greater than 10%.
Exhibit 62: Change in Average Sales Price (%)
Majority of respondents have witnessed an increase in average sales price with weaving segment
having highest positive response. In Spinning and Garmenting segments ~84% respondents have
witnessed increase in average sales price. Nearly 35% respondents in Knitting segment have
either witnessed no change or decline in sales price. More than 10% respondents in Knitting,
Technical Textile segments have witnessed decline in sales price.
Exhibit 63: Change in Average Sales Price - Segment Wise
15%
17%
44%
4%
13%
1% 2% 3% 0%
0%
10%
20%
30%
40%
50%
1-5% 6-10% >10% Percentage
unknown
No Change
% Share of Respondents
Increase in Sales PriceDecrease in Sales Price
Source:TechnopakAnalysis,Base-509
6%
3%
14%
9%
4%
13% 13%
10%
12%
21%
12%
12%
10%
13%
84% 85%
64%
79%
84%
77%
74%
31 266 28 58 49 39 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-509 Impact of TUFS
63
Among states, Haryana and Punjab, more than 90% respondents have witnessed increase in
average sales price due to TUFS. 16% respondents in Tamil Nadu and 11% in Karnataka have
witnessed decline in average sales price.
Exhibit 64: Change in Average Sales Price - Geography Wise
Both RTUFS and ATUFS have witnessed increase in average sales price as responded by ~82%
respondents. ~12% respondents across all schemes have witnessed no change.
Exhibit 65: Change in Average Sales Price - Scheme Wise
4%
11%
5%
2% 3%
16%
10%
15%
4%
11%
20%
7%
13%
10%
5%
82%
96%
78%
75%
91%
84%
75%
85%
196 25 36 76 43 31 63 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-509
4%
9%
4%
13%
12%
14%
83%
79%
82%
25418372
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513 Impact of TUFS
64
Non-Beneficiaries
Annual Sales
Of the 86 non beneficiaries who responded to the question, the annual sales have risen with most
annual sales of >20% were reported by 21% of respondents.
Exhibit 66: Change in Annual Sales
All the non-beneficiary respondents in Knitting and Technical Textile sectors have witnessed an
increase in Annual sales. 31% of Processing segment non-beneficiary respondents have
witnessed a decline in annual sales.
Exhibit 67: Change in Annual Sales - Segment Wise
9%
15%
16%
21%
3%
24%
2%1%
7%
0%
10%
20%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Annual SalesDecrease in Annual Sales
Source:TechnopakAnalysis,Base-86
6%
31%
13%
24%
8%
38%
60%
70%
100%
62%
50%
100%
40%
33 5 13 24 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-86 Impact of TUFS
65
Among states, Gujarat and Tamil Nadu non-beneficiary respondents have witnessed increase in
annual sales. 67% of Non- beneficiary respondents in Karnataka have witnessed no change In
annual sales. 40% respondents in Punjab and have witnessed decline in Annual sales.
Exhibit 68: Change in Annual Sales - Geography Wise
13%
40%
67%67%
13%
60%
10%
100%
88%
33%
88%
33%
100%
90%
15 8 15 8 15 3 12 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-86 Impact of TUFS
66
Net Profit
Of the 86 non-beneficiaries who responded to the question, net profit increase >10% has been
witnessed 19% of the respondents while decrease >10% has been reported by 25% of the
respondents.
Exhibit 69: Change in Net Profit
83% of the non-beneficiary respondents in technical textiles have witnessed an increase in net
profit. 58% in Processing, 38% in Garmenting and 33% in Weaving respondents have witnessed
a decline in net profits
Exhibit 70: Change in Net Profit - Segment Wise
9%
19%
3%
16%
3%
15%
3% 1%
6%
19%
5%
0%
10%
20%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Net ProfitDecrease in Net Profit
Source:TechnopakAnalysis,Base-86
33%
58%
38%
40%
15%
33%
17%
8%
17%
20%
52%
67%
25%
54%
83%
40%
33 6 12 24 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-86 Impact of TUFS
67
All the non-beneficiary respondents in Gujarat have witnessed an increase in net profits. Majority
of non-beneficiary respondents in Punjab, Haryana and Rajasthan have witnessed decline in net
profits.
Exhibit 71: Change in Net Profit - Geography Wise
67%
47%
14%
67%
100%
14%
10%
20%
43%
13%
50%
100%
33% 33%
43%
20%
86%
40%
15 6 15 7 15 4 14 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-86 Impact of TUFS
68
Sales Price
Of the 77 non beneficiaries who responded to the question, the response has been mixed and
both the increase and decrease in sales price have been witnessed. 19% of the respondents have
witnessed per unit sales price increased greater than 10% while 18% have witnessed a decrease
in the same bracket.
Exhibit 72: Change in Average Sales Price (%)
In Knitting and Technical Textiles, 67% non-beneficiary respondents have witnessed an increase
in average sales price. 50% respondents in Processing and 40% respondents in Garmenting
segments have witnessed a decline in average sales price
Exhibit 73: Change in Average Sales Price - Segment Wise
14%
18%
19%
8%
10%
4%
6%
18%
1%
0%
10%
20%
1-5% 6-10% >10% Percentage
unknown
No Change
% Share of Respondents
Increase in Sales PriceDecrease in Sales Price
Source:TechnopakAnalysis,Base-77
30%
50%
40%
20%
7%
33%
10%
33%
63%
67%
50% 50%
67%
80%
30 6 10 20 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-77 Impact of TUFS
69
All the non-beneficiary respondents in Gujarat, Tamil Nadu and Rajasthan have witnessed
increase in average sales price. However, 80% of respondents in Punjab have witnessed a decline
in the average sales price.
Exhibit 74: Change in Average Sales Price - Geography Wise
33%
27%
17%
80%
40%
7%
50%
7%
30%
100%
67% 67%
33%
13%
100% 100%
30%
12 6 15 6 15 1 12 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-77 Impact of TUFS
70
Summary of Impact on Financials
The primary research finds positive impact on sales, profit etc across all segments and impact is of
higher magnitude in weaving. KIIs indicated that scheme subsidy is instrumental in improving financial
performance of the companies, given that many of textile companies operate with low profit margins.
This can be attributed to reduced cost of capital, improved margins and turnover of the textile
companies.
As per the KII analysis, 85% found positive impact on sales, 77% on profit and 54% on sales price.
89% beneficiaries have witnessed an increase in annual sales. In Weaving segment, highest number of
respondents (92%) have witnessed increase in sales. Around 50% of respondents in Knitting, Weaving
and Processing have witnessed an increase in sales >10%. In Rajasthan, Punjab and Haryana, more than
90% respondents have witnessed increase in annual sales due to TUFS.
85% beneficiaries have witnessed an increase in net profit with weaving segment having highest
positive response (87%). While majority of states reported profits, 20% respondents in Tamil Nadu,
14% in Karnataka and 13% in Uttar Pradesh have witnessed decline in net profits.
81% beneficiaries have witnessed an increase in per unit sales price. 71% respondents in weaving
segment have witnessed increase in sales price >6%.
Overall, non-beneficiaries have reported lower financial performance than beneficiaries. Broadly,
respondents from Processing and Punjab have witnessed decline in Annual sales, Net Profits and Sales
Price.
Impact of TUFS
71
4.3 Production and Productivity
Past Trend Analysis - Literature Review
• Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
As per the report by Dr. M.D Teli, cotton ginning witnessed maximum increase in productivity
on TUFS specific machineries, followed by synthetic filament yarn texturizing (67%),
independent weaving preparatory (62%), knitting (47%), and weaving (35%). Jute industry
indicated the least increase in productivity. Increase in productivity was a reflection of
modernization of units due to technology upgradation scheme.
• Technopak Advisors Evaluation Report of TUFS (2006)
As part of the Technopak report, it was found that the decentralised powerloom sector grew
with majority of industry fabric requirement that came from this sector. Hence, this sector
needed to be looked after and encouraged in order to upgrade their technology level for better
productivity. The installed capacity of handlooms is almost twice that of power looms but the
output is 5 times lesser. It also employs more than twice the number of people in powerloom.
This highlights the low productivity of the sector and the need for further encouragement. As
per the then survey, majority of the respondents witnessed increase in productivity in cotton
ginning, processing, knitting and made-ups manufacturing sector. Overall, the productivity
increase has been medium to high.
• NCEUS Evaluation Report on Impact of TUFS on the Unorganized Sector (2009)
As per the report, the most formidable problem faced by the SMEs in India was accessing
technology and maintaining competitiveness. One of the reasons behind this was emphasis on
production and not on production cost. Majority of the SME units continued to use obsolete
production processes. The study indicated that in Maharashtra, Delhi, Haryana, and Rajasthan,
more than. 70% of SSI units using improved technology showed quality improvement, 46%
showed reduction in cost of production and more than 20% indicated the achievement of
domestic and global competitiveness through adoption of improved technology. In Haryana,
out of the 100 units using improved technology, 51 indicated improvement in quality, 47
indicated increase in quantity produced and 31 showed reduction in production cost. In Delhi
more than 85% of the SSI units using upgraded technology indicated quality improvement and
more than 75% indicated rise in quantity produced. Whereas, in Rajasthan approx. 35% of the
units using upgraded technology indicated quality improvement, 17% units showed increase in
the quantity produced, and 14% indicated reduction in production cost. Impact of TUFS
72
• CRISIL Evaluation Report of TUFS (2010)
More than 65 per cent of Non-SSI units and above 55 per cent of SSI units showed a productivity
increase. This can be attributed to the installation of high RPM [Revolutions per Minute]
spindles, high production cards and combing machines, and state-of-the-art auto doffing
machines with auto corner. Average productivity increase for the sample units that
experienced increase in productivity was in the range of 9 - 10 percent. Production and sales
growth showed a dip in 2008 – 09. Despite impacted by the global economic slowdown, they
showed a strong recovery in 2009 - 10. The weaving segment showed a significant
improvement in productivity on account of TUFS. Around 45% of Non-SSI and SSI units
experienced improvement in quality on account of modern technology used under the TUFS.
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
Due to investment in modern technology, beneficiaries gained significantly in terms of various
operational and production aspects such as productivity improvement, waste reduction, cost
saving, resource efficiency etc. Maximum number of units witnessed productivity growth
between 1-5%. Highest productivity increase was seen in spinning & composite segments
followed by knitting segment. Production was also increased in all segments. The highest
production rise (9%) was witnessed in spinning, knitting & composite segments followed by
weaving & processing segments (8%). Growth in production of units was also supported by
increase in production output per factory for overall textile industry in the factory sector, with
growth of 6.3% during RTUFS period and 15.1% during RRTUFS period. The scheme also
facilitated companies to improve their product quality and value addition. Improvement in
product quality and value addition supported the increase of Gross Value Added (GVA) in
overall textile and apparel industry during RTUFS and RRTUFS period.
Impact of TUFS
73
Indian Textile Industry Production and Productivity - Current Scenario
• No. of Operational Factories and Total Production in India
Trend in total production output has been in tandem with the trend in no. of operational factories
in T&A industry. There was a decrease of approx. 1% in no. of operational factories in 2014-15
that explains the decrease in the same year in total production in Indian T&A industry. However,
since then, the Indian T&A industry has witnessed an increase in no. of factories, and hence the
production output. The total production increased by approx. 6% in year 2017-18 (highest since
2014-15).
20,426
20,204
20,417
21,039
21,546
3%
-1%
1%
3%
2%
-2%
-1%
-1%
0%
1%
1%
2%
2%
3%
3%
4%
19,500
20,000
20,500
21,000
21,500
22,000
2013-14 2014-15 2015-16 2016-17 2017-18
% increase (Y
-
o
-
Y)
No. of factories (in No.)
No. of Factories (in No.s)% increase (Y-o-Y)
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
4,976
4,839
4,982
5,213
5,511
24%
-3%
3%
5%
6%
-5%
0%
5%
10%
15%
20%
25%
30%
4,400
4,600
4,800
5,000
5,200
5,400
5,600
2013-14 2014-15 2015-16 2016-17 2017-18
% increase (Y
-
o
-
Y)
Total Production (in Bn)
Total Production (in Bn)% increase (Y-o-Y)
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
Exhibit 75: No. of Operational Factories (In Numbers)
Exhibit 76: Total Production (In Bn) Impact of TUFS
74
• Productivity
It was witnessed that productivity was negative in 2013-14. However, since then we have
observed positive productivity across all the years.
1.20
1.21
1.23 1.23
1.24
-3%
1%
2%
0.01%
1%
-4%
-3%
-2%
-1%
0%
1%
2%
1.18
1.19
1.20
1.21
1.22
1.23
1.24
1.25
2013-14 2014-15 2015-16 2016-17 2017-18
% increase (Y
-
o
-
Y)
Productivity
Productivity% increase (Y-o-Y)
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
Exhibit 77: Productivity Impact of TUFS
75
• Production Levels Across Textile Products
India’s cloth production has increased over the past 5 years and total yarn production has
remained fairly constant.
Exhibit 78: Production Levels of Textile Products
(Figures in Millions)
Period
Man-
made
fibre
Man-
made
filament
yarn
Cotton
yarn
Blended
& 100%
Non-
Cotton
yarn
Total
Spun
Yarn
Cloth
Mill sector
Decentralize
d sector
Grand Total
(Exc. Khadi,
Wool & Silk)
Kg Kg Kg Kg Kg Sq. mtr Sq. mtr Sq. mtr
2015-16 1,347 1,164 4,138 1,527 5,665 2,315 62,269 64,584
2016-17 1,364 1,159 4,055 1,604 5,659 2,264 61,216 63,480
2017-18 1,319 1,187 4,064 1,616 5,680 2,157 64,688 66,845
2018-19 1,442 1,160 4,208 1,682 5,890 2,078 67,992 70,070
2019-20 (E) 1,924 # 1,711 # 3,998 1,717 5,714 2,040 73,978 76,018
Note: # The increase production is mainly due to increase in the number of reporting units in financial year 2019-20 as compared to previous year;
Source: Ministry of Textiles, Secondary Research, Technopak Analysis
• India Yarn Production Trend
India’s production of different types of yarns have remained constant over the past 5 years.
-
1,000
2,000
3,000
4,000
5,000
2015-16 2016-17 2017-18 2018-19 2019-20
(Provisional)
Man-made filament yarn Cotton yarn Blended & 100% non-cotton yarn
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
Exhibit 79: India Yarn Production Trend (in Kg Mn) Impact of TUFS
76
Year-on-year growth (%) 2016-17 2017-18 2018-19
Man-made filament yarn -0.4% 2% 23%
Cotton yarn -2.0% 0.2% 3.5%
Blended & 100% non-
cotton yarn
5.0% 0.7% 4.1%
• India Fabric Production Trend
India’s hosiery fabric production has witnessed a steady growth of 6% over the past 4 years.
Year-on-year
growth (%)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Mill Sector 5% 5% 5% -2% 1% 1% 1% 1%
Handloom Sector 0% 1% 2% 1% 1% 1% 1% 1%
Powerloom Sector -1% 2% -3% 3% 1% 1% 1% 1%
Hosiery Sector -12% 12% 11% 4% 6% 6% 6% 6%
2,205
2,313 2,418
2,531 2,486 2,518 2,550 2,582 2,615
6,907 6,901 6,952 7,104 7,203 7,305 7,409 7,514 7,621
38,015 37,445 38,038
36,790
37,750 37,970 38,190
38,412 38,636
14,634
12,946
14,541
16,199 16,894
17,950
19,073
20,265
21,533
-
10,000
20,000
30,000
40,000
50,000
2010-112011-122012-132013-142014-152015-162016-172017-182018-19
Mill Sector Handloom Sector Powerloom Sector Hosiery Sector
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
Exhibit 80: Indian Fabric Production Trend (Mn Sq Mtrs) Impact of TUFS
77
KII ANALYSIS
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry
•Production ~ Out of 17 respondents, 16 (94%) answered that TUFS had a positive impact
on Production. Whereas, all the 13 experts (100%) opined that TUFS had a positive
impact on Production
•Productivity ~ Out of 17 respondents, 14 (82%) answered that TUFS had a positive impact
on productivity. Whereas all the 13 experts (100%) opined that TUFS had a positive
impact on Productivity
94%
6%
Significant ImpactInsignificant Impact
No Response
Base: 17
Source: Technopak Analysis
82%
6%
12%
Significant ImpactInsignificant ImpactNo Response
Base: 17
Source: Technopak Analysis
Exhibit 82: Increase in Productivity
100%
Significant Impact
Base: 13*
Source: Technopak Analysis
Exhibit 81: Increase in Production
100%
Significant Impact
Base: 13*
Source: Technopak Analysis
Total Respondents Expert Panel* Impact of TUFS
78
UHS ANALYSIS
Beneficiaries
Production Volume
Of the 256 respondents to the question, 88% witnessed an increase in production volume. 37%
of the respondents have reported >20% increase in production volume.
Exhibit 83: Change in Production Volume (%)
Most of the respondents from all sectors have witnessed high growth in production volume as a
result of productivity improvement. Most of the respondents from Weaving segments have
witnessed increased production volume through TUFS scheme. However, 12% of technical
textiles’ sector respondents have reported significant production volume losses.
Exhibit 84: Change in Production Volume (%) - Segment Wise
17% 17%
15%
37%
2% 6%0% 1% 2% 3% 0%
0%
10%
20%
30%
40%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Production Volume Decrease in Production Volume
Source:TechnopakAnalysis,Base-517
9%
5% 4% 5% 4%
12%
5%
3%
5%
11% 7% 8%
10%
11%
88%
90%
85%
88% 88%
79%
84%
32 269 27 59 51 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-517 Impact of TUFS
79
All the respondents in Haryana have witnessed increased production volume due to TUFS. More
than 90% respondents from Rajasthan and Uttar Pradesh have witnessed increase in production
volume. A significant 11% respondents from Maharashtra have witnessed decline in volumes.
Exhibit 85: Change in Production Volume (%) - Geography Wise
Across schemes, the highest number of respondents suggested increase in production volume
during ATUFS scheme (92% of 254 respondents).
Exhibit 86: Change in Production Volume (%) - Scheme Wise
4%
8%
11%
5%
9%
5%
7%
11%
8%
9%
3%
6%
2%
89%
100%
82% 82%
86%
97%
84%
93%
199 23 38 76 44 32 64 41
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-517
4%
9%
4%
4%
8%
9%
92%
83%
87%
25418776
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-517 Impact of TUFS
80
Respondents have a highly positive response in terms of overall productivity, better quality
products and generating higher value product mix. Overall cost savings have been significant,
primarily due to a combination of wastage reduction and productivity improvement. Higher
saving in power, water and steam have happened due to energy efficient machinery. Some of
the respondents have not seen an improvement in export competitiveness as responded by 28%
of the respondents.
Exhibit 87: Improvement in Production and Productivity
TUFS has led to productivity increase of the respondents. As much as 93% respondents (520
beneficiaries) believed that TUFS has enhanced overall productivity due to various reasons.
Majority of the respondents are in favour that overall productivity has increased and almost
everyone in Weaving segment have witnessed the improvement.
Exhibit 88: Overall Productivity - Segment Wise
93%
89%
81%
77%
74%
66%
56%
3%
7%
12%
12%
14%
19%
28%
4%
4%
7%
11%
12%
14%
16%
Overall Productivity
Product Quality
Product Development
Higher Value Product Mix
Cost Efficiency
Research & Development
Export Competitiveness
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559
89%
98%
77%
92%
88%
88%
88%
5%
1%
10%
5%
4%
4%
2%
5%
1%
13%
3%
8%
8%
9%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559 Impact of TUFS
81
TUFS has enabled companies to improve product quality. 89% of the respondents (498
beneficiaries) opine that this scheme has led to improvement in product quality. Majority of the
respondents are of opinion that product quality has increased.
Exhibit 89: Product Quality - Segment Wise
TUFS has also enabled companies to focus on product development. 81% of the respondents (452
beneficiaries) have the opinion that this scheme has led to product development in most of the
segments. However, some respondents (32% of the respondents) in Knitting have not witnessed
significant product development.
Exhibit 90: Product Development - Segment Wise
84%
91%
90%
86%
82%
90%
81%
8%
7%
6%
9%
8%
4%
7%
8%
1%
3%
5%
10%
6%
12%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559
82%
85%
55%
77%
84%
77%
79%
13%
9%
32%
18%
6%
15%
9%
5%
6%
13%
5%
10%
8%
12%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559 Impact of TUFS
82
TUFS has also enabled companies to increase per unit sales price which has led to higher value
product mix production to which 77% of the respondents (430 beneficiaries) have opined.
Exhibit 91: Higher Value Product Mix - Segment Wise
TUFS has also enabled companies to efficiently use the available resources and reduce wastage
to achieve higher cost efficiency as opined by 74% of the respondents (414 beneficiaries).
Exhibit 92: Cost Efficiency - Segment Wise
74%
79%
65%
68%
80%
79%
79%
16%
9%
26%
21%
8%
15%
9%
11%
12%
10%
11%
12%
6%
12%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559
74%
74%
65%
73%
80%
75%
77%
16%
13%
13%
24%
6%
17%
12%
11%
13%
23%
3%
14%
8%
12%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559 Impact of TUFS
83
TUFS has also enabled companies to focus on innovation using latest technologies. 66% of the
respondents (369 beneficiaries) opined that this scheme has led to R&D across some segments.
Almost half of the respondents in Knitting have not witnessed any Research and Development.
Exhibit 93: Research and Development - Segment Wise
TUFS has also increased export competitiveness as a result of technology upgradation and
combination of the factors previously mentioned. 56% of the respondents (313 beneficiaries)
opined that this scheme has led to improvement in export competitiveness.
Exhibit 94: Export Competitiveness - Segment Wise
71%
72%
39%
58%
63%
63%
67%
18%
17%
48%
26%
18%
13%
16%
11%
12%
13%
17%
20%
25%
16%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559
50%
61%
48%
41%
47%
56%
65%
21%
25%
32%
39%
39%
33%
9%
29%
14%
19%
20%
14%
10%
26%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559 Impact of TUFS
84
Non-Beneficiaries
Production Volume
Of the 85 respondents to the question, 76% witnessed an increase in production volume. 19% of
the respondents have reported >20% increase in production volume.
Exhibit 95: Change in Production Volume (%)
Most of the non-beneficiary respondents from all sectors have witnessed high growth in
production volume. 88% of the Weaving respondents have witnessed an increase in production
volume. 25% of the respondents in Processing segment have witnessed decrease in production.
Exhibit 96: Change in Production Volume (%) - Segment Wise
13%
19% 19% 19%
6%
14%
1%4%
6%
0%
10%
20%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Production Volume Decrease in Production Volume
Source:TechnopakAnalysis,Base-85
9%
20%
25%
8%
3%
20%
17%
25%
14%
20%
88%
60% 58%
67%
86%
80%
32 5 12 24 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-85 Impact of TUFS
85
All the non-beneficiary respondents in Gujarat, Tamil Nadu and Karnataka have witnessed
increase in production volume. However, 33% of respondents in Punjab have witnessed a decline
in the production volume. 50% of the respondents in Rajasthan have witnessed a decline in the
production volume.
Exhibit 97: Change in Production Volume (%) - Geography Wise
11%
33%
50%
20%
50%
40%
20%
100%
89%
100%
50%
27%
50%
100%
60%
15 9 15 8 15 2 11 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-85 Impact of TUFS
86
Non beneficiaries of ATUFS have also witnessed improvement in production and productivity
factors. Majority of them are witnessing improvement in product quality, and increased new
product development. Their export competitiveness has also improved as reported by 65% of the
108 respondents.
Exhibit 98: Improvement in Production and Productivity
As much as 93% respondents (100 non beneficiaries) believed that their overall productivity has
increased. Majority of the respondents are in favour that overall productivity has increased and
everyone in Technical Textiles segment have witnessed the improvement.
Exhibit 99: Overall Productivity - Segment Wise
93%
95%
88%
75%
69%
67%
65%
6%
4%
9%
8%
16%
19%
26%
2%
1%
3%
17%
15%
14%
9%
Overall Productivity
Product Quality
Product Development
Higher Value Product Mix
Cost Efficiency
Research & Development
Export Competitiveness
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108
98%
83%
91%
89%
100%
80%
3%
17%
5%
7%
20%
5%
4%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108 Impact of TUFS
87
95% of the respondents (103 non-beneficiaries) opined that their companies have witnessed
improvement in product quality. Majority of the respondents are in favour that product quality
has increased during ATUFS period.
Exhibit 100: Product Quality - Segment Wise
88% of the respondents (95 non-beneficiaries) opined that their companies have witnessed
product development across most of the segments. However, some respondents (33% of the
respondents) in Knitting have not witnessed significant product development.
Exhibit 101: Product Development - Segment Wise
98%
100%
100%
96%
71%
80%
3%
4%
14%
20%
14%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108
90%
67%
82%
93%
100%
80%
5%
33%
18%
4%
20%
5%
4%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108 Impact of TUFS
88
75% of the respondents (81 non-beneficiaries) opined that their companies have witnessed
higher value product mix across most of the segments. Although, Technical Textiles and others
segments have not significantly witnessed higher value product mix.
Exhibit 102: Higher Value Product Mix - Segment Wise
69% of the respondents (74 non-beneficiaries) opined that their companies have witnessed
improved cost efficiency across most of the segments. However, across technical textile segment,
majority of respondents have witnessed no improvement.
Exhibit 103: Cost Efficiency - Segment Wise
83%
83%
73%
79%
43%
40%
3%
9%
7%
29%
40%
15%
17%
18%
14%
29%
20%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108
80%
67%
59%
71%
43%
60%
5%
33%
27%
11%
29%
40%
15%
14%
18%
29%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108 Impact of TUFS
89
67% of the respondents (72 non-beneficiaries) opined that their companies have witnessed
better Research and Development across most of the segments. Although, knitting segment’s
respondents have not significantly witnessed better Research and Development.
Exhibit 104: Research and Development - Segment Wise
65% of the respondents (70 non-beneficiaries) opined that their companies have witnessed
better export competitiveness across most of the segments, whereas, knitting and technical
textile segments’ respondents have not significantly witnessed better export competitiveness.
Exhibit 105: Export Competitiveness - Segment Wise
70%
33%
64%
75%
57%
60%
13%
50%
18%
18%
29%
40%
18%
17%
18%
7%
14%
0%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108
75%
33%
68%
61%
43%
60%
23%
67%
23%
21%
43%
20%
3%
0%
9%
18%
14%
20%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108 Impact of TUFS
90
Summary of Impact on Production & Productivity
Literature review indicates that beneficiaries gained significantly in terms of productivity
improvement, waste reduction, cost saving, resource efficiency etc. due to investment in upgraded
technology. The research indicates that elements such as invested capital and fixed capital also
witnessed an increase in one year owing to the benefits provided under TUFS and other state-wise
textile policies.
The KII analysis suggests that 94% and 82% respondents opined that TUFS had a significant impact on
production and productivity respectively, whereas as per the expert panel, everybody opined that TUFS
had a significant impact on production and productivity.
More than 85% beneficiaries witnessed an increase in production volume. In weaving segment, more
than 75% beneficiaries witnessed an increase in production volume of greater than 5%. More than 90%
beneficiaries opined that TUFS enhanced the overall productivity, whereas more than 85% opined that
TUFS helped significantly in improving the product quality. Over the schemes, the highest increase in
production volume was exhibited during ATUFS scheme with 46% of the respondents suggesting an
increase >20%.
89% (559 beneficiaries) opined that the scheme contributed towards improvement in product quality,
vis-à-vis 95% of 108 non-beneficiaries. 81% (559 beneficiaries) responded that the scheme led to
product development in majority of the segments. 74% (559 beneficiaries) opined that TUFS enabled
companies to efficiently use the available resources and reduce wastage to achieve higher cost
efficiency, vis-à-vis 69% of 108 non-beneficiaries. 66% (559 beneficiaries) opined that TUFS led to R&D
across some segments. 56% (559 beneficiaries) responded that the scheme increased export
competitiveness as a result of technology upgradation and combination of the factors previously
mentioned.
Most of the non-beneficiary respondents from all sectors have witnessed high growth in production
volume. However, 33% of the non-beneficiary respondents in Punjab have witnessed a decrease in
production volume <20%.
Impact of TUFS
91
4.4 Exports
Past Trend Analysis - Literature Review
• Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
According to the study, all the segments that availed TUFS benefits witnessed an increase in
their average turnover on exports - the turnover varied between 8% and 58%, with average at
27%. Also, due to improvement in product quality in most segments, increase in UVR was
observed in exports - average increase in UVR was approx. 6%, with exceptional increase in
UVR in case of fabric embroidery at 113%.
• Technopak Advisors Evaluation Report of TUFS (2006)
As per the study, the export market share increased in composite industry, garment
manufacturing, processing, spinning, and weaving. As per the maximum responses, TUFS
played an important role in increasing exports in segments such as composite upgradation,
fabric embroidery, garment manufacturing, made up manufacturing, manufacture of viscose
filament yarn, processing of fibers, yarn, fabrics, garments and made-ups and synthetic
filament yarn texturizing, crimping and twisting sectors. The processing industry was not
upgraded to the same extent as increasing fabric and garment productivity, this acted as a
bottleneck for many manufacturers and exporters.
• NCEUS Evaluation Report on Impact of TUFS on the Unorganized Sector (2009)
As per the report, micro and small enterprises and traditional industries accounted for about
55% of national exports, yet India’s share in world export was only approx. 1.1% in 2006. This
indicated the lack of competitiveness of Indian manufacturing goods in international market,
majorly from unorganized organizations.
• CRISIL Evaluation Report of TUFS (2010)
According to CRISIL report, since the inception of TUF scheme, India’s position improved from
9th largest exporter in T&A in 1999 to 5th largest exporter in 2008. However, out of all the
segments, garmenting suffered from high degree of fragmentation - despite being the largest
exporter in the country it barely made up for less than 1% of the country's total garment
exports. Impact of TUFS
92
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
As per the report, with the addition of new technologies, most companies benefited in terms
of product development and innovative practices. Majority of units experienced domestic and
export UVR growth between 1-10%. Highest domestic & export UVR increase was observed in
garmenting, composite & others segments. Exports in textile and apparel industry grew along
with increase in production and overall competitiveness. T&A exports grew from USD 9 Bn in
1998 - 99 to USD 37.7 Bn in 2014 – 15, growing at a CAGR of 9%. India’s share in global exports
increased from 3.1% in 1998 - 99 to approx. 5% in 2014 - 15. India’s T&A export growth (CAGR
8.8%) was higher than world average (CAGR 5.6%) during the TUFS period. Most of the
beneficiaries admitted that technology upgradation & hence export competitiveness increased
due to RTUFS & RRTUFS. Exports growth was the highest during RTUFS period. During RRTUFS
period growth was sustainable except for fiber exports that witnessed a decline due to
unfavourable export market scenario.
Indian T&A Exports - Current Scenario
• T&A Exports Trend (2014-19)
16.716.3
21.6
19.2
20142019
Apparel Textiles
CAGR 2014-2019
Textiles -2.26% Apparel -0.52%
Source: Trade data from DGFT,Department of Commerce-India, Secondary Research, TechnopakAnalysis
CAGR – 1.95%
Exhibit 106: T&A Exports (USD Bn)
Impact of TUFS
93
• Textile Exports Scenario
Exhibit 107: Fibre Export Scenario
Fibre Export
(USD Mn)
2014 2019
Export Growth
(5-yr. CAGR)
Cotton 2,429 1,129 -14%
Manmade fibre 563 529 -1%
Wool 55 33 -10%
Silk 18 15 -4%
Others 177 291 10%
Total 3,242 1,997 -9%
Source: Trade data from DGFT, Department of Commerce- India, Secondary Research, Technopak Analysis
India’s exports of textile fibers have declined by 9% from 2014 to 2019 (Exhibit 107). Yarn and
fabric exports have declined by 4% and 1% respectively in the same period (Exhibit 108, Exhibit
109).
Exhibit 108: Yarn Export Scenario
Yarn Export
(USD Mn)
2014 2019
Export Growth
(5-yr. CAGR)
Cotton 4,044 2,927 -6%
Manmade Fibre 1,975 1,811 -2%
Wool 80 117 8%
Silk 5 2 -14%
Others 63 70 2%
Total 6,167 4,926 -4%
Source: Trade data from DGFT, Department of Commerce- India, Secondary Research, Technopak Analysis Impact of TUFS
94
Exhibit 109: Fabric and Woven Export Scenario
Fabric Export
(USD Mn)
2014 2019
Export Growth
(5-yr. CAGR)
Knit Fabric
Cotton 171 243 7%
Others 76 183 19%
Manmade fibre 10 15 8%
Wool 1 0 -24%
Woven Fabric
Cotton 1,884 1,975 1%
Others 485 341 -7%
Manmade fibre 2,225 1,830 -4%
Wool 46 32 -7%
Silk 118 67 -11%
Total 5,017 4,687 -1%
Source: Trade data from DGFT, Department of Commerce- India, Secondary Research, Technopak Analysis
Impact of TUFS
95
Fabric as a Weak Link
Exhibit 110: Capacity gap in the Textile & Apparel value chain
Percentage of India’s exports to production for Textile products
Product India’s exports / India’s production (%)
Yarn 35%
Fabrics 6%
Source: Technopak Analysis
Currently, the Indian textile value chain is not perfectly balanced in terms of production utilisation
from fiber upto garments. This means that fiber produced in India is not completely consumed for
making yarn. Similarly, yarn produced is not consumed entirely for fabric production and so on
throughout the value chain. Major gap is observed from yarn to fabric stage. This clearly indicates
that India’s fabric production capacity is not sufficient to consume the yarn produced in India. Fabric
capacity for weaving, knitting and processing is a weak link in the Indian Textile value chain.
Source: Ministry of Textiles Presentation given to PMO’s office (2015), Technopak Analysis
35% of total yarn produced in India gets exported. This indicates lack of capacity at the fabric stage.
Whereas, for fabrics, the exports are only 6% of total production. Impact of TUFS
96
Man-Made (MMF) vs Cotton Apparel
Synthetic Apparel trade is growing at a faster rate than Cotton Apparel trade and provides a
tremendous growth opportunity in the coming years
147
138 135
146
160
170
201420152016201720182019
215
196 195
205
214 217
201420152016201720182019
Manmade (MMF) vs Cotton Apparel
Exhibit 111: Global Synthetic Apparel Trade (USD Bn) Exhibit 112: Global Cotton Apparel Trade (USD Bn)
Source: ITC Trademap, Ministry of Textiles, Technopak Analysis Impact of TUFS
97
• Average export growth % of competing countries
India’s global competitiveness improved considerably due to TUF Scheme. India’s textiles &
clothing average export has been higher than the world average throughout the TUFS period
up to RRTUFS period. During ATUFS period, export from India has been sluggish and showed
negative growth trend.
Exhibit 113: Average export growth percentage of competing countries during schemes
Country TUFS MTUFS RTUFS RRTUFS ATUFS
India 10.5% 7.1% 19.4% 3.6% -3.1%
China 11.5% 6.9% 17.7% 4.8% 1.0%
Turkey 8.3% 2.6% 14.3% 5.2% 2.1%
Bangladesh 11.0% 17.0% 15.4% 12.3% 5.7%
Pakistan 8.9% 1.7% 17.0% 0.5% 9.7%
Vietnam 19.6% 19.5% 26.0% 7.8% 0.7%
World 6.2% 3.6% 16.9% 3.0% 4.2%
• India’s Share in Global Exports
India’ share in global exports has increased from 2.9% in 2001 to 4.3% in 2019 during TUFS.
India’s share in global exports has reached to a maximum of 5.1% in 2013. Since 2014, India’s
share of global exports has remained stable between 4.3% to 4.8%.
2.9%3.0%2.9%2.9%
3.3%3.4%3.4%
3.5%
3.9%
4.2%
4.4%4.4%
5.1%
4.6%
4.8%
4.7%4.7%
4.4%4.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2001200220032004200520062007200820092010201120122013201420152016201720182019
Source: ITC Trademap, Technopak analysis
Exhibit 114: India's Share in Global Exports
Source: ITC Trademap, Technopak analysis Impact of TUFS
98
• Change in share of top 15 T&A Exporting Nations
Exhibit 115: Change in Share of Global T&A Exports
S.
No.
Countries 2014 2015 2016 2017 2018 2019 Growth
1 China 34.63% 35.50% 33.84% 32.68% 31.91% 31.39% -1.95%
2 Bangladesh 3.71% 3.68% 4.66% 4.66% 4.90% 5.00% 6.13%
3 Vietnam 3.04% 3.54% 3.81% 4.03% 4.39% 4.92% 10.09%
4 Germany 4.38% 3.92% 4.08% 4.45% 4.66% 4.61% 1.04%
5 Italy 4.51% 4.11% 4.28% 4.31% 4.40% 4.41% -0.47%
6 India 4.65% 4.82% 4.70% 4.72% 4.44% 4.34% -1.37%
7 Turkey 3.54% 3.42% 3.48% 3.40% 3.34% 3.36% -1.02%
8 USA 3.15% 3.23% 3.13% 3.28% 3.25% 3.15% -0.05%
9 Spain 2.02% 2.03% 2.25% 2.42% 2.40% 2.44% 3.90%
10 Netherlands 1.83% 1.86% 1.99% 2.12% 2.27% 2.38% 5.37%
11 Hong Kong,
China
3.52% 3.44% 3.02% 2.70% 2.45% 2.17% -9.24%
12 France 2.01% 1.93% 2.00% 2.00% 2.10% 2.09% 0.72%
13 Belgium 1.89% 1.83% 1.91% 1.91% 1.95% 1.86% -0.34%
14 Indonesia 1.53% 1.59% 1.57% 1.59% 1.58% 1.64% 1.27%
15 Pakistan 1.66% 1.68% 1.65% 1.65% 1.64% 1.60% -0.73%
Source: ITC Trademap, Technopak Analysis
China’s share in global T&A exports has come down from 34.6% to 31.3% in last 5 years. This
share has been majorly captured by Bangladesh and Vietnam. India’s share in global exports has
reduced from 4.6% in 2014 to 4.3% in 2019. Impact of TUFS
99
KII ANALYSIS
65%6%
17%
12%
Significant Impact Insignificant Impact
No ImpactNo Response
Base: 17
Source: Technopak Analysis
69%
8%
15%
8%
Significant Impact Insignificant Impact
No Impact No Response
Base: 13*
Source: Technopak Analysis
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry. Out of 17 respondents, 11 (65%) answered that TUFS had a
positive impact on exports (value). Out of 13 expert respondents, 9 (69%) opined that TUFS had
a significant impact on Export Value
Exhibit 116: Increase in Exports Value
Total Respondents Expert Panel* Impact of TUFS
100
UHS ANALYSIS
Beneficiaries
Value of Exports
Of the 181 respondents to the question, an increase in values of exports >6% has been witnessed
by 56% of the respondents.
Exhibit 117: Change in Value of Exports (%)
Majority of the segments have witnessed an increase in exports value with technical textile
segment having highest positive response of 83% for export increase. Some respondents in
Spinning, Knitting and Garmenting have witnessed decrease in value of exports.
Exhibit 118: Change in Value of Exports (%) - Segment Wise
14%
27%
15%
14%
5%
13%
1% 2% 1% 4% 4%
0%
10%
20%
30%
1-5% 6-10% 11-20% >20% Percentage
unknown
No Change% Share of Respondents
Increase in Value of ExportsDecrease in Value of Exports
Source:TechnopakAnalysis,Base-181
25%
7%
17%
14%
17%
11% 9%
17%
17%
17%
9%
6%
6%
14%
58%
76%
67%
77% 78%
83%
77%
24 71 6 22 18 18 22
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-181 Impact of TUFS
101
Among states, in Haryana 92% of respondents have witnessed increase in value of exports of due
to TUFS. 23% of the respondents in Gujarat have witnessed a decrease in value of exports.
Exhibit 119: Change in Value of Exports (%) - Geography Wise
Across schemes, 79% respondents of RTUFS have witnessed increase in value of exports. 20%
respondents during RRTUFS have witnessed decline in value of exports.
Exhibit 120: Change in Value of Exports (%) - Scheme Wise
23%
4%
14%
8%
15%
14%
4%
20%
5% 17%
46%
11%
25%
63%
92%
80% 81%
75%
54%
74% 75%
35 24 10 37 12 13 46 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-181
8%
20%
4%
16%
9%
18%
77%
71%
79%
777628
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-181 Impact of TUFS
102
Volume of Exports
Of the 185 respondents to the question, an increase in volume of exports >6% has been
witnessed by 55% of them.
Exhibit 121: Change in Volume of Exports (%)
An increase in volume of exports has been observed most by Processing segment respondents.
Majority of segments have experienced export’s volume growth. However, 29% of the
respondents in Spinning segment have witnessed decline in volume of exports. Export volume
has increased due to factors like product development, quality improvement and innovation.
Exhibit 122: Change in Volume of Exports (%) - Segment Wise
17%
23%
13%
19%
4%
14%
1% 1% 1% 4% 4%
0%
10%
20%
1-5% 6-10% 11-20% >20% Percentage
unknown
No Change
% Share of Respondents
Increase in Volume of ExportsDecrease in Volume of Exports
Source:TechnopakAnalysis,Base-185
29%
4%
14%
8%
17% 17%
5%
21%
17%
14%
8%
6% 6%
14%
50%
79%
71%
83%
78% 78%
82%
24 72 7 24 18 18 22
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-185 Impact of TUFS
103
Among states, in Haryana 92% respondents have witnessed increase in volume of exports due to
TUFS. 16% respondents in Gujarat and 17% in Tamil Nadu have witnessed decline in volume of
exports.
Exhibit 123: Change in Volume of Exports (%) - Geography Wise
Across schemes, 83% respondents of RTUFS have witnessed increase in volume of exports. 20%
respondents during RRTUFS have witnessed decline in volume of exports.
Exhibit 124: Change in Volume of Exports (%) - Scheme Wise
16%
4%
8% 8% 8%
17%
16%
4%
20% 5%
17%
38%
13%
25%
68%
92%
80%
86%
75%
54%
71%
75%
37 24 10 37 12 13 48 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-185
5%
20%
3%
18%
9%
14%
78%
71%
83%
807629
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-185 Impact of TUFS
104
Average Unit Price
Of the 178 respondents to the question, an increase in average unit price >6% has been witnessed
by 45% of them. A significant 24% have not witnessed a change in average unit price of the
exports.
Exhibit 125: Change in Average Unit Price (%)
Highest increase in average unit price has been observed by Garmenting segment. Weaving and
technical textile respondents’ have indicated that almost one-third of them witnessed no change
in average unit sales price. Average unit price has increased due to above stated factors like high
value product mix, quality improvement and research and development.
Exhibit 126: Change in Average Unit Price (%) - Segment Wise
18%
24%
10%
11%
6%
24%
2% 2%4%
0%
10%
20%
30%
1-5% 6-10% 11-20% >20% Percentage
unknown
No Change
% Share of Respondents
Increase in Avg. Unit PriceDecrease in Avg. Unit Price
Source:TechnopakAnalysis,Base-178
29%
4%
29%
6%
13%
17%
32%
26%
6%
31%
19%
54%
63%
71%
74%
88%
56%
81%
24 71 7 23 16 16 21
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-178 Impact of TUFS
105
Among states, in Haryana 92% respondents have witnessed highest percentage increase in
average unit price of due to TUFS. 20% of the respondents in Tamil Nadu have witnessed a
decrease in average unit price.
Exhibit 127: Change in Average Unit Price (%) - Geography Wise
Across schemes, around two-third respondents have witnessed increase in average unit price.
12% respondents during RRTUFS have witnessed decline in average unit price.
Exhibit 128: Change in Average Unit Price (%) - Scheme Wise
6%6%
8% 8%
20%
37%
8%
20%
25%
42%
58%
9%
33%
57%
92%
80%
69%
50%
33%
72%
67%
35 24 10 36 12 12 46 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-178
6%
12%
4%
27%
19%
29%
66%68%68%
777328
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-178 Impact of TUFS
106
Non-Beneficiaries
Value of Exports
Of the 47 non beneficiaries who responded to the question, an increase in values of exports >6%
has been witnessed by 52% of the respondents. However, 26% respondents have witnessed a
decrease in value of exports >11%.
Exhibit 129: Change in Value of Exports (%)
According to responses by non-beneficiaries, 25% in weaving segment and 33% in garmenting
segments have witnessed a decrease in the value of exports.
Exhibit 130: Change in Value of Exports (%) - Segment Wise
6%
26%
13% 13%
9%
6%
11%
15%
2%
0%
10%
20%
30%
1-5% 6-10% 11-20% >20% Percentage
unknown
No Change
% Share of Respondents
Increase in Value of ExportsDecrease in Value of Exports
Source:TechnopakAnalysis,Base-47
25%
60%
33%
10%
7%
65%
100%
40%
60%
100% 100%
20 2 5 15 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-47 Impact of TUFS
107
Among states, in Punjab 47% of 15 non-beneficiaries’ respondents have witnessed decrease in
value of exports.
Exhibit 131: Change in Value of Exports (%) - Geography Wise
25% 27%
47%
25%
20%
100%
75%
53% 53%
100%
75%
4 4 15 15 5 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gujarat Haryana Karnataka Punjab Tamil NaduUttar Pradesh
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-47 Impact of TUFS
108
Volume of Exports
Of the 46 respondents to the question, an increase in volume of exports >6% has been witnessed
by 39% of them. Some of the non-beneficiaries have also witnessed decrease in volume of
exports.
Exhibit 132: Change in Volume of Exports (%)
According to responses by non-beneficiaries, 55% in weaving segment and 60% in garmenting
segments have witnessed an increase in the volume of exports. Also, decrease in volume of
exports has been witnessed by -25% of non-beneficiary respondents both in weaving and
garmenting.
Exhibit 133: Change in Volume of Exports (%) - Segment Wise
9% 9%
15% 15%
9%
20%
15%
7%
2%
0%
10%
20%
1-5% 6-10% 11-20% >20% Percentage
unknown
No Change
% Share of Respondents
Increase in Volume of ExportsDecrease in Volume of Exports
Source:TechnopakAnalysis,Base-46
25%
40%
27%
20%
20%
13%67%
55%
100%
40%
60%
100%
33%
20 1 5 15 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-46 Impact of TUFS
109
Among states, in Punjab, 33% of 15 non-beneficiaries’ respondents have witnessed decrease in
value of exports.
Exhibit 134: Change in Volume of Exports (%) - Geography Wise
25% 27%
33%33%
47%
13%
100%
75%
27%
53%
100%
67%
4 4 15 15 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gujarat Haryana Karnataka Punjab Tamil NaduUttar Pradesh
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-46 Impact of TUFS
110
Average Unit Price
Of the 39 non-beneficiaries who responded to the question, an increase in average unit price
>6% has been witnessed by 72% of them.
Exhibit 135: Change in Average Unit Price (%)
All the non-beneficiary respondents in Weaving segment have witnessed an increase in average
unit price. 92% respondents in Garmenting segment have witnessed an increase in average unit
price.
Exhibit 136: Change in Average Unit Price (%) - Segment Wise
13%
41%
28%
3% 8%
13%
5% 3%
0%
10%
20%
30%
40%
50%
1-5% 6-10% 11-20% >20% Percentage
unknown
% Share of Respondents
Increase in Avg. Unit PriceDecrease in Avg. Unit Price
Source:TechnopakAnalysis,Base-39
33%
8%
25%
100% 100%
67%
92%
100%
75%
16 2 3 13 1 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
Decreased
Source:TechnopakAnalysis,Base-39 Impact of TUFS
111
Among states, in Karnataka all the non-beneficiary respondents have witnessed increase in
average unit price. 87% of the respondents in Punjab have witnessed an increase in average unit
price.
Exhibit 137: Change in Average Unit Price (%) - Geography Wise
13%
50%
100% 100% 100%
87%
100%
50%
1 2 15 15 4 2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gujarat Haryana Karnataka Punjab Tamil NaduUttar Pradesh
% Share of Respondents
Increased
Decreased
Source:TechnopakAnalysis,Base-39 Impact of TUFS
112
Summary of Impact on Exports Value
Literature review indicates that most companies benefited in terms of product development and
innovative practices due to addition of technologically advanced machineries ~ Exports in textile and
apparel industry grew along with increase in production and overall competitiveness. The research
indicates that exports growth was the highest during RTUFS period. In addition, as fabric is the weak
link in the textile value chain, it needs to be strengthened to consume the excess spinning production
and to boost apparel industry requirements by supplying right price, quality and quantity of fabric.
India’s share in global exports has remained in the range of 4-5% in the last 5 years.
As per the KII analysis, 65% opined that TUFS had a significant impact on exports value, which is in line
with the expert panel’s opinion (69%).
The UHS analysis indicates that TUFS beneficiaries as well as non-beneficiaries experienced an
increased export volume and an increase in average unit price. This led to an increase in overall value
of exports. 42% of beneficiary units witnessed an increase in value of exports greater than 6%, vis-à-
vis 52% of non-beneficiary units. Weaving and garmenting segments have seen highest gains in export
value. Export volume has increased due to factors such as product development, quality improvement
and improved export competitiveness. Weaving sector showed increased exports volume as lot of
high-speed shuttle less looms were installed for export products.
Impact of TUFS
113
4.5 Employment Generation
Past Trend Analysis - Literature Review
• Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
As per the report, on an average, garment segment (72%) indicated maximum increase in
employment generation, which can be attributable to the fact that garment industry is highly
labour intensive. Other segments that witnessed an increase in no. of workers were knitting
(61%), processing (47%) and fabric embroidery (37%). Spinning was the only segment to
witness a decline in employment generation. There was a significant increase in annual
turnover per worker (1.3-28%) after implementation of TUFS, except in garment manufacturing
- in more than 15% of the cases it was because of expansion in business activities.
• CRISIL Evaluation Report of TUFS (2010)
Cumulative investments under TUF Scheme created direct employment opportunities for
approx. 10-11 Lakh people - garmenting sector contributed significantly to employment
generation, followed by cotton ginning and fabric embroidery sectors.
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
As per the report, TUF Scheme contributed positively to employment generation and helped in
growth of income and improving livelihood of the workers. Since its launch, the scheme
provided employment to approx. 8.4 lakhs people in factory sector, with approx. 1.6 lakh
people employed after RTUFS. With an increase in technologically upgraded machineries,
machinery operators were required to learn new skills for operating the upgraded machineries
- this contributed in skill development of labour across textile segments. Even though
technology upgradation typically reduces manpower requirement, in this case, it contributed
to employment generation due to the increase in capacity addition. Capacity additions across
the textile segments created new jobs for skilled and unskilled labour - demand for skilled
labour increased with the installation of technologically upgraded machines across segments.
Composite segment added highest number of skilled and unskilled labour per unit, primarily
because of larger scale of investments. However, overall, most of the companies witnessed
approx. 50 added skilled and unskilled labour. Impact of TUFS
114
Current Scenario of Employment Generation in India
No. of people engaged in operational factories in T&A have grown at a CAGR of ~3% and have
witnessed YoY growth in number of people between 2 - 6 % between 2013 and 2018.
Year on year growth in wages per worker were in the range of 6 – 10% between 2014 and 2018.
Textile sector witnessed higher growth in wages per worker vis-à-vis apparel sector.
2.47
2.53
2.65
2.70
2.87
2.20
2.30
2.40
2.50
2.60
2.70
2.80
2.90
2013-14 2014-15 2015-16 2016-17 2017-18
No. of People (in Mn.)
No. of People
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
15,787
17,356
18,956
20,351
21,584
15,000
17,000
19,000
21,000
23,000
2013-14 2014-15 2015-16 2016-17 2017-18
Wages per worker per month (INR)
Year
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
Exhibit 138: No. of people engaged in operational factories in T&A (Mn)
Exhibit 139: Wages per Worker in T&A (INR) Impact of TUFS
115
KII ANALYSIS
76%
18%
6%
Significant Impact Insignificant Impact
No ImpactNo Response
Base: 17
Source: Technopak Analysis
69%
23%
8%
Significant ImpactInsignificant ImpactNo Impact
Base: 13*
Source: Technopak Analysis
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry
Exhibit 140: Increase in Employment Generation
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry. Out of 17 respondents, 13 (76%) answered that TUFS had a
positive impact on employment generation. Out of 13 experts, 9 (69%) opined that TUFS had a
significant impact on Employment Generation
Total Respondents Expert Panel* Impact of TUFS
116
UHS ANALYSIS
Beneficiaries
Change in Total No. of Employees before and after Taking Loan
Of the 506 respondents to the question, 39% of them have indicated increase of total manpower
<20 after upgrading the technologies under these schemes.
Exhibit 141: Change in Total Manpower
Total manpower has increased across all the segments. 76% respondents in Weaving segment
have seen manpower addition. Although, technology upgradation normally reduces the
manpower requirement but no. of employees has been increased by capacity addition in this
case. Capacity additions across the textile value chain have created new jobs for skilled as well as
unskilled manpower.
Exhibit 142: Change in Total Manpower - Segment Wise
39%
21%
6% 3% 2%
19%
6% 4% 0% 0% 0%
0%
10%
20%
30%
40%
<20 20-50 51-100 >100 Change
unknown
No Change% Share of Respondents
Increase in total manpower after taking loanDecrease in total manpower after taking loan
Source:TechnopakAnalysis,Base-506
6%
9%
14%
9%
13% 12%
19%
29%
15%
41%
20%
17%
26%
16%
66%
76%
45%
71% 70%
63% 65%
35 259 29 56 47 43 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-506 Impact of TUFS
117
Among states, in Rajasthan and Uttar Pradesh -90% respondents have witnessed an increase in
total manpower due to TUFS. More than 15% respondents in Karnataka and Maharashtra have
witnessed a decline in total manpower. 43% respondents in Punjab have witnessed no change in
total manpower.
Exhibit 143: Change in Total Manpower - Geography Wise
During ATUFS scheme, 74% respondents have witnessed an increase in labour. 18% respondents
in RTUFS have witnessed decline in total manpower.
Exhibit 144: Change in Total Manpower - Scheme Wise
12%
19%
16%
7%
3% 5%
8%
15%
26%
22%
18%
43%
6%
30%
3%
74% 74%
59%
66%
50%
90%
65%
89%
189 23 37 74 42 31 74 36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-506
7%
12%
18%
19%
22%12%
74%
66%
70%
25018967
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-506 Impact of TUFS
118
Change in Skilled Manpower before and after Taking Loan
Of the 494 respondents to the question, 45% of them have indicated increase of skilled
manpower <20 after upgrading the technologies under these schemes.
Exhibit 145: Change in Skilled Manpower
Overall majority of the segments have witnessed less than 20 additional skilled labour. Demand
for skilled labour has increased due to installation of new technology machines across the
segments. Garmenting, Technical Textiles and Others segments have seen decline of skilled
labour.
Exhibit 146: Change in Skilled Manpower - Segment Wise
45%
18%
2% 1% 2%
22%
7% 1% 1% 0% 0%
0%
10%
20%
30%
40%
50%
<20 20-50 51-100 >100 Change
unknown
No Change% Share of Respondents
Increase in skilled manpower after taking loanDecrease in skilled manpower after taking loan
Source:TechnopakAnalysis,Base-494
6%
9% 7% 7%
11% 12%
22%
29%
19%
33%
20%
26%
29%
19%
66%
72%
59%
73%
64%
60% 59%
35 251 27 55 47 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-494 Impact of TUFS
119
Among states, 90% respondents Rajasthan have witnessed an increase in skilled manpower due
to TUFS. 19% of the respondents from Karnataka and 17% of the respondents from Punjab have
indicated a decrease in skilled manpower.
Exhibit 147: Change in Skilled Manpower - Geography Wise
Across schemes, 73% respondents who availed benefits under ATUFS scheme have witnessed an
increase in skilled manpower. 21% beneficiaries under RTUFS scheme witnessed a decrease in
skilled manpower.
Exhibit 148: Change in Skilled Manpower - Scheme Wise
10% 9%
19%
11%
17%
3% 4% 6%
19%
39%
22%
26%
38%
6%
26%
6%
71%
52%
59%
64%
45%
90%
69%
89%
183 23 37 74 42 31 68 36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-494
7%
10%
21%
21%
26%
14%
73%
63%65%
24218666
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-494 Impact of TUFS
120
Change in Unskilled Manpower before and after Taking Loan
Of the 490 respondents to the question, 44% of them have indicated increase of unskilled
manpower <20 after upgrading the technologies under these schemes. Overall, majority of the
companies have witnessed less than 50 additional unskilled labour.
Exhibit 149: Change in Unskilled Manpower
Majority of segments have witnessed no change or decline in the unskilled manpower. In
Weaving segment, a significant 69% of the respondents have indicated an increase in unskilled
manpower.
Exhibit 150: Change in Unskilled Manpower - Segment Wise
44%
13%
2% 1% 1%
26%
10% 1%0% 0%
0%
10%
20%
30%
40%
50%
<20 20-50 51-100 >100 Change
unknown
No Change
% Share of Respondents
Increase in unskilled manpower after taking loanDecrease in unskilled manpower after taking loan
Source:TechnopakAnalysis,Base-490
11% 12%
20%
4%
17%
14% 16%
34%
19%
52%
41%
32%
29%
16%
54%
69%
28%
56%
51%
57%
68%
35 250 25 54 47 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-490 Impact of TUFS
121
Among states, -86% respondents in Rajasthan and Uttar Pradesh have witnessed increase in
unskilled manpower due to TUFS. 22% of Haryana’s respondents indicated a decrease of <20 in
unskilled manpower.
Exhibit 151: Change in Unskilled Manpower - Geography Wise
Across schemes, 70% respondents who availed benefits under RTUFS scheme have witnessed an
increase in unskilled manpower. 16% beneficiaries under RRTUFS scheme witnessed a decrease
in unskilled manpower.
Exhibit 152: Change in Unskilled Manpower - Scheme Wise
10%
22%
11% 12% 14%
7%
18%
9%
20%
30%
38% 34%
36%
7%
40%
6%
70%
48%
51%
54%
50%
87%
42%
86%
182 23 37 74 42 30 67 35
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-490
10%
16%
9%
26%
29%
21%
64%
56%
70%
23918566
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-490 Impact of TUFS
122
Change in Average Salary of Skilled Manpower before and after Taking Loan
Of the 528 respondents to the question, majority witnessed an overall increase in average salary
of the skilled manpower. 37% of the respondents witnessed an increase of >10% in salary of the
skilled manpower.
Exhibit 153: Change in Average Salary of Skilled Manpower
Nearly 90% respondents in majority of the segments have witnessed an increase in average salary
of skilled manpower. 15% respondents in Others have witnessed a decrease in average salary of
skilled manpower.
Exhibit 154: Change in Average Salary of Skilled Manpower - Segment Wise
9%
17%
21%
37%
8% 3%6% 0% 1% 5%
0%
10%
20%
30%
40%
1-2% 3-5% 6-10% >10% Percentage
unknown
No Change
% Share of Respondents
Increase in Average Salary-Skilled StaffDecrease in Average Salary-Skilled Staff
Source:TechnopakAnalysis,Base-528
6% 4% 4%
8% 6%
9%
15%3%
2%
4%
8%
4%
2%
3%
91%
94%
92%
84%
90% 89%
83%
34 270 24 63 51 46 40
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-528 Impact of TUFS
123
All the respondents in Karnataka have witnessed an increase in average salary of the skilled
manpower. More than 90% respondents of majority of states have witnessed an increase in
average salary of skilled manpower. 17% respondents in Maharashtra have witnessed decrease
in average salary of skilled manpower,
Exhibit 155: Change in Average Salary of Skilled Manpower - Geography Wise
Across schemes, around 95% respondents in both ATUFS and RTUFS have witnessed an increase
in average salary of skilled manpower whereas 10% respondents of RRTUS have seen decrease.
Exhibit 156: Change in Average Salary of Skilled Manpower - Scheme Wise
5% 4%
17%
4% 3% 4%
1% 4%
4%
2% 6%
9%
3%
94% 93%
100%
79%
93%
91%
87%
97%
202 27 38 78 45 32 67 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-528
4%
10%
3%
2%
6%
95%
84%
97%
25619478
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-528 Impact of TUFS
124
Change in Average Salary of Unskilled Manpower before and after Taking Loan
Of the 256 respondents to the question, majority witnessed an overall increase in average salary
of the unskilled manpower. 61% of the respondents witnessed an increase of >10% in salary of
the unskilled manpower.
Exhibit 157: Change in Average Salary of Unskilled Manpower
In weaving sector, 90% of the 159 respondents have witnessed increase in the salary of the
unskilled manpower.
Exhibit 158: Change in Average Salary of Unskilled Manpower - Segment Wise
2% 6% 13%
61%
10%0% 0% 1% 7%
0%
10%
20%
30%
40%
50%
60%
1-2% 3-5% 6-10% >10% No Change
% Share of Respondents
Increase in Average Salary-Unskilled StaffDecrease in Average Salary-Unskilled Staff
Source:TechnopakAnalysis,Base-256
10% 8%
13%
9%
6%
14%
33%
20%
2%
25% 30%
12%
10%
6%
70%
90%
63% 61%
82%
76%
61%
10 159 8 23 17 21 18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-256 Impact of TUFS
125
Among states, 87% respondents from Gujarat and 94% respondents in Karnataka have witnessed
an increase in average salary of unskilled manpower due to TUFS. 23% respondents in
Maharashtra have witnessed a decrease in average salary of unskilled manpower.
Exhibit 159: Change in Average Salary of Unskilled Manpower - Geography Wise
Across schemes, during ATUFS and RTUFS scheme - 90% of respondents have witnessed increase
in average salary increase of unskilled labour. 19% respondents who benefited from RRTUFS have
witnessed a decrease in average salary of unskilled manpower.
Exhibit 160: Change in Average Salary of Unskilled Manpower - Scheme Wise
8%
6%
23%
6%
9%
4%
33%
5%
25%
18%
32%
87%
67%
94%
72%
75% 76%
59%
100%
95 3 36 60 4 17 22 19
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-256
6%
19%
7%
3%
16%
4%
90%
65%
89%
1468327
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-256 Impact of TUFS
126
Change in training costs before and after taking loan
Of the 143 respondents to the question, majority witnessed an increase in training costs. 39%%
of the respondents witnessed an increase of 3-5% in training costs. The increase in the training
costs is justified with the advanced machinery being purchased requiring enhanced training.
Exhibit 161: Change in Training Cost
Almost all the segments have witnessed an increase in training costs. 13% respondents in
Technical Textiles segments have witnessed a decrease in training costs.
Exhibit 162: Change in Training Cost - Segment Wise
15%
39%
21%
16%
6% 1%1%1%
0%
10%
20%
30%
40%
1-2% 3-5% 6-10% >10% Percentage
unknown
No Change% Share of Respondents
Increase in Training Costs Decrease in Training Costs
Source:TechnopakAnalysis,Base-143
4%
13%
5%
100%
96%
100%
95%
100%
87%
100%
20 56 5 21 16 15 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-143 Impact of TUFS
127
Almost all the respondents across all the states have witnessed increase in training cost. 13%
respondents from Maharashtra have witnessed decrease in training costs.
Exhibit 163: Change in Training Cost - Geography Wise
All the respondents who benefited from RRTUFS witnessed an increase in training costs. 96%
respondents in ATUFS witnessed an increase in training costs.
Exhibit 164: Change in Training Cost - Scheme Wise
6%
13%
5%
5%
100% 100%
94%
87%
100%
90%
100% 100%
17 21 16 15 17 21 31 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-143
2%
11%
2%
96%
100%
89%
536228
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-143 Impact of TUFS
128
Non-Beneficiaries
Change in total no. of employees before and after taking loan
Of the 99 non-beneficiaries who responded to the question, 32% of them have indicated increase
of total manpower <20.
Exhibit 165: Change in Total Manpower
Total manpower has increased across all the segments. Nearly 60% non-beneficiary respondents
in Processing and weaving segments have seen an increase in total manpower. 80% non-
beneficiary respondents in Knitting have witnessed an increase in total manpower.
Exhibit 166: Change in Total Manpower - Segment Wise
32%
11%
7%
2% 2%
23%
11%
10%
1%
0%
10%
20%
30%
<20 20-50 51-100 >100 Change
unknown
No Change
% Share of Respondents
Increase in total manpower after taking loanDecrease in total manpower after taking loan
Source:TechnopakAnalysis,Base-99
25%
10%
36%
20%
17%
20%
29%
21%
20%
75%
58%
80%
62%
43%
60%
25%
36 5 21 28 5 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-99 Impact of TUFS
129
All the non-beneficiary respondents in Gujarat and Haryana have witnessed an increase in total
manpower. 93% respondents in Punjab have witnessed a decrease in total manpower.
Exhibit 167: Change in Total Manpower - Geography Wise
40%
93%
17%
40%
38%
7%
53%
17%
27%
100% 100%
20%
63%
47%
67%
73%
16 7 15 8 15 15 12 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-99 Impact of TUFS
130
Change in skilled manpower before and after taking loan
Of the 95 non-beneficiaries who responded to the question, 33% of them have indicated increase
of skilled manpower <20.
Exhibit 168: Change in Skilled Manpower
Overall majority of the segments have witnessed less than 20 additional skilled labour. Weaving
and processing segments have seen influx of skilled labour.
Exhibit 169: Change in Skilled Manpower - Segment Wise
33%
11%
1% 1% 3%
29%
17%
3% 1%1%
0%
10%
20%
30%
40%
<20 20-50 51-100 >100 Change
unknown
No Change
% Share of Respondents
Increase in skilled manpower after taking loanDecrease in skilled manpower after taking loan
Source:TechnopakAnalysis,Base-95
26%
10%
32%
20%
17%
50%
40%
29%
20%
100%
57%
50% 50%
39%
60%
35 4 20 28 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-95 Impact of TUFS
131
All the non-beneficiary respondents from Gujarat and Haryana have witnessed an increase in
skilled manpower. 87% of the respondents from Punjab have witnessed decline in skilled
manpower.
Exhibit 170: Change in Skilled Manpower - Geography Wise
40%
87%
20%
47%
38%
13%
80%
36%
100% 100%
13%
63%
20%
80%
64%
16 5 15 8 15 15 10 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-95 Impact of TUFS
132
Change in unskilled manpower before and after taking loan
Of the 94 non-beneficiaries who responded to the question, 40% of them have indicated increase
of unskilled manpower less than 20. Overall, the respondents have witnessed less than 50
additional unskilled labour and 31% have witnessed no change.
Exhibit 171: Change in Unskilled Manpower
Weaving and processing segments have witnessed primarily additional unskilled labour changes
<20. 25% respondents from Garmenting, 21% from Weaving segments have witnessed a
decrease in unskilled labour.
Exhibit 172: Change in Unskilled Manpower - Segment Wise
40%
7%3%
31%
18%
0%
10%
20%
30%
40%
<20 20-50 Change unknown No Change
% Share of Respondents
Increase in unskilled manpower after taking loanDecrease in unskilled manpower after taking loan
Source:TechnopakAnalysis,Base-94
21%
10%
25%
20%
24%
25%
35%
32%
20%
100%
56%
75%
55%
43%
60%
34 4 20 28 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-94 Impact of TUFS
133
All the non-beneficiary respondents from Gujarat witnessed an increase in unskilled manpower.
73% respondents in Punjab have witnessed a decrease in unskilled manpower.
Exhibit 173: Change in Unskilled Manpower - Geography Wise
29%
73%
20%
40%
57%
50%
20%
60%
27%
100%
60%
14%
50%
7%
40%
80%
73%
16 5 14 8 15 15 10 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-94 Impact of TUFS
134
Change in average salary of skilled manpower before and after taking loan
Of the 102 non-beneficiaries who responded to the question, 27% witnessed an increase in
average salary of the skilled manpower between 6-10%. 16% of the respondents witnessed an
increase of >10 in average salary of the skilled manpower.
Exhibit 174: Change in Average Salary of Skilled Manpower
In Processing segment 81% of the respondents witnessed an increase in average salary of skilled
manpower. 32% respondents in Garmenting and 23% in Weaving segments have witnessed a
decline in the annual salary of skilled manpower.
Exhibit 175: Change in Average Salary of Skilled Manpower - Segment Wise
1%
9%
27%
16%
9%
19%
2% 3%
15%
0%
10%
20%
30%
1-2% 3-5% 6-10% >10% Percentage
unknown
No Change
% Share of Respondents
Increase in Average Salary-Skilled StaffDecrease in Average Salary-Skilled Staff
Source:TechnopakAnalysis,Base-102
23%
10%
32%
20%
23%
33%
10%
11%
29%
40%
54%
67%
81%
57%
71%
40%
35 6 21 28 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-102 Impact of TUFS
135
All the non-beneficiary respondents from the states of Gujarat, Haryana, Rajasthan and Tamil
Nadu have witnessed an increase in average salary of skilled manpower. 89% respondents from
Punjab have witnessed a decrease in average salary of skilled manpower.
Exhibit 176: Change in Average Salary of Skilled Manpower - Geography Wise
47%
87%
53%
50%
13%
45%
100% 100%
50%
100% 100%
55%
16 9 15 8 15 15 13 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-102 Impact of TUFS
136
Change in average salary of unskilled manpower before and after taking loan
Of the 57 non-beneficiaries who responded to the question, majority witnessed in an overall
increase in average salary of the unskilled manpower. 26% of the respondents witnessed an
increase of >10 in salary of the unskilled manpower.
Exhibit 177: Change in Average Salary of Unskilled Manpower
Some of the segments have witnessed primarily no change in average salary of unskilled workers.
56% respondents in Garmenting segment have witnessed a decrease in average salary of the
unskilled manpower.
Exhibit 178: Change in Average Salary of Unskilled Manpower - Segment Wise
4%2%
26%
39%
11%
19%
0%
10%
20%
30%
40%
50%
60%
3-5% 6-10% >10% No Change
% Share of Respondents
Increase in Average Salary-Unskilled StaffDecrease in Average Salary-Unskilled Staff
Source:TechnopakAnalysis,Base-57
21%
25%
56%
33%
46%
50%
25%
19%
100%
67%
33%
50% 50%
25%
24 4 8 16 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-57 Impact of TUFS
137
Among states, all the non-beneficiary respondents from Gujarat and Rajasthan have witnessed
increase in average salary of unskilled manpower. 93% respondents from Punjab have witnessed
a decrease in average salary of unskilled manpower.
Exhibit 179: Change in Average Salary of Unskilled Manpower - Geography Wise
20%
93%
80%
80%
7%
63%
100%
20%
100%
38%
7 15 5 15 7 8
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gujarat KarnatakaMaharashtra Punjab RajasthanUttar Pradesh
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-57 Impact of TUFS
138
Change in training costs before and after taking loan
Of the 33 non-beneficiaries who responded to the question, majority witnessed an increase in
training costs. 39% of the respondents witnessed an increase of 3-5% in training costs.
Exhibit 180: Change in Training Cost
91% of the non-beneficiary respondents in processing segment responded that the training costs
were increased.
Exhibit 181: Change in Training Cost - Segment Wise
6%
39%
36%
3% 3%
12%
0%
10%
20%
30%
40%
1-2% 3-5% >10% Percentage
unknown
No Change
% Share of Respondents
Increase in Training Costs Decrease in Training Costs
Source:TechnopakAnalysis,Base-33
17%
9%
15%
100%
83%
91%
85%
100%
6 11 13 2 1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving Processing GarmentingTechnical Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-33 Impact of TUFS
139
Among states, all the non-beneficiary respondents from both Rajasthan and Tamil Nadu have
witnessed an increase in training costs.
Exhibit 182: Change in Training Cost - Geography Wise
80%
50%
20%
100%100%
50%
515112
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Punjab Rajasthan Tamil Nadu Uttar Pradesh
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-33 Impact of TUFS
140
Summary of Impact on Employment Generation
Literature review indicates that TUF Scheme contributed positively to employment generation and
helped in growth of income and improving livelihood of the workers. Since its launch, the scheme
provided employment to approx. 8.4 lakhs people in factory sector, with approx. 1.6 lakh people
employed after RTUFS. No. of people engaged in the operational factories has witnessed an increasing
trend in the last 5 years, so have the wages per worker in T&A industry.
The KII analysis indicates that 76% of respondents opined that TUFS had a significant impact on
employment, vis-à-vis 69% of the expert panel.
As per the UHS analysis, total manpower has increased across all the segments. 70% of the
beneficiaries have indicated increase of total manpower after upgrading the technologies under these
schemes, vis-à-vis 52% of non-beneficiaries. Processing segment witnessed a significant increase in
manpower of >20, primarily because it is technology intensive and demands skilled labour. Capacity
additions across the textile value chain have created new jobs for skilled as well as unskilled manpower.
Overall, majority of the companies have witnessed <50 additional skilled labour. However, a significant
>30% of the respondents have however indicated no change in unskilled manpower primarily in
Spinning, Knitting, Processing and Garmenting segment. 37% of the beneficiaries witnessed an increase
of >10 in salary of the skilled manpower, whereas 61% of the beneficiaries witnessed an increase of
>10 in salary of the unskilled manpower.
Among states, 75% respondents from Rajasthan have witnessed increase in average salary of skilled
manpower of >10% due to TUFS. Among states, 86% respondents from Gujarat have witnessed
increase in average salary of unskilled manpower of >10% due to TUFS. Majority of states have
witnessed average salary of unskilled manpower increase >6%. Majority of states have witnessed
average training costs increased by >6%. 87% of the non-beneficiary respondents in Punjab have
witnessed decrease in average salary >10%. 13% of the non-beneficiary respondents from Karnataka
have witnessed a decrease in average salary >10%
Impact of TUFS
141
4.6 Cost Savings
• Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
As per the report, the average reduction in unit cost across segments ranged between (3%) and
36%. In case of machineries, average cost reduction varied between 1% and 21% - average cost
reduction was approx. 12% for TUFS specific machineries and 8% for overall machineries.
Technologically upgraded machineries witnessed higher cost reduction than overall machinery
units.
• Technopak Advisors Evaluation Report of TUFS (2006)
Under 10% Credit – Linked Capital Subsidy on Processing Sector Overall cost saving was low to
medium. Most of the companies using upgraded machineries under TUF Scheme indicated cost
savings up to 20%. About 60% of the companies were able to save up to 10%. Most of the
segments witnessed cost savings in low to medium range. 100% respondents in weaving
segment witnessed cost savings in their operations due to investment in technologically
upgraded machineries
• NCEUS Evaluation Report on Impact of TUFS on the Unorganized Sector (2009)
With the help of improved technology, in states such as Maharashtra, Delhi, Haryana and
Rajasthan, approx. 46% of the SSI units indicated reduction in cost. In Haryana, out of 100 SSI
units, 31 witnessed cost reduction, whereas in Rajasthan only 14% of SSI units indicated cost
reduction.
• CRISIL Evaluation Report of TUFS (2010)
More than 60 per cent of the Non-SSI and SSI units showed a reduction in costs because of
reduction in labor costs, lower wastage and lower maintenance cost. 66% Non-SSI units and
78% of SSI units experienced cost reduction between 1% and 5%, whereas 34% of Non-SSI units
and 22% SSI units saw reduction in the range of 6-10%. The main reason behind lower labor
cost was the increase in output per machine due to the large diameter, resulting in low labor
requirement. Cost reduction in the garmenting sector mainly came because of productivity
enhancing machineries and reduced the labor requirements.
Impact of TUFS
142
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
As per the report, units were able to improve their cost efficiencies and resource efficiencies
to significant extent. Majority of companies across all segments witnessed cost reduction
between 1% and 10%. Highest cost saving was observed in composite segment, followed by
spinning segment. Energy efficient machineries helped in higher savings in power, water and
steam. In all, factors such as wastage reduction and improvement in productivity contributed
to cost savings.
Impact of TUFS
143
KII ANALYSIS
76%
12%
12%
Significant ImpactInsignificant ImpactNo Response
Base: 17
Source: Technopak Analysis
Significant Impact
Base: 13*
Source: Technopak Analysis
Total Respondents Expert Panel*
Exhibit 183: Increase in Cost Savings
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry. Out of 17 respondents, 13 (76%) answered that TUFS had a
positive impact on Cost Savings. Whereas, all the 13 experts (100%) opined that TUFS had a
positive impact on Cost Savings Impact of TUFS
144
UHS ANALYSIS
Beneficiaries
Change in Cost Savings per Unit
Of the 512 respondents to the question, 76% of them have indicated increased cost savings per
unit. 32% respondents have responded >10% cost savings per unit.
Exhibit 184: Change in Cost Savings per Unit
Around 75% respondents in all the segments have seen an increase in cost savings per unit.
However, 21% respondents in Processing segment have witnessed a decrease in cost savings.
Exhibit 185: Change in Cost Savings Per Unit - Segment Wise
12%
18%
11%
32%
3%
10%
3% 3% 2% 6% 2%
0%
10%
20%
30%
1-3% 4-5% 6-10% >10% Percentage
unknown
No change
% Share of Respondents
Increase in Cost Savings per unit Decrease in Cost Savings per unit
Source:TechnopakAnalysis,Base-512
10%
14% 14%
21%
15% 14% 14%
13%
7%
17%
16%
8% 9% 11%
77% 79%
69%
64%
77% 77% 76%
31 266 29 58 48 43 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-512 Impact of TUFS
145
Among states, 91% respondents in Punjab have witnessed an increase in cost savings per unit.
Except Gujarat, more than 75% respondents in all the states have witnessed an increase in
average cost savings per unit. However, 21% respondents in Gujarat have witnessed a decrease
in cost savings.
Exhibit 186: Change in Cost Savings Per Unit - Geography Wise
Across schemes, during RRTUFS scheme, 77% respondents have witnessed increase in cost
savings per unit. 19% respondents who receive RTUFS witnessed a decrease in cost savings.
Exhibit 187: Change in Cost Savings Per Unit - Scheme Wise
21%
8% 8%
16%
9%
12%
15%
10%
12%
8%
8%
9%
13%
12% 5%
69%
80%
83%
76%
91%
78%
75%
79%
193 25 36 79 43 32 65 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-512
13%
15%
19%
11%7%
10%
76%77%
71%
25818272
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-512 Impact of TUFS
146
Non-Beneficiaries
Change in Cost Savings per Unit
Of the 76 respondents to the question, 78% of them have indicated increased cost savings per
unit. 25% respondents have responded that they have witnessed 4-5% cost savings per unit.
Exhibit 188: Change in Cost Savings per Unit
All the non-beneficiary respondents of Knitting and Processing segments witnessed an increase
in cost savings per unit. 82% of the respondents in Weaving segment witnessed an increase in
the cost saving per unit
Exhibit 189: Change in Cost Savings Per Unit - Segment Wise
9%
25%
14%
21%
9%
3%
4%
9%
1% 3% 1%
0%
10%
20%
30%
1-3% 4-5% 6-10% >10% Percentage
unknown
No change
% Share of Respondents
Increase in Cost Savings per unitDecrease in Cost Savings per unit
Source:TechnopakAnalysis,Base-76
18%
21%
40% 40%
5%
20%
82%
100% 100%
74%
40%
60%
34 3 10 19 5 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-76 Impact of TUFS
147
All the respondents from Haryana and Rajasthan witnessed an increase in cost savings per unit.
31% of the respondents from Gujarat witnessed a decrease in cost savings per unit.
Exhibit 190: Change in Cost Savings Per Unit - Geography Wise
31%
40%
13%14% 14%
20%
7%
69%
100%
40%
80%
100%
86% 86%
13 6 5 15 1 14 7
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
GujaratHaryanaMaharashtraPunjabRajasthanTamil NaduUttar
Pradesh
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-76 Impact of TUFS
148
Summary of Impact on Cost Savings
Literature review indicates that units were able to improve their cost efficiencies and resource
efficiencies to significant extent. Majority of companies across all segments witnessed cost reduction
between 1% and 10%.
As per the KII analysis, 76% respondents opined that TUFS had a significant impact on cost savings,
whereas 100% of expert panel opined that the scheme had a positive impact on cost savings.
As per the UHS analysis, 76% of the 512 beneficiary respondents indicated an increase in cost savings
per unit, vis-à-vis 78% of the 76 non-beneficiary respondents. Units have also been able to increase
their cost savings and resource efficiencies to significant extent. 32% of beneficiary respondents
experienced cost saving of >10%. Cost saving of >10% was observed to be highest in weaving segment
(43%) followed by knitting segment (31%).
Among states, 72% of respondents from Karnataka have witnessed increase in cost savings per unit of
>10% due to TUFS. Of the 193 respondents from Gujarat, 38% witnessed increase in cost savings per
unit >10%. Over 15% respondents across the states Gujarat, Maharashtra and Uttar Pradesh have
witnessed decrease in cost savings.
Impact of TUFS
149
4.7 Quality
Past Trend Analysis - Literature Review
1. Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
As per the report, all the segments witnessed improvement in quality due to technology
upgradation suggested by more than 98% of units. 98% of SSI and 98.5 % of Non-SSI have
experienced improvement in product quality.
2. Technopak Advisors Evaluation Report of TUFS (2006)
In all, TUF Scheme had a positive impact on improving quality of products. Approx. 80% of
the units in processing sector and weaving sector experienced quality improvement. The
industry welcomed the decision to extend the scheme up to 2007. However, to sustain this
development the industry felt that this scheme should be further extended
3. NCEUS Evaluation Report on Impact of TUFS on the Unorganized Sector (2009)
As per the report, units in Maharashtra, Delhi, Haryana and Rajasthan, more than 70% of the
SSI units indicated substantial quality improvement. Out of 100 SSI units, in Haryana 51 units
witnessed quality improvement, in Delhi more than 85% of SSI units witnessed quality
improvement, whereas in Rajasthan only 35% of SSI units indicated improvement in quality.
4. CRISIL Evaluation Report of TUFS (2010)
The scheme had a significant impact on quality improvement in various segments and well as
units. Approx. 45% of Non-SSI and SSI units experienced improvement in quality, whereas
more than 65% of SSIs and Non-SSIs achieved an increase in price realizations up to 5 per cent
on improving yam quality. In texturizing industry, approx. 40% of the units experienced
improvement in product quality of filament yarn on parameters such as strength, evenness
and better temperature control mechanism on machines installed under TUF Scheme; in
garmenting, approx. 67% of units in Non-SSI and 37% of units in SSI experienced an
improvement in quality by using computerized machine, high end cutting machine and laying
equipment that provided better finishing to the garment products; in weaving, more than
65% of Non-SSI and SSI units showed improvement in quality, cost reduction and wastage;
and in knitting approx. 50% of SSI and Non-SSI units experienced improved quality products
on account of improved technology. Impact of TUFS
150
5. Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
As per the report, TUF Scheme encouraged companies to improve their product quality and
value addition by shifting to technologically upgraded machineries. Increase in Gross Value
Added (GVA) in overall T&A industry during RTUFS and RRTUFS period was supported by
improvement in product quality and value addition. GVA in factory sector grew from INR 0.18
lakh crore in 1998-99 to INR 0.83 lakh crore in 2013-14, with a CAGR of approx. 11%. Particular
segments in particular have experienced an improvement in product quality. In spinning,
upgraded technology helped India become the most competitive yarn manufacturing country
globally and helped India achieve 27-30% share in global cotton tarn trade. In weaving,
companies were able to invest in hi-tech warping, sectional warping and sizing machines to
produce high quality, wider width and longer length required for the high-speed shuttle less
looms. In processing, investment in technology upgradation in yarn and fiber dyeing
machines helped in reducing color variations and improving product quality. In garmenting,
modern sewing machines and other support machines such as pocket setter, belt loop
making, fusing machines, etc. improved productivity and overall quality. In technical textiles,
investment in specialized finishing and heat setting machines helped in improving the product
quality. Factors such as product development, value addition, quality improvement and
innovative practices also helped in improving Unit value realization (UVR) of textile sector.
Impact of TUFS
151
KII ANALYSIS
82%
6%
12%
Significant ImpactInsignificant ImpactNo Response
Base: 17
Source: Technopak Analysis
100%
Significant Impact
Base: 13*
Source: Technopak Analysis
Exhibit 191: Improvement in Quality
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry. Out of 17 respondents, 14 (82%) answered that TUFS had a
positive impact on improving Quality of the products. Whereas, all the 13 experts (100%) opined
that TUFS had a positive impact on Quality
Total Respondents Expert Panel
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry Impact of TUFS
152
UHS ANALYSIS
Beneficiaries
Improvement in Product Quality
TUFS has enabled companies to improve product quality. 89% of the respondents (497
beneficiaries) opined that this scheme has led to improvement in product quality.
Exhibit 192: Improvement in Product Quality
The product quality has improved significantly across the various segments as reported by the
companies.
Exhibit 193: Change in Product Quality - Segment Wise
89%
7%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
YesNoMaybe/ Not Sure
% Share of Respondents
YesNoMaybe/ Not Sure
Source:TechnopakAnalysis,Base-559
84%
91%
90%
86%
82%
90%
81%
8%
7%
6%
9%
8%
4%
7%
8%
1%
3%
5%
10%
6%
12%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559 Impact of TUFS
153
Non-Beneficiaries
Improvement in Product Quality
Of the 108 non beneficiaries who have responded to the question, 95% believe that their product
quality has increased.
Exhibit 194: Improvement in Product Quality
The product quality has improved significantly across the various segments as reported by the
non-beneficiary companies.
Exhibit 195: Change in Product Quality - Segment Wise
95%
4%
1%
0%
20%
40%
60%
80%
100%
120%
YesNoMaybe/ Not Sure
% Share of Respondents
YesNoMaybe/ Not Sure
Source:TechnopakAnalysis,Base-108
98%
100%
100%
96%
71%
80%
3%
4%
14%
20%
14%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108 Impact of TUFS
154
Summary of Impact on Quality
As per the literature review, TUF Scheme encouraged companies to improve their product quality and
value addition by shifting to technologically upgraded machineries. Factors such as product
development, value addition, quality improvement and innovative practices also helped in improving
Unit value realization (UVR) of textile sector.
The KII analysis indicates that 82% respondents opined that TUFS had a positive impact on improving
quality of the products, whereas 100% of the expert panel believed that the scheme had a positive
impact.
The product quality has improved significantly across the various segments as reported by the
companies enabled due to the TUFS. 89% of the respondents (497 beneficiaries) opined that the
scheme led to improvement in product quality, vis-à-vis 95% of the non-beneficiary respondents. Analysis of macro-economic factors affecting Textile Value chain
155
5. ANALYSIS OF MACRO-ECONOMIC FACTORS AFFECTING TEXTILE VALUE CHAIN
For India: Lending rate, Power cost and Labour cost are relatively higher than competing
countries. Higher lending rates have been one of the biggest barriers to investments into textiles
sector in India. Other competing countries like China, Vietnam, Bangladesh have better fiscal
incentives than India for making investments into textiles.
5.1 Investments in Textiles and Apparels
KII Analysis
Out of 62 responses, 22 of them (35%) responded to the question asked on major factors
impacting investments in the Indian textile & apparel industry. Major factors impacting
investments are Power, Interest Rate, and Lack of Scale. Out of 22 respondents, 55% ranked
power and interest rate as the major factors impacting investments into Indian T&A; Out of 14
respondents from expert panel, 50% ranked power as the major factor impacting investments.
Exhibit 196: Major Factors Affecting Investments
36%
55%
55%
Interest RatePowerLack of Scale
Base: 22
43%
50%
43%
Base: 14
*
Total Respondents Expert Panel
*Out of 23 Industry experts, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry;
Source: Technopak Analysis
Note: EODB- Ease of Doing Business
Source: Invest India Report on T&A Industry: The Change Agent of India, July 2020 Analysis of macro-economic factors affecting Textile Value chain
156
UHS ANALYSIS
Major factors impacting investments - Man power cost, interest rates, and GST. As per the KII
analysis, one of the major factors impacting investments is “lack of scales”, which as per UHS
analysis is ranked as the least impacting factors.
17%
13%
13%
12%
11%
10%
8%
7%
6%
3%
1%
0%
Man-Power Cost
Interest Rates
GST
Raw Material Cost
Corporate Tax
Power Cost
Labor Productivity
Infrastructure Cost
Supply Chain Cost
Government Clearances
Lack of Scale
Lack of visionary entrepreneurs
Base: 299
Exhibit 197: Factors Affecting Investments into Textiles
Source: Technopak Analysis Analysis of macro-economic factors affecting Textile Value chain
157
5.2 Exports
KII Analysis
Out of 62 responses, 20 of them (32%) responded to the question asked on factors affecting
exports in Indian textile & apparel industry. Major factors impacting exports - Trade Agreements,
Scale (Small Units), and Raw Material Cost. Out of 20 respondents, 70% ranked trade agreement
as the major factor impacting exports of the Indian T&A; Out of 14 respondents from expert
panel, 79% ranked trade agreement as the major factor impacting exports.
70%
40%
30%
Trade Agreements Scale (Small units) Raw Material Cost
Base: 20
79%
43%
36%
Base: 14*
Exhibit 198: Major Factors Affecting Exports
Total Respondents Expert Panel
*Out of 23 Industry experts, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry;
Source: Technopak Analysis
Analysis of macro-economic factors affecting Textile Value chain
158
UHS ANALYSIS
15%
14%
13%
12%
10%
10%
9%
8%
4%
3%
1%
Labor Productivity
Man-Power Cost
Interest Rates
Raw Material Cost
Corporate Tax
Power Cost
Infrastructure Cost
GST
Supply Chain Cost
Government Clearances
Trade Agreements
Base: 299
Major factors impacting exports - Labour productivity, man-power cost, and Interest rates. As
per the KII analysis, the major factor impacting exports is “trade agreements”, which as per
UHS analysis is ranked as the least impacting factor
Exhibit 199: Factors Affecting Exports of Garments
Source: Technopak Analysis Analysis of macro-economic factors affecting Textile Value chain
159
5.3 FDI Investment in Textile and Apparel
Exhibit 200: FDI in Textiles in USD Millions
197
230
619
454
166
379
443
366
422 408
0
100
200
300
400
500
600
700
2014 2015 2016 2017 2018
IndiaBangladesh
Source: Ministry of Textiles; FDI Survey Report; Statistical Department Bangladesh Bank
FDI in India witnessed a drastic decrease from 2016 to 2018 at the rate of 73%, in contrast to
an increase of 214.21% from 2014 to 2018 - whereas FDI inflow in Bangladesh has remained
constant over the years Analysis of macro-economic factors affecting Textile Value chain
160
5.4 Promoting domestic machinery manufacturing
Exhibit 201: Indian Textile Machinery Overview
Category 2014-15 2015-16 2016-17 2017-18 2018-19
CAGR
(2014-2019)
Spinning & allied machines 3,445 3,480 3,615 3,815 3,625 1.3%
Synthetic filament yarn
machines
800 440 400 385 400 -15.9%
Weaving & allied machines 890 870 900 885 890 0.0%
Processing machines 575 625 635 650 750 6.9%
Misc. (spinning, weaving,
and processing) machines
25 25 30 35 25 0.0%
Textile testing & measuring
instruments
90 115 100 130 165 16.4%
Hosiery machines/ hosiery
needles
60 60 65 80 85 9.1%
Spares & accessories 1,075 965 905 920 925 -3.7
Total production 6,960 6,580 6,650 6,900 6,865 -0.3%
Exports 2,466 2,351 2,438 2,939 3,665 10.4%
Imports 8,858 10,305 10,098 10,687 10,834 5.2%
Total demand 12,308 13,547 13,313 13,613 13,004 1.4%
% Share of demand met by
imported machinery
63% 69% 69% 71% 75%
Note: All numbers in Rs Crores
Source: Textile Machinery Manufacturers' Association (India)
Over the years, imports of textile machinery are increasing in India. During 2014-15, 63%
demand of machinery was met by imports, however, during 2018-19 the imports meet 75%
of the domestic demand of machinery Technology Upgradation Assessment
161
6. TECHNOLOGY UPGRADATION ASSESSMENT (MACHINERY REPORT)
Objectives
As part of this project, 3 major objectives of this technology upgradation assessment are
mentioned below. The Consultant has included evaluation matrix as part of this assessment as it
helps in arriving at major recommendations for TUFS
1. Study of machinery specifications and recommendations on ATUFS machinery list
2. Current level of Technology in India and upgradation achieved by TUFS
3. Global benchmarking – Comparison with competing countries on technology level
4. Evaluation matrix for technology assessment of textile segments
6.1 Study of machinery Specifications and recommendations on ATUFS machinery list
6.1.1 Primary Research, Methodology and Limitations
Primary Research:
The Consultant team conducted 16 interviews with leading machinery manufacturers and
industry stakeholders in textile machinery segment to take their inputs. Some of them gave
inputs on the machinery specifications for ATUFS and some gave inputs on other topics of the
objective. The list of stakeholders interviewed is attached as Appendix 2
Methodology and Limitations of this Study of Technical Specifications of the Machines:
Textile value chain is quite complex as it involves multiple fibers, multiple processes, multiple end
products and multiple applications. All this complexity has made the list of machinery under
ATUFS quite big. In the last 4 years TUFS machinery list has only increased; machines have not
been removed from any segment. There are 469 types of machines listed under ATUFS for
subsidy. There are approx. 590 machine manufacturers approved under ATUFS.
Exhibit 202: Recommendations on ATUFS Machines Listing Technology Upgradation Assessment
162
The Consultant observed that lots of these machines listed under ATUFS have no technical
specifications provided; it is just name of a machine or a process. There is clear need to provide
specifications for such machines; which is not under the scope of this study.
After deliberations with the machinery experts, the Consultant has decided to categorize the long
list of machines listed under ATUFS into 2 categories – “Core Process machines” and “Ancillary
process machines”. This is a subjective classification and may require further deliberations along
with the industry. Core Process machines (285 out of 469) perform the major process in the
manufacturing of the product. Most of the total investment into machinery, by the industry, is
for these core machines. Ancillary process machines (184 out of 469) mainly support the
manufacturing process and contribute lesser to the overall machinery investments. The
Consultant further analysed only ‘Core process machines’ and have provided technical
recommendations for them only. The Consultant has covered Spinning, Weaving, Knitting,
Processing, Garmenting, Technical Textiles, Handloom, Jute, Silk segments.
After a lot of deliberation with experts, concluded that “speed” is the best individual parameter
of the level of technology for the textile machine. There are many other important parameters
considered while choosing a machine, but speed is the most acceptable parameter to keep the
process of specification simple. Hence, the Consultant has made recommendations on speed for
the selected machinery for each textile segment. In some cases, like weaving and knitting, the
Consultant has given speed recommendations separately for MSME (Unorganized sector) and
Non-MSME (Organized sector)
Technology Upgradation Assessment
163
6.1.2 Recommendations on ATUFS Machines Listing
Summary of Machines
There are 469 machines available in ATUFS machines’ list, out of which the Consultant shortlisted
285 core machines and commented on most of them.
Exhibit 203: Summary of ATUFS machinery
S.no. Segment
Number
of
Machines
Number of Core
Machines
Number of
Ancillary
Machines
Number of MSME
and Non-MSME
suggestions
1 Weaving (Loom Shed) 14 7 7 7
2 Weaving Preparatory 18 8 10 8
3 Knitting 19 8 11 5
4 Processing 100 71 29 0
5 Technical Textiles 87 57 30 0
6 Handloom 16 16 0 0
7 Garmenting 116 43 73 18
8 Jute 54 30 24 0
9 Silk 45 45 0 0
Total 469 285 184 38
Technology Upgradation Assessment
164
6.2 Current Technology (Machinery) Level in India in Textile & Apparel
Primary Research
The Consultant conducted primary research with 17 industry experts (KII) to get inputs on level
of technology across all textile and apparel segments and for global benchmarking. The list of
Industry experts interviewed for primary research is mentioned in Appendix 2 for reference.
Current Level of Technology in India - Segment Wise
17 informants responded to the question asked on “Level of technology achieved globally for
each segment”. The scheme has witnessed non-uniform benefits across the different textile value
chain segments. Most respondents (70%) opined that in spinning segment India has achieved
global technology standards vis-à-vis other segments had not gained modernization. One of the
reasons for this is that among all textile segments, spinning is mostly in organized sector. In all
other segments, India lags behind in terms of technology. One of the major reasons for that
weaving, knitting, processing and garmenting has a big number of unorganized players; who are
not using high level of technology. Most of the respondents also shared that big players
(organized sector) uses global level of technology across segments. But the number and share of
such organized players in Indian textile value chain is quite low. Hence, overall standard of
technology level in textile segments is much lower than global standards. A summary of the
responses is given below:
Exhibit 204: Current Technology level in India - Segment Wise
12
3
2
1 1 11
3 5
6
5 5
1
2
3 1
2 2
1
5
8
9
10
9 9
15
14
0
2
4
6
8
10
12
14
16
18
SpinningWeavingKnittingProcessingGarmentingTechnical
textile
including
non woven
CompositeEmbroidery
No. of Respondents
Segments
No Response May be Not Achieved Achieved
Source -Technopak analysis
Respondent-17 Technology Upgradation Assessment
165
UHS Analysis - Beneficiaries
The Consultant conducted primary research with 559 Unit holders (UHS) to get inputs on level of
technology across all textile and apparel segments and for global benchmarking. Out of 559
respondents, 24% respondents felt that technology levels across segments have reached global
standards. 76% respondents felt that across segments India is yet to match global technology
standards. Spinning is one segment where the technology levels in India match the global
technology levels.
Exhibit 205: Technology upgradation level achieved by TUFS
Segment-wise Technology Upgradation level achieved by TUFS – Beneficiary Analysis
In UHS, the Consultant covered 559 respondents in total. The respondent base for each segment
is mentioned below under the individual segment graphs. Segment wise response on technology
levels by all the 559 respondents is given below:
Exhibit 206: Segment-wise Technology Upgradation level achieved by TUFS- Beneficiaries
24%
35%
40%
As per Global standards
As per Indian standards
As per requirements/Budget
Source-Technopak analysis
Respondents: 559
13%
50%
37%
Spinning
Source-Technopak analysis
Respondents: 38
19%
32%
49%
Weaving
Source-Technopak analysis
Respondents: 282 Technology Upgradation Assessment
166
23%
36%
41%
Processing
Source-Technopak analysis
Respondents: 66
45%
45%
10%
Knitting
Source-Technopak analysis
Respondents: 31
27%
43%
29%
Garmenting
Source-Technopak analysis
Respondents: 51
42%
30%
28%
Others
Source-Technopak analysis
Respondents: 43
33%
33%
33%
Technical Textiles
including non-woven
Source-Technopak analysis
Respondents: 48
As per global standards As per Indian standards As per requirements/ budget
Technology Upgradation Assessment
167
Segment-wise Technology Upgradation level achieved by TUFS – Non- Beneficiary Analysis
In UHS, the Consultant covered 108 non-beneficiaries. The respondent base for each segment is
mentioned below under the individual segment graphs. Segment wise response on technology
levels by all the 108 respondents is given below:
Exhibit 207: Segment-wise Technology Upgradation level achieved by TUFS- Non-Beneficiaries
29%
57%
14%
Technical Textiles
including non-woven
Source-Technopak analysis
Respondents: 7
100
%
0%0%
Others
Source-Technopak analysis
Respondents: 5
55%
20%
25%
Weaving
Source-Technopak analysis
Respondents: 40
83%
0%
17%
Knitting
Source-Technopak analysis
Respondents: 6
36%
55%
9%
Processing
Source-Technopak analysis
Respondents: 22
61%
25%
14%
Garmenting
Source-Technopak analysis
Respondents: 28
As per global standards As per Indian standards As per requirements/ budget
Technology Upgradation Assessment
168
Secondary Research
To understand India’s position in different segments, The Consultant has analysed past
shipments. India has been above the global average for modernization rate in Spinning (Exhibit
208). India is way ahead of all other competing nations except China in shipments of Spinning
machinery (Exhibit 209). India has maintained its share of shipments and installed capacity over
last 4 years.
Exhibit 208: Global Machinery Shipments - Spinning
Countries
Spindles (Spinning)
Installed
Capacity
Cumulative
Shipments
Rate of
Modernization
Installed
Capacity
Cumulative
Shipments
Rate of
Modernization
Installed
Capacity
Cumulative
Shipments
Rate of
Modernization
2013 2005 – 13 2016 2008 – 16 2017 2009 – 17
India 50,451 20,893 41% 53,529 19,292 36% 53,491 21,190 40%
China 113,623 57,178 50% 103,623 49,645 48% 103,620 53,581 52%
Bangladesh 9,815 3,784 39% 11,665 4,006 34% 12,515 4,516 36%
Vietnam 5,102 2,831 55% 6,952 4,127 59% 6,952 4,373 63%
Pakistan 11,981 3,394 28% 13,469 2,135 16% 13,435 2,626 20%
Turkey 7,875 3,297 42% 8,675 3,506 40% 8,675 3,704 43%
Indonesia 11,901 3,349 28% 12,207 3,843 31% 12,303 4,245 35%
Brazil 5,270 494 9% 4,671 551 12% 4,500 565 13%
Italy 2,930 128 4% 2,925 99 3% 2,925 118 4%
Mexico 3,767 257 7% 2,576 319 12% 2,577 366 14%
World 259,060 100,294 39% 249,702 92,318 37% 251,038 101,035 40%
Exhibit 209: Share of shipments (Spinning)
Countries
Shipments
2014
Global
Share
2014
Shipments
2017
Global
Share
2017
Shipments
2018
Global
Share
2018
China 4,446 45% 3,936 45% 3,865 44%
India 2,188 22% 1,899 22% 1,455 17%
Vietnam 750 8% 246 3% 868 10%
Bangladesh 349 4% 510 6% 708 8%
Turkey 661 7% 198 2% 537 6%
Pakistan 347 3% 491 6% 274 3%
Indonesia 502 5% 401 5% 143 2%
World 9,942 8,717 8,798
Exhibit 210: Share of installed capacity (Spinning)
Countries
Installed
Capacity
2013
Global
Share
2014
Installed
Capacity
2016
Global
Share
2017
Installed
Capacity
2017
Global
Share
2018
China 113,623 44% 103,623 41% 103,620 41%
India 50,451 19% 53,529 21% 53,491 21%
Pakistan 11,981 5% 13,469 5% 13,435 5%
Bangladesh 9,815 4% 11,665 5% 12,515 5%
Indonesia 11,901 5% 12,207 5% 12,303 5%
Turkey 7,875 3% 8,675 3% 8,675 3%
Vietnam 5,102 2% 6,952 3% 6,952 3%
World 259,060 249,702 251,038
Note: Figures in thousands, Rate of modernization is given by cumulative shipments divided by installed capacity
Source: ITMF, Secondary Research, Technopak Analysis Technology Upgradation Assessment
169
India has low rate of modernization due to presence of high number of shuttle looms in MSME
sector (Exhibit 211). In 2018, India imported more shuttle less looms than next 5 competing
countries put together (Exhibit 212). Type of looms (level of technology) being imported in
India is similar to all other competing nations.
Exhibit 211: Global Machinery Shipments - Weaving
Exhibit 212: Share of shipments (Weaving)
Countries
Shipments
2014
Global
Share
2014
Shipments
2017
Global
Share
2017
Shipments
2018
Global
Share
2018
China 33 46% 50 52% 91 68%
India 16 23% 21 22% 17 13%
Indonesia 2 3% 4 4% 5 3%
Bangladesh 5 8% 6 6% 4 3%
Turkey 2 3% 3 3% 4 3%
Vietnam 2 3% 2 2% 2 1%
Pakistan 2 2% 2 2% 2 1%
World 72 96 134
Exhibit 213: Share of installed capacity (Weaving)
Countries
Capacity
Installed
2013
Global
Share
2013
Capacity
Installed
2017
Global
Share
2017
China 740 56% 860 53%
India 21
+
2% 116
+
7%
Indonesia 56 4% 75 5%
Turkey 45 3% 50 3%
Bangladesh 27 2% 40 2%
Pakistan 28 2% 38 2%
Vietnam 7 1% 7 0%
World 1,333 1,627
Note: Figures in thousand, Rate of modernization is given by cumulative shipments divided by installed capacity
*Data quoted for the shuttleless looms is for mill sector only and it also includes shuttle looms in both organized and unorganized sectors;
+Data quoted for the shuttleless looms is for mill sector only
Technology Upgradation Assessment
170
India is ranked 2
nd
with 8% share of imports (2009-18) of Circular Knitting Machinery. India is
ranked 5
th
with 2% share of imports (2009-18) of Flat Knitting machinery.
Exhibit 214: Global Machinery Shipments - Knitting
India is ranked 2
nd
with 7% share of imports (2009-18) of Draw-Texturing Machinery shipments
Exhibit 215: Global Machinery Shipments - Draw-Texturing
Countries
Cumulative Shipments of Draw-Texturing Machinery
2005-14 2008-17 2009-18
Total Share % Total Share % Total Share %
India 413,236 10% 345,322 8% 354,202 7%
China 2,925,300 68% 2,930,216 66% 3,281,208 66%
Vietnam 62,464 1% 61,872 1% 79,152 2%
Turkey 75,084 2% 105,264 2% 111,744 2%
Bangladesh 4,800 0% 1,512 0% 1,752 0%
Pakistan 14,160 0% 13,200 0% 14,880 0%
USA 27,512 1% 44,590 1% 46,986 1%
Egypt 39,774 1% 41,766 1% 41,766 1%
Indonesia 28,212 1% 36,828 1% 41,388 1%
Brazil 36,936 1% 41,166 1% 40,978 1%
Chile 9,600 0% 15,840 0% 17,520 0%
Germany 7,644 0% 11,040 0% 11,280 0%
World 4,301,268 4,435,271 4,944,503
Countries
Cumulative Shipments of Circular Knitting Machinery Cumulative Shipments of Flat Knitting Machinery
2005-14 2008-17 2009-18 2005-14 2008-17 2009-18
Total
Share
%
Total
Share
%
Total
Share
%
Total
Share
%
Total
Share
%
Total
Share
%
India 13,594 4% 22,856 8% 25,546 8% 10,179 1% 12,999 2% 18,208 2%
China 213,031 70% 189,464 64% 202,040 62% 509,355 47% 477,360 68% 599,903 70%
Vietnam 3,124 1% 7,217 2% 8,760 3% 11,115 1% 14,774 2% 18,916 2%
Turkey 11,541 4% 11,246 4% 12,709 4% 14,270 1% 18,074 3% 20,461 2%
Bangladesh 10,613 4% 12,025 4% 13,344 4% 409,328 37% 80,633 12% 94,415 11%
Pakistan 1,148 0% 1,816 1% 2,342 1% 891 0% 1,151 0% 1,318 0%
Italy 1,440 0% 1,380 0% 1,501 0% 9,049 1% 9,910 1% 10,909 1%
Indonesia 6,859 2% 8,356 3% 9,504 3% 11,727 1% 4,026 1% 4,745 0%
Thailand 2,634 1% 2,691 1% 2,930 1% 5,858 1% 8,127 1% 8,432 1%
Brazil 5,554 2% 4,298 1% 4,473 1% 1,819 0% 2,623 0% 3,166 0%
World 302,718 298,061 324,876 1,094,790 698,147 858,555
Source: ITMF, Secondary Research, Technopak Analysis
Source: ITMF, Secondary Research, Technopak Analysis Technology Upgradation Assessment
171
6.3 Global Benchmarking – Comparison with competing countries on technology level
The Consultant tried to compare the technology level in each segment with 5 other competing
nations. The Consultant got response from 17 Key Informants on the question “rank the
following countries in terms of the level of technology (machines) being used for each sector.
Their responses were collated and Segment wise analysis is given below:
In spinning segment, India ranks at top in terms of technology along with China among the 6
countries followed by Vietnam, Turkey, Bangladesh and Pakistan.
Exhibit 216: Spinning
In the weaving segment, India has been ranked low, in terms of technology level, majorly because
of high number of power looms in India. Power looms and handlooms have the lowest technology
level in weaving. More than 70% of weaving production in India comes from decentralised power
loom sector. India has more than 2 lac power loom units and significantly large number of
handlooms. China ranks at the top in terms of technology followed by Turkey.
Exhibit 217: Weaving/Knitting
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopak analysis
Respondent -17
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopakanalysis
Respondent-17 Technology Upgradation Assessment
172
In processing segment, India has been ranked among the lowest in terms of technology among
these 6 countries. India has a lot of unorganized players in processing segment, who use outdated
technology. Processing consists of removing dirt, natural and synthetic oils bring out lustre to
fibers, but most of the processing in India is still carried out by batch technology that reduces
uniformity in fabric properties. The continuous processing range provides best uniformity in
fabric properties. Independent Process houses and composite units with processing facility
contribute only a little to the total processed fabric produced in India.
Exhibit 218: Processing
In garmenting segment, India’s has been ranked number 4 in terms of technology amongst these
6 countries. India has more than 2.5 lac garmenting units. Average size of a garmenting unit in
India is much lower than that of China, Bangladesh and Vietnam. Lot of these units in unorganized
sector does not use high level of technology.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopak analysis
Respondent -17
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopak analysis
Respondent -17
Exhibit 219: Garmenting Technology Upgradation Assessment
173
In the Technical Textiles segment, India has been ranked 4 by the respondents in terms of
technology among these 6 countries. China is the leader in technical textiles technology levels
like in most other segments.
In Textile Machine Manufacturing segment, India has been ranked 3 in terms of technology
among these 6 countries. European countries such as Germany, Switzerland, Italy and Japan are
considered the leaders for textile machinery manufacturing. Companies from these countries
have set up units in China in last 10-15 years making China also a major player in textile machine
manufacturing. India is strong in spinning machinery manufacturing. Most of the infrastructure
of domestic machinery manufacturers is outdated and produce obsolete machinery. This is one
of major reason; India imports most of the textile machinery. In other segments like processing,
weaving India’s technology levels is way behind the global leaders.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopak analysis
Respondent -17
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopak analysis
Respondent -17
Exhibit 221: Textile Machine Manufacturing
Exhibit 220: Technical Textiles Technology Upgradation Assessment
174
6.4 Evaluation Matrix for Technology assessment of Textile Segments
The Consultant conducted primary and secondary research to find out which textile segment
should be given preference for subsidy under TUFS. The Consultant created an evaluation matrix
with six parameters important for technology assessment of all major 6 textile segments viz
Spinning, weaving, knitting, processing, garmenting, technical textiles. After multiple discussions
with industry experts, six parameters considered for the evaluation matrix are –
1. % of machine cost in total project cost
2. Absolute capex required for viable project
3. Current technology level in India
4. Return on investment
5. Trade surplus/deficit (Export-Import)
6. Technology obsolescence period.
Information was gathered for each segment for all the 6 selected parameters and Exhibit 222
was filled. These figures are based on the Consultant’s industry knowledge, primary research with
machinery experts and textile consultants. There is some subjectivity to these numbers for each
segment as there are multiple variables involved. The Consultant used thumb rules and industry
benchmarks to arrive at the figures for each textile segments.
Separate grades were allotted to each segment on basis of values assigned to each parameter.
An average grade has been evaluated and all the segments are ranked on the basis of grades.
Based on the machinery ranking analysis segment-wise recommendations have also been
provided for every segment.
Exhibit 222: Machinery Matrix
Segment
% Machine
cost in
total
project
cost
Absolute
capex
required for
viable project
(INR Crores)
Current
technology
level in
India
(Grade 1-5)
Return on
Investments
(Number of
years)
Trade
surplus/
deficit (in
USD Mn)
Technology
Obsolescence*
(Number of
years)
Spinning 55-60% 85-95 5 6 3,671 9-10
Weaving 60-65% 30-40 3 7 2,604 7-8
Knitting 65-70% 25-30 3 6 -59.2 5-6
Processing 55-60% 140-150 2 6.5 2,604 4-5
Garmenting 30-35% 15-25 4 5.5 14,164 5-6
Technical
Textiles
55-60% 35-40 3 5 -100.3 6-7
Note: Grade 1 indicates lowest level of technology, Grade 5 indicates highest level of technology ; Source: Technopak Analysis Technology Upgradation Assessment
175
Exhibit 223 represents the scores and grades given for each parameter across textile segments.
Each segment was ranked against each other for all the six parameters. Final score was arrived
for all the 6 textile segments. The lowest score segment got the highest rank in terms of priority
to be given for TUFS subsidy. Processing emerged as the highest ranked segment and
garmenting as the lowest ranked segment.
Exhibit 223: Evaluation Matrix (Ranking of segments) for Technology Assessment
Segment
%
Machine
cost in
total
project
cost
Absolute
capex
required
for viable
project
(INR
Crores)
Current
technology
level in India
(Grade 1-5)
Return on
Investments
(Number of
years)
Trade
surplus/
deficit
(Score
1-6)
Technology
Obsolescence
(Number of
years)
Overall
score
Rank of
sector
Spinning 3 2 6 3 5 6 4.2 5
Weaving 2 4 2 1 3 5 2.8 3
Knitting 1 5 2 3 2 2 2.5 2
Processing 3 1 1 2 3 1 1.8 1
Garmenting 6 6 5 5 6 2 5 6
Technical
Textiles
3 3 2 6 1 4 3.2 4
Source: Technopak Analysis
Exhibit 224 represents the recommendations for TUFS subsidy based on the ranking arrived from
the evaluation matrix. Highest subsidy % and highest budget allocation should be given to the
highest ranked segment Processing. Technopak propose that Subsidy % for processing may be
increased to 20-25% and budget allocation for processing should be 30-40%. Similar
recommendations have been made for all the textile segments. Technopak propose that spinning
and garmenting may be kept out of ATUFS going forward and more focus to be given to
processing, weaving, knitting and technical textiles.
Technology Upgradation Assessment
176
Exhibit 224: Segment–wise Recommendations for ATUFS subsidy
Segment
Overall rank
of sector
Proposed
subsidy (%)
Share in total
subsidy budget
(%)
Expected
investment per
year under TUFS
(2022 onwards)
Spinning 5 0% 0% 0
Weaving 3 15% 20% Rs. 5,300 Cr.
Knitting 2 15% 20% Rs. 2,300 Cr.
Processing 1 20-25% 30-40% p
Garmenting 6 0%
*
0% 0
Technical Textiles 4 15% 20% Rs. 5,100 Cr.
Total Expected Investments Rs 20,300 Cr.
(USD 2.7 Bn)
Note: * Latest machinery (Industry 4.0) should be given subsidy under TUFS
Expected investments are based on broad level assumptions and investment thumb rules for each textile segment.
Source: Technopak Analysis
Additional questions for this project
177
7. ADDITIONAL QUESTIONS FOR THIS PROJECT
1. Whether the intended technological upgradation has taken place?
Refer the Sections 6.2 (Current Technology (Machinery) Level in India in Textile & Apparel - Page
164-170) and 6.3 (Global Benchmarking – Comparison with competing countries on technology
level – Page 171-173)
• India has been above the global average for modernization rate in Spinning
• India has low rate of modernization in weaving due to presence of high number of shuttle
looms in MSME sector. Type of looms (level of technology) being imported in India is similar
to all other competing nations.
• India is ranked 2nd and 5th for import of Circular Knitting and Flat Knitting shipments M/c
respectively
• India is ranked 2
nd
in imports of Draw-Texturing Machinery shipments
Exhibit 225: ATUFS Beneficiaries’ - Weaving, Knitting Machinery analysis
Knitting Machines
Number of units Number of machines Average Machines/units
2016-17 2017-18 2018-19 2016-17 2017-18 2018-19 Total 2016-17 2017-18 2018-19
High speed circular knitting
(20 RPM)
14 8 4 87 58 42 187 6 7 11
High speed circular
knitting(15 RPM)
26 17 9 119 55 43 217 5 3 5
40 25 13 206 113 85 404 5 5 7
• 43% of the looms installed during ATUFS are high speed air jet looms (WIR>=1200 mpm)
• Average number of shuttle-less looms per unit are 12 indicating that most of the units are
from MSME sector
Weaving Machines
Number of units Number of machines Average Machines/units
2016-17 2017-18 2018-19 2016-17 2017-18 2018-19 Total 2016-17 2017-18 2018-19
Rapier WIR>= 380 mpm 46 88 47 389 894 459 1,742 8 10 10
Air Jet WIR>=1200 mpm 57 76 20 471 1,946 375 2,792 8 26 19
Air Jet WIR>=900 mpm 3 8 5 96 169 90 355 32 21 18
Water Jet WIR>= 1000
mpm
12 25 21 316 445 191 952 26 18 9
Water Jet WIR>= 800 mpm 3 32 5 73 515 42 630 24 16 8
121 229 98 1,345 3,969 1,157 6,471 11 17 12
Source: Office of the Textile Commissioner, Technopak Analysis Additional questions for this project
178
2. Whether the benefits have been cornered by only a few large companies or has the
benefit flowed to MSME as well?
Exhibit 226: Subsidy released under schemes
• Benefits to MSMEs has been increasing under TUFS schemes. 87% of total beneficiaries under
ATUFS are MSMEs.
• Amount of subsidy received by MSMEs has increased from 10% to 36% from RTUFS to ATUFS
period.
• Number of MSME beneficiaries have risen from 77% to 87% from RTUFS to ATUFS period with
a fall to 61% during RRTUFS period.
Source: Office of the Textile Commissioner, Technopak Analysis Additional questions for this project
179
3. Whether benefits have flowed to the complete value chain of the Textile Industry or
just a particular sector & its impact?
Exhibit 227: Subsidy released under schemes segment-wise
RTUFS
(28.04.11 - 31.03.12)
RRTUFS
(01.04.12 - 02.01.16)
ATUFS
(13.01.16 - 31.01.20)
Segments
Total
(in INR
Crores)
Share
Total
(in INR
Crores)
Share
Total
(in INR
Crores)
Share
Spinning 1,176 25% 722 13% - -
Weaving/ Knitting 643 14% 436 8% 155 51%
Processing 602 13% 615 11% 60 19%
Garmenting 164 3% 393 7% 43 14%
Technical Textiles 417 9% 626 11% 48 16%
Multi-Activity 1,490 32% 2,806 49% - -
Others 239 5% 90 2% 1 0%
Total 4,731
5,688
307
• TUFS benefits has been taken by all segments of textile value chain.
• During RTUFS, Spinning segment received ~25% of the released subsidy.
• During RRTUFS, Spinning, Processing and Technical Textiles received ~13%, ~11%, ~11%
of the released subsidy respectively.
• During ATUFS, Weaving segment has received ~51% of the released subsidy.
Source: Office of the Textile Commissioner, Technopak Analysis Additional questions for this project
180
4. Whether productivity of the textile sector has improved?
Refer the Exhibit 81, Exhibit 82 and Exhibit 83
• Productivity of Textile sector has improved as indicated by the UHS and KII Analysis.
• During TUFS period, all the segments witnessed an increase in production, owing to
upgraded technology and improvement in capacity addition
• 37% of the respondents witnessed production increase of greater than 20%
• 94% of the interview respondents and 10% of the expert panels felt that there was
significant impact of TUFS on increase of Production
5. Whether commensurate investments from the industry side have taken place?
From Exhibit 27,
Average investment from the industry during TUFS is INR 16,175 Crores per year (1999-2019).
Average investment in RTUFS, RRTUFS and ATUFS is Rs 13.7 Cr, Rs 5.1 Cr and Rs 4.2 Cr
respectively.
Note: ‘ 2010-11 Budgeted subsidy exhausted due to overwhelming response * 2015-16 Data not available
Source: Ministry of Textiles, Technopak Analysis Additional questions for this project
181
• Share of investments by MSMEs have increased from 11% to 32% from RTUFS to ATUFS
period.
• Non-MSMEs in spinning segment have invested heavily during RTUFS and RRTUFS
Exhibit 228: Project Investments under schemes
Segment MSME Share Non-MSME Share Total
Multi-Activity 307 3% 10,571 97% 10,878
Spinning 312 4% 7,261 96% 7,573
Technical Textiles 669 28% 1,722 72% 2,391
Processing 648 28% 1,676 72% 2,325
Garmenting 757 50% 768 50% 1,524
Weaving/ Knitting 538 41% 762 59% 1,300
Others 316 57% 238 43% 554
Total 3,547 13% 22,998 87% 26,545
Segment MSME Share Non-MSME Share Total
Weaving/ Knitting 971 47% 1,108 53% 2,078
Processing 208 22% 742 78% 950
Garmenting 75 11% 595 89% 669
Technical Textiles 115 21% 427 79% 542
Other 14 85% 2 15% 17
Total 1,382 32% 2,875 68% 4,257
Segment MSME Share Non-MSME Share Total
Spinning 114 2% 6,194 98% 6,308
Multi-Activity 34 1% 6,070 99% 6,104
Weaving/ Knitting 838 33% 1,670 67% 2,508
Processing 398 18% 1,754 82% 2,151
Technical Textiles 338 20% 1,358 80% 1,696
Others 119 11% 978 89% 1,096
Garmenting 327 49% 342 51% 669
Total 2,167 11% 18,365 89% 20,532
RTUFS
(28.04.11 - 31.03.12)
RRTUFS
(01.04.12 - 02.01.16)
ATUFS
(13.01.16 - 31.01.20) Additional questions for this project
182
6. Whether there is a causal relationship between the subsidy provided, technology
upgradation and the increase in exports?
Refer Exhibit 113, Exhibit 114
India’s global competitiveness improved considerably in Spinning due to TUF Scheme and the
global textiles & clothing trade share increased from 3% to 5.1% until RTUFS and decreasing post-
RTUFS.
Exports in T&A industry grew along with increase in production and overall competitiveness due
to addition of technologically advanced machineries. Although, since exports are highly
dependent on macro-economic factors hence causal relationship between subsidy provided
cannot be established with increase in exports.
7. Whether intended jobs have been generated?
Refer Exhibit 140, Exhibit 141
• TUF Scheme contributed positively to employment generation and helped in growth of
income and improving livelihood of the workers as indicated by the UHS and KII analysis.
• 39% of the respondents witnessed total manpower increase of < 20, while 21%
respondents witnessed total manpower increase between 20 and 50.
• Weaving, Processing, Garmenting have witnessed an increase in total manpower by 65-
75% of the respondents
Issues and Challenges
183
8. ISSUES AND CHALLENGES
From qualitative analysis (KII), Technopak have summarized the major issues and challenges
faced by the industry for ATUFS scheme and related issues of textile value chain:
DISBURSEMENT OF SUBSIDY
The delays in disbursement of subsidy is a very serious issue highlighted by KIIs. All industry
experts and industry association persons were of the opinion that disbursal has been painfully
slow in last 2-3 years. The delays were much lesser in earlier schemes. Key reasons for delays
were attributed to the lack of funds, delays in submission of JIT (Joint Inspection Team) report,
delays due to processing of documents, rejection of applications for additional requirements
because of the complex guidelines, and lack of staff for inspections. Out of total TUFS subsidy outlay
of Rs 6,271 Crores under ATUFS for 2016-2022; less than Rs 800 Crores has been disbursed till May
2020. Out of anticipated investment of Rs 95,000+ Crores under ATUFS for 2016-2022; only Rs
54,833 investments have happened from 2016 till 2020. Average investment per year has reduced
from Rs 18,000+ Crores under RTUFS (2011-2013) to Rs 1,100+ Crores under ATUFS (2016-2020).
IMPLEMENTATION MECHANISIM
Majority of the respondents find the implementation mechanism followed under TUFS
application process as complex and cumbersome. Out of 12,073 applications filed under ATUFS
till May 2020; only 873 applications have got the subsidy till May 2020. Checklist of JIT inspection
is cumbersome to comply with including machine serial numbers on the shipping documents
and Invoices. Applications and claims are processed and scrutinized at multiple levels and
stages; leading to inordinate delays.
JIT inspections are being done for 8-10 years old cases under RTUFS and some of the required
documents are not available with the beneficiaries as guidelines were different then. This is
further delaying the ATUFS cases. Some respondents shared that current e-filing mechanism in
i-TUF software is less convenient and takes sufficient amount of time in uploading documents,
which in turn delays UID (Unique Identification) generation.
Several imported machines do not have serial number and year of make. Such machines are
not considered. Cumbersome process of Certificate authentication from machinery
manufacturers. Several leading textile machinery manufacturers (having the best technology in
the world) are yet to be enlisted as they are not able to provide certain documents and the
approval process takes very long time.
SCHEME GUIDELINES / SCHEME STRATEGY
TUFS is no more looked as an industry friendly scheme and is losing importance. Most of
industry experts felt that TUFS must be revived to promote investments in textile value chain
and upgrade technology. Need of TUFS is felt more to support MSME and unorganized sectors
in weaving, processing, knitting and garmenting. Issues and Challenges
184
Fabric manufacturing (Weaving, Knitting and Processing) was regularly mentioned as weak link
in India’s textile value chain. As per industry estimates, more than 70% of production in these 3
segments comes from MSME segment. This segment does not have the financial strength to
make big investments into technology. Hence, the overall technology levels in these 3 segments
have remained much lower than global competitors. Out of total of ~24 lac looms in India; only
around 1.2 lacs are shuttle less looms. Investment into fabric segment has to be encouraged the
most to balance India’s textile production capability and enhance value added exports of
garments, made ups, technical textile products. Over the years, TUFS has failed to attract major
investments into weaving, knitting and processing.
Man-made value chain has got higher potential for growth in exports and domestic markets,
but MMF production machines like Texturizing have not been covered under TUFS. Processing
of MMF fabric is more complex for the unorganized sector; hence lot of good quality MMF based
fabric is being imported.
Industry is of the opinion that earlier schemes of TUFS were more industry friendly as they covered
working capital and interest subsidy and also their mechanism of disbursement was better.
Demand for TUFS is higher in certain states and clusters and hence some clusters are not getting
benefit of the scheme. Demand for TUFS is skewed towards 4 states viz Gujarat, Tamil Nadu,
Maharashtra, Punjab. More textile clusters in other states need to be encouraged to avail TUFS
benefits.
LIST OF MACHINES AND MACHINE MANUFACTURERS
Industry feedback is that machinery list under ATUFS needs relook. Lots of new machinery needs
to be added. New machines, technology, software and other best in class technology
advancements under Industry 4.0 should be included under ATUFS. Adoption of Industry 4.0 by
few players will have a cascading effect on the technology levels in the country. Lots of
machinery listed are outdated technology and can be excluded from the list.
Enlistment of textile machinery manufacturers also needs to be revised. Several leading
manufacturers (best in class) are yet to be enlisted due to cumbersome requirements of
enlisting.
Some industry experts from spinning segment believe that spinning should be included again in
ATUFS otherwise India may lose its competitive edge in spinning. Technopak believes that
spinning should be kept out of ATUFS. Industry experts also highlighted that domestic machinery
manufacturing is not progressing and TUFS is promoting import of textile machinery. It was
suggested to support the domestic machine manufactures through TUFS scheme.
Overall Summary of Findings
185
9. OVERALL SUMMARY OF FINDINGS
9.1 Impact of TUFS
Investments
As per the industry experts and other key stakeholders, TUF Scheme has helped a lot in
increasing the investments into textile sector over the years through capacity addition. As
per them, the investments into textile value chain would have been much lesser in absence
of TUFS. Factors such as ROI (Return on Investment), industry demand, profitability and
other macroeconomic factors affect the investments into Indian textiles industry. Over the
years, textile has become less attractive sector to invest vis-à-vis other sectors.
Investment trend under TUFS has dropped over the years, from INR 24,364 Crores per year
(during RTUFS) to INR 18,278 Crores per year (during ATUFS). Spinning and technical
textiles in particular, witnessed a significant decrease in investments from RTUFS to ATUFS
period. This drop may be attributed to lack of funds for the subsidy.
Spinning segment witnessed highest investments before it was removed under ATUFS.
After removal of spinning, weaving has become the segment with most investments. Over
70% of the investments in the spinning sector were made towards upgradation or
replacement of machinery.
UHS analysis indicates that mostly small-scale project investments have happened in textile
sector. 65% projects had investment of less than 5 crores and only 2% projects had
investments of more than 50 crores (beneficiaries). 54% of the beneficiary respondents
witnessed an increase in number of machines by less than 10%. Overall, this indicates that
industry has not been adding much machinery during the latest TUF schemes.
KII analysis indicates that 82% opined that TUFS had a positive impact on investments,
whereas 92% of the expert panel believed that TUFS had a significant impact on
investments. The industry experts commented that significant investments happened in
spinning segment after introduction of TUFS over the years. India is now, globally, among
the leading nations in spinning and a lot of this success is attributed to the TUF Scheme.
After removal of spinning under TUFS, weaving is now the leading segment taking TUFS
advantage to attract investments.
Financial Performance
TUFS subsidy had a positive impact on the financial performance of the companies over the
years, owing to reduced cost of capital, improved margins and turnovers of the textile
companies. This is one of the reasons that Indian textile industry has witnessed a lot of
demand for TUFS subsidy (10,972 applications under ATUFS till Jan 2020). Most of the
textile segments operate in the low profitability ranges of less than 10%. The factor costs
for the industry have been rising with negative impact on their profits. The research
indicates that TUFS had overall positive impact on sales, net profit and average sales price Overall Summary of Findings
186
on textile companies. Weaving segment witnessed more significant impact on financial
performance parameters than the other segments.
UHS analysis indicates that 31% respondents witnessed more than 20% rise in annual sales.
It is mainly due to an increase in production volume, a result of higher speed machines.
Weaving segment showed the highest increase in sales with 37% respondents reporting
more than 20% increase in sales. This can be attributed to the fact that lots of power looms
have been replaced by shuttle less looms in recent years. Shuttle less looms have much
higher production and lead to increase in sales. 44% of the respondents witnessed an
increase of more than 10% in net profit. Weaving and knitting segments showed positive
response of 55% and 39% respectively for profit increase of more than 10%. 44% of the
respondents witnessed an increase in per unit sales price of more than 10%, which is in line
with the increase in sales value and net profits.
The Consultant finds that UHS analysis is a better indicator of the present financial
performance of the textile units as individual companies are in a better position to
comment on the financial performance of their respective companies’ vis-à-vis industry
experts or industry associations.
The KII analysis shows that 82% respondents opined that TUFS had a significant impact on
increasing sales, 71% responded with significant impact on increasing profit, and 47%
responded with a significant impact on increasing average sales price. Whereas, as per the
expert panel, 85%, 77%, and 54% opined that TUFS had a significant impact on increasing
sales, profit, and average sales price respectively.
Production and Productivity
During TUFS period, all the segments in the textile value chain witnessed a significant
increase in production, owing to investment in upgraded technology and improvement in
capacity addition. TUFS had a positive impact on productivity and operational parameters
such as product quality, new product development, cost efficiency, better product mix etc.
This was corroborated in the UHS and KII findings.
As per the UHS analysis, 88% of the 256 respondents (beneficiary) witnessed an increase in
production volume, whereas 76% of the 85 respondents (non-beneficiaries) witnessed an
increase in production volume. 77% of the weaving segment respondents (beneficiaries)
witnessed increase in production volume >5%, while 65% of weaving respondents (non-
beneficiaries) recorded increase in production volume >5%. 93% of 559 beneficiaries
respondents believe that TUFS enhanced the overall productivity of their respective units
that is in line with responses from 108 non beneficiaries. 89% of 559 respondents
(beneficiaries) opine that the scheme contributed towards improvement in product quality,
vis-à-vis 95% of 108 respondents (non-beneficiaries). 81% (559 beneficiaries) responded
that the scheme led to product development in majority of the segments. 74% of 559
respondents (beneficiaries) opined that TUFS enabled companies to efficiently use the
available resources and reduce wastage to achieve higher cost efficiency, vis-à-vis 69% of
108 respondents (non-beneficiaries). 66% of 559 beneficiaries respondents opined that Overall Summary of Findings
187
TUFS led to R&D across some segments. 56% of 559 beneficiaries responded that the
scheme increased export competitiveness as a result of technology upgradation and
combination of the factors previously mentioned.
The KII analysis suggests that 94% and 82% respondents opined that TUFS had a significant
impact on production and productivity respectively, whereas as per the expert panel,
everybody opined that TUFS had a significant impact on production and productivity.
Exports
Most companies in Indian textile industry benefited in terms of product development and
innovative practices due to addition of technologically advanced machineries. Exports in
textile and apparel industry grew along with increase in production and overall
competitiveness. The research indicates that fabric is the weak a link in the textile value
chain, and hence it needs to be strengthened to consume the excess spinning production
and to boost apparel industry requirements by supplying right price, quality and quantity
of fabric. India’s share in global exports for T&A has remained in the range of 4-5% in the
last 5 years.
The UHS analysis indicates that TUFS beneficiaries as well as non-beneficiaries experienced
an increased export volume and an increase in average unit price. This led to an increase in
overall value of exports. 42% of beneficiary units witnessed an increase in value of exports
greater than 6%, vis-à-vis 52% of non-beneficiary units. Weaving and garmenting segments
have seen highest gains in export value. Export volume has increased due to factors such
as product development, quality improvement and improved export competitiveness.
Weaving sector showed increased exports volume as lot of high-speed shuttle less looms
were installed for export products. KII analysis indicates that 64% of respondents felt that
exports increased due to TUFS.
As per KII analysis, 65% opined that TUFS had a significant impact on exports value, which
is in line with expert panel’s opinion (69%).
Overall textile and garments export out of India have remained stagnant in last 5 years at
approx. USD 37 Bn. Exports market is affected by many other external factors such as FTA,
cost competitiveness, speed to market etc. Hence, it is difficult to directly correlate TUFS
impact on exports.
Employment Generation
TUF Scheme contributed positively to employment generation and helped in growth of
income and improving livelihood of the workers. No. of people engaged in the operational
factories has witnessed an increasing trend in the last 5 years, so have the wages per
worker in T&A industry.
UHS analysis indicates that capacity additions across the textile value chain have created
new jobs for skilled as well as unskilled manpower. Overall, majority of the companies have Overall Summary of Findings
188
witnessed <50 additional skilled labour. In Spinning, Knitting, Processing and Garmenting
segment, a significant >30% of the respondents have indicated no change in unskilled
manpower. 37% of the beneficiary’s respondents witnessed an increase of >10% in salary
of the skilled manpower, whereas 61% of the beneficiary’s respondents witnessed an
increase of >10% in salary of the unskilled manpower.
KII analysis indicates that 76% of respondents opine that TUFS had a significant impact on
employment, vis-à-vis 69% of expert panel.
Cost Savings
TUFS scheme contributed significantly to the improvement of cost efficiencies and resource
efficiencies of the textile units. Majority of companies across all segments witnessed cost
reduction between 1% and 10%.
As per UHS analysis, 76% of the 512 beneficiary respondents indicated an increase in cost
savings per unit, vis-à-vis 78% of the 76 non-beneficiary respondents. Units have also been
able to increase their cost savings and resource efficiencies to significant extent. 32% of
beneficiary respondents experienced cost saving of >10%. Cost saving of >10% was
observed to be highest in weaving segment (43%) followed by knitting segment (31%).
As per KII analysis, 76% respondents opined that TUFS had a significant impact on cost
savings, whereas 100% of expert panel opined that the scheme had a positive impact on
cost savings.
Product Quality
TUF Scheme has helped companies to improve their product quality and value addition by
shifting to technologically upgraded machines. Factors such as product development, value
addition, quality improvement and innovative practices also helped in improving Unit Value
Realization (UVR) of textile sector.
The product quality has improved significantly across the various segments as reported by
the companies; enabled due to the TUFS. 89% of the respondents (497 beneficiaries)
opined that the scheme led to improvement in product quality, vis-à-vis 95% of the non-
beneficiaries’ respondents.
KII analysis indicates that 82% respondents opined that TUFS had a positive impact on
improving quality of the products, whereas 100% of expert panel believed that the scheme
had a positive impact on quality.
Overall Summary of Findings
189
Exhibit 229 Issues, Challenges and Recommendations from KIIs
In the discussions with key informants, the above phrases were frequently mentioned. In
the above “Word Cloud”, the larger fonts indicate that a greater number of informants
shared the same opinion.
As per the analysis of the above ‘Word Cloud’; TUFS has played a major role in the growth
of Indian textile industry - in attracting investments, increasing employment generation,
and improving capacity addition. However, majority of the Indian textile industry is still
unorganized and requires sufficient financial support from the Government to be able to
invest in large capacities and are able to use technologically advanced machines. This
analysis suggests that TUFS Scheme should be continued to help the industry become
technologically advanced and achieve its maximum potential. Indian textile industry lacks
balancing of textile value chain and that significant amount of investment is required to
develop downstream capacities. It was suggested that we do segment wise gap analysis
and add value to each segment accordingly. The Indian textile industry needs to promote
MMF in order to become globally competitive. The normal grievance of industry is also
highlighted as delays in disbursements and request to expedite TUFS subsidy and simplify
TUFS process implementation. Overall Summary of Findings
190
9.2 Macroeconomic factors
Investments in Textile and Apparels
As per KII analysis, major factors impacting investments are power, interest rate, and lack
of scale. 55% respondents ranked power and interest rates as major factors, which is in line
with expert panel’s opinion (50%).
Whereas, as per the UHS analysis, major factors impacting investments are manpower cost,
interest rate, and GST. As per the KII analysis, one of the major factors impacting
investments is “lack of scales”, which as per UHS analysis is ranked as the least impacting
factors.
Exports
As per KII analysis, major factor impacting exports are trade agreements, scale (small units),
and raw material cost. 70% ranked trade agreement as a major factor impacting exports,
which is in line with expert panel’s opinion (79%).
Whereas, as per the UHS analysis, major factors impacting exports are labor productivity,
man-power cost, and interest rates. As per the KII analysis, the major factor impacting
exports is “trade agreements”, which as per UHS analysis is ranked as the least impacting
factor. Overall Summary of Findings
191
FDI Investment in Textile and Apparel
CHALLENGES RECOMMENDATIONS
Lower Interest Rates
Competing nations such as
Bangladesh and Vietnam have
interest rates between 5-7%, vis-à-
vis India’s between 11 and 13%
Increase FTAs with Major and
Emerging Markets
Duty advantages provided
through FTA will help improve
cost competitiveness of exports
with competing nations
Fast Track Clearances
Dedicated staff should be available
24*7 for the clearance of import
and export goods ~ it is also
important to effectively create
single window clearance for the
processing of the documents
Lack of Single Window Clearance
Lack of single window and time
bound clearance impacts India’s
image for the FDI investors
List of Industries for automatic
approval
Government can consider having a
dedicated FDI policy for apparel
sector spelling out where the
approvals will be automatic and
where they will be case by case basis
High Cost of Financing
As per the KIIs, high interest rates
impact
cost of production and as a result
impact investment
Lack of FTAs with Major Markets
Competing nations such as
Bangladesh, Vietnam enjoy FTAs
with US/EU markets, giving them
competitive advantage over India
List of Industries for automatic
approval
Indian T&A industry is still out of
the list of industries enjoying
automatic approval for 51% FDI Overall Summary of Findings
192
Promoting domestic machinery manufacturing
1 2 3
•Around 75% of the textile
machines are imported
•Lack of investment into R&D
and latest technology by
domestic machine
manufacturers
•No attractive scheme for the
textile machinery
manufacturing
•Encourage JVs (Joint Ventures)
and FDIs (Foreign Direct
Investment) and leverage Anti-
China sentiment
•Establish mega parks for textile
machine manufacturing at TN
and Gujarat
•Devise a special scheme with
liberal policies and long-term
benefits for machine
manufacturing including R&D,
plug and play facility
•Domestically manufactured
machines with JVs will be of
same international quality at a
much lower price
•Ensure sustained growth of
the textiles and clothing
manufacturing industry
•Lower cost of machinery and
also consumables will lead to
better margins for textile
manufacturers
CHALLENGE SUGGESTIONS IMPACT Overall Summary of Findings
193
9.3 Technology Upgradation Assessment
Study of machinery Specifications and recommendations on ATUFS machinery list
Technopak team conducted 16 interviews with leading machinery manufacturers and
industry stakeholders in textile machinery segment to take their inputs. There are 469 types
of machines listed under ATUFS for subsidy. There are approx. 590 machine manufacturers,
who are approved under ATUFS.
Technopak categorized the long list of machines listed under ATUFS into 2 categories –
“Core process machines” and “Ancillary process machines”. This is a subjective
classification and may require further deliberations along with the industry. Core Process
machines (285 out of 469) perform the major process in the manufacturing of the product.
Ancillary process machines (184 out of 469) mainly support the manufacturing process.
Technopak further analysed only ‘Core process machines’ and have provided technical
recommendations for them only. Technopak has made recommendations on speed for the
selected machinery for each textile segment. In some cases, like weaving and knitting,
Technopak has given speed recommendations separately for MSME (Unorganized sector)
and Non-MSME (Organized sector).
Current Technology (Machinery) Level in India in Textile & Apparel
Technopak conducted primary research with 559 beneficiary and 108 non-beneficiary unit
holders to get inputs on level of technology across various segments of textile value chain
and for global benchmarking. We also conducted primary research with 17 industry experts
(KII) to assess current technology level in India.
As per UHS analysis, 24% of the beneficiaries felt that technology levels in India have
reached global standards and 76% felt that technology levels across segments India is yet
to achieve global standard. Spinning was found be the most upgraded segment amongst
all because of the organized infrastructure.
As per KII analysis, 70% (12) respondents opined that in spinning segment India has
achieved global technology standards, while in all other segments we are lagging behind.
India lacks behind in technology in all other segments. Hence, the overall standard of the
Indian textile industry is quite low and needs modernization. Most of the respondents also
shared that big players (organized sector) uses global level of technology across segments.
But the number and share of such organized players in Indian textile value chain is quite
low. Hence, overall standard of technology level in textile segments is much lower than
global standard.
Overall Summary of Findings
194
Global Benchmarking of Technology Level
Technopak conducted primary research with 17 industry experts (KII) to compare the
technology level in each segment in India with 5 other competing nations viz. China,
Vietnam, Turkey, Bangladesh and Pakistan.
In spinning segment, India ranks at top in terms of technology along with China among the
6 countries followed by Vietnam, Turkey, Bangladesh and Pakistan. In the weaving
segment, India has been ranked last, in terms of technology majorly because of high
number of power looms in India. China ranks at the top in terms of technology. In
processing segment, India has been ranked among the lowest in terms of technology
among these 6 countries. India has a lot of unorganized players in processing segment, who
use outdated technology. In garmenting segment, India’s has been ranked number 4 in
terms of technology amongst these 6 countries. In the Technical Textiles segment, India
has been ranked 4 by the respondents in terms of technology among these 6 countries.
China is the leader in technical textiles technology levels like in most other segments. In
Textile Machine Manufacturing segment, India has been ranked 3 in terms of technology
among these 6 countries. European countries such as Germany, Switzerland, Italy and
Japan are considered the leaders for textile machinery manufacturing.
Evaluation Matrix for Technology assessment of Textile Segments
Technopak conducted primary and secondary research to find out which textile segment
should be given preference for subsidy under TUFS. Technopak created an evaluation
matrix with six parameters important for technology assessment of all major 6 textile
segments viz Spinning, weaving, knitting, processing, garmenting, technical textiles.
Technopak has made recommendations for TUFS subsidy based on the ranking arrived from
this evaluation matrix. Highest subsidy % and highest budget allocation should be given to
the highest ranked segment viz. Processing. Technopak proposes that Subsidy % for
processing may be increased to 20-25% and budget allocation for processing should be 30-
40%. Similar recommendations have been made for all the textile segments. We propose
that spinning and garmenting may be kept out of ATUFS going forward and more focus to
be given to processing, weaving, knitting and technical textiles
Recommendations
195
10. RECOMMENDATIONS
TUFS is the flagship scheme of Ministry of Textiles and has matured over the years since its
TUFS is the flagship scheme of Ministry of Textiles and has matured over the years since its
inception in 1999. This scheme is very important for the industry and is always taken into
consideration while planning investments. During interactions with industry stakeholders
(KII), various recommendations and suggestions were discussed. Technopak have
summarised the major recommendations given by the stakeholders:
SCHEME STRATEGY AND GUIDELINES
Promotion of TUFS: Most of the industry people support TUFS and
strongly believe that it can help promote investment into textile sector.
Overall, TUF scheme is regarded as a successful scheme by the industry.
But, in last few years, the scheme has lost its popularity. TUFS should
be promoted to the industry at large after some overall changes. It will
help to boost investment into textile sector and help to upgrade
technology.
Balancing the Production Capacity of Textile Value Chain: India has
capacity imbalance from yarn to fabric to garments. ~35% of yarn
produced in India is exported as fabric capacity is not available. We lose
out on value added exports opportunity. Healthy fabric industry will
help utilize capacity of spinning and will boost the garmenting segment
by providing quality raw material. We should focus to promote fabric
sector viz. weaving, knitting and processing under TUFS. Still, fabric
segment is mostly unorganized in India and lacks financial strength to
invest in latest technology and add large capacity.
Higher Subsidy for weaving, knitting and processing: Weaving, knitting
and processing may be given higher allocation in TUFS subsidy budget.
It can be 30-40% for processing and 20% each for weaving and knitting
of the overall TUFS budget. Capital Subsidy for these segments may also
be kept higher. Capital Subsidy may be increased to 20-25% for
processing and 15% each for weaving and knitting.
It will be useful to target spinners in India to go for value addition into
high end technology machines for weaving, knitting, processing,
technical textiles. They already have the raw material availability and
better lending capabilities than standalone weavers, knitters and
processors.
Recommendations
196
Focus on Man Made Fiber (MMF) Value Chain: MMF has better
potential for growth in domestic and exports markets. Within MMF
value chain fabric segment can be focused as mentioned above.
Clusters with MMF value chain production may be focused for TUFS
benefit.
Differential Technology Specifications for MSME: MSME sector does
not have financial capabilities to upgrade to best technology levels.
Differential technology specifications slab is proposed for MSME
segment under ATUFS machinery listing for some of the machines.
Promote Technical Textile under TUFS: Technical textiles; especially
Medical Textiles, should be given special impetus under TUFS to
promote more investments and latest technology use. Subsidy budget
for technical textiles can be 20% of total TUFS subsidy. Capital Subsidy
for technical textiles may be kept as 15%.
TUFS IMPLEMENTATION
Delays in Disbursements: All the industry stakeholders talked about
the delay in disbursements at various stages. Addressing the delays in
disbursement of subsidy such as document approval, JIT, final approval
and actual disbursement needs to be done. TUFS cases need to be
cleared faster to regain the confidence of industry in TUFS.
Technical Think Tank with Industry Participation: Technopak propose
that a strong Think Tank with strong industry participation from various
industry segments should be created to advise on all technology aspects
of TUFS. This Think Tank will consist of government officials, industry
leaders, machinery experts, technical consultants. This will help in
addressing technology related issues and making the implementation
process faster. Recommendations
197
MACHINE LISTING AND MANUFACTURERS LISTING UNDER ATUFS
Revision of Machine list: Current machine listing needs revision as per
the current technology standards and industry requirements. Some
recommendations have been given by us but more detailed study is
required to finalize it.
Promote Industry 4.0 Technology: Separate list of machines,
technology, and software to be included under ATUFS. Separate budget
may be allocated for this segment under ATUFS. Garment segment can
be promoted in this budget.
Promote Domestic Machine Manufacturers: Sourcing of machines
from domestic textile machine manufacturers should be promoted
under TUFS. This can be done through higher subsidy provision for
domestic manufacturers. Domestic machine manufacturing ecosystem
needs to be improved significantly by promoting R&D and innovation
for developing state-of-the-art machines. This can be promoted
through mega textile parks for machine manufacturing. Encourage JVs
(Joint Ventures) and FDIs (Foreign Direct Investment) from European
and Japanese machine manufacturers. Devise a special scheme with
liberal policies and long-term benefits for machine manufacturing
including R&D, plug and play facility.
Limitations of the study
198
11. LIMITATIONS OF THE STUDY
The findings of this study must be seen in light of some limitations. These limitations are
mentioned below:
1. Technology Upgradation Assessment (Machinery report) – There is lack of data
availability (at pan India level) required for the technology assessment across various
textile segments and comment on technology upgradation over a period of last 10-15
years. It is difficult to assess the past levels of technology due to data constraints. For
this study, we have tried to overcome this limitation by analyzing machine shipment
data into India over last many years. We have also done global benchmarking of
technology levels in India with other competing nations, using machine shipment data.
2. ATUFS machine listing study was done with the help of inputs from few industry experts
and recommendations are provided in this study, based on limited time for this
purpose. Detailed study needs to be further done for revising the machine listing under
ATUFS; wherein more technical experts from all segments of textile value chain need to
contribute.
3. There is lack of existing data available at pan India level for production, total no of
machines, no. of units, type and technology of machines, capacity utilization, efficiency,
sales output, employment etc. for different segments of textile value chain. For the
purpose of this study, we tried to collect this data from different industry experts and
available reports.
4. There was limitation of “Recall Bias” for RTUFS and RRTUFS, as data asked from the
respondents during UHS was 5-10 years old.
5. There were some cases in the study, where contact details shared were for multiple
beneficiaries (for UHS) were of same person. This person was consultant for multiple
beneficiaries in the state of Punjab. We observed that Punjab showed contrary trends to
other states for some parameters of impact of TUFS.
Appendix
199
12. APPENDIX
Appendix 1- Machinery Recommendations
Machinery for Weaving, Weaving Preparatory, Knitting
Machinery for Weaving (Loom shed)
Weaving (Loom Shed)
Sr.
No.
Name of the machine with
specifications
Technology
Core/Ancillary
Technopak
Recommendations
Unit
MSME Non-MSME
1 Rapier Loom with Weft Insertion
Rate (WIR) not less than 380 mtrs
per minutes with or without Electric
Dobby/Electronic Jacquard
core 500 1000 Metre/min
2 Projectile Loom with Weft Insertion
Rate (WIR) not less than 750 mtrs
per minutes with or without Electric
Dobby/Electronic Jacquard
core 850 1000 Metre/min
3 Air Jet Loom with
(i) Weft Insertion Rate (WIR) not less
than 1200 mtrs per minutes with or
without Electric Dobby/Electronic
Jacquard
core 2650 1800 Metre/min
(ii) Weft Insertion Rate (WIR) not
less than 900 mtrs per minutes with
or without Electric Dobby/Electronic
Jacquard
core 1250 1500 Metre/min
4 Water Jet Loom with (i) Weft
Insertion Rate (WIR) not less than
1000 mtrs per minutes with or
without Electric Dobby/Electronic
Jacquard
core 1200 1350 Metre/min
(ii) Weft Insertion Rate (WIR) not
less than 800 mtrs per minutes with
core 1000 1200 Metre/min Appendix
200
or without Electric Dobby/Electronic
Jacquard
5 PLC based Circular Looms with
Minimum 6 shuttles, Minimum
tubular lay flat width of 90 cms and
WIR of 600 mpm or more.
core 84 120 cm
6 Carpet loom (Spool gripper
looms/Jacquard gripper looms/
Wire loom weaving / Brussels
weaving / Face to face weaving)
core 550 1400 Metre/min
7 Electronic Jacquard and Electronic
Dobby suitable for Shuttleless
Looms having Weft Insertion Rate
WIR of 380 mpm or more.
core 650 1600 Metre/min
8 Air Compressor 15 H.P. and above
with inbuilt invertors and air driers
for Air Jet looms only
Ancillary
9 Battery operated trolley for beam
gaiting
Ancillary
10 Automatic Beam storage system Ancillary
11 Over Head Travelling Clearers Ancillary
12 Ultrasonic Cleaning machines for
Reed
Ancillary
13 Electronic Jacquard Computerized
Pattern machine for weaving
Patterns and Brand Names on the
Selvedge.
Ancillary
14 Shuttleless / Rapier Loom for Sample
weaving with or without Electronic
Dobby/ Jacquard
Ancillary
Appendix
201
Machines for Weaving Preparatory
Weaving Preparatory
Sr.
No.
Name of the machine with
specifications
Technology
core/Regular
Technopak
Recommendations
Unit
MSME Non-MSME
1 Single yarn sizing machine with
minimum speed of 250 mtrs per minute.
core 250 300 Metre/min
2 High speed multi cylinder sizing
machine/ zero twist sizing machine
having minimum 8-10 cylinders for
single size box and 12-14 cylinders for
double size box and minimum speed of
40 mtrs per minutes
core 80 100 Metre/min
3 Direct beam warper with minimum 300
ends creel capacity and minimum speed
of 1000 mtrs per minutes
core 1000 1100 Metre/min
4 Computer aided designs system for
weaving
Ancillary
5 Two-for-one Twister operating at the
speed of minimum 8000 rpm with
cradle, drop wires & overfeed system
core 10400 12000 RPM, For
Pot
diameter
=135 mm
6 Three-for-one Twister operating at the
speed of minimum 5000 rpm with
cradle, drop wires & overfeed system
Ancillary
7 Chenille Yarn Manufacturing Machine
with spindle speed of more than 7500
rpm
core 8000 8500 RPM
8 Draw/ Air Texturising machine having
minimum speed of 800 mtrs per
minutes
core 900 1000 Metre/min
9 Sectional warping machine with auto
stop & tension control along with
core 500 600 Metre/min Appendix
202
minimum 300 ends creel capacity and
minimum speed of 350 mtrs per
minutes
10 Water Softening / R.O. Plant for
Waterjet Looms
Ancillary
11 Automatic Drawing in/ Warp Reaching,
Tying and Leasing-in machine
Ancillary
12 Automatic Sample Warper Machine Ancillary
13 Direct Warping Machine for denim
application with bigger flange Dia more
than 1000 mm and minimum speed of
700 mpm
core 800 1000 Metre/min
14 Beam to Cone winding machine for
Indigo Package.
Ancillary
Machines for Weaving Preparatory (Energy-Saving)
Weaving Preparatory – Energy saving
Technology
Core/Ancillary
Sr.
No.
Name of the machine with specification
1 Single yarn sizing machine with minimum speed of 250 mtrs per
minute with Servo drive and Servo Motor and PLC based.
Ancillary
2 High speed multi cylinder sizing machine/ zero twist sizing
machine having minimum 8-10 cylinders for single size box and
12-14 cylinders for double size box and minimum speed of 100
mtrs per minutes with Servo drive and Servo Motor and PLC
based
Ancillary
3 Direct beam warper with minimum 300 ends creel capacity and
minimum speed of 1000mtrs per minutes and with Servo drive
and Servo Motor and PLC based
Ancillary
4 Sectional warping machine with auto stop & tension control
along with minimum 300 ends creel capacity and minimum speed
of 500 mtrs per minutes with Servo drive and Servo Motor and
PLC based
Ancillary Appendix
203
Machines for Knitting
Knitting
Sr.
No.
Name of the machine with
specifications
Technology
core/Ancillary
Technopak
Recommendations
Unit
MSME Non-MSME
1 High speed circular knitting machine with
yarn tension and clearers along with
Creel
l) Having Dia up to 26" with a minimum
speed of 20 RPM and above
core 30 40 RPM
2) Having Dia above 26" with a minimum
speed of 15 RPM and above
core 20 25 RPM
2 High speed socks knitting machine having
minimum production of 15 pairs per hour
& gloves knitting machines having
minimum production of 3 gloves per
minute with or without electronic
jacquard
core
3 Computerized flatbed knitting machine
with minimum speed of 11 revolutions
per minute/minimum speed of 0.3
mts/sec.
core
4 Warp/ Rasehel knitting machine having
minimum working width of 60" and
minimum speed of 500 RPM
core 600 700 RPM
5 High speed computerized warping
machine for knitting with minimum
closed creel capacity of 200 and
minimum speed of 500 RPM and
minimum speed of 100 mtrs/min.
core 600 700 RPM
6 Computerized label making Knitting
machine with minimum 2 heads and
minimum speed of 500 RPM & minimum
working width of 50 mm per head.
core 600 700 RPM Appendix
204
7 Computerized Strap (Collar/Cuff) Flat Bed
Knitting Machine a minimum speed of 0.3
mts/sec with minimum working width of
12".
core
8 High performance Tricot Machinery with
minimum 3 Bar and speed of 2300 rpm
and above.
core 2300 3000 RPM
9 Full Fashioned Knitting Machines Ancillary
10 Air Compressor 15 H.P. and above with
in-built invertors and air driers
Ancillary
Appendix
205
Machines for Knitting (Energy Savings)
Knitting – Energy Saving
Sr.
No.
Name of the machine with specification
Technology –
Core/Ancillary
1 High speed circular knitting machine with servo motors and servo
amplifiers and with yarn tension and clearers along with Creel -
Ancillary
l) Having Dia up to 26" with a minimum speed of 20 RPM and
above, 2) Having Dia above 26" with a minimum speed of 15 RPM
and above.
2 High speed socks knitting machine having minimum production of
5 pairs per hour and gloves knitting machines having minimum
production of 3(three) gloves per minute with servo motors and
servo amplifiers and with or without electronic jacquard.
Ancillary
3 Computerized flatbed knitting machine with servo motors and
servo amplifiers and with minimum speed of 11 revolutions per
minute / minimum speed of 0.3 Mts/ Sec-
Ancillary
4 Warp/ Raschel knitting machine having minimum working width
of 60" and minimum speed of 500 RPM with servo motors and
servo amplifiers.
Ancillary
5 High speed computerised warping machine for knitting with
minimum closed creel capacity of 200 and minimum speed of 100
Mts/ Min and with servo motors and servo amplifiers.
Ancillary
6 Computerised label making Knitting machine with minimum 2
heads and minimum speed of 500 RPM and minimum working
width of 50 mm per head with servo motors and servo amplifiers.
Ancillary
7 Computerized Strap (Collar/Cuff) Flat Bed Knitting Machine with
servo motors and amplifiers and with a minimum speed of 0.3
mts/Sec along with minimum working width of 12".
Ancillary
8 High performance Tricot Machinery with minimum 3 Bar and
speed of 2300 rpm and above and with servo motors and servo
amplifiers.
Ancillary
9 Spin - Knit machine (Rove fed Circular Knitting machine) Ancillary
Appendix
206
Machines for Processing
Machinery for Processing of Fibre/Yarn/Fabric
Technology
Core/Ancillary
Comments
Sr.
No.
Name of the machine with specifications
1 PLC controlled dye Kitchen management system Core
2 Soft Package Precision Winding machine with
individual drum/Spindle driven
Core
3 Automatic Arm Hank Dyeing machine Core
4 Air Flow Dyeing machine Core
5 Automatic Cabinet type Yarn Dyeing machine Core
6 Automatic Sample Yarn Dyeing Machine Core
7 PLC based full automatic Jigger with
servo/microprocessor control
Core
8 Industrial washing/drying machine for
garments/made ups/industrial tumble
dryers/washers
Core
9 Reverse Osmosis, Nano Filtration , Multiple stage
prefabricated steel evaporator excluding civil
construction
Core
10 PLC controlled Shearing/ Cropping machine more
than 05 mtrs per minute
Core
11. PLC based yarn / fabric Singeing machine with auto
mixing of air & fuel for temperature and flame control
with or without pre and post brushing and desizing
unit.
Core
12 PLC controlled Singeing machine for tubular fabrics Core
13 PLC controlled Knit tubular mercerizing machine or
bleaching cum mercerising machine with knit fabric
diameter adjuster.
Core water
consumption 6-
8 litres/kg Appendix
207
14 PLC controlled Ammonia mercerising machine for
fabrics
Core with ammonia
recovery
system
15 PLC controlled fully automatic Yarn / fabric
mercerizing machine
Core Mercerization
machine steam
0.5 to 0.7 kg and
water
consumption 5
to 7 litres/kg
minimum speed
50
meters/minute
16 PLC controlled continuous Knit fabric bleaching plant Core
17 Balloon Padder with silicate dosing along with level
control & ratio control mechanism
Core
18 Slit opener with open width squeeze mangle for
knitted fabric.
Core
19 Fabric automatic reversing machine Core
20 PLC & Inverter Controlled Automatic Reeling Machine
with stop motion and with length Measuring Device
Core With auto
leasing system
21 PLC based open width/rope and squeezing machine
with detwister
Core No Comments
22 PLC based J Box Core Fabric content
50 meter
23 PLC based Solvent Scouring Machine / Vaporlock
machine
Core
24 PLC based Rotary Drum Washer Core
25 PLC based Float Dryer with padding mangle. Core
26 Fibre cake opener for fibre dyeing machine for yarn
dyeing unit
Core
27 Yarn conditioning machine for Yarn Dyeing units Core Appendix
208
28 Precision flock cutting / printing machine for textile
processing unit only
Core
29 PLC based Relax dryer Core
30 PLC based Sueding / peach finishing machine with
brushing / raising / contipress / pile cutting
Ancillary
31 Automatic Pleating/Creasing Folding machine for
fabrics.
Core
32 PLC based Microwave dryer / Hot air dryer / Infrared
dryer.
Core
33 Automatic Crush machine for uneven pleat for grey
/dyed fabrics.
Core
34 PLC based Dipping machine Core
35 PLC based Foam finishing machine Core
36 Water softening plant. Ancillary
37 Deminerlisation plant. Ancillary
38 Open-width continuous scouring and bleaching range
with microprocessor attachments and automatic
chemical dosing.
Core Continous
scouring and
bleaching
machine steam
0.8 to 1.1 kg/kg
and water
consumption 6
to 9 litres/kg,
fabric speed of
80
meters/minute
for 150 gsm
plain fabric
39 PLC based Package Dyeing machines (cheese, cone,
Tops, fibres, dye springs, yarn beam) and with
maximum liquor ratio of 1:5
Core With multi feed
input water and
multiple
discharge Appendix
209
40 PLC controlled Fully Automatic Flat Bed Printing
machine with pneumatic blanket control
Core With 10-16
colors and
printing cycles
of minimum 10
cycles/minute
41 PLC based Soft flow Dyeing Machine with pre heating
chamber (liquor ratio max I : 4)
Core Two feed water
connections,fab
ric spped to
maintain
minimum 2
minutes cycle
time,teflon
lining and With
multi funtion
rinsing systems
42 PLC based Rapid Jet Dyeing Machines with minimum
capacity of 100 kgs and fabric speed of minimum 60
mtrs per minute (liquor ratio max 1:4)
Ancillary
43 Compact continuous dyeing and finishing machine for
tapes / narrow width woven fabric
Ancillary
44 Open width Pad-dry and / or Pad-Steam continuous
dyeing
Core Speed
minimum 30
meters per
minute
45 Indigo Rope /Sheet dyeing range including indigo
dyeing cum sizing machine
Core Number of
ropes and 28
speed meters
per minute with
2 % shade
46 Digital / laser / len engraving / screen making system
for rotary screens for textile processing units only
Ancillary
47 PLC based fully Automatic Rotary Screen Printing
Machine with magnetic / Air flow squeegee system,
automatic design setting, and quick change over
facility/ flying design change (FDC) system with or
without on-line washing arrangement
Core Number of
Colours and
paste recovery
system Appendix
210
48 Digital/lnk jet printing machines (For textile
processing units only).
Core Number of
printing
minimum 4
heads with
guaranteed
head life of
4000 working
hours
49 High Speed Micro inkjet engraver with UV exposing
unit. (For textile processing units only).
Core
50 Continuous transfer printing machine (cylinder
based) for synthetics.
Core Cylinder
diameter and
speed
meters/minute
51 PLC controlled Thermosoling range (For Synthetics
only).
Core
52 PLC controlled continuous crabbing machine with
minimum speed of 15 mtrs per minute.
Core
53 PLC based scouring and milling machine with
minimum speed of 25 mtrs per minute and maximum
liquor ratio of 1:5
Core
54 PLC based Loop ager with arrangement for moist and
superheated steaming with minimum speed of 20
mtrs per minute
Core
55 PLC based Powder dot coating / laminating machine
for fabrics with dot roll temperature control.
Core
56 Continuous weight reduction machine through micro
wave technique (for Polyester goods only) with
minimum speed of 20 mtrs per minute
Core Appendix
211
57 PLC controlled Multi Chamber Washing range with
minimum 5 chambers
Core Washing range
for COLD Pad
batch steam
consumption
0.8 to 1.6 kg and
water
consumption 8
to 16 litres/kg
speed minimum
50
meters/minute
58 PLC controlled Multi cylinder Drying range with
individual cylinder drives with or without padding
mangle
Core with alternate
cylinder with
independent
drive
59 PLC controlled Multi chamber /MuIti layer Stenter
(minimum 4 chambers) with arrangement of Thermic
fluid / gas heating
Core
60 PLC controlled Compressive Shrinking range Core Minimum
Speed 60
meters per
minute
61 PLC controlled continuous decatising machine with
Wrapper tension and auto clave programming and
minimum working speed of 30 mtrs per minute
Core
62 PLC based Airo Machine (for durable mechanical
finishes)
Core
63 PLC controlled Calendering Machine having
Thermoplast/DurapIast/Polyamide sleeve
Ancillary
64 PLC based Compacting machine Core Minimum fabric
speed of 80
meters/minute
for woven
fabrics/40
meters/minute
for knitted
fabrics Appendix
212
65 PLC Controlled Radio frequency / Radiant gas fired /
Loop dryers
Ancillary
66 Brushing machines for denims Core
67 PLC controlled Machine for Softening/Stone wash
effect on fabric/ garments.
Core
68 Robotised automatic roll packing machine. Core
69 PLC controlled Plasma Treatment machines Core
70 PLC controlled Continuous Pressing and Setting
Machine / Super finish machine
Core
71 AC invertor driven PLC based Fabric inspection
machine with fault analyzer and report generator and
length measuring and cutting device
Core
72 Hand held spectro photometer for shop floor colour
matching
Core
73 PLC based HusWoil / gas fired boiler (Steam /Thermic
fluid) with automatic control on combustion
efficiency, 02 Monitoring Equipments, and with
Electrostatic precipitator and Micro dust collector
Ancillary
74 Wool Carbonising Line / Plant for textile unit only Ancillary
75 Automatic Hydroextractor Ancillary
76 PLC controlled Curing/ Polymerising Machine Core
77 PLC controlled Coating/ Embossing Machine Core
78 Multi Cross Linking Resin Finishing Machine. Core
79 Pile Lifting Machine. Core
80 Latex mixing and dispensing system for Coating Line. Core
81 Air compressor 15 H.P, and above with in-built
invertors and air driers.
Ancillary Appendix
213
82 Testing Equipments in Quality Control Lab accredited
by National Accrediation Board for Lab (NABL) India
and set up in the textile & jute unit.
Ancillary
83 Full automatic material handling system Ancillary
84 Ultrasonic Cleaning machine for fabrics and strips Ancillary
85 PLC controlled Denim wet finishing and Shrinking
range with inverter motors.
Core Fabric speed
minimum 50
meters/minute
Machines for Processing – Energy Saving
Energy Saving Machinery for Processing of fibre/yarn/fabric – Energy
saving
Technology
Core/Ancillary
Sr.
No.
Name of the machine with specification
1 PLC controlled Knit tubular mercerizing machine or bleaching cum
mercerizing machine with knit fabric diameter adjuster and with caustic
recovery system
Ancillary
2 PLC controlled Ammonia mercerizing machine for fabrics, including
ammonia recovery plant
Ancillary
3 PLC controlled fully automatic yarn/fabric mercerizing machine with
caustic recovery unit
Ancillary
4 PLC based soft flow Dyeing machine with pre heating chamber (liquid
ratio max 1:1)
Ancillary
5 PLC based Rapid jet Dyeing machines with minimum 60 mtrs per minute
(liquid ratio max 1:1)
Ancillary
6 Open width pad-dry and/or Pad-steam continuous dyeing range with
microprocessor-based energy control & water monitoring
Ancillary
7 Indigo dyeing range including indigo dyeing cum sizing machine with heat
recovery system
Ancillary
8 Continuous weight reduction machine through micro wave technique
(for poly goods only) with min speed of 20 mtrs per minute with
preheating system for recovery tank
Ancillary Appendix
214
9 PLC controlled Multi chamber washing range with minimum 5 chambers
with water recovery/reusable system
Ancillary
10 PLC controlled Multi cylinder drying range with individual cylinder drives
with heat recovery system & padding mangle
Ancillary
11 PLC controlled Multi chamber stenter (min. 4 chambers) with
arrangement of Thermic fluids / gas heating & with Heat recovery system
Ancillary
12 PLC controlled compressive shrinking range & with Heat recovery system Ancillary
13 PLC controlled calendering machine having thermoplast / duraplast /
polyamide sleeve & with Heat recovery system
Ancillary
14 PLC based compacting machine with Heat recovery system Ancillary
15 PLC based oil/gas fibred boiler (steam/ thermic fluid) with automatic
control on combustion efficiency , and heat recovery system with O2
monitoring equipment
Ancillary
Appendix
215
Machines for Apparel
Machinery for Apparel and Garments
Sr.
No.
Name of the machine with specifications
Technology
Core/Ancillary
Technopak
Recommendations
MSME Non-MSME
1 Single / two needle power operated industrial
lockstitch sewing machine with or without
trimmer having speed 4000 RPM and above.
Core 4000 4000
2 Blind stitch machine/ multi needle Chain
Stitching machine having speed of 3850 rpm
Core 3850 3850
3 Power Operated loop making and sewing
machine having speed of 2500 rpm and above
Core 2500 2500
4 Power Operated flat lock/ overlock machine. Core
• Four / five thread overlock machine with or
without trimmer having speed of 4500 rpm and
above
Core 4500 4500
• Five thread flat lock machine with or without
trimmer having speed of 4500 rpm and above
Core 4500 4500
• Five thread flat lock machine with seam
joining device Having speed of 4500 rpm and
above
Core 4500 4500
5 Zigzag flatbed sewing machine having speed of
2200 rpm and above
Core 2200 2200
6 Button Stitch sewing machine having speed of
3000 rpm and above
Core 3000 3000
7 Label/ elastic attaching machine Ancillary
8 Decorative Stitching machine having speed of
2000 rpm and above
Ancillary
9 Automatic J Stitch Sewing machine having speed
of 3000 rpm and above
Ancillary Appendix
216
10 Edge cutting sewing machine having speed of
4000 rpm and above
Core 4000 4000
11 Automatic Button hole sewing machine having
speed of 2500 rpm and above
Ancillary
12 Trouser gripper making machines Core
13 Hydraulic diecutting / clicking machine for collars
and cuffs
Ancillary
14 Socks boarding machine having a minimum cycle
time of 2.5 sec-per piece
Core
15 Belt attaching machine having speed of 3500 rpm
and above
Ancillary
16 Zip attaching machine having speed of 4000 rpm
and above
Ancillary
17 Electronic / mechanical Bar tacking machine
having speed of 3000 rpm and above
Core 3000 3000
18 Bottom Hemstitch machine having speed of 2500
rpm and above
Ancillary
19 Smocking machine/ Automatic multi needle
shirring machine having speed of 2000 rpm and
above
Ancillary
20 Computerized Pattern maker/ grader/marker
machine[Laser marker
Ancillary
21 Power driven cloth cutting machine having speed
of 2000 rpm / laser fabric or label cutting
machine/ laser engraving machine
Core/ Ancillary 2000 2000
22 Power operated Band Knife-cutting machine
having speed of 2000 rpm and above
Core 1000 1000
23 Collar/cuff turning/blocking machine/ Pressing
machine
Core Appendix
217
24 Electronic/pneumatic Button and snap fasteners
fixing machine having speed of 1000 rpm and
above
Core 1000 1000
25 Pocket creasing and welting machine/ Auto
Pocket making machine
Ancillary
26 Industrial stream iron with vacuum table and/or
buck press having 2.5 kg/cm2 steam pressure.
Core
27 Boiler exclusively for steam press/vacuum press,
Steam Cabinet/ Vacuum table
Core
28 Fusing Press having minimum pressure of 1.5
kg/cm
Core
29 Collar Contour Trimmer Core
30 Automatic Spreading & Cutting table with
vacuum and/or air blowing device having speed
of 18 mtr/min
Ancillary
31 Shoulder pad- attaching machine Ancillary
32 Pocket cutting machine Ancillary
33 Automatic Pocket Attaching machine with
production capacity 2000 pcs and above
Ancillary
34 Round Knife cutting machine having minimum
blade size of 3.5" and 1000 rpm and above
Core 1000 1000
35 End Cutter with cloth press track Core
36 Power operated Cloth drilling machine having
speed of 800 rpm and above
Core 800 800
37 Collar Point trimmer/ notch making machine Core
38 Computerized High speed fully fashioned flatbed
knitted garment manufacturing machine with
speed of 10 rpm and above
Ancillary Appendix
218
39 Whole garment making machine for knitted
garments or power operated garment panel
forming knitting machine with linking machine
Ancillary
40 Automatic thread trimming/sucking machine
equipped with two motors.
Ancillary
41 Shirt folding machine with pneumatic system. Ancillary
42 Stain/spot removing machine Core
43 Pearl/Beads/Stones/GIassete/Hook and Bar
attaching machine having speed of 1000 rpm
Core 1000 1000
44 Single and multihead Quilting machine Ancillary
45 Fabric inspection/checking machine with fault
analyzer and report generator and length
measuring and cutting device.
Ancillary
46 Needle/metal detector machine Core
47 Multi head computerized embroidery machine
with minimum six heads with or without
electronic sequin
Ancillary
48 Computerised label making
machine/computerized label printing machine
Ancillary
49 Button wrapping/shanking machine Core
50 Feed-off-the-arm industrial sewing machine
having speed of 2500 rpm and above
Core 2500 2500
51 Automatic dart/pleat making machine having
speed of 2000 rpm and above
Ancillary
52 Automatic label/ply picking machine Ancillary
53 Pin tucking machine Ancillary
54 Mechanised fabric pinning table Ancillary
55 Single needle basting machine having speed of
1500 rpm and above
Core 1500 1500 Appendix
219
56 Single needle post bed sleeve setting machine
having speed of 1000 rpm and above
Ancillary
57 Programmable Unit Production hanger and
conveyor system with minimum of 24 machines
operations
Ancillary
58 Crochet machine for laces and bands with
electronic bar operation
Ancillary
59 String thrusting machine Core
60 Plastic Staple attacher Core
61 Brushing machine for jeans Ancillary
62 Computer Colour matching machine Ancillary
63 Automatic placket making machine for knitted
garments.
Ancillary
64 Belt Loop attaching machine having speed of
2000 rpm and above
Ancillary
65 Collar Heat Notcher Core
66 Spot Welting machine Core
67 Laser Colour Fading/Marking/Drawing Machine Ancillary
68 Laser operated Color Spraying Machine Ancillary
69 RMG curing Wheat setting oven with a tolerance
limit of +/- 2
0
C
Ancillary
70 Air Compressor 15 H.P. and above with in-built
invertors and air driers
Core
71 Computerized Strap(CoIIar/Cuff) Flat Bed
Knitting Machine with minimum speed of 0.3
mts/sec and minimum working width of 12"
Ancillary
72 Cup Seamer Ancillary Appendix
220
73 Automatic Strap cutter machine with electronic
feed & cutting device
Core
74 Cup moulding machine Ancillary
75 Auto reeling stitch machine Core
76 Automatic combine panel-joining/ tape
attaching machine for curtains.
Ancillary
77 Electronic, pre-programmed, straight line
lockstitch curtain pleat tacker with fully
automatic curtain hook feeding device
Ancillary
78 Automatic Combined Panel-joining & [lemming
Machine
Ancillary
79 Automatic Lockstitch Curtain Hemming Machine
having speed of 2500 rpm
Ancillary
80 Fully Automatic Combined Thread Chain Stitch
Ring attach/pinch pleat tacking machine
Ancillary
81 Hydraulic combined cutting/pressing machine
for processing metal curtain rings
Ancillary
82 Fully automatic fabric inspection, measure and
length cutting machine equipped with meter
counter.
Ancillary
83 Fully Automatic, Programmable, Electronic
vertical curtain cutting machine
Ancillary
84 Fully Automatic drapery pinch pleater with
integrated Microflex (r) adjustable curtain hook
feeder
Ancillary
85 Curtain feeding device for fully automatic pinch
pleater
Ancillary
86 High performance motor driven curtain ironing
table
Ancillary
87 Fully automatic front loaded Garment washing/
Dyeing machine
Ancillary Appendix
221
88 Tumble dryer Core
89 Garment Colour Spray Cabinet Ancillary
90 Trouser topper/ Form Finisher machine Ancillary
91 Trouser turning machine Ancillary
92 Fabric Grinding Machine Ancillary
93 Hem Breaking Machine Ancillary
94 Fagoting/ Picoting machine having speed of 2500
rpm and above
Core 2500 2500
95 Packeting machine having speed of 4000 rpm
and above
Core 4000 4000
96 Sequin punching machine having speed of 800
rpm and above
Core 800 800
97 Paddle Dyeing machines for
Rugs/Garments/Made-ups
Core
98 Open Pocket Dyeing Machines for
Rugs/Garments/Made-ups
Core
99 Automatic Length & Cross Cutting Machine for
Sheets/ToweIs
Ancillary
100 Automatic machine for length and cross
hemming machinery for Flat Fitted
Sheet/ToweIs/Pillow/PiIIow Sham
Ancillary
101 Automatic folding and stacking machine for
Flat/Fitted Sheets/Towels & Pillow/Pillow
sham/Dust Ruffle
Ancillary
102 Automatic Comforter shell making machine Ancillary
103 Compression Bagger for packing (electronic
pneumatic bagging machine)
Ancillary
104 Automatic machine for flange pillow case Ancillary Appendix
222
105 Blending, Opening and Pillow Filling Lines Ancillary
106 Vacumising Packing Units for Filled Pillow &
Quilts
Ancillary
107 Die Cutting Machine Ancillary
108 Table Top Tufting Machine Core
109 Moustache making machine Core
110 Computerised Bed filling machine Ancillary
111 Ball fibre machine Ancillary
112 Seamless Knitting machine Ancillary
113 Computerized Multi Head printing Machine for
Garment and Garment Panels
Ancillary
114 Dry to Dry cleaning machine for garments Ancillary
115 Continuous pressing / folding, machine Ancillary
116 Ozone Generator with or without Fully
Automatic front loaded Garment Washing
Machine
Ancillary
Appendix
223
Machines for Technical Textiles
Machinery for Manufacturing of Technical Textiles
Technology
Core/Ancillary
Comments
Sr.
No.
Name of the machine with specifications
1 Machinery for POI Tetro Fluro Ethylene (PTFE) Breathable
film
Ancillary
b Weaving Preparatory
Name of the machine with specifications
1 PLC controlled High speed computerized warping /
sectional warping machine
• For Direct warping machines warping speed should
be 1000 mpm and above
Core With creel
minimum
300
position
• For sectional warping machines warping speed
should be 900 mpm & above
Core With creel
minimum
300
position
2 PLC Controlled, 4 axis filament winding machine for
composites. Specifications: Mandrel Rotation of 150 rpm
or more.
Ancillary
c Weaving
Name of the machine with specifications
1 PLC based Shuttle less weaving machine with or without
creel & weft yarn feeding device for the manufacturing of
technical textiles (with specifications given in MC1)
Core With
Heavy
duty let off
and take
up with
minimum
1.5 kw
motor Appendix
224
2 Minimum 5.0 mtr wide shuttle loom with computer
controlled shedding mechanism to produce seamless
tubes, substrate for wide width belting and other
technical textiles
Ancillary
3 PLC based Geo Grid Weaving Machine having minimum
width of 380cm with impregnation plant
Ancillary
4 Multi-axial Loom. Core
5 3-D and Block weaving machine/ Non Crimp Weaving
Machines for 3D Weaving of Glass and Carbon Fibres.
Ancillary
6 High Speed Needle looms for narrow woven fabrics Core
7 Position Driven Compressor stand assembly for weaving Ancillary
8 Narrow width shuttle loom with positive let off and take
up motions with electronic jacquard / dobby and with
micro-processor controls for producing tubular fabric
meant for filters, medical textiles and other technical
textiles.
Core
d Knitting
Name of the machine with specifications
1 PLC based Weft Inserted warp Knitting machine (WIWK). Core machine
1000 rpm
minimum
2 PLC based Knitting machine for spacer fabrics Core machine
1500 rpm
minimum
3 PLC based Bi- axial & Multi axial knitting machine Core
4 PLC based Tricot machinery for the manufacture of
technical textiles (Eligible for units having in house
capacities for converting grey fabrics into technical
textiles)
Core
5 PLC based Rachel double needle bar Machine Core
6 PLC based Rachel machine for netting Core Appendix
225
7 PLC based Knitting Machine for the manufacturing of Fish
nets with warp knotting system
Core
8 PLC based Circular warp knitting machine for compression
garments
Core yarn and
lycra
feeder
9 PLC based Stitch bonding knitting machine Core
10 PLC based Seamless Knitting machine Core with
maximum
diameter
16 inch
e Processing
Name of the machine with specifications
1 Mechanical foamer with Crush calendar. Core
2 Pultrusion machine and equipment for manufacturing of
textile composites
Core
3 FRP (Fibre Reinforced Plastic) processing machine &
equipment for manufacturing of textile composites
Core
4 RTM (Resin Transfer Moulding) machine and equipment
for manufacturing of textile composites
Core
5 Multi cylinder Calendering machines with following
specifications:
Running Speed : Minimum
Pressure : Minimum 35 ton
Heating : Steam, Electric, Gas
Core
6 Finishing machinery for impregnating yarn or fabrics Core
7 PLC based Dipping machine for tyre cord / industrial
fabrics / belting ducks
Core
8 PLC based Dipping machine for single end or cord for
reinforcement of v-belts / hoses / hose tires
Core Appendix
226
9 PLC based Coagulated PU or PVC dip coating machine / PU
or PVC coating line or coating dl in / knife machine with
infrared dryer
Core
10 PLC based Hotmelt and Hot Glue applicators for coating
with working width of 500-2600 mm and working speed
of
Core
11 High precision Plasma Welding and Cutting machines for
Sealed Edge Cutting
Core
12 PLC based Precision Annealing Furnace for Stress relieving
of fabrics
Core
15 HTHP Jigger to process nyIon, aramid fabrics Core
f Made-up Technical Textile (T T) Store
Name of the machine with specifications
1 RF Radio Frequency welding equipment Core
2 Automatic Ultrasonic cutting and sealing equipment. Core
3 Laser cutting and sealing equipment. Ancillary
4 PLC based Back Coating Lines Ancillary
5 PLC based Braiding machinery Ancillary
6 Machine for manufacture of clay liner Ancillary
7 Machinery for manufacture of prefabricated vertical
drains / prefabricated wick drains
Core
8 Complete line for manufacturing chopped strand glass
mat
Ancillary
g Non-woven textile manufacturing machines:
Name of the machine with specifications
1 Complete production lines or the component / parts
forming the production line for the manufacture of
Appendix
227
following non-woven up to rolled goods preparation and
packing, viz.,
i Chemically bonded non-woven
ii Stitch bonded non-woven Core
iii Spun bonded non-woven Core
iv Melt bonded non-woven Core
v Spun bond melt blown non-woven (SMS non-woven) Core
vi Needle punch non-woven Core
vii Thermal bond non-woven Core
viii Spun lace non-woven Core
ix 3-D non-woven machines Core
x Electrospun nonwoven machines Core
h Finishing machines:
Sr.
No.
Name of the machine with specifications
1 Hot melt cold glue applicators for coating Core
2 Ultrasonic slitting machines/edge sealer Core
3 Brazing machine with torch (for hot air) Core
4 PLC operated system with servo drives for
measurement/control of tension and temperature
Core
5 Heatset oven with stenter facility Ancillary
6 Pilot/lab coating line Ancillary
7 High pressure pump for water jet cutting system Ancillary
8 Robotic waterjet cutting system Ancillary
9 Robot for water jet cutting system Ancillary Appendix
228
10 Water softening Ancillary
11 Machines for powder scattering Ancillary
12 PLC based Coating for fusible interlinings Ancillary
13 PLC based Padding mangle Ancillary
14 PLC based Lamination machine for technical textiles Ancillary
15 PLC based Clip / pin stenter for heat setting Ancillary
16 PLC based Flame lamination machine Core
17 Jacquard machines for joining two edges by inter weaving. Core
18 Turret winder and unwinder Core
19 High speed precision mixers for lastisols/ or anosols. Core
20 Gunning and cutting machine. Core
21 PU tumbling machine and drying machine. Core
22 DimethyI formamide DMF recoverant and distillation
plant
Core
23 Multi cylinder drying range Core
24 Plasma Machine for Finishing Lines For Technical Textiles Core
Note: The machineries listed at Sr. No. h of above are eligible for non-wovens, wovens,
knitted technical textiles and convertors of nonwovens into finished products
i Non-woven converting machinery:
Name of the machine with specifications
1 Complete thermo moulding lines Core
2 Complete thermosetting lines Core
3 Machinery of carpet/NVH moulding lines oven/press Core
4 Conveyor/thermo pack for heating/chiller for cooling Core Appendix
229
5 Machinery for moulded roofliners Ancillary
6 Machinery for conversion of nonwovens into face masks /
dust masks / duck bill masks / earloop mask sealing / tie
on mask sealing / blank mask /Gloves
Ancillary
7 Machinery for conversion of nonwovens into bouffont
caps / surgical caps / medicap making machine
Ancillary
8 Machinery for conversion of nonwovens into gowns /
pillowslip / shoe covers / ice pack body / ice pack band
sealing and cutting / hand bags / filter pocket /head rest
cover / CD / DVD cover and other such items
Ancillary
9 Machinery for conversion of nonwovens into sanitary
napkins / baby diapers / adult diapers
Core
10 Machinery for conversion of nonwovens into dry and wet
wipes
Core
11 Machinery for slitting and rewinding of nonwoven roll Core
12 Surgical gauze machine making Core
13 Combined dressing making machine Core
14 Bandage Roll making machine Core
15 Machine to compress Ancillary
16 Abdominal s one making machine Ancillary
17 Automatic packing machines Ancillary
18 Machine for manufacture Of tubular filter bag Ancillary
j Complete Production Line for Manufacture of Surgical Bleached Cotton
Appendix
230
Machines for Handloom
Machinery For Handlooms
S. No Name of the Machine
Technology
Core/Ancillary
Comments
1 Electrical winding machine Core Required
2 Electrical Warping machine Core Required To improve
productivity sectional
warper capable of
making weaver beams
with accurate length
may be adopted in
cluster.
3 Motorised/Pneumatic/Electronic Jacquard Core Required This
improves working and
ease of operation
4 Semi-automatic (ordinary frame handloom
with minimum width of 52", with or without
dobby / jacquard and benchmarked technology
features, viz., take-up motion, smooth sley
movement, bigger shuttle and bobbin
(minimum 4"), negative let-off motion. It may
include attachments such as multiple weft
butta mechanism, pick & pick sliding
shuttlebox, solid border weaving catchcord
attachment. The frame loom should be made
out of h" x I h" x 3" steel U channel or steel pipe
2 h" diameter and 8 gauge or sturdy wood with
minimum 4" widthx4" thickx6' height. The
looms may have additional warp and cloth
rollers made of wood or steel to ensure
weaving of long length fabric.
Core Required for better
quality and
productivity Appendix
231
5 Handlooms of fly shuttle frame loom fitted with
Dobby like lattice /barrel/tappet/draw bar/iron
frame vertical/centre closed shed/wooden
frame vertical/double cylinder iron border,
Jacquard like single lift single cylinder wooden
frame/single lift single cylinder iron frame
bar/double lift single cylinder iron
frame/double lift double cylinder iron
frame/janata/lino Combination of jala and
dobby or jacquard; Fly shuttle sley fitted with
drop box on one side/drop box on both sides
/circular shuttle box pick & pick sley;
Core Required for better
quality and
productivity
6 Fly shuttle frame loom fitted with let off
motions like lever and weight let off
motion/special spring motion/rope let off
motion/weight system/spring system.
Core Required
7 Fly shuttle frame loom fitted with take up
motion like ratchet & pawl motion/3 wheel
Ichalkaranji type motion/5 wheel take up
motion without emery roller/7 wheel take up
motion.
Core Required
8 Handlooms fitted with special attachments like
catch card system/swivel loom/ lappet
motion/terry motion/lino
mechanism/chennaile weaving (automatic
cutting of chennaile while weaving), metal
frame handloom/vvider width wooden frame
handloom/long length cloth weaving
mechanism etc.
Core Required
Note: In addition, handloom units may also be
provided with piano card punching
machine/electronic card punching machine.
Core
9 Winding machine with multi spindle for
preparation of pins/bobbins/drums operated
by hand/ peddle/ power.
Core Required
10 High Speed Doubling machine having spindle
fitted on bolster with ball bearing.
Core Required Appendix
232
11 The mobile textile quality testing equipment
only for handloom sector and capable of
testing all of the following :
Core Required
i Colour fastness to washing at about 40 degree
Celsius.
Core Required
ii Colour fastness to crocking rubbing Core Required
iii Shrinkage Core Required
iv Ends-Picks per inch Core Required
v Count of yarn Core Required
vi Percentage crimp of yarn Core Required
vii Fabric width, and Core Required
viii Grams per square meter etc. Core Required
12 Coating machine for Metallic yarn for jari
processing only
Core Required
13 Universal Double Covering machine for jari
processing only
Core Required
14 Micro slitting machine for jari processing only Core Required
15 Coating/Vacuum Metalizer for jari processing
only
Core Required
16 Twisting/DoubIing machine for jari processing
only
Core Required
Appendix
233
Machines for Jute
Machinery for Jute Industry
Technology -
Core/Ancillary
S. No. Machine Description
1 Two for One Twister with cradle, drop wires and
overfeed system and 4500 rpm as minimum speed
Core
2 Winding machine With individual spindle/drum driven
With minimum speed of48() mpm
Core
3 PLC Controlled Pre-beaming having minimum speed 135
mpm and , Beaming & Sizing machine having minimum
speed of 125 mpm
Core
4 PLC based Dressing Machine/Direct Warper with
minimum speed of 30 mpm
Core
5 PLC based Circular Looms with minimum WIR of 400
mpm
Core
6 Warp Knitting Machine with minimum 60" width and
minimum speed of 300 rpm
Core
7 Automatic Cutting Machine having minimum speed of 25
cuts per minute
Core
8 Automatic Lapping and Measuring Machine with
minimum 25 strokes per minute
Core
9 Sewing Machine with minimum 2900 rpm Core
10 Automatic Branding (Screen Printing) Machine with
minimum speed of 30 rpm
Core
11 Automatic Integrated Damping and Calendering
Machine with minimum speed of 27 mpm
Core
12 Integrated Herakle and Safety Stitching Machine with
minimum speed of 1400 rpm
Core
13 Automatic Bag Making machine with a capacity of
minimum 50 Bags per hour
Core Appendix
234
14 Processing Machines for Jute Diversified Products. Core
15 Singeing Machine with minimum speed of 30 mpm Core
16 Pressure Kier/Jumbo jigger with minimum speed of 50
mpm
Core
17 Cloth/ yarn mercerising with minimum speed of 25 mpm Core
18 Pad batch (Mangle with minimum speed of 25 mpm Core
19 Winch with minimum speed of 25 mpm Core
20 Semi-automatic/automatic Jiggers with minimum speed
of 50 mpm
Core
21 Automatic PLC based Jet dyeing machine Core
22 Automatic PLC based Soft Flow Dyeing machine Core
23 Automatic PLC based Cabinet Dyeing Machine (for yarn) Core
24 Automatic PLC based Dyeing Machine Core
25 PLC based Macro Extractor/Hydro Extractor with
minimum speed of 200 rpm
Core
26 PLC based Multi Cylinder Dyeing Range with minimum
speed of 25 mpm
Core
27 Automatic PLC based Stenter with minimum 3 chambers
and minimum speed of 25 mpm
Core
28 Coating machine with or without stenter with minimum
speed of 20 mpm
Core
29 Carpet Backing coating machine with minimum speed of
20 mpm
Core
30 Ball making machine (Yarn) with minimum speed of 200
rpm
Core
31 Machinery for Testing Jute Textiles Ancillary
32 Evenness tester Ancillary Appendix
235
33 Jute bundle strength tester Ancillary
34 Yarn tensile strength tester Ancillary
35 Jute fineness tester Ancillary
36 Fabric strength tester Ancillary
37 Jute Moisture meter Ancillary
38 Scotch guard applicator tester Ancillary
39 Electronic twist tester Ancillary
40 Abrasion tester Ancillary
41 Bending rigidity tester Ancillary
42 Colour fastness tester Ancillary
43 Computerized colour matching Ancillary
44 Rubbing fastness tester Ancillary
45 Fire Retardancy Tester Ancillary
46 Light fastness tester Ancillary
47 Count balance Ancillary
48 Laundero meter Ancillary
48 Yarn twist tester Ancillary
49 Yarn appearance tester (manual/automatic) Ancillary
50 Ballistic raw jute strength tester Ancillary
50 Latexing tester Ancillary
51 Water proofing Ancillary
52 Computer colour matching machine Ancillary
53 Coating & Laminating Machinery for Jute Industry Ancillary Appendix
236
54 Complete Lamination Plant suitable for Poly/Rubber
lamination of jute fabric with facility for sandwich
lamination/ both side lamination
Ancillary
Machines for Silk
Machinery for Silk
Technology -
Core/Ancillary
A. Silk Reeling Automated Plant
1 Automatic silk Reeling Plant having 400 ends capacity and
comprising of below mentioned eligible machinery
Core
a. Cocoon peeling machine Core
b. Cocoon sorting machine Core
c. Vacuum permeating machine Core
d. Cocoon cooking machine (Conveyer type) Core
e. Automatic silk reeling machine (400 ends) Core
f. Reeled silk humidifier Core
g. Re-reeling machine (40 Windows) Core
h. Basket conditioning oven Core
k. Frision scraping machine Core
i. Frision treatment machine Core
j. Dewater machine Core
k. Skein winder Core
l. Reel carrier Core
m. Conveyer cocoon drier — 2 ton capacity Core
n. IBR Boiler (l ton capacity) Core Appendix
237
o. RO based Water Softening equipment (2500 liters/day) Core
2
Automatic Dupion silk Reeling Plant having 142 ends capacity and comprising
of below mentioned eligible machine
a. Cocoon peeling machine Core
b. Cocoon sorting machine Core
c. Vacuum permeating machine Core
d. Cocoon cooking machine (Conveyer type) Core
e. Automatic Dupion Silk reeling machine (142 ends) Core
f. Re-reeling machine (20 Windows) Core
g. Cocoon Drying Machine Core
h. IBR Boiler (1 ton capacity) Core
k. RO Water Softening equipment (2500 liters/day) Core
B. Silk Twisting , Weaving & Knitting Machinery:
a. Two for One Twisting Machine having 288 X 2 Spindle Core
b. Parallel winder with minimum speed of 300 mts per minute Core
c. Cone winding machine 24 spindles capacity having minimum
speed of 400 mtrs per minute High speed direct beam
warping machine with creel having minimum warping speed
of 500 mtrs per minutes and beaming speed of 100 mtrs per
minute, Shuttle less loom (Rapier loom) with WIR of 280
mpm
Core
d. Electronic jacquard with minimum 480 hooks Core
e. Electronic fiat bed knitting machine Core
f. Automatic circular knitting machine of minimum 22 "dia Core
g. Automatic warp knitting machine Core
h. Computerized Embroidery machine 16 heads, 8 colours Core Appendix
238
C. Silk Wet Processing Machinery:
a. Automatic 2 Arm Spray Dyeing Machine Core
b. 4 Arm Spray Dyeing Machine Core
c. Winch Dyeing Machine Core
d. Calendaring Machine/ Mini Felt Calendaring Machine Core
e. Decatizing Machine having Core
f. Soft Flow Dyeing Machine with capacity of minimum 5kg Core
g. Digital Printing Machine For Silk (8 Heads) Core
h. Stenter Machines (4 Chambers) Core
i. Reverse Osmosis, Nano Filtration, Multiple stage
prefabricated steel evaporator excluding civil
Core
j. Cabinet dyeing machine for silk (20kg Cap.) Core
k. Computer colour matching and automatic dispensing unit Core
l. Package dyeing machine for cone or cheese (l Okg/load)
Drying system for hanks
Core
Appendix
239
Appendix 2- KII List of Machine Manufacturers and other Stakeholders
S. No. Name of the Person Sector
Name of the
Organization
Designation
1 Mr. Sachin Arora Machinery
Manufacturer
TMMA Executive Director
2 Mr. Vallabh bhai Machinery
Manufacturer
Weavetech M.D.
3 Mr. P. Kasiviswanathan Machinery
Manufacturer
Picanol Executive Director,
India
4 Mr. G.V.Aras Machinery
Manufacturer
Ate enterprises pvt ltd. Director
5 Mr. S. Rajendran Machinery
Manufacturer
Ate enterprises pvt ltd. Senior Vice
President -
Processing,
Accessories and
After Sales Services
6 Mr. Navin Agarwal Machinery
Manufacturer
Ate enterprises pvt ltd. Vice president
7 Mr. Kiran P Hanchate Machinery
Manufacturer
Ate enterprises pvt ltd. Vice president
8 Mr. S.P. Setia Industry Expert
(Machinery)
S.P Setia Consulting Owner
9 Mr. S.P. Verma Government
Official
Textile commissioner
office
Deputy Director
10 Mr. Vipan Kohli Government
Official
Textile commissioner
office
Deputy Director
11 Mr. M.S. Pradeep Apparel Industry
Expert
Technopak Advisors Associate Vice
President
12 Mr. Rohit Bhardwaj Machinery
Manufacturer
Rieter General Manager Appendix
240
13 Mr. Guru Prasad Machinery
Manufacturer
Tsudokoma Sales head
14 Mr. Dharamshil Kothari Machinery
Manufacturer
Benninger General Manager
15 Mr. Randeep Sahani Machinery
Manufacturer
Brothers President
16 Ashish Ameen Machinery
Manufacturer
Premier loom Owner
Appendix
241
Appendix 3- List of Expert Panel of 17 from the overall KII list
S.No. Stakeholder Name of the Person Name of the Organisation
1 Industry Expert S.P. Setia S.P. Setia consulting
2 Industry Expert Sanjay Chatrath SRF Ltd
3 Industry Expert S.P Oswal Vardhman Textiles Ltd
4 Industry Expert B.K Goenka Welspun Group
5 Industry Expert Harish Ahuja Shahi Exports Ltd
6 Industry Expert Chetan FICCI
7 Industry Expert Sanjay Kumar Jain CITI Past Chairman
8 Research Associations Anjan K. Mukhopadhyay BTRA
9 Government Official Ajay Pandit
Regional Office of the
Textile Commissioner NA
Noida
10 Industry Association Mr. Vallabh Bhai Weavetech Engineers
11 Industry Association Dr. S. Sunanda CITI
12 Industry Expert Pulkit Seth Pearl Global
13 Industry Association Sunil Satgonda Patil PDEXCIL
14 Industry Association Ronak Rughani SRTEPC
15 Industry Expert C A Khan Saluja
16 Industry Association Dr. K Selvaraju SIMA
17 Industry Association D.K Nair CITI (Former)
Appendix
242
Appendix 4- List of total KIIs of 62 (Key Informant Interviews)
S. No. Name of the Person Sector Organization Designation
1 Prem Malik Industry
Associations
Confederation of
Indian Textile
Industry
Past Chairman
2 Dr. S. Sunanda Industry
Associations
Confederation of
Indian Textile
Industry
Secretary General
3 T.K. Sengupta Industry
Associations
The Textile
Association of India
President
4 Sharad Kumar Industry
Associations
Federation of Indian
Export Organisation
President
5 Chetan Bijesure Industry
Associations
FICCI Senior Director &
Head
Manufacturing
6 Sanjay Jain Industry
Associations
CITI Immediate past
Chairman
7 Sri Narain Aggarwal Industry
Associations
SRTEPC Chairman
8 Ashok Juneja Industry
Associations
The Textile
Association of India
President
9 Rahul Mehta Industry
Associations
Clothing
Manufacturers
Association of India
President
10 Sunil Satgonda Patil Industry
Associations
PDEXCIL Chairman
11 Siddharatha
Rajagopal
Industry
Associations
Texprocil (The
Cotton Textiles
Export Promotion
Council)
Executive Director
12 K Selvaraju Industry
Associations
SIMA Secretary General
13 Balaraju Industry
Associations
SRTEPC Executive Director
14 Ronak Rughani Industry
Associations
SRTEPC Chairman
15 D.K Nair Industry
Associations
CITI Former CITI
Chairman
16 Ashwin Chandran Industry
Associations
SIMA Chairman Appendix
243
17 R.C Kesar Industry
Associations
OGTC (Okhla
Garment & Textile
Cluster)
Director General
18 Raja Shanmugham Industry
Associations
TEA (Tirupur
Exporters
Association)
President
19 Sanjay Chatrath Industry Experts SRF Ltd President
20 Gautam Nair Industry Experts CII, Matrix Managing Director
21 B.K. Goenka Industry Experts Welspun Chairman
22 Pulkit Seth Industry Experts Pearl Global MD
23 Harish Ahuja Industry Experts Shahi Exports Ltd. Managing Director
24 K.K Lalpuria Industry Experts Indocount CEO
25 S.P. Setia Industry Experts SP Setia Consulting Technical
consultant
26 S.P.Oswal Industry Experts Vardhman Textiles
Limited
Chairman
27 Girish Luthra Industry Experts GETP Chairman
28 Dhirubhai Shah Industry Experts Fairdeal textile Owner
29 R.Swaminathan Industry Experts ABFRL COO
30 Jacob John Industry Experts Dixcy Textiles CEO
31 R.D.Udeshi Industry Experts Reliance President, Polyester
Chain
32 C A Khan Industry Experts Saluja President
33 Mr. Tayal Industry Experts Shivalik Exports Head of Finance
34 Makrand Kulkarni Industry Experts Polygenta CEO
35 Amit Jain Industry Experts Shingora CEO
36 Wicrant Gambhir Industry Experts Jockey Head of Sourcing
37 M.S Pradeep Industry Experts Technopak Advisors AVP
38 Mr. Ramakrishna Industry Experts Tarak Textiles Pvt
Ltd
Director
39 GV Aras Machinery
Manufacturers
ATE Director
40 Randeep Sahani Machinery
Manufacturers
Brother President
41 Mr. Vallabhai Machinery
Manufacturers
Weavetech Managing Director
42 Navin Agrawal Machinery
Manufacturers
A.T.E. Enterprises
pvt ltd
Vice President
43 S. Rajendran Machinery
Manufacturers
A.T.E. Enterprises
pvt ltd
Senior Vice
President
44 Kiran P. Hanchate Machinery
Manufacturers
A.T.E. Enterprises
pvt ltd
Vice President Appendix
244
45 Sachin Arora Machinery
Manufacturers
TMMA Executive Director
46 Ashish Ameen Machinery
Manufacturers
Premier Loom Owner
47 P. Kasiviswanathan Machinery
Manufacturers
PICANOL Executive Director
48 Rohit Bharadwaj Machinery
Manufacturers
KTTM Sales Manager
49 Dharmshil Kothary Machinery
Manufacturers
Tsudokoma Sales Manager
50 Guru Prasad Machinery
Manufacturers
Benninger Sales Manager
51 S.P. Verma Government
Officials
TxC Joint TxC
52 Ajay Pundit Government
Officials
Regional Office of
the Textile
Commissioner –
Noida
Director
53 Vipin Kumar Kohli Government
Officials
TxC Joint TxC
54 Darlie o Koshy Academia ATDC (Apparel
Training & Design
Centre)
Director General &
CEO
55 Dr. Rakesh Mohan
Joshi
Academia IIFT Chairperson,
Professor
56 Dr. Biswajit Nag Academia IIFT Professor, Textile
Department
57 Dr. Deepti Gupta Academia IIT Delhi Professor
58 Vikas Lending Agency Bank of India (BOI) Nodal Officer
59 Mukesh Kumar Lending Agency Canara Bank Divisional Manager
60 Mr. Nilanjan Lending Agency State Bank of India Nodal Officer
61 Dr. Anjan K.
Mukhopadhyay
Textile Research
Associations
BTRA Director
62 R Bachkaniwala Textile Research
Associations
MANTRA President
Appendix
245
Appendix 5- Data Quality Assurance measures
Data Quality Check Measures
1. Screening of Investigators: Pre-Study
Profile and Experience
• Experience of having worked in field primary data collection work
• Experience of having worked on B2B studies was the priority in
selection process
Telephonic Screening
• Telephonic conversation with the field Investigators to understand
their experience, communication skills and command of language
2. Training the Field Investigators: During Study
Team structure
• There was a supervisor to oversee a team of field investigators. In
normal cases supervisor and interviewers are maintained in the ratio
of 1 : 5
• Investigators were primarily graduates; others were 10+2 pass outs
with sound experience in market/filed survey experience
Briefing the
Investigators
• A briefing document was created with broad requirements, sample
size, explanation of terms and specific instructions on questions
• Briefing was given to teams, using the questionnaire and the briefing
document. This document was available with each and every
investigator while on the field for their reference
• In case app-based data collection link was shared along with
questionnaire for practice
Debriefing of
Investigators
and Mock Round
• After the briefing, mock call was conducted. After the mock call,
debrief was done with all Interviewers
• In outstations, Azul agency checked with the supervisor and ensured
that the supervisor debriefed the investigators to ascertain whether
the nuances of the study, and its various requirements were captured
and understood by them
3. Application - How Does an App Ensure Quality Control?
Location
• Location wise tracking of latitude and longitude
• The captured latitude and longitude should match the location of the
respondent, as per address mentioned in database
B2B – Business to Business Appendix
246
4. Data Quality Control Measures
Once the application was ready, questionnaire was programmed, and screening/briefing of the
investigators and teams was done, the data collection process was commenced. The data
collection process (fieldwork) had the following quality control measures:
Initial Pilot
• Initial data from all teams
• Target was to have initial interviews (at least 1-2) from at least 40%
investigators’ - part of the pilot exercise
• Data was reviewed from the pilot study to revise the questionnaire,
to make suitable changes in the questionnaire to get best possible
response rate. After that review action was taken to ensure that the
post-pilot output was standardized, as much as possible
Open-end Responses
• Quality of open-end responses was reviewed as part of the quality
control effort
Same Column
Responses
• Checked for duplicate responses in the datasheet
• Investigators were replaced in case of suspicious output beyond an
acceptable limit
Scrutiny
• 100% of responses were scrutinized for quality. The agency does
100% scrutiny and ensures 70% responses (data) are valid, with
emphasis on priority questions
Back-Checks
• Back checks (call backs) of at least 50% respondents were done to
ascertain the date, time and quality of interviewing¹
Source: Research Agency
¹ <5%
Length of Interview
• The app feature had the length of interview, which helps Azul project
managers to understand the time when the interview started and no.
of minutes (approx. 40 minutes) it took to finish the interview
Photos
• Image was taken of the sign board of the unit or image of the
respondent or the visiting card
Random Recording
• Some apps had provisions of randomly recording whole or part of an
interview to ascertain the interview done with respondent Appendix
247
Appendix 6- Detailed Sampling Plan
Proposed Sampling as per the ToR
Revised Sampling Plan
• On collecting the list of beneficiaries from the Office of Textile Commissioner, it was
noticed that the number of beneficiaries under the ATUFS was very limited. The total
number of beneficiaries in ATUFS was 584 as per the list shared. Further, the beneficiaries
were skewed towards certain states (Gujarat - 49%), sectors (Weaving - 72%) and scale
(MSME - 82%). This created issues for us to meet the quotas as mentioned in the TOR for
ATUFS.
• In order to address the issue of availability of beneficiaries under ATUFS, Technopak
shifted its sampling plan from states where data is not enough, such as Punjab, Haryana,
UP, and Rajasthan, to states where data is available in abundance, such as Gujarat, Tamil
Nadu, and Maharashtra. To reduce the skewness for these 3 states, Technopak adjusted
higher numbers in other states for non-beneficiary quota.
• In addition, in order to address the issue of skewness of data Technopak decided to
change the sampling plan for non-beneficiaries (108 sample total). Details of the revised
sampling plan is given below (next page):
Exhibit 230: Proposed Sampling (UHS) as per ToR Appendix
248
Exhibit 231: Overall Revised Sampling Plan
State
State-wise and Scheme-wise Beneficiary Sampling Plan
Non-Beneficiary
Sampling Plan
Total Sampling
Plan
Face to Face/ Telephonic
270
ATUFS RRTUFS RTUFS
Total
Samplin
g Plan as
per ToR
Total
Proposed
Sampling
No of
Beneficiari
es in
ATUFS
ATUFS
Samplin
g as per
TOR
Proposed
ATUFS
Sampling
No of
Beneficiari
es in
RRTUFS
Propose
d
RRTUFS
Sampling
No of
Beneficiari
es in
RTUFS
Proposed
RTUFS
Sampling
Samplin
g Total
as per
TOR
Non
beneficia
ry Total
as per
TOR
Propose
d
Samplin
g for
Non-
Benefici
ary
Total
Samplin
g as per
TOR
Proposed
Total
Sampling
Data
Available
Sample
Plan
Sample
Suggeste
d
Data
Available
Sample
Plan
Data
Available
Sample
Plan
ATUFS RRTUFS RTUFS
Gujarat 274 101 117 1118 61 1921 41 203 219 41 44 244 263 58 30 20
Mahara
shtra
81 33 46 364 20 293 13 66 79 13 5 79 84 23 10 6
Punjab 22 33 11 808 20 604 13 66 44 13 5 79 49 5 10 7
Tamil
Nadu
144 30 75 767 18 328 12 60 105 12 15 72 120 38 9 6
Haryana 8 20 4 188 12 125 8 40 24 8 9 48 33 2 6 4
Rajastha
n
12 19 6 153 11 101 7 37 24 7 5 44 29 3 5 4
Uttar
Pradesh
4 17 2 88 10 42 7 34 19 7 21 41 40 1 5 4
Karnata
ka
17 17 9 39 10 33 7 34 26 7 4 41 30 5 5 4
Total 562 270 270 3525 162 3447 108 540 540 108 108 648 648 135 80 55
Source: Technopak Analysis Appendix
249
Research Coverage
As per the revised sampling plan, Technopak have completed 559 beneficiaries and 108 non
beneficiaries. In addition, due to pandemic of COVID-19, some of the face-to-face interviews
were converted into telephonic interviews after taking permission from NITI Aayog. The revised
sampling plan was shared with NITI Aayog team and was approved by them
Exhibit 232: Actual Sampling of UHS
Appendix
250
State Wise Sampling Plan - Beneficiary
Exhibit 233: State Wise Sampling - Beneficiary
Parameters ATUFS RRTUFS RTUFS
State
Proposed
Sampling
Sample
Covered
Proposed
Sampling
Sample
Covered
Proposed
Sampling
Sample
Covered
Gujarat 117 129 61 51 41 29
Maharashtra 46 59 20 23 13 4
Punjab 11 9 20 29 13 8
Tamil Nadu 75 39 18 38 12 2
Haryana 4 9 12 11 8 7
Rajasthan 6 9 11 14 7 9
Uttar Pradesh 2 5 10 28 7 9
Karnataka 9 17 10 9 7 12
Total 270 276 162 203 108 80
Source: Sampling analysis by Technopak
Scale Wise Sampling - Beneficiary
Exhibit 234: Scale Wise Sampling - Beneficiary
Scheme/Scale
Proposed
MSME
MSME –
Current
Status
% Share
Proposed
Non-
MSME
Non-MSME –
Current Status
% Share
ATUFS 224 247 57% 33 29 24%
RRTUFS 129 135 31% 43 68 55%
RTUFS 85 54 12% 26 26 21%
Total 438 436 78% 102 123 22%
Source: Sampling analysis by Technopak
Appendix
251
Segment Wise Sampling - Beneficiary
Exhibit 235: Segment Wise Sampling Plan - Beneficiary
Segments
ATUFS RRTUFS RTUFS
Sample
Proposed
Sample
covered
Sample
Proposed
Sample
covered
Sample
Proposed
Sample
covered
Standalone Spinning 0 0 20 31 10 7
Weaving/Knitting
172 233 54 46 36 11
Processing (Fibers,
Yarn, Fabrics,
Garments, and Made-
ups)
42 25 17 30 12 11
Technical textiles and
Non-woven
15 6 9 27 6 15
Garmenting 5 6 34 40 22 5
Others 23 6 38 29 25 8
Total 257 131 172 203 111 80
Source: Sampling analysis by Technopak
Appendix
252
State Wise Sampling Plan - Non-Beneficiary
Exhibit 236: State Wise Sampling - Non-Beneficiary
State Proposed Sampling Sample Covered
Gujarat 44 18
Maharashtra 5 10
Punjab 5 15
Tamil Nadu 15 15
Haryana 9 9
Rajasthan 5 15
Uttar Pradesh 21 11
Karnataka 4 15
Total 108 108
Source: Sampling analysis by Technopak
Scale Wise Sampling - Non-Beneficiary
Exhibit 237: Scale Wise Sampling - Non-Beneficiary
Scale Sample Covered
MSME 98
Non-MSME 10
Total 108
Source: Sampling analysis by Technopak
Appendix
253
Segment Wise Sampling - Non-Beneficiary
Exhibit 238: Segment Wise Sampling - Non-Beneficiary
Segment Sample Covered
Standalone Spinning 0
Weaving/Knitting 46
Processing (Fibers, Yarn, Fabrics, Garments, and Made-ups) 22
Technical textiles and Non-woven 7
Garmenting 28
Others 5
Total 108
Source: Sampling analysis by Technopak
Appendix
254
Profile Analysis
In total, 667 Unit Holder Surveys (UHS) were undertaken to conduct the quantitative analysis. Out
of 667, 559 were beneficiary and 108 were non-beneficiary.
Profile of Unit Holder Surveyed - Beneficiaries
Segment Wise
Scheme Wise
7%
50%
6%
12%
9%
9%
8%
Spinning
Weaving
Knitting
Processing
Technical Textiles &…
Garmenting
Other
Loan Beneficiaries
Segment
Source:TechnopakAnalysis;Base-559
14%
36%
49%
RTUFS
RRTUFS
ATUFS
Loan Beneficiaries
Scheme
Source:TechnopakAnalysis;Base-559
50% of UHS were from weaving sector, which is in line with the TUFS applications
Scheme-wise target was 50:30:20 for ATUFS: RRTUFS: RTUFS. However, the sample had more
applications from RRTUFS as there were fewer beneficiaries available in ATUFS
Exhibit 239: UHS Profile – Segment Wise
Exhibit 240: UHS Profile - Scheme Wise Appendix
255
Scale Wise
78%
22%
MSME Non - MSME
Source:TechnopakAnalysis,Base-559
MSME sector witnessed higher no. of beneficiaries (78%) as no. of applications are skewed
towards MSME sector
For the purpose of the report, Technopak has completed 667 UHS across different geographies,
segments, and scale. Of 667 UHS, 559 were beneficiaries. Of 559 beneficiaries, 50% were
completed from weaving sector, which is in line with the TUFS applications. The scheme-wise
survey was completed in the ratio of 50:36:14 for ATUFS: RRTUFS: RTUFS. The sample had more
applications from RRTUFS as there were fewer beneficiaries available in ATUFS.
Summary
Exhibit 241: UHS Profile - Scale Wise Appendix
256
Profile of Unit Holder Surveyed - Non-Beneficiaries
Segment Wise
Scale Wise
1%
37%
6%
19%
26%
6%
5%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles
Others
Loan Beneficiaries
Segment
Source:TechnopakAnalysis;Base-108
37% of UHS were from weaving sector, which is in line with the TUFS applications
MSME sector witnessed higher no. of non-beneficiaries (91%) as no. of applications are skewed
towards MSME sector
91%
9%
MSME Non - MSME
Source:TechnopakAnalysis,Base-108
Of 667 UHS, 108 were non-beneficiaries. Of 108 non beneficiaries, 37% were completed from
weaving sector. More number of MSME were included in the UHS sample, in line with the higher
number of MSME demand.
Summary
Exhibit 242: UHS Profile - Segment Wise
Exhibit 243: UHS Profile - Scale Wise Appendix
257
Appendix 7- Deep dive into UHS Analysis
FINANCIAL PERFORMANCE
Beneficiaries
Annual Sales
Majority of the segments have similar rise in annual sales. Knitting, Weaving and Processing have
witnessed high percentage increase in sales >10% by around 50% of the respondents. Relatively,
Technical Textiles has witnessed more increase in sales (37% of respondents, 6-10%) because this
is not a commodity product.
Exhibit 244: Change in Annual Sales - Segment Wise
Among states, Rajasthan and Karnataka have witnessed high percentage increase in annual sales
of >20% due to TUFS responded by ~50% of their respondents. Punjab has witnessed lesser
increase in annual sales (6-10%) responded by 53% of the 43 respondents.
2%3%
1%
7%
3%
2%
3%
2%
3%
0%
3%
2%
5%
5%
6%
5%
3%
10%
12% 2%
11%
16%
11%
17%
18% 12%
15%
18%
29%
21%
14%
20%
31%
37%
24%
13%
20%
21%
23%
18%
15%
8%
26%
37%
31% 25%
18%
24%
29%
3%3%
8%
5%
31 262 29 61 51 41 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-513 Appendix
258
Exhibit 245: Change in Annual Sales - Geography Wise
Across schemes, the highest increase in annual sales was exhibited during ATUFS scheme with
39% of the respondents suggesting an increase >20%.
Exhibit 246: Change in Annual Sales - Scheme Wise
1%
7%
3%
5%
4%
1%
6% 1%
4%
1%
6%
4%
6%
12%
5% 3%
3%
10%
11% 20%
11%
30%
9%
18%
18%
16%
52%
3%
20%
53%
6%
25%
40%24%
8%
33%
18%
7%
28%
9%
3%
37%
12%
50%
30%
2%
53%
24% 28%
4% 4%3% 2%4% 3%
194 25 36 76 43 32 67 40
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but don’t
know/can’t say
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but don’t
know/can’t say
Source:TechnopakAnalysis,Base-513
1%2%1%
2%1%1%
1%3%0%
4%
10%
7%
12%
15%
14%
18%
28%
29%
20%
16%
19%
39%
22%29%
3%4%
1%
254186
73
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but percentage
unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 6-10%
Decreased by 11-20%
Decreased by >20%
Decreased but percentage
unknownSource:TechnopakAnalysis,Base-513 Appendix
259
Net Profit
Majority of respondents have witnessed an increase in net profit with weaving segment having
highest positive response of 63% for profit increase greater than 6%. Some respondents in
Spinning (6%) and Knitting (7%) segments have witnessed high reduction in net profit of >20%.
Net profits increment can be attributed to productivity improvement and wastage reduction.
Exhibit 247: Change in Net Profit - Segment Wise
Among states, Rajasthan (55%), Karnataka (46%) and Gujarat (39%) have witnessed high
percentage increase in net profit of >20% due to TUFS. Tamil Nadu has witnessed decrease in net
profits responded by 22% of the 64 respondents.
1%
3% 2%
6%
2%
7% 2% 4%
5%
11%
3%
2%
4%
2%
0%
4%
5%
3%
1%2%
2%
6%
7%
18%
7%
4% 5%
8%
32%
12%
18%
28% 29%
24%
26%
16%
18%
14% 22%
25%
29%
16%
10%
18%
14%
21% 10%
7%
3%
23%
37%
25%
14%
14%
24%
29%
3%2%
8%
3%
31 266 28 58 51 41 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but percentage
unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but percentage
unknown
Source:TechnopakAnalysis,Base-513 Appendix
260
Exhibit 248: Change in Net Profit - Geography Wise
Across schemes, the highest increase in net profit was exhibited during ATUFS scheme with 36%
of the respondents suggesting an increase >20%.
Exhibit 249: Change in Net Profit - Scheme Wise
2%1%2%
2%5% 1%3%
11%
10%
1%
3%
5%
5%
1%
4%
5%
2%
1%
1%
2%
3%
6%
4%
8%
11%
5%
6%
9%
3%
12%
26%
3%
10%
58%
10%
22%
44%
17%
57%
8%
19%
28%
13%
16%
23%
18%
9%
22%
18%
7%
13%
11%
5%
39% 46%
29%
55%
17%
10%
3%4% 2%
5%
3%
197 23 37 79 43 31 64 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-513
0%2%1%2%
7%3%
1%
0%
2%
1%
0%
2%
7%
5%
9%
12%
25%
28%
17%
24%
17%
18%
9%
17%
36%
20%25%
3%4%
25518375
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but percentage
unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 6-10%
Decreased by 11-20%
Decreased by >20%
Decreased but percentage
unknownSource:TechnopakAnalysis,Base-513 Appendix
261
Sales Price
Weaving segment has had tremendous gains >10% in the per unit sales price with 56%
respondents suggesting the same. Spinning segment has also witnessed high increase in average
sales price. Knitting respondents have witnessed lower sales price growth as compared to the
other segments.
Exhibit 250: Change in Average Sales Price - Segment Wise
Majority of the states, have witnessed high percentage increase in net profit due to TUFS.
Karnataka has witnessed the highest growth in the average sales price (72% respondents
responding >10% increases in sales price). However, some of the respondents (12% of the 64
respondents) of Tamil Nadu have witnessed decrease in average sales price.
0%2%2%
14%
2%5%
3%3%
2%3%
10% 12%
21%
12%
12%
10%
13%
16%
10%
21%
24%
20%
26% 18%
23%
15%
14%
16%
27%
26%
18%
45%
56%
21%
33% 29%
26%
34%
4%
7% 7% 8%
3%
31 266 28 58 49 39 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-509 Appendix
262
Exhibit 251: Change in Average Sales Price - Geography Wise
Across schemes, the highest increase in average sales price was exhibited during ATUFS scheme
with 56% of the respondents suggesting an increase >10%.
Exhibit 252: Change in Average Sales Price - Scheme Wise
1%2%1%
8%
3%
8%
8%
2%
2%
3%15%
4%
11%
20%
7% 13%
10%
5%
9% 32%
3%
5%
44%
3%
11%
54%
14%
44%
3%
11%
33%
23%
24%
15%
56%
16%
72%
54%
9%
58%
30%
13%
4% 4%5% 5%
10%
3%
196 25 36 76 43 31 63 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-509
0%1%
3%3%
1%
1%
1%
13%12%14%
10%
18%
26%
13%
22%
19%
56%
32%
35%
4%
6%
1%
25418372
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but percentage
unknown
Increased By >10%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by >10%
Decreased but percentage
unknown
Source:TechnopakAnalysis,Base-509 Appendix
263
Non-Beneficiaries
Annual Sales
Weaving has witnessed high increase in annual sales with 21 % of the respondents reporting
>20% increase. Processing segment has witnessed increase of >20% in annual sales as reported
by 31% of 13 respondents.
Exhibit 253: Change in Annual Sales - Segment Wise
Among states, Uttar Pradesh’s non beneficiary respondents have witnessed increase in annual
sales of >20% as responded by ~60% of their respondents. Punjab has witnessed decrease in
annual sales >10% as responded by ~40% of their respondents.
Exhibit 254: Change in Annual Sales - Geography Wise
6%
15%
8%
4%
15%
24%
8%
38%60%
12%
8%
8%
17%
9%
20%
15%
25%
17%
27%
40%
4%
33%
21%
40%
31%
8%
33%
20%
8%
4%
20%
33 5 13 24 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-86
13%
33%
7%
67%67%
13%
60%
10%
7%
33%
42%
10%
20%
13%
7%
25%
42%
10%
40%
20%
38%
8%
10%
40%
38%
25%
8%
60%
38%
15 8 15 8 15 3 12 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-86 Appendix
264
Net Profit
24% respondents in weaving segment have witnessed >20% increase in net profits. Significant
number of respondents in weaving (24%), and garmenting (25%) segments have witnessed high
reduction in net profit of >20%. In processing segment 58% of the respondents have witnessed
loss in net profits.
Exhibit 255: Change in Net Profit - Segment Wise
Among states, Punjab (67%) and Karnataka (33%) have witnessed decrease in net profit of >20%.
Gujarat is the only state to report an increase in net profit with no unit holder responding
decrease in net profits.
Exhibit 256: Change in Net Profit - Geography Wise
17%
4%
20%
24%
8%
25%
20%9%
17%
8%
8%
8%
15%
33%
17%
8%
17%
20%3%
17%
8%
17%
17%
21%
17%
17%
17%
33%
3%
4%
17%
24%
17% 17%
20%
33%
20%
33 6 12 24 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased By 6-10%
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-86
50%
7%
33%
67%
7%
17%
13%
25%
10%
14%
75%
20%
43%
13%
50%
7%
14%
29%
20%
47%
29%
36%
20%
13%
7%
47%
20% 20%7%
33%
7%
15 6 15 7 15 4 14 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased By 6-10%
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-86 Appendix
265
Sales Price
Weaving segment has had tremendous gains >10% in the per unit sales price with 37%
respondents suggesting the same. Garmenting segment has witnessed decrease in average sales
price with 35% responses indicating >10% decrease.
Exhibit 257: Change in Average Sales Price - Segment Wise
Non-beneficiaries’ respondents in Gujarat (58% of the 12 respondents) have witnessed increase
in average sales price >10%. However, respondents in Punjab have witnessed a decline in the
average sales price (80% of respondents responding >10% decrease in sales price).
Exhibit 258: Change in Average Sales Price - Geography Wise
5%
13%
20%
35%
20%
7%
10%
7%
33%
10%
33%
10%
17%
30% 10%
33%17%
10%
25%
17%
40%
37%
17%
10%
10%
33%
5%
17%
40%
30 6 10 20 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >10%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-77
17%
80%
20%
7%
20%
7%
50%
7%
30%
33%
13%
17%
100%
8%
20%
8%
20%
7%
75%
58%
33%
17%
7%
10%
67%
17%
12 6 15 6 15 1 12 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased By >10%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-77 Appendix
266
PRODUCTION AND PRODUCTIVITY
Beneficiaries
Production Volume
Most of the respondents from all sectors have witnessed high growth in production volume as a
result of productivity improvement; however, 11% of technical textiles’ sector respondents have
reported significant production volume losses. 77% of weaving unit respondents have witnessed
increase in production volume >5%.
Exhibit 259: Change in Production Volume (%) - Segment Wise
Among states, Rajasthan (59%), Karnataka (55%) and Gujarat (42%) have witnessed high
percentage increase in production volume of >20% due to TUFS. 57% of the respondents in
Haryana have witnessed an increase in production volume between 6-10%.
3%
3%
3% 4% 3%2%
2%
2%
5%
3%
2%
2%
2%
3%
3%
2%3%
5%
11% 7% 8%
10%
11%
28%
11%
19%
22%
29%
17%
24%
16%
16%
15% 12%
22%
21%
22%
16%
16%
11%
22%
12%
12% 8%
28%
45%
41%
31%
22% 29% 30%
3%2%
4%
32 269 27 59 51 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-517 Appendix
267
Exhibit 260: Change in Production Volume (%) - Geography Wise
Across schemes, the highest increase in production volume was exhibited during ATUFS scheme
with 46% of the respondents suggesting an increase >20%.
Exhibit 261: Change in Production Volume (%) - Scheme Wise
2%2%
7%5% 5%2%5%
4%
2%
1%
3%
2%
2%
1%
2%
7%
11%
8%
9%
3%
6%
2%
11%
22%
12%
57%
3%
17%
37%
12%
57%
8%
11%
14%
19%
30%
20%
23%
9%
18%
13%
9%
16%
5% 5%
42%
13%
55%
42%
5%
59%
30%
32%
2%4% 2%3%
199 23 38 76 44 32 64 41
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-517
1%2%
3%3%
1%
3%
1%1%
1%
1%
4%
8%
9%
12%
24%
17%
15%
18%
20%
18%
11%
18%
46%
27%
32%
1%
4%
25418776
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but percentage
unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 6-10%
Decreased by 11-20%
Decreased by >20%
Decreased but percentage
unknown
Source:TechnopakAnalysis,Base-517 Appendix
268
Non-Beneficiaries
Production Volume
Most of the respondents from all sectors have witnessed high growth in production volume. 69%
of weaving unit respondents have witnessed increase in production volume >5%.
Exhibit 262: Change in Production Volume (%) - Segment Wise
Among states, 94% respondents in Gujarat have witnessed increase in production volume of
>10% due to TUFS. 33% of the respondents in Punjab have witnessed a decrease in production
volume <20%. 20% of the respondents in Uttar Pradesh witnessed a decrease in production
volume between 11-20%.
Exhibit 263: Change in Production Volume (%) - Geography Wise
6%8% 8%
3%
20%
8%
8%
3%
20%
17%
25%
14%
20%
19%
13%
14%
20%
25%
20% 17%
17%
14%
22%17%
21%
14% 20%
22%
20%
25%
13%
29%
20%
4%
14%
40%
32 5 12 24 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-85
33%
11%
20%
50%50%
40%
20%
47%
50%
27%
7%
47%
64%
10%
47%
22%
7%
25%
20%
10%
47%
22%
25%
7%
40%
44%
9%
15 9 15 8 15 2 11 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-85 Appendix
269
EXPORTS
Beneficiaries
Value of Exports
Majority of the segments have witnessed an increase in exports value with technical textile
segment having highest positive response of 84% for export increase. Garmenting segment
respondents have witnessed highest increase in value of exports >20%. Some respondents in
Spinning and Knitting have witnessed decrease in value of exports.
Exhibit 264: Change in Value of Exports (%) - Segment Wise
Among states, in Karnataka 40% of 10 respondents have witnessed highest percentage increase
in value of exports of >20% due to TUFS. 54% of the respondents in Haryana have witnessed an
increase in value of exports between 6-10%.
17%
1%
17%
6% 6%3%
9%
6% 6%
5%
4%
6%
4%
1%
5%1%
5%
17%
17%
17%
9%
6%
6%
14%
4%
6%
17% 36%
17%
17%
23%
21%
25%
17%
23%
33%
39%
27%
21%
23%
9%
11%
14%
8%
15%
17%
9%
22%
11%
14%
4%
7%
17%
6% 6%
24 71 6 22 18 18 22
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-181 Appendix
270
Exhibit 265: Change in Value of Exports (%) - Geography Wise
Across schemes, the highest increase in value of exports was exhibited during ATUFS scheme
with 76% of the respondents suggesting an increase in value of exports.
Exhibit 266: Change in Value of Exports (%) - Scheme Wise
3%3%
8%
11%
11%
4%
5%
3%
2%
3%
5%
3%
2%
14%
4%
20%
5% 17%
46%
11%
25%
31%
17%
5%
25%
11%
11%
54%
10%
30%
17% 23%
28%
25%
3%
17%
30%
16%
8%
23%
20%
25%
11%
4%
40% 22%
25%
8%
7% 25%
6%
8%9%
35 24 10 37 12 13 46 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but percentage
unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-181
3%
7%
4%
3%
7%
3%
1%
3%
1%
1%
16%
9%
18%
12%
13%
21%
22%
32%
25%
19%
11%
18%
18%
12%7%
5%4%
7%
777628
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but percentage
unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-181 Appendix
271
Volume of Exports
Highest change in volume of exports has been observed by Weaving and Garmenting segments.
Majority of segments have experienced export’s volume growth > 6%. Processing has witnessed
increase in volume of exports between 1-5% as reported by 50% of the 24 respondents. Export
volume has increased due to above stated factors like product development, quality
improvement and innovation.
Exhibit 267: Change in Volume of Exports (%) - Segment Wise
Among states, in Maharashtra, 30% of 37 respondents have witnessed highest percentage
increase in volume of exports of >20% due to TUFS. 54% of the respondents in Haryana have
witnessed an increase in volume of exports between 6-10%.
17%
3%
6% 6%
4%
1%
14%
8%
6% 6%
5%
6%
4%
4%
6%
21%
17%
14%
8%
6% 6%
14%
4%
4%
50%
33%
17%
32%
21%
33%
14%
8%
6%
28%
18%
8%
13%
14%
8%
17%
17%
18%
8%
25%
29%
17%
22% 11%
14%
8%
4%
14%
6%
24 72 7 24 18 18 22
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-185 Appendix
272
Exhibit 268: Change in Volume of Exports (%) - Geography Wise
Across schemes, the highest increase in volume of exports of >20% was exhibited during ATUFS
scheme with 24% of the respondents reporting the same.
Exhibit 269: Change in Volume of Exports (%) - Scheme Wise
3%3%
8%10%
11%
4%
3%
4%
3%
3%
8%
2%
16%
4%
20% 5%
17%
38%
13%
25%
27%
21%
10%
14%
25% 17%
16%
54%
22%
17%
15%
23%
11%
13%
40%
16%
8%
15%
6%
25%
11%
4%
30%
30%
17%
23%
19%
50%
3%
5%
8%6%
37 24 10 37 12 13 48 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-185
3%
7%
3%
3%
8%
1%
1%
3%
18%
9%
14%
10%
22%
24%
29%
17%
21%
11%
12%
21%
24%
16%
14%
4%4%3%
807629
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-185 Appendix
273
Average Unit Price
Highest change in average unit price has been observed by Garmenting segment. Weaving and
technical textile respondents’ have indicated that almost one-third of them witnessed no change
in average unit sales price. Average unit price has increased due to above stated factors like high
value product mix, quality improvement and research and development.
Exhibit 270: Change in Average Unit Price (%) - Segment Wise
Among states, in Maharashtra 31% of 36 respondents have witnessed highest percentage
increase in average unit price of >20% due to TUFS. 54% of the respondents in Haryana have
witnessed an increase in average unit price between 6-10%.
17%
1%
14%
6%
4%
1%
14%
6%
8%
1%6%
17%
32%
26%
6%
31%
19%
13%
14%
39%
31%
19%
24%
29% 21%
29%
9%
38%
31%
24%
13%
10%
9%
6%
6%
14%
4%
14%
14%
9%
6%19%
8%
6%
14%
9%
6%
24 71 7 23 16 16 21
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but percentage
unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 6-10%
Decreased By 11-20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-178 Appendix
274
Exhibit 271: Change in Average Unit Price (%) - Geography Wise
Across schemes, the highest increase in volume of exports of >20% was exhibited during ATUFS
scheme with 24% of the respondents reporting the same.
Exhibit 272: Change in Average Unit Price (%) - Scheme Wise
3%
8%
11%
3%
8%
4%
3%3%
4%
37%
8%
20%
25%
42%
58%
9%
33%
23%
25%
6%
17%
26%
67%
11%
54%
30%
22%
8%
17%
24%
9%
4%
30%
8%
8%
8%
11%
6%
4%
20%
31%
8%
8%
2%
9%
4%3%
8%9%
35 24 10 36 12 12 46 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 6-10%
Decreased By 11-20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-178
3%
5%4%
3%
3%1%
4%
27%
19%
29%
17%21%
14%
22%
23%
29%
8%
8%
18%
14%
11%
5%5%7%
777328
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 6-10%
Decreased By 11-20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-178 Appendix
275
Non-Beneficiaries
Value of Exports
According to responses by non-beneficiaries, 25% in weaving segment and 34% in garmenting
segments have witnessed a decrease >11% in the value of exports.
Exhibit 273: Change in Value of Exports (%) - Segment Wise
Among states, in Punjab 40% of 15 non-beneficiaries’ respondents have witnessed highest
percentage decrease in value of exports of >20%.
Exhibit 274: Change in Value of Exports (%) - Geography Wise
20%
10%
20%
27%
15%
20%
7%10%
7%5%
13%
35%
50%
20%
7%
50%
33%
10%
20%
33%
15%
20%
13%
50%
7%
50%
33%
20 2 5 15 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-47
25%
7%
40%
20%
7%
25%
20%
7% 7%
20%
75%
27%
7%
40%
50%
25%13%
20%
7%
20%
20%
25%
75%
20%
4 4 15 15 5 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
GujaratHaryanaKarnatakaPunjabTamil NaduUttar
Pradesh
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-47 Appendix
276
Volume of Exports
According to responses by non-beneficiaries, 25% in weaving segment and 27% in garmenting
segments have witnessed a decrease >11% in the volume of exports. Also, the increase in volume
of exports >20% has been witnessed by 20% of non-beneficiary respondents both in weaving and
garmenting.
Exhibit 275: Change in Volume of Exports (%) - Segment Wise
Among states, in Punjab, 33% of 15 non-beneficiaries’ respondents have witnessed highest
percentage decrease in value of exports of >11%.
Exhibit 276: Change in Volume of Exports (%) - Geography Wise
20%
5%
20%
7%
20%
20%
20%
20%
13%67%
10%
13%
15%
7%
10%
40%
13%
50%
20%
20%
100%
7%
50%
33%
20 1 5 15 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-46
25%
7%
13%
20%
20%
33%
47%
13%
13%
40%
50%
7%
7%25%
7%
13%
20%
67%
25%
13%
20%
20%
75%
20%
4 4 15 15 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
GujaratHaryanaKarnatakaPunjabTamil NaduUttar
Pradesh
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-46 Appendix
277
Average Unit Price
Highest change in average unit price has been observed by Garmenting segment with 54% of 13
respondents suggesting an increase between 11-20%.
Exhibit 277: Change in Average Unit Price (%) - Segment Wise
Among states, in Punjab 47% of 15 non-beneficiaries’ respondents have witnessed highest
percentage increase in average unit price between 11-20%. 67% of the respondents in Karnataka
have witnessed an increase in average unit price between 6-10%.
Exhibit 278: Change in Average Unit Price (%) - Geography Wise
8%
33%
25%25%
50%
50%33%
31%
100% 50%
25%
54%
33%
50%
8%
25%
16 2 3 13 1 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-39
7%
7%
50%
7%
7%
50%
50%
100%
67%
27%
25%
27%
47%
7%
100%
25%
1 2 15 15 4 2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
GujaratHaryanaKarnatakaPunjabTamil NaduUttar
Pradesh
% Share of Respondents
Increased but percentage
unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-39 Appendix
278
EMPLOYMENT GENERATION
Beneficiaries
Change in Total Manpower before and after Taking Loan
Total manpower has increased across all the segments. Processing segment has seen significant
>100 manpower addition. Although, technology upgradation normally reduces the manpower
requirement but no. of employees has been increased by capacity addition in this case. Capacity
additions across the textile value chain have created new jobs for skilled as well as unskilled
manpower.
Exhibit 279: Change in Total Manpower - Segment Wise
Among states, Rajasthan and Tamil Nadu have witnessed highest percentage increase in total
manpower of 20-50 due to TUFS. Majority of states have witnessed total manpower increase <20
while 12% of 74 of Maharashtra’s respondents indicating a decrease between 20 and 50.
2%0%
3%
0%3%
3%
9%
11%
3%
5%
10%
9%
4%
9%
8%
29%
15%
41%
20%
17%
26%
16%
14%
51%
31%
20%
32%
33%
30%
29%
19%
10%
25%
23%
23%
24%
20%
4%
9%
9%
2%
3%
1%
16%
2%
5%
5%
3%
1%
3% 2%
4%3%
35 259 29 56 47 43 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but
change unknown
Source:TechnopakAnalysis,Base-506 Appendix
279
Exhibit 280: Change in Total Manpower - Geography Wise
Across schemes, during ATUFS scheme primarily increase in labour was <50 while during RTUFS
and RRTUFS ~15% have achieved an increase of >50 in total manpower.
Exhibit 281: Change in Total Manpower - Scheme Wise
3%2% 3% 1%2%
5%
12%
3%
3%
10%
14%
4%
5%1%
3%
15%
26%
22%
18%
43%
6%
30%
3%
53%
61%
16%
39%
17%
29%
12% 58%
12%
9%
30%
20%
26%
35%
35%
19%
2%
8%
4%
2%
16%
14%
8%
4%
4% 5%
6%
4% 3%2%3%
5% 3%
189 23 37 74 42 31 74 36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-506
1%0%1%0%2%
5%4%
4%
6%
12%
19%
22%12%
50%
26%34%
20%
23%
19%
3%
8%9%
1%
7%3%
1%2%
4%
25018967
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but change
unknownSource:TechnopakAnalysis,Base-506 Appendix
280
Change in Skilled Manpower before and after Taking Loan
Overall majority of the segments have witnessed less than 20 additional skilled labour. Demand
for skilled labour has increased due to installation of new technology machines across the
segments. Spinning and processing segments have seen influx of skilled labour between 20 and
50.
Exhibit 282: Change in Skilled Manpower - Segment Wise
Among states, Rajasthan, Uttar Pradesh and Tamil Nadu have witnessed highest percentage
increase in skilled manpower of 20-50 due to TUFS. Majority of states have witnessed skilled
manpower increase <20 while 14% of the respondents from Karnataka and Punjab have indicated
a decrease of <20.
0%2%4%
0%2%3%1%2%
2%
5%
6%
7% 4%
5%
9%
7%
14%
29%
19%
33%
20%
26%
29%
19%
23%
57%
48%
33%
34%
40%
24%
34%
13%
7%
31%
15%
12%
30%
6%
1%
2%
9%
5%
0%
5% 2%
2%
3%
3%
1%
4% 2%
4%3%
35 251 27 55 47 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-494 Appendix
281
Exhibit 283: Change in Skilled Manpower - Geography Wise
Across schemes, during ATUFS scheme primarily increase in skilled labour was <20 while during
RTUFS and RRTUFS ~30% achieved an increase of >20 in skilled manpower.
Exhibit 284: Change in Skilled Manpower - Scheme Wise
1%
3%2%1%3%3%1%
3%
3%4%
9%
9%
14%
8%
14%
3%
19%
39%
22%
26%
38%
6%
26%
6%
57%
48%
35%
54% 17%
39%
25%
53%
11%
22%
7%
21%
35%
32%
33%
1%
3%
2%
10%
9%
1% 4%6% 1% 3%2%3% 5%
1%
183 23 37 74 42 31 68 36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-494
0%1%0%1%3%2%1%
2%4%
8%
17%
21%
26%
14%
60%
32%
29%
11%
23%
27%
0%
4%5%
1%
2%
1%2%
5%
24218666
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but change
unknownSource:TechnopakAnalysis,Base-494 Appendix
282
Change in Unskilled Manpower before and after Taking Loan
In Spinning, Knitting, Processing and Garmenting segment, a significant >30% of the respondents
have indicated no change in unskilled manpower. Spinning segment has witnessed 29%
respondents suggesting increase in unskilled manpower 20-50.
Exhibit 285: Change in Unskilled Manpower - Segment Wise
Among states, Rajasthan and Uttar Pradesh have witnessed highest percentage increase in
unskilled manpower of 20-50 due to TUFS. Majority of states have witnessed unskilled manpower
increase <20 while 22% of Haryana’s respondents indicating a decrease of <20.
2%
0%
4%2%2%
11%
9%
16%
4%
15%
12% 16%
34%
19%
52%
41%
32%
29%
16%
20%
56%
20%
30%
26%
43%
41%
29%
10%
4%
15%
19%
10%
19%
3%
1%
6%
2%
5%
0%
6%
5%
3%
1%
4%4%3%
35 250 25 54 47 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-490 Appendix
283
Exhibit 286: Change in Unskilled Manpower - Geography Wise
Across schemes, during ATUFS scheme primarily increase in unskilled labour was <20 while during
RTUFS and RRTUFS ~20% have achieved an increase of >20 in unskilled manpower.
Exhibit 287: Change in Unskilled Manpower - Scheme Wise
3%2% 3%
10%10%
22%
11% 12%
12%
3%
7%
6%
20%
30%
38% 34%
36%
7%
40%
6%
59%
43%
32%
46%
21%
40%
18%
49%
7%
14%
4%
24%
37%
18%
31%
1%3% 1% 2%
7%
3%
6%1% 4% 3%3% 1%
2%3% 2%1%
182 23 37 74 42 30 67 35
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-490
1%0%2%2%1%
8%
14%
8%
26%
29%
21%
56%
29%
42%
6%
19%21%
0%
4%2%
1%
2%
2%
1%2%3%
23918566
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-490 Appendix
284
Change in Average Salary of Skilled Manpower before and after Taking Loan
In weaving sector, 70% of the 270 respondents have witnessed >6% growth in the salary of the
skilled manpower. Majority of the segments have witnessed majorly average salary increases of
>6% for skilled manpower.
Exhibit 288: Change in Average Salary of Skilled Manpower - Segment Wise
Among states, 75% respondents from Rajasthan have witnessed increase in average salary of
skilled manpower of >10% due to TUFS. Majority of states have witnessed average salary of
skilled manpower increase >6%.
4% 4%
6%
2%
7%
15%
6%
2%
2%
2%
2%
3%
2%
4%
8%
4%
2%
3%
18%
3%
17%
19%
12%
7%
15%
32%
16%
17%
6%
25%
26%
8%
9%
25%
25%
19%
22%
13%
10%
24%
45%
29%
29%
20%
30%
43%
9%
6%
4%
11% 12% 13%
8%
34 270 24 63 51 46 40
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-528 Appendix
285
Exhibit 289: Change in Average Salary of Skilled Manpower - Geography Wise
Across schemes, during ATUFS scheme respondents have witnessed primarily increase in average
salary increase of skilled labour of >10% and almost 70% have witnessed an increase in average
salary >6% during ATUFS.
Exhibit 290: Change in Average Salary of Skilled Manpower - Scheme Wise
4% 4%
15%
3% 3%
1%
1%
2%
1%2%
1% 4%
4%
2% 6%
9%
3%
3%
4%
1% 29% 15% 36%
8%
56%
16%
9%
36%
3%
24%
28%
27%
11%
24%
36%
2%
9%
12%
5%47%
11%
58%
27%
11%
75%
27%
21%
8%
11%
3%
6%
16%
3%
9% 8%
202 27 38 78 45 32 67 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-528
3%
8%
3%
1%
2%
6%
4%
13%
13%
14%
21%
17%
27%
14%
17%
44%
29%
35%
6%7%
17%
25619478
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-528 Appendix
286
Change in Average Salary of Unskilled Manpower before and after Taking Loan
In weaving sector, 65% of the 159 respondents have witnessed >10% growth in the salary of the
unskilled manpower. Majority of the segments have witnessed; majorly average salary increases
of >6% for unskilled manpower.
Exhibit 291: Change in Average Salary of Unskilled Manpower - Segment Wise
Among states, 86% respondents from Gujarat have witnessed increase in average salary of
unskilled manpower of >10% due to TUFS. Majority of states have witnessed average salary of
unskilled manpower increase >6%.
8%
13%
9%
6%
14%
33%
10%
1%
20%
2%
25%
30%
12%
10%
6%
2%
4%
5%
6%
6%
9%
18%
5%
17%
12%
10%
6%
70%
65%
63%
48%
53%
57%
50%
10 159 8 23 17 21 18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-256 Appendix
287
Exhibit 292: Change in Average Salary of Unskilled Manpower - Geography Wise
Across schemes, during ATUFS scheme respondents have witnessed primarily increase in average
salary increase of unskilled labour of >10% and almost 80% have witnessed an increase in average
salary >6% during ATUFS.
Exhibit 293: Change in Average Salary of Unskilled Manpower - Scheme Wise
8%
3%
23%
6% 5%
3%
5%
4%
33%
5%
25%
18%
32%
3%
2%
21%
11%
7%
37%
1%
28%
33%
5%
86%
67%
53%
30%
75% 76%
59%
37%
95 3 36 60 4 17 22 19
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-256
5%
18%
7%
1%
1%
3%
16%
4%1%
2%
11%
5%
5%
11%
17%
2%19%
67%
55%
48%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-256 Appendix
288
Change in training costs before and after taking loan
Almost 45% of the respondents in spinning and weaving segments responded that the training
costs were increased >6%. Technical textiles primarily witnessed an increase in training costs
between 3-5% as responded by 60% of the 15 respondents.
Exhibit 294: Change in Training Cost - Segment Wise
Among states, 48% of respondents from Rajasthan have witnessed increase in training costs of
>10% due to TUFS. Majority of states have witnessed average training costs increased by >6%.
2%
7%2%
7%
5%
10%
13% 20%
33%
19%
7%
35%
41%
40%
29%
44%
60%
20%
30%
27%
19%
20%
20%
15%
13%
40%
10%
25%
50%
10%
4%5%
13%
10%
20 56 5 21 16 15 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by >10%
Source:TechnopakAnalysis,Base-143 Appendix
289
Exhibit 295: Change in Training Cost - Geography Wise
Across schemes, during RTUFS scheme respondents have witnessed primarily increase in training
costs of >3% and almost 78% have witnessed an increase in training costs >3% during RRTUFS.
Exhibit 296: Change in Training Cost - Scheme Wise
7%5%6%
7%
5%
24%
5%
6%
20%
29%
19% 20%
24%
71%
50%
33%
29%
24%
42%
20%
18%
14%
38%
27%
12%
19%
26%18%
5%
7%
12% 48%
13%
40%
18%
5%
18%20%
17 21 16 15 17 21 31 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by >10%
Source:TechnopakAnalysis,Base-143
7%
2%
4%
2%
17%
16%
7%
43%
44%
21%
23%
16%
29%
11%
18%
21%
2%
6%
11%
536228
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by >10%
Source:TechnopakAnalysis,Base-143 Appendix
290
Non-Beneficiaries
Change in total no. of employees before and after taking loan
Total manpower has increased across all the segments. Processing and weaving segments have
seen significant <20 manpower addition.
Exhibit 297: Change in Total Manpower - Segment Wise
Among states, non-beneficiaries’ respondents in Tamil Nadu have witnessed highest percentage
increase in total manpower of 50-100. 60% of 15 respondents in Punjab have witnessed a
decrease <20 in total manpower.
Exhibit 298: Change in Total Manpower - Geography Wise
20%
14%
10% 11%
11%
25%
17%
20%
29%
21%
20%
75%
39%
60%
43%
18%
20%
11%
20%
14%
11%
6%
5%
7%
40%
4%
25%
3%4%
36 5 21 28 5 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Source:TechnopakAnalysis,Base-99
8%
27%
33%
8%
13%
60%
40%
38%
7%
53%
17%
27%
94%
43%
38%
40%
45%14%
13%
13%
7%
25%
27%
6%
14%
42%14%
13%14%
7%
16 7 15 8 15 15 12 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Source:TechnopakAnalysis,Base-99 Appendix
291
Change in skilled manpower before and after taking loan
Overall majority of the segments have witnessed less than 20 additional skilled labour. Weaving
and processing segments have seen influx of skilled labour <20.
Exhibit 299: Change in Skilled Manpower - Segment Wise
Among states, non-beneficiaries in Gujarat have witnessed highest percentage increase in skilled
manpower of <20. Majority of states have witnessed skilled manpower increase <20 while 80%
of the respondents from Punjab have indicated a decrease of <20.
Exhibit 300: Change in Skilled Manpower - Geography Wise
3%
20%
3%7%
20%
10%
25%
17%
50%
40%
29%
20%
100%
43%
50%
35%
21%
20%
9%10%
11%
40%
5%
4%
6%4%
35 4 20 28 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-95
7%
10%
7%
7%
10%
27%
80%
47%
38%
13%
80%
36%
94%
60%
38%
20%
10%
55%
6%
13%
70%
9%
20%
13%
20%
13%
16 5 15 8 15 15 10 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-95 Appendix
292
Change in unskilled manpower before and after taking loan
Weaving and processing segments have witnessed primarily additional unskilled labour changes
<20. 25% respondents from garmenting segment have witnessed a decrease in unskilled labour
<20.
Exhibit 301: Change in Unskilled Manpower - Segment Wise
Among states, all the non-beneficiaries in Gujarat have witnessed increase in unskilled manpower
of <20. In Punjab, 73% of the respondents witnessed decrease in unskilled manpower <20.
Exhibit 302: Change in Unskilled Manpower - Geography Wise
21%
10%
25%
20%
24%
25%
35%
32%
20%
100%
47%
75%
50% 25%
40%
3%
5%
14% 20%
6%4%
34 4 20 28 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but change
unknown
Increased By 20-50
Increased By <20
No change
Decreased by <20
Source:TechnopakAnalysis,Base-94
29%
73%
20%
40%
57%
50%
20%
60%
27%
100% 20%
38%
7%
40%
40%
64%
20%
13%
40%
9%
20%
14%
16 5 14 8 15 15 10 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased By 20-50
Increased By <20
No change
Decreased by <20
Source:TechnopakAnalysis,Base-94 Appendix
293
Change in average salary of skilled manpower before and after taking loan
In weaving sector, 26% of the 37 respondents have witnessed >10% growth in the salary of the
skilled manpower. In processing sector, 43% of the 28 respondents have witnessed average
growth in the salary of the skilled manpower between 6-10%.
Exhibit 303: Change in Average Salary of Skilled Manpower - Segment Wise
Among states, 44% respondents from Gujarat have witnessed increase in average salary of skilled
manpower of >10%. 67% non-beneficiaries from Rajasthan have witnessed an average salary of
skilled manpower increase between 6-10%. 87% of the respondents in Punjab have witnessed
decrease in average salary >10%. 13% of the respondents from Karnataka have witnessed a
decrease in average salary >10%
Exhibit 304: Change in Average Salary of Skilled Manpower - Geography Wise
11%10%
32%9%
3%
20%
23%
33%
10%
11%
29%
40%
14%
3%
14%
14% 14%
26%
17%
43%
29%
14%
26%
17%
14%
7%
14%
33%
10% 7%
14%
40%
35 6 21 28 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by 3-5%
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-102
13%
87%
20%
13%
53%
50%
13%
45%
8%6%
13%
38%
9%
50%
22%
38%
67%
31%
9%
44%
13%
20%
8% 36%
78%
15%
16 9 15 8 15 15 13 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by 3-5%
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-102 Appendix
294
Change in average salary of unskilled manpower before and after taking loan
In weaving sector, 29% of the 24 respondents have witnessed >10% growth in the salary of the
unskilled manpower. Majority of the segments have witnessed majorly average salary increases
of >6% for unskilled manpower.
Exhibit 305: Change in Average Salary of Unskilled Manpower - Segment Wise
Among states, all respondents from Gujarat have witnessed increase in average salary of
unskilled manpower of >10%. Majority of states have witnessed no change in average salary.
Punjab has witnessed decrease in average salary >10% of unskilled labour with 67% of the
respondents reporting same.
Exhibit 306: Change in Average Salary of Unskilled Manpower - Geography Wise
13%
25%
38%
8%
19%
33%
46%
50%
25%
19%
100%
67%
4%
13%
25%
29%
25%
38%
25%
24 4 8 16 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased by >10%
Increased by 6-10%
Increased By 3-5%
No change
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-57
7%
67%
13%
27%
80%
80%
7%
63%
29%
13%
100%
20%
71%
25%
7 15 5 15 7 8
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
GujaratKarnatakaMaharashtraPunjabRajasthanUttar
Pradesh
% Share of Respondents
Increased by >10%
Increased by 6-10%
Increased By 3-5%
No change
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-57 Appendix
295
Change in training costs before and after taking loan
55% of the respondents in processing segment responded that the training costs were increased
>6%.
Exhibit 307: Change in Training Cost - Segment Wise
Among states, 60% of non-beneficiary respondents from Rajasthan have witnessed increase in
training costs of >10. Majority of states have witnessed average training costs increased by >3%.
Exhibit 308: Change in Training Cost - Geography Wise
17%
9%
15%
100%
8%
50%
50%
36%
38%
50%17%
55%
38%
17%
6 11 13 2 1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving ProcessingGarmenting Technical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by >10%
Source:TechnopakAnalysis,Base-33
80%
50%
7%9%
33%
64%
50%
20%
60%
18%
9%
5 15 11 2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Punjab Rajasthan Tamil Nadu Uttar Pradesh
% Share of Respondents
Increased but
percentage unknown
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by >10%
Source:TechnopakAnalysis,Base-33 Appendix
296
COST SAVINGS
Beneficiaries
Change in Cost Savings per Unit
43% of the respondents in weaving segments responded that the cost savings per unit were
increased >10%. Technical textiles witnessed an increase in cost savings between 4-5% as
responded by 28% of the 43 respondents.
Exhibit 309: Change in Cost Savings Per Unit - Segment Wise
Among states, 72% of respondents from Karnataka have witnessed increase in cost savings per
unit of >10% due to TUFS. Of the 193 respondents from Gujarat, 38% witnessed increase in cost
savings per unit >10%. Over 15% respondents across the states Gujarat, Maharashtra and Uttar
Pradesh have witnessed decrease in cost savings.
1%
5%
2% 2% 3%
5%
10%
5% 13%
2%
11%
2%
3%
2%
3%
4%
3%
2%
2%
6%
3%
5%
5%
13%
7%
17%
16%
8%
9%
11%
23%
7%
10%
22%
17%
14%
16%
13%
14%
17%
17%
23% 28%
30%
26%
11%
3%
9%
17%
7%
5%
13%
43%
31%
14%
19%
26%
24%
3% 3%
7%
2% 2% 2%
31 266 29 58 48 43 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 4-5%
Increased By 1-3%
No Change
Decreased By 1-3%
Decreased By 4-5%
Decreased By 6-10%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-512 Appendix
297
Exhibit 310: Change in Cost Savings Per Unit - Geography Wise
Across schemes, during ATUFS scheme, 42% respondents have witnessed increase in cost savings
per unit of >10%.
Exhibit 311: Change in Cost Savings Per Unit - Scheme Wise
3%1%
5%
8%
4% 6%
8%
6%
5%
3%
1%
3%
2%
5%
3%
4%
3%
3%
4%
3%
3%
5%
5%
10%
12%
8%
8%
9%
13%
12% 5%
10%
8%
6%
30%
16%
8%
31%
12%
36%
8%
11%
51%
9%
12%
31%
7%
24%
3%
5%
2%
25%
32%
5%
38%
12%
72%
48%
2%
25% 17%
13%
2%
5% 5% 3%
6%
193 25 36 79 43 32 65 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 4-5%
Increased By 1-3%
No Change
Decreased By 1-3%
Decreased By 4-5%
Decreased By 6-10%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-512
1%
4%4%
8%
8%
2%
1%
1%3%
1%6%
3%
2%
4%
11%7%
10%
9%
15%
18%13%
24%
17%
9%
14%10%
42%
22%
24%
3%2%3%
25818272
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 4-5%
Increased By 1-3%
No Change
Decreased By 1-3%
Decreased By 4-5%
Decreased By 6-10%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-512 Appendix
298
Non-Beneficiaries
Change in Cost Savings per Unit
26% of the respondents in weaving segment responded that average cost savings per unit were
increased by >10%. 32% respondents in garmenting have witnessed that the average cost savings
per unit have increased by 6-10%.
Exhibit 312: Change in Cost Savings Per Unit - Segment Wise
Among states, 54% respondents in Gujarat have witnessed average cost savings per unit
increased by >10%. 47% respondents in Punjab have witnessed increase in average cost savings
per unit between 6-10%.
Exhibit 313: Change in Cost Savings Per Unit - Geography Wise
3%
11%3%
9%
11%
20% 20%
3%
20% 20%
5%
20%
15%
20%
29%
33%
20%
21%
20%
20%
9%
33%
32%
20%
26% 33%
40%
11%
3%
20%
11%
40%
34 3 10 19 5 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 4-5%
Increased By 1-3%
No Change
Decreased By 1-3%
Decreased By 4-5%
Decreased By 6-10%
Decreased by >10%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-76
7%
13%
8%
15%
40%
8%
7%
14%
20%
7%
8%
100%
7%
8%
20%
50%
57%47%
14% 14%
54%
20%
33%
7%
14%
100%
7%
13 6 5 15 1 14 7
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 4-5%
Increased By 1-3%
No Change
Decreased By 1-3%
Decreased By 4-5%
Decreased By 6-10%
Decreased by >10%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-76 Appendix
299
Appendix 8- Implementation Mechanisms for ATUFS
As a part of this study Technopak undertook an assessment of the application process followed
under ATUFS. The findings of the assessment and the gaps therein are explained in section 8 and
10, under “issues and challenges” and “recommendations”.
Please find below the various stages of application process under ATUFS as mentioned in ATUFS
policy:
Stage I
The implementation process begins with the registration of the entity in i-TUFS software. The entity is
supposed to provide all the relevant documents, after which the entity can apply for term loan from
ATUFS notified lending agency. The minimum loan amount must be at least 50% of the total eligible cost
of machinery. After the completion of the process, an ATUFS reference number is generated and the
application is taken forward to the lending agency. Once the proposal is scrutinized and considered viable,
the loan is sanctioned and the application is forwarded to the Textile Commissioner Office. Once the loan
is sanctioned, a Unique Identification number (UID) is automatically generated. The lending agency is
supposed to complete the process of sanction of term loan within 4 months from the receipt of
application
Stage II
The next step in the process is installation of machinery. The beneficiary can avail the loan on the new
machinery and not on the second-hand machinery. The whole process is supposed to be completed within
a year. Once the machinery is installed, the beneficiary is supposed to file an online application for Joint
Inspection (JIT). The JIT is supposed to complete physical inspection within 88 days of application for JIT
Stage III
Once the JIT is through with its physical verification, the Regional Office (RO) of Textile Commissioner
provides a report in i-TUFS. Within 25 days of the filing of JIT report online by RO, the textile commissioner
approves the subsidy claim for which an automatic challan is generated in i-TUFS. The challan is sent to
the Ministry, which then releases the subsidy into the account of the beneficiary within next 15 working
days Appendix
300
Appendix 9- Questionnaire for Industry Associations
Name
Designation
E-mail Id
Phone No.
Name of the Organization
Organization Address
Total Experience in Textile Industry
1. What is your opinion on the current situation of Indian textile industry? What are the major
challenges faced by the Indian Textile Industry at the Macro level? What are the key
suggestions for the growth of the Indian Textile Industry?
2. Please share your views on the current situation & growth of your focus sector
(Spinning/Weaving/Processing/Garmenting/ Technical textiles/Made-ups)?
3. Please rank the following factors affecting the investment into textile sector and kindly
explain why with some examples.
S.
No.
Parameters Your
Ranking
Remarks
1 Interest Rates
2 Corporate Tax
3 Power (Cost, Availability)
4 Man-Power (Cost, availability)
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Lack of Scale
9 Lack of visionary entrepreneurs
10 Others (Pl specify)
4. What are your suggestions to the government for attracting more investment into the
Indian Textile Value Chain?
5. What are your suggestions to the entrepreneurs for attracting more investment into the
Indian Textile Value Chain?
6. What is hindering the FDI (Foreign Direct Investment) into the Indian Textile Industry?
7. Please rank the following factors affecting the growth of Exports of Garments/Made-
ups/Technical Textiles out of India:
S. No. Parameters Your Ranking Remarks
1 Trade Agreements
2 Labor (Cost, Availability)
3 Scale (small units) Appendix
301
4 Power (Cost, Availability)
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Interest rates
9 Corporate Tax
10 Others (Pl. specify)
8. What are your suggestions for the government to increase value added exports of the
Indian Textile Industry?
9. What are your suggestions for the entrepreneurs to increase value added exports of the
Indian Textile Industry?
10. Please rank the following counties in terms of level of technology (machines) being used for
each sector:
Sector India China Bangladesh Vietnam Pakistan Turkey
Spinning
Weaving
Processing
Garmenting
Technical Textiles
Textile Machine
manufacturing
11. Where is India lacking in terms of technology (Machine)? What can we learn from other
countries?
12. How can machine manufacturing be encouraged to grow in India?
13. Which textile segments require more support for technology upgradation and overall
growth of textile value chain? Why?
14. What is the impact of the scheme on following parameters?
Parameters Significant
Impact
Insignifican
t Impact
No Impact Your
Remarks
Employment Generation
Average salary
Increase in Production
Increase in Sales
Increase in Profit
Increase in Average Sales Price
Increase in Productivity
Increase in Cost Savings
Reduction in wastage
Increase in Exports (Value)
Increase in Investments Appendix
302
Increase in Quality
Increase in Higher Value Product mix
15. What level of technology benchmark TUFS beneficiaries were able to achieve in the
following segments?
Level of
Machine
(Technology)
achieved after
TUFS
TUFS / Indian Standard Achieved Global Standard Your
Remarks
Segment Achieved
Not
Achieved
May
be
Achieved
Not
Achieved
May
be
Spinning
Weaving
Knitting
Processing
Garmenting
Technical
Textiles
including non-
woven
16. What are your views on the current TUFS scheme implementation mechanism?
17. What are the major issues faced while availing TUFS? What are the major reasons for delay
in disbursements?
18. What are your suggestions to improve the TUFS implementation? Appendix
303
Appendix 10- Questionnaire for Industry Experts
Name
Designation
E-mail Id
Phone No.
Name of the Organization
Organization Address
Total Experience in Textile Industry
1. What is your opinion on the current situation of Indian textile industry?
2. What are the major challenges faced by the Indian Textile Industry at the Macro level?
3. What are the key suggestions to the government for the growth of the Indian Textile Industry?
4. What are the key suggestions to the Entrepreneurs for the growth of the Indian Textile Industry?
5. Please share your suggestions on the current situation & growth of your focus sector
(Spinning/Weaving/Processing/Garmenting/ Technical textiles/Made-ups)?
6. Please rank the following factors affecting the investment into textile sector and kindly explain why
with some examples.
S. No. Parameters Your Ranking Remarks
1 Interest Rates
2 Corporate Tax
3 Power (Cost, Availability)
4 Man-Power (Cost, availability)
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Lack of Scale
9 Lack of visionary entrepreneurs
10 Others (Pl specify)
7. What are your suggestions to the government for attracting more investment into the Indian
Textile Value Chain?
8. What are your suggestions to the entrepreneurs for attracting more investment into the Indian
Textile Value Chain?
9. What is hindering the FDI into the Indian Textile Industry?
10. Please rank the following factors affecting the growth of Exports of Garments/Made-ups/Technical
Textiles out of India:
S. No. Parameters Your Ranking Remarks
1 Trade Agreements
2 Labor (Cost, Availability)
3 Scale (small units)
4 Power (Cost, Availability) Appendix
304
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Interest rates
9 Corporate Tax
10 Others (Pl. specify)
11. What are your suggestions for the government to increase value added exports of the Indian
Textile Industry?
12. What are your suggestions for the Industry leaders to increase value added exports of the Indian
Textile Industry?
13. Please rank the following counties in terms of level of technology (machines) being used for each
sector:
Sector India China Bangladesh Vietnam Pakistan Turkey
Spinning
Weaving
Processing
Garmenting
Technical Textiles
Textile Machine manufacturing
14. Where is India lacking in terms of technology (Machine)? What can we learn from other countries
for upgrading level of technology in India?
15. How can machine manufacturing be encouraged to grow in India?
16. Which textile segments require more support for technology upgradation and overall growth of
17. How important is scale for global competitiveness? How can Indian textile companies acquire scale?
18. How to encourage investments in garment, made ups and technical textile sectors?
19. What is the impact of the scheme on following parameters?
Parameters Significant
Impact
Insignificant
Impact
No Impact Your Remarks
Employment Generation
Average salary
Increase in Production
Increase in Sales
Increase in Profit
Increase in Average Sales Price
Increase in Productivity
Increase in Cost Savings
Reduction in wastage
Increase in Exports (Value)
Increase in Investments
Increase in Quality Appendix
305
Increase in Higher Value Product mix
20. What level of technology benchmark TUFS beneficiaries were able to achieve in the following
segments?
Level of Machine
(Technology) achieved
after TUFS
TUFS / Indian Standard Achieved Global Standard Your
Remarks
Segment Achieved
Not
Achieved
May
be
Achieved
Not
Achieved
May
be
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Composite*
Embroidery
Others# (segments to
be indicated
separately)
21. What are your views on the current TUFS scheme implementation mechanism?
22. What are the major issues faced by your sector? What are the major reasons for delay in
disbursements?
23. What are your suggestions to improve the TUFS implementation?
Appendix
306
Appendix 11- Questionnaire for Machinery manufacturers
Name
Designation
E-mail Id
Phone No.
Name of the Organization
Organization Address
1. What is your opinion on the current situation of Indian textile industry? What are
the major challenges faced by the Indian Textile Industry at the Macro level? What
are the key suggestions for the growth of the Indian Textile Industry?
2. Please rank the following factors affecting the investment into textile sector and kindly
explain why with some examples.
S.
No.
Parameters Your
Ranking
Remarks
1 Interest Rates
2 Corporate Tax
3 Power (Cost, Availability)
4 Man-Power (Cost,
availability)
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Lack of Scale
9 Lack of visionary
entrepreneurs
10 Others (Pl specify)
3. What are your suggestions for attracting more investment into the Indian Textile Value
Chain?
4. How can machine manufacturing be encouraged to grow in India?
5. Which textile segments require more support for technology upgradation and overall
growth of textile value chain? Why?
6. What is the impact of the TUFS scheme on following parameters?
Parameters Significant
Impact
Insignificant
Impact
No
Impact
Your Remarks
Employment Generation 0
Average salary
Increase in Production
Increase in Sales
Increase in Profit Appendix
307
Increase in Average Sales
Price
Increase in Productivity
Increase in Cost Savings
Reduction in wastage
Increase in Exports (Value)
Increase in Investments
Increase in Quality
Increase in Higher Value
Product mix
7. What level of technology benchmark TUFS beneficiaries were able to achieve in the
following segments?
Level of Machine
(Technology)
achieved after
TUFS
Achieved Indian Standard Achieved Global Standard Your
Remarks
Segment Achieved
Not
Achieved
May
be
Achieved
Not
Achieved
May
be
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-
woven
8. What are your views on the degree of technological upgradation achieved due to TUFS?
How far the TUFS beneficiaries were able to achieve TUFS scheme technology benchmark?
9. Please share your views on where does India stand in terms of technology in various
segments of textile as per global standards? Also share your views how does TUFS
technology specifications compare with global standards?
10. What are your suggestions to include new machinery or change in technology/machinery
specifications for TUFS scheme?
11. What are your views on the current TUFS scheme implementation mechanism?
12. What are the major issues faced by industry while availing TUFS? What are the major
reasons for delay in disbursements?
13. What are the major issues faced by machinery manufactures or their supply chain partners
related to TUFS scheme?
14. What are your suggestions to improve the TUFS implementation? Appendix
308
Appendix 12- Questionnaire for Lending Agency
Name
Designation
E-mail Id
Phone No.
Name of the Organization
Organization Address
1. What is your opinion on the current situation of Indian textile industry? What are the major
challenges faced by the Indian Textile Industry at the Macro level? What are the key
suggestions to the government for the growth of the Indian Textile Industry?
2. Please rank the following factors affecting the investment into textile sector and kindly
explain why with some examples.
S.
No.
Parameters Your
Ranking
Remarks
1 Interest Rates
2 Corporate Tax
3 Power (Cost, Availability)
4 Man-Power (Cost,
availability)
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Lack of Scale
9 Lack of visionary
entrepreneurs
10 Others (Pl specify)
3. What are your suggestions for attracting more investment into the Indian Textile Value
Chain?
4. What is the impact of the scheme on following parameters?
Parameters Significant
Impact
Insignificant
Impact
No Impact Your Remarks
Employment Generation
Average salary
Increase in Production
Increase in Sales
Increase in Profit
Increase in Average Sales Price
Increase in Productivity Appendix
309
Increase in Cost Savings
Reduction in wastage
Increase in Exports (Value)
Increase in Investments
Increase in Quality
Increase in Higher Value Product mix
5. What are your views on the current TUFS scheme implementation mechanism?
6. What are the major issues faced by your sector? What are the major reasons for delay in
disbursements?
7. What are your suggestions to improve the TUFS implementation?
8. Please share your viewpoint on the current subsidy disbursement model under TUFS?
9. What are the major issues faced by lending agency while availing TUFS benefits?
10. What are the major reasons for delay in disbursements under TUFS? How it can be
improved?
11. What is the level of bad loan and NPAs in the Textile Value Chain? How does it compare
with other Industries?
Appendix
310
Appendix 13- Questionnaire for UHS (Unit Holder Survey) – Beneficiaries
Name of the Company
Company Address
Respondent Name
Respondent Designation
E-mail Id
Phone No.
Type of company: MSME / Non-MSME / SSI / Non – SSI
Name of the bank & branch used for TUFS subsidy
Name of the fiber the company manufactures/deals in:
Month/Year of Machinery Installation
1. Production Volumes & Financials of the Company –
Segments Production*
(Volume)
Total Sales
Turnover (Rs
Cr)
Domestic (%) Export (%)
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Composite
Embroidery
Others# (segments to
be
indicated
separately)
*Production Volume can be in terms of Ton, Meters or No. of Pieces.
# Cotton ginning & pressing; Silk sector (i.e. reeling, twisting, spinning, and weaving); Wool sector (i.e.
scouring, combing, spinning (worsted, shoddy and woolen) and weaving); Synthetic filament yarn
texturizing, crimping & twisting; Manufacturing Viscose filament yarn / viscose staple fiber; Independent
weaving preparatory; Made-up manufacturing; Jute Industry; Carpet manufacturing; Handloom weaving
2. Segments presence and loan/subsidy availed:
Segments
Please tick all applicable Please provide details
Company
segment
presence
Segment for
which loan
availed under
Total
Project
Cost
Loan availed
under RTUFS /
RRTUFS/ Appendix
311
RTUFS /
RRTUFS/ATUFS
ATUFS
1 2 3 4 5
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Composite*
Embroidery
Others# (segments to
be indicated separately)
* Spinning units with weaving / knitting and processing and garmenting
# Cotton ginning & pressing; Silk sector (i.e. reeling, twisting, spinning, and weaving); Wool sector (i.e.
scouring, combing, spinning (worsted, shoddy and woolen) and weaving); Synthetic filament yarn
texturizing, crimping & twisting; Manufacturing Viscose filament yarn / viscose staple fiber; Independent
weaving preparatory; Made-up manufacturing; Jute Industry; Carpet manufacturing; Handloom weaving
3. What has been the impact of machinery bought under RTUFS/RRTUFS/ATUFS on
following parameters?
a. Impact on Employment (Yearly Change)
Parameter Value in
(2011)
Value in
(2012)
Value in
(2013)
Value in
(2014)
Value in
(2015)
Value in
(2016)
Value in
(2017)
Value in
(2018)
Total Man Power
Skilled Man Power
Un-Skilled Man Power
Contractual Man
Power
Average Salary
Training Cost
Appendix
312
b. Impact on Financial Health (Yearly Change)
Parameter Value in
(2011)
Value in
(2012)
Value in
(2013)
Value in
(2014)
Value in
(2015)
Value in
(2016)
Value in
(2017)
Value in
(2018)
Sales (Value)
Production(Volume)
Net Profit
Average Sales Price
c. Impact on Productivity (Yearly Change)
Parameter Value in
(2011)
Value in
(2012)
Value in
(2013)
Value in
(2014)
Value in
(2015)
Value in
(2016)
Value in
(2017)
Value in
(2018)
Efficiency %
Cost per unit
Wastage %
d. Impact on Exports (Yearly Change)
Parameter Value in
(2011)
Value in
(2012)
Value in
(2013)
Value in
(2014)
Value in
(2015)
Value in
(2016)
Value in
(2017)
Value in
(2018)
Exports (Value)
Exports (Volume)
Average Price of
Exports
e. Impact on Investments (Yearly Change)
Parameter Value in
(2011)
Value in
(2012)
Value in
(2013)
Value in
(2014)
Value in
(2015)
Value in
(2016)
Value in
(2017)
Value in
(2018)
Project Investment
(Value – Rs Cr/Year)
Machinery Investment
(Value – Rs Cr/Year)
Number of Machines
Note: Supporting data / details may please be provided. Appendix
313
4. Has there been improvement in following aspects due to RTUFS/RRTUFS/ATUFS?
(Please tick appropriate option for all aspects)
Aspects Yes No Maybe/Not
Sure
Remarks (if any)
Overall Productivity*
Product Quality
Product Development
Research & Development
Higher Value Product Mix
Export Competitiveness
Cost Efficiency
*Productivity (output per unit of input) can be in terms of Ton (for spinning), Meters (for
weaving or processing) or No. of Pieces (for garmenting)
Note: Supporting data may please be provided.
5. What is the efficiency of the TUFS fund disbursement process?
Process
Actual
Time
Please tick mark the applicable range if exact no. is
not
Available (Months/Days)
Entity applies for the loan
through i-TUFS - Sanction of
term loan by Lending
Agency(Bank)
a) 4-5
months
b) 5-6
months
c) 6-8
months
d) >8
months
e) 1-4
months
JIT Physical Inspection
a) 89-100
days
b) 100-110
days
c) 110-120
days
d) >120
days
e) <88
days
Approval of Subsidy Claim by
Textile commissioner Office
a) 25-35
days
b) 35-45
days
c) 45-60
days
d) >60
days
e) <25
days
Ministry of Textiles will
release the subsidy into the
account of entity
a) 15-30
days
b) 30-90
days
c) 90-180
days
d) >180
days
e) <15
days
6. Have you faced any difficulty in availing RTUFS / RRTUFS/ATUFS benefits?
a. No
b. Yes (If yes, Tick the appropriate reason with relevant details)
Reasons Tick Details (if
yes) Appendix
314
Required machinery is not listed
Complicated and long process
Delay in processing application by
lending agency
Delay in submission of Final JIT report
to Textile Commissioner Office
Lack of Fund Availability under TUFS
Government processes / policy
Any other:
………………………………………………………………………………………………………………………………………...
…………………………………………………………………………………………………………………………………………
7. Was there any degree of Technological Up-gradation under RTUFS/RRTUFS/ATUFS in the
following segments:
Level of
Machine
Technology
after TUFS
Segment
As per TUFS As per Indian
Standard
As per Global
Standard
Spinning a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Weaving a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Knitting a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Processing
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Garmenting
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Technical Textiles
including non-woven
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Composite* a) Yes a) Yes a) Yes Appendix
315
b) No
c) May be
b) No
c) May be
b) No
c) May be
Embroidery a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Others# (segments to
be indicated
separately)
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Comments ------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
8. Please rate the following factors affecting the growth of Garments/Made-ups/Technical
Textiles Exports out of India
S. No. Parameters Your Ranking
1 Interest Rates
2 Corporate Tax
3 GST
4 Power Cost
5 Man-Power Cost
6 Labor Productivity
7 Raw Material Cost
8 Supply Chain Cost
9 Infrastructure Cost
10 Government Clearances
11 Trade Agreements
12 Others
Your Suggestions ----------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
9. Please rate the following factors affecting the investment into textile sector
S. No. Parameters Your Ranking
1 Interest Rates
2 Corporate Tax
3 GST
4 Power Cost
5 Man-Power Cost
6 Labor Productivity
7 Raw Material Cost
8 Supply Chain Cost
9 Infrastructure Cost Appendix
316
10 Government Clearances
11 Lack of Scale
12 Lack of visionary entrepreneurs
13 Others
Your Suggestions ----------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
10. What is the impact of the scheme on following parameters?
(Please tick appropriate option for all parameters)
Parameters Significant Impact Insignificant Impact No Impact
Technology up gradation
Employment Generation
Capacity expansion
Export competitiveness
Quality improvement
Cost Efficiency
Resource Efficiency
Any other:
11. Please mention if you have any suggestions for improving the scheme?
List of Exhibits
317
13. LIST OF EXHIBITS
Exhibit 1: Summary of UHS Analysis for impact of TUFS ................................................................ 7
Exhibit 2: Summary of KII Analysis for impact of TUFS ................................................................... 7
Exhibit 3: Global Benchmarking of Technology Level ................................................................... 12
Exhibit 4: Project Objectives ......................................................................................................... 15
Exhibit 5: Study Approach & Methodology .................................................................................. 16
Exhibit 6: Stakeholder wise and City wise sampling of KIIs .......................................................... 18
Exhibit 7: State wise sampling of UHS .......................................................................................... 19
Exhibit 8: Segment wise sampling of UHS .................................................................................... 20
Exhibit 9: Scheme wise sampling of UHS beneficiaries ................................................................ 20
Exhibit 10 Scale wise sampling of UHS ......................................................................................... 20
Exhibit 11: Anticipated Projections under A-TUFS ....................................................................... 22
Exhibit 12: No. of Beneficiaries (RTUFS) - Geography and Scale Wise ......................................... 23
Exhibit 13: No. of Beneficiaries (RTUFS)- Segment and Scale Wise.............................................. 24
Exhibit 14: No. of Beneficiaries (RRTUFS)- Geography and Scale Wise ........................................ 25
Exhibit 15: No. of Beneficiaries (RRTUFS)- Segment and Scale Wise ........................................... 26
Exhibit 16: No. of Applicants (ATUFS) - Geography-Wise ............................................................. 27
Exhibit 17: No. of Applicants (ATUFS) - Segment-Wise ................................................................ 28
Exhibit 18: No. of Applicants (ATUFS) - Scale-Wise ...................................................................... 28
Exhibit 19: No. of Applicants (ATUFS) - Geography and Scale Wise ............................................. 29
Exhibit 20: No. of Applicants (ATUFS) - Segment and Scale Wise ................................................ 30
Exhibit 21: No. of Beneficiaries (ATUFS) - Geography-Wise ......................................................... 31
Exhibit 22: No. of Beneficiaries (ATUFS) - Segment-Wise ............................................................ 32
Exhibit 23: No. of Beneficiaries (ATUFS) - Scale-Wise .................................................................. 32
Exhibit 24: No. of Beneficiaries (ATUFS) - Geography and Scale Wise ......................................... 33
Exhibit 25: No. of Beneficiaries (ATUFS) - Segment and Scale Wise ............................................ 34
Exhibit 26: Parameters covered under UHS Analysis ................................................................... 36
Exhibit 27: Investment Trend under TUF Scheme ........................................................................ 38
Exhibit 28: Investment Trend under TUF Scheme Segment-wise ................................................ 39
Exhibit 29: Increase in Investments .............................................................................................. 40 List of Exhibits
318
Exhibit 30: Project Investment (in Cr.) .......................................................................................... 41
Exhibit 31: Project Investment - Segment Wise ........................................................................... 41
Exhibit 32: Project Investment - Geography Wise ........................................................................ 42
Exhibit 33: Project Investment - Scheme Wise ............................................................................. 42
Exhibit 34: Machinery Investment (In Cr.) .................................................................................... 43
Exhibit 35: Machinery Investment - Segment Wise...................................................................... 43
Exhibit 36: Machinery Investment - Geography Wise .................................................................. 44
Exhibit 37 Machinery Investment - Scheme Wise ........................................................................ 44
Exhibit 38: Increase in No. of Machineries ................................................................................... 45
Exhibit 39: Increase in No. of Machines (%) - Segment Wise ....................................................... 45
Exhibit 40: Increase in No. of Machines (%) - Geography Wise ................................................... 46
Exhibit 41: Increase in No. of Machines (%) - Scheme Wise......................................................... 46
Exhibit 42: Project Investment (in Cr.) .......................................................................................... 47
Exhibit 43: Project Investment - Segment Wise ........................................................................... 47
Exhibit 44: Project Investment - Geography Wise ........................................................................ 48
Exhibit 45: Machinery Investment (In Cr.) .................................................................................... 49
Exhibit 46: Machinery Investment - Segment Wise...................................................................... 49
Exhibit 47: Machinery Investment - Geography Wise .................................................................. 50
Exhibit 48 Increase in No. of Machineries .................................................................................... 51
Exhibit 49 Increase in No. of Machines (%) - Segment Wise ........................................................ 51
Exhibit 50: Increase in No. of Machines (%) - Geography Wise ................................................... 52
Exhibit 51: Increase in Sales .......................................................................................................... 56
Exhibit 52: Increase in Profits ....................................................................................................... 57
Exhibit 53: Increase in Average Sales Price ................................................................................... 57
Exhibit 54: Change in Annual Sales ............................................................................................... 58
Exhibit 55: Change in Annual Sales - Segment Wise ..................................................................... 58
Exhibit 56: Change in Annual Sales - Geography Wise ................................................................. 59
Exhibit 57: Change in Annual Sales - Scheme Wise ...................................................................... 59
Exhibit 58: Change in Net Profit .................................................................................................... 60
Exhibit 59: Change in Net Profit - Segment Wise ......................................................................... 60
Exhibit 60: Change in Net Profit - Geography Wise ...................................................................... 61 List of Exhibits
319
Exhibit 61: Change in Net Profit - Scheme Wise ........................................................................... 61
Exhibit 62: Change in Average Sales Price (%) .............................................................................. 62
Exhibit 63: Change in Average Sales Price - Segment Wise .......................................................... 62
Exhibit 64: Change in Average Sales Price - Geography Wise ...................................................... 63
Exhibit 65: Change in Average Sales Price - Scheme Wise........................................................... 63
Exhibit 66: Change in Annual Sales ............................................................................................... 64
Exhibit 67: Change in Annual Sales - Segment Wise ..................................................................... 64
Exhibit 68: Change in Annual Sales - Geography Wise ................................................................. 65
Exhibit 69: Change in Net Profit .................................................................................................... 66
Exhibit 70: Change in Net Profit - Segment Wise ......................................................................... 66
Exhibit 71: Change in Net Profit - Geography Wise ...................................................................... 67
Exhibit 72: Change in Average Sales Price (%) .............................................................................. 68
Exhibit 73: Change in Average Sales Price - Segment Wise .......................................................... 68
Exhibit 74: Change in Average Sales Price - Geography Wise ...................................................... 69
Exhibit 75: No. of Operational Factories (In Numbers) ................................................................ 73
Exhibit 76: Total Production (In Bn) .............................................................................................. 73
Exhibit 77: Productivity ................................................................................................................. 74
Exhibit 78: Production Levels of Textile Products ........................................................................ 75
Exhibit 79: India Yarn Production Trend (in Kg Mn) ..................................................................... 75
Exhibit 80: Indian Fabric Production Trend (Mn Sq Mtrs) ............................................................ 76
Exhibit 81: Increase in Production ................................................................................................ 77
Exhibit 82: Increase in Productivity .............................................................................................. 77
Exhibit 83: Change in Production Volume (%) .............................................................................. 78
Exhibit 84: Change in Production Volume (%) - Segment Wise .................................................... 78
Exhibit 85: Change in Production Volume (%) - Geography Wise ................................................ 79
Exhibit 86: Change in Production Volume (%) - Scheme Wise ..................................................... 79
Exhibit 87: Improvement in Production and Productivity ............................................................ 80
Exhibit 88: Overall Productivity - Segment Wise .......................................................................... 80
Exhibit 89: Product Quality - Segment Wise ................................................................................. 81
Exhibit 90: Product Development - Segment Wise ...................................................................... 81
Exhibit 91: Higher Value Product Mix - Segment Wise ................................................................. 82 List of Exhibits
320
Exhibit 92: Cost Efficiency - Segment Wise ................................................................................... 82
Exhibit 93: Research and Development - Segment Wise ............................................................. 83
Exhibit 94: Export Competitiveness - Segment Wise .................................................................... 83
Exhibit 95: Change in Production Volume (%) .............................................................................. 84
Exhibit 96: Change in Production Volume (%) - Segment Wise .................................................... 84
Exhibit 97: Change in Production Volume (%) - Geography Wise ................................................ 85
Exhibit 98: Improvement in Production and Productivity ............................................................ 86
Exhibit 99: Overall Productivity - Segment Wise .......................................................................... 86
Exhibit 100: Product Quality - Segment Wise ............................................................................... 87
Exhibit 101: Product Development - Segment Wise .................................................................... 87
Exhibit 102: Higher Value Product Mix - Segment Wise ............................................................... 88
Exhibit 103: Cost Efficiency - Segment Wise ................................................................................. 88
Exhibit 104: Research and Development - Segment Wise ........................................................... 89
Exhibit 105: Export Competitiveness - Segment Wise .................................................................. 89
Exhibit 106: T&A Exports (USD Bn) ............................................................................................... 92
Exhibit 107: Fibre Export Scenario ................................................................................................ 93
Exhibit 108: Yarn Export Scenario ................................................................................................. 93
Exhibit 109: Fabric and Woven Export Scenario ........................................................................... 94
Exhibit 110: Capacity gap in the Textile & Apparel value chain ................................................... 95
Exhibit 111: Global Synthetic Apparel Trade (USD Bn) ................................................................. 96
Exhibit 112: Global Cotton Apparel Trade (USD Bn) ..................................................................... 96
Exhibit 113: Average export growth percentage of competing countries during schemes ......... 97
Exhibit 114: India's Share in Global Exports ................................................................................. 97
Exhibit 115: Change in Share of Global T&A Exports .................................................................... 98
Exhibit 116: Increase in Exports Value .......................................................................................... 99
Exhibit 117: Change in Value of Exports (%) ............................................................................... 100
Exhibit 118: Change in Value of Exports (%) - Segment Wise..................................................... 100
Exhibit 119: Change in Value of Exports (%) - Geography Wise ................................................. 101
Exhibit 120: Change in Value of Exports (%) - Scheme Wise ...................................................... 101
Exhibit 121: Change in Volume of Exports (%) ........................................................................... 102
Exhibit 122: Change in Volume of Exports (%) - Segment Wise ................................................. 102 List of Exhibits
321
Exhibit 123: Change in Volume of Exports (%) - Geography Wise .............................................. 103
Exhibit 124: Change in Volume of Exports (%) - Scheme Wise ................................................... 103
Exhibit 125: Change in Average Unit Price (%) ........................................................................... 104
Exhibit 126: Change in Average Unit Price (%) - Segment Wise ................................................. 104
Exhibit 127: Change in Average Unit Price (%) - Geography Wise ............................................. 105
Exhibit 128: Change in Average Unit Price (%) - Scheme Wise................................................... 105
Exhibit 129: Change in Value of Exports (%) ............................................................................... 106
Exhibit 130: Change in Value of Exports (%) - Segment Wise..................................................... 106
Exhibit 131: Change in Value of Exports (%) - Geography Wise ................................................. 107
Exhibit 132: Change in Volume of Exports (%) ........................................................................... 108
Exhibit 133: Change in Volume of Exports (%) - Segment Wise ................................................. 108
Exhibit 134: Change in Volume of Exports (%) - Geography Wise .............................................. 109
Exhibit 135: Change in Average Unit Price (%) ........................................................................... 110
Exhibit 136: Change in Average Unit Price (%) - Segment Wise ................................................. 110
Exhibit 137: Change in Average Unit Price (%) - Geography Wise ............................................. 111
Exhibit 138: No. of people engaged in operational factories in T&A (Mn) ................................ 114
Exhibit 139: Wages per Worker in T&A (INR) ............................................................................. 114
Exhibit 140: Increase in Employment Generation ...................................................................... 115
Exhibit 141: Change in Total Manpower..................................................................................... 116
Exhibit 142: Change in Total Manpower - Segment Wise .......................................................... 116
Exhibit 143: Change in Total Manpower - Geography Wise ....................................................... 117
Exhibit 144: Change in Total Manpower - Scheme Wise ............................................................ 117
Exhibit 145: Change in Skilled Manpower .................................................................................. 118
Exhibit 146: Change in Skilled Manpower - Segment Wise ........................................................ 118
Exhibit 147: Change in Skilled Manpower - Geography Wise .................................................... 119
Exhibit 148: Change in Skilled Manpower - Scheme Wise ......................................................... 119
Exhibit 149: Change in Unskilled Manpower .............................................................................. 120
Exhibit 150: Change in Unskilled Manpower - Segment Wise.................................................... 120
Exhibit 151: Change in Unskilled Manpower - Geography Wise ................................................ 121
Exhibit 152: Change in Unskilled Manpower - Scheme Wise ..................................................... 121
Exhibit 153: Change in Average Salary of Skilled Manpower ..................................................... 122 List of Exhibits
322
Exhibit 154: Change in Average Salary of Skilled Manpower - Segment Wise ........................... 122
Exhibit 155: Change in Average Salary of Skilled Manpower - Geography Wise ....................... 123
Exhibit 156: Change in Average Salary of Skilled Manpower - Scheme Wise ............................ 123
Exhibit 157: Change in Average Salary of Unskilled Manpower ................................................. 124
Exhibit 158: Change in Average Salary of Unskilled Manpower - Segment Wise ...................... 124
Exhibit 159: Change in Average Salary of Unskilled Manpower - Geography Wise ................... 125
Exhibit 160: Change in Average Salary of Unskilled Manpower - Scheme Wise ........................ 125
Exhibit 161: Change in Training Cost .......................................................................................... 126
Exhibit 162: Change in Training Cost - Segment Wise ................................................................ 126
Exhibit 163: Change in Training Cost - Geography Wise............................................................. 127
Exhibit 164: Change in Training Cost - Scheme Wise.................................................................. 127
Exhibit 165: Change in Total Manpower..................................................................................... 128
Exhibit 166: Change in Total Manpower - Segment Wise .......................................................... 128
Exhibit 167: Change in Total Manpower - Geography Wise ....................................................... 129
Exhibit 168: Change in Skilled Manpower .................................................................................. 130
Exhibit 169: Change in Skilled Manpower - Segment Wise ........................................................ 130
Exhibit 170: Change in Skilled Manpower - Geography Wise .................................................... 131
Exhibit 171: Change in Unskilled Manpower .............................................................................. 132
Exhibit 172: Change in Unskilled Manpower - Segment Wise.................................................... 132
Exhibit 173: Change in Unskilled Manpower - Geography Wise ................................................ 133
Exhibit 174: Change in Average Salary of Skilled Manpower ..................................................... 134
Exhibit 175: Change in Average Salary of Skilled Manpower - Segment Wise ........................... 134
Exhibit 176: Change in Average Salary of Skilled Manpower - Geography Wise ....................... 135
Exhibit 177: Change in Average Salary of Unskilled Manpower ................................................. 136
Exhibit 178: Change in Average Salary of Unskilled Manpower - Segment Wise ...................... 136
Exhibit 179: Change in Average Salary of Unskilled Manpower - Geography Wise ................... 137
Exhibit 180: Change in Training Cost .......................................................................................... 138
Exhibit 181: Change in Training Cost - Segment Wise ................................................................ 138
Exhibit 182: Change in Training Cost - Geography Wise............................................................. 139
Exhibit 183: Increase in Cost Savings .......................................................................................... 143
Exhibit 184: Change in Cost Savings per Unit ............................................................................. 144 List of Exhibits
323
Exhibit 185: Change in Cost Savings Per Unit - Segment Wise ................................................... 144
Exhibit 186: Change in Cost Savings Per Unit - Geography Wise ............................................... 145
Exhibit 187: Change in Cost Savings Per Unit - Scheme Wise .................................................... 145
Exhibit 188: Change in Cost Savings per Unit ............................................................................. 146
Exhibit 189: Change in Cost Savings Per Unit - Segment Wise ................................................... 146
Exhibit 190: Change in Cost Savings Per Unit - Geography Wise ............................................... 147
Exhibit 191: Improvement in Quality .......................................................................................... 151
Exhibit 192: Improvement in Product Quality ............................................................................ 152
Exhibit 193: Change in Product Quality - Segment Wise ............................................................ 152
Exhibit 194: Improvement in Product Quality ............................................................................ 153
Exhibit 195: Change in Product Quality - Segment Wise ............................................................ 153
Exhibit 196: Major Factors Affecting Investments ..................................................................... 155
Exhibit 197: Factors Affecting Investments into Textiles ........................................................... 156
Exhibit 198: Major Factors Affecting Exports ............................................................................. 157
Exhibit 199: Factors Affecting Exports of Garments ................................................................... 158
Exhibit 200: FDI in Textiles in USD Millions ................................................................................ 159
Exhibit 201: Indian Textile Machinery Overview ........................................................................ 160
Exhibit 202: Recommendations on ATUFS Machines Listing ...................................................... 161
Exhibit 203: Summary of ATUFS machinery ............................................................................... 163
Exhibit 204: Current Technology level in India - Segment Wise ................................................. 164
Exhibit 205: Technology upgradation level achieved by TUFS ................................................... 165
Exhibit 206: Segment-wise Technology Upgradation level achieved by TUFS- Beneficiaries .... 165
Exhibit 207: Segment-wise Technology Upgradation level achieved by TUFS- Non-Beneficiaries
..................................................................................................................................................... 167
Exhibit 208: Global Machinery Shipments - Spinning ................................................................. 168
Exhibit 209: Share of shipments (Spinning) ............................................................................... 168
Exhibit 210: Share of installed capacity (Spinning) ..................................................................... 168
Exhibit 211: Global Machinery Shipments - Weaving ................................................................ 169
Exhibit 212: Share of shipments (Weaving) ................................................................................ 169
Exhibit 213: Share of installed capacity (Weaving) ..................................................................... 169
Exhibit 214: Global Machinery Shipments - Knitting .................................................................. 170 List of Exhibits
324
Exhibit 215: Global Machinery Shipments - Draw-Texturing ..................................................... 170
Exhibit 216: Spinning................................................................................................................... 171
Exhibit 217: Weaving/Knitting .................................................................................................... 171
Exhibit 218: Processing ............................................................................................................... 172
Exhibit 219: Garmenting ............................................................................................................. 172
Exhibit 220: Technical Textiles .................................................................................................... 173
Exhibit 221: Textile Machine Manufacturing .............................................................................. 173
Exhibit 222: Machinery Matrix.................................................................................................... 174
Exhibit 223: Evaluation Matrix (Ranking of segments) for Technology Assessment ................. 175
Exhibit 224: Segment–wise Recommendations for ATUFS subsidy ........................................... 176
Exhibit 225: ATUFS Beneficiaries’ - Weaving, Knitting Machinery analysis ................................ 177
Exhibit 226: Subsidy released under schemes ............................................................................ 178
Exhibit 227: Subsidy released under schemes segment-wise .................................................... 179
Exhibit 228: Project Investments under schemes ...................................................................... 181
Exhibit 229 Issues, Challenges and Recommendations from KIIs............................................... 189
Exhibit 230: Proposed Sampling (UHS) as per ToR ..................................................................... 247
Exhibit 231: Overall Revised Sampling Plan ................................................................................ 248
Exhibit 232: Actual Sampling of UHS .......................................................................................... 249
Exhibit 233: State Wise Sampling - Beneficiary .......................................................................... 250
Exhibit 234: Scale Wise Sampling - Beneficiary .......................................................................... 250
Exhibit 235: Segment Wise Sampling Plan - Beneficiary ............................................................ 251
Exhibit 236: State Wise Sampling - Non-Beneficiary .................................................................. 252
Exhibit 237: Scale Wise Sampling - Non-Beneficiary .................................................................. 252
Exhibit 238: Segment Wise Sampling - Non-Beneficiary ............................................................ 253
Exhibit 239: UHS Profile – Segment Wise ................................................................................... 254
Exhibit 240: UHS Profile - Scheme Wise ..................................................................................... 254
Exhibit 241: UHS Profile - Scale Wise .......................................................................................... 255
Exhibit 242: UHS Profile - Segment Wise .................................................................................... 256
Exhibit 243: UHS Profile - Scale Wise .......................................................................................... 256
Exhibit 244: Change in Annual Sales - Segment Wise ................................................................. 257
Exhibit 245: Change in Annual Sales - Geography Wise ............................................................. 258 List of Exhibits
325
Exhibit 246: Change in Annual Sales - Scheme Wise .................................................................. 258
Exhibit 247: Change in Net Profit - Segment Wise ..................................................................... 259
Exhibit 248: Change in Net Profit - Geography Wise .................................................................. 260
Exhibit 249: Change in Net Profit - Scheme Wise ....................................................................... 260
Exhibit 250: Change in Average Sales Price - Segment Wise ...................................................... 261
Exhibit 251: Change in Average Sales Price - Geography Wise .................................................. 262
Exhibit 252: Change in Average Sales Price - Scheme Wise ...................................................... 262
Exhibit 253: Change in Annual Sales - Segment Wise ................................................................. 263
Exhibit 254: Change in Annual Sales - Geography Wise ............................................................. 263
Exhibit 255: Change in Net Profit - Segment Wise ..................................................................... 264
Exhibit 256: Change in Net Profit - Geography Wise .................................................................. 264
Exhibit 257: Change in Average Sales Price - Segment Wise ...................................................... 265
Exhibit 258: Change in Average Sales Price - Geography Wise .................................................. 265
Exhibit 259: Change in Production Volume (%) - Segment Wise ................................................ 266
Exhibit 260: Change in Production Volume (%) - Geography Wise ............................................ 267
Exhibit 261: Change in Production Volume (%) - Scheme Wise ................................................. 267
Exhibit 262: Change in Production Volume (%) - Segment Wise ................................................ 268
Exhibit 263: Change in Production Volume (%) - Geography Wise ............................................ 268
Exhibit 264: Change in Value of Exports (%) - Segment Wise..................................................... 269
Exhibit 265: Change in Value of Exports (%) - Geography Wise ................................................. 270
Exhibit 266: Change in Value of Exports (%) - Scheme Wise ...................................................... 270
Exhibit 267: Change in Volume of Exports (%) - Segment Wise ................................................. 271
Exhibit 268: Change in Volume of Exports (%) - Geography Wise .............................................. 272
Exhibit 269: Change in Volume of Exports (%) - Scheme Wise ................................................... 272
Exhibit 270: Change in Average Unit Price (%) - Segment Wise ................................................. 273
Exhibit 271: Change in Average Unit Price (%) - Geography Wise ............................................. 274
Exhibit 272: Change in Average Unit Price (%) - Scheme Wise................................................... 274
Exhibit 273: Change in Value of Exports (%) - Segment Wise..................................................... 275
Exhibit 274: Change in Value of Exports (%) - Geography Wise ................................................. 275
Exhibit 275: Change in Volume of Exports (%) - Segment Wise ................................................. 276
Exhibit 276: Change in Volume of Exports (%) - Geography Wise .............................................. 276 List of Exhibits
326
Exhibit 277: Change in Average Unit Price (%) - Segment Wise ................................................. 277
Exhibit 278: Change in Average Unit Price (%) - Geography Wise ............................................. 277
Exhibit 279: Change in Total Manpower - Segment Wise .......................................................... 278
Exhibit 280: Change in Total Manpower - Geography Wise ....................................................... 279
Exhibit 281: Change in Total Manpower - Scheme Wise ............................................................ 279
Exhibit 282: Change in Skilled Manpower - Segment Wise ........................................................ 280
Exhibit 283: Change in Skilled Manpower - Geography Wise .................................................... 281
Exhibit 284: Change in Skilled Manpower - Scheme Wise ......................................................... 281
Exhibit 285: Change in Unskilled Manpower - Segment Wise.................................................... 282
Exhibit 286: Change in Unskilled Manpower - Geography Wise ................................................ 283
Exhibit 287: Change in Unskilled Manpower - Scheme Wise ..................................................... 283
Exhibit 288: Change in Average Salary of Skilled Manpower - Segment Wise ........................... 284
Exhibit 289: Change in Average Salary of Skilled Manpower - Geography Wise ....................... 285
Exhibit 290: Change in Average Salary of Skilled Manpower - Scheme Wise ............................ 285
Exhibit 291: Change in Average Salary of Unskilled Manpower - Segment Wise ...................... 286
Exhibit 292: Change in Average Salary of Unskilled Manpower - Geography Wise ................... 287
Exhibit 293: Change in Average Salary of Unskilled Manpower - Scheme Wise ........................ 287
Exhibit 294: Change in Training Cost - Segment Wise ................................................................ 288
Exhibit 295: Change in Training Cost - Geography Wise............................................................. 289
Exhibit 296: Change in Training Cost - Scheme Wise.................................................................. 289
Exhibit 297: Change in Total Manpower - Segment Wise .......................................................... 290
Exhibit 298: Change in Total Manpower - Geography Wise ....................................................... 290
Exhibit 299: Change in Skilled Manpower - Segment Wise ........................................................ 291
Exhibit 300: Change in Skilled Manpower - Geography Wise .................................................... 291
Exhibit 301: Change in Unskilled Manpower - Segment Wise.................................................... 292
Exhibit 302: Change in Unskilled Manpower - Geography Wise ................................................ 292
Exhibit 303: Change in Average Salary of Skilled Manpower - Segment Wise ........................... 293
Exhibit 304: Change in Average Salary of Skilled Manpower - Geography Wise ....................... 293
Exhibit 305: Change in Average Salary of Unskilled Manpower - Segment Wise ...................... 294
Exhibit 306: Change in Average Salary of Unskilled Manpower - Geography Wise ................... 294
Exhibit 307: Change in Training Cost - Segment Wise ................................................................ 295 List of Exhibits
327
Exhibit 308: Change in Training Cost - Geography Wise............................................................. 295
Exhibit 309: Change in Cost Savings Per Unit - Segment Wise ................................................... 296
Exhibit 310: Change in Cost Savings Per Unit - Geography Wise ............................................... 297
Exhibit 311: Change in Cost Savings Per Unit - Scheme Wise .................................................... 297
Exhibit 312: Change in Cost Savings Per Unit - Segment Wise ................................................... 298
Exhibit 313: Change in Cost Savings Per Unit - Geography Wise ............................................... 298
List of Abbreviations/Terminologies
328
14. LIST OF ABBREVIATIONS/TERMINOLOGIES
INR – Indian Rupee
USD – U.S Dollar
Bn – Billion
Mn – Million
Cr. – Crore
ToR – Terms of Reference
TUFS – Technology Upgradation Funds Scheme
KII – Key Informant Interviews
UHS – Unit Holder Survey
Beneficiaries – Treatment Group who received TUFS subsidy
Non – Beneficiaries – Control Group who applied but didn’t receive TUFS subsidy
Base – No. of KIIs/UHS covered for the purpose of the mid-term report
NCEUS – National Commission for Enterprises in the Unorganised Sector
Others – Includes segments like Embroidery, Composites, Other
“Impact Assessment of Technology
Upgradation Funds Scheme / Amended TUFS”
Prepared For:
October 16
th
2020 Table of Contents
2
DISCLAIMER
The Consultant (Technopak Advisors Pvt Ltd) has received the financial assistance under the
Research Scheme of NITI Aayog (RSNA-2018) to prepare this report. While due care has been
exercised to prepare the report using the data from various sources, NITI Aayog does not confirm
the authenticity of data and accuracy of the methodology to prepare the report. NITI Aayog shall
not be held responsible for findings or opinions expressed in the document. This responsibility
completely rests with the Consultant (Technopak Advisors Pvt. Ltd.)
Any use which a third party makes of the work, or any reliance on or decisions to be made based
on it, are the responsibility of such third parties. Decisions made or actions taken as a result of
the Consultant’s work shall be the responsibility of the parties directly involved in the decisions
or actions.
Technopak and its directors, employees, agents and consultants shall have no liability (including
liability to any person by reason of negligence or negligent misstatement) for any unauthorised
disclosure, statements, opinions, information or matters (expressed or implied) arising out of,
contained in or derived from, or of any omissions from the information package and any liability
whatsoever for any direct, indirect, consequential or other loss arising from any use of this report
and/or further communication in relation to this report.
This study has been carried out with financial support of NITI Aayog, Government of India, and
conducted by Technopak Advisors, 5
th
Floor, Lemon Tree Convention Centre, Sector 61,
Gurugram – 122011. Table of Contents
3
1. TABLE OF CONTENTS
1. TABLE OF CONTENTS ................................................................................................ 3
2. EXECUTIVE SUMMARY ............................................................................................. 6
2.1 Research Methodology ....................................................................................................... 6
2.2 Major Findings of the Study ................................................................................................ 7
2.3 Technology Upgradation Assessment (Machinery Report) .............................................. 11
2.4 Recommendations ............................................................................................................ 13
3. PROJECT OVERVIEW ............................................................................................... 15
3.1 Objectives.......................................................................................................................... 15
3.2 Approach and Methodology ............................................................................................. 16
3.2.1 Data Quality Assurance ........................................................................................... 17
3.2.2 Qualitative Analysis [Key Informant Interviews (KIIs)] ........................................... 18
3.2.3 Quantitative Analysis [Unit Holder Survey (UHS)] .................................................. 19
3.3 TUFS OVERVIEW ................................................................................................................ 21
3.3.1 Overall Scheme Overview ....................................................................................... 21
3.3.2 Intended Contribution to Scheme’s Outcomes ...................................................... 22
3.4 Demand Analysis - Beneficiaries under RTUFS ................................................................. 23
3.4.1 Number of Beneficiaries under RTUFS ................................................................... 23
3.5 Demand Analysis - Beneficiaries under RRTUFS ............................................................... 25
3.5.1 Number of Beneficiaries under RRTUFS ................................................................. 25
3.6 Demand Analysis - Applications under ATUFS* ................................................................ 27
3.6.1 Number of Applications under ATUFS .................................................................... 27
3.6.2 Number of Beneficiaries under ATUFS ................................................................... 31
4. IMPACT OF TUFS (INCLUDES LITERATURE OVERVIEW, KII ANALYSIS, UHS ANALYSIS)36
4.1 Investments....................................................................................................................... 37
4.2 Financial Performance ...................................................................................................... 54
4.3 Production and Productivity ............................................................................................. 71
4.4 Exports .............................................................................................................................. 91
4.5 Employment Generation................................................................................................. 113 Table of Contents
4
4.6 Cost Savings .................................................................................................................... 141
4.7 Quality ............................................................................................................................. 149
5. ANALYSIS OF MACRO-ECONOMIC FACTORS AFFECTING TEXTILE VALUE CHAIN ..... 155
5.1 Investments in Textiles and Apparels ............................................................................. 155
5.2 Exports ............................................................................................................................ 157
5.3 FDI Investment in Textile and Apparel............................................................................ 159
5.4 Promoting domestic machinery manufacturing ............................................................. 160
6. TECHNOLOGY UPGRADATION ASSESSMENT (MACHINERY REPORT) ...................... 161
6.1 Study of machinery Specifications and recommendations on ATUFS machinery list .... 161
6.1.1 Primary Research, Methodology and Limitations ................................................ 161
6.1.2 Recommendations on ATUFS Machines Listing .................................................... 163
6.2 Current Technology (Machinery) Level in India in Textile & Apparel ............................. 164
6.3 Global Benchmarking – Comparison with competing countries on technology level ... 171
6.4 Evaluation Matrix for Technology assessment of Textile Segments .............................. 174
7. ADDITIONAL QUESTIONS FOR THIS PROJECT ........................................................ 177
8. ISSUES AND CHALLENGES ..................................................................................... 183
9. OVERALL SUMMARY OF FINDINGS ....................................................................... 185
9.1 Impact of TUFS ................................................................................................................ 185
9.2 Macroeconomic factors .................................................................................................. 190
9.3 Technology Upgradation Assessment ............................................................................ 193
10. RECOMMENDATIONS........................................................................................... 195
11. LIMITATIONS OF THE STUDY ................................................................................ 198
12. APPENDIX ............................................................................................................ 199
Appendix 1- Machinery Recommendations ............................................................................ 199
Appendix 2- KII List of Machine Manufacturers and other Stakeholders ............................... 239
Appendix 3- List of Expert Panel of 17 from the overall KII list .............................................. 241
Appendix 4- List of total KIIs of 62 (Key Informant Interviews) .............................................. 242
Appendix 5- Data Quality Assurance measures ...................................................................... 245
Appendix 6- Detailed Sampling Plan ....................................................................................... 247
Appendix 7- Deep dive into UHS Analysis ............................................................................... 257
Appendix 8- Implementation Mechanisms for ATUFS ............................................................ 299 Table of Contents
5
Appendix 9- Questionnaire for Industry Associations ............................................................ 300
Appendix 10- Questionnaire for Industry Experts .................................................................. 303
Appendix 11- Questionnaire for Machinery manufacturers .................................................. 306
Appendix 12- Questionnaire for Lending Agency ................................................................... 308
Appendix 13- Questionnaire for UHS (Unit Holder Survey) – Beneficiaries ........................... 310
13. LIST OF EXHIBITS .................................................................................................. 317
14. LIST OF ABBREVIATIONS/TERMINOLOGIES ........................................................... 328
Executive Summary
6
2. EXECUTIVE SUMMARY
India’s Textile and Apparel (T&A) sector contributes ~7% to the industry output in value terms
and ~2% to the country’s GDP. In 2019, Domestic T&A sector’s revenue is estimated at USD 85
billion and Exports revenue at USD 36 billion. While domestic market has been growing @ 10%
for last 5 years; exports growth has remained flat for last 5 years. With the potential India offers
in international trade, the current share of only 4.3% leaves a lot of market unaddressed. The
COVID pandemic also presents a unique opportunity to India’s T&A sector to increase its share in
the international market.
Technology Upgradation was first launched in 1996 to plug the technology gaps in the textile
sector. The scheme has undergone several modifications over the years with recent revision
made in 2016. The scheme today aims to promote exports, generate sizeable employment and
at the same time promote zero effect and zero-defect manufacturing.
This study has been conducted by NITI Aayog to analyse the “Impact of Technology Upgradation
Fund Scheme (TUFS)” under various parameters. The impact has been measured for technology
upgradation, employment generation, cost savings and quality. In addition, challenges and issues
related to the scheme has been understood and analysed. The study assesses the role played by
TUFS in the T&A sector and makes recommendations.
The overall approach for the study is a mixed method approach including primary and secondary
data collection from various stakeholders across the value chain. The steps included meta-
analysis of TUFS, Key Informant Interviews (KIIs), Unit Holder Survey (UHS), compilation and
analysis of findings and writing the report.
2.1 Research Methodology
A primary research study was conducted wherein 667 surveys (559 TUFS beneficiaries + 108 non
beneficiaries) from 8 states were conducted. The study also conducted 62 KIIs across 11 cities in
India. The information on various financial, operational aspects are collected as part of the survey
etc.
The final list of 62 KIIs were finalised jointly with NITI Aayog. Sampling method for UHS was
stratified random sampling with quotas allocated by the NITI Aayog team. The population size for
the survey was based on the geographical spread, segment type, scheme type and scale type.
Executive Summary
7
2.2 Major Findings of the Study
Overall Summary - Key Findings
Given below is summary of impact analysis of TUFS schemes on various parameters as witnessed by the 559 TUFS
beneficiaries.
Exhibit 1: Summary of UHS Analysis for impact of TUFS
Summary of impact analysis of TUFS schemes for interviews done with 13 industry experts.
Exhibit 2: Summary of KII Analysis for impact of TUFS
Executive Summary
8
Overall, TUFS had a positive impact on the performance of the Indian textiles industry both for
Beneficiaries as well as Non-Beneficiaries. As per findings, the scheme played a major role in
improving technology levels, increasing investments, production, product quality, exports and
increasing employment generation. Overall, non-beneficiaries showed lower positive impact
than the beneficiaries on all 7 parameters.
1. Impact on Investments
✓ The scheme had a positive impact on investments, with approx. 80% of the investment in
the textile sector emerging from the scheme from 1999 to 2016.
✓ The impact on project investment though positive has been moderate in terms of scale,
with only 2% projects reporting investments to the tune of Rs 50 Cr and more. While 44 %
beneficiaries reported investments in the scale of Rs 1-20 Cr, 39% investments were less
than Rs 1 Cr.
✓ Non beneficiaries have also witnessed a moderate increase in investments with 76%
investments in the scale of Rs 1-20 Cr.
✓ 80% of KIIs agreed that TUFS had positive impact on investments. After removal of
spinning under TUFS, weaving is now the leading segment taking TUFS advantage to
attract investments.
2. Impact on Financial Performance (Sales, Net Profit, and Average Sales Price)
✓ The primary research finds positive impact on sales, profit etc across all segments and
impact is of higher magnitude in weaving. KIIs indicated that scheme subsidy is
instrumental in improving financial performance of the companies, given that many of
textile companies operate with low profit margins. This can be attributed to reduced cost
of capital, improved margins and turnover of the textile companies.
✓ Overall, 89% beneficiaries have witnessed an increase in annual sales. In Weaving
segment, highest number of respondents (92%) have witnessed increase in sales. Around
50% of respondents in Knitting, Weaving and Processing have witnessed an increase in
sales >10%. In Rajasthan, Punjab and Haryana, more than 90% respondents have
witnessed increase in annual sales due to TUFS.
✓ Overall, 85% beneficiaries have witnessed an increase in net profit with weaving segment
having highest positive response (87%). While majority of states reported profits, 20%
respondents in Tamil Nadu, 14% in Karnataka and 13% in Uttar Pradesh have witnessed
decline in net profits.
✓ Overall, 81% beneficiaries have witnessed an increase in per unit sales price. 71%
respondents in weaving segment have witnessed increase in sales price >6%.
✓ Overall non-beneficiaries have reported lower financial performance than beneficiaries.
Broadly, respondents from Processing and Punjab have witnessed decline in Annual sales,
Net Profits and Sales Price.
✓ As per the KII analysis, 85% found positive impact on sales, 77% on profit and 54% on sales
price. Executive Summary
9
3. Impact on Production and Productivity
✓ TUFS Scheme had a significant impact on increasing production and improving
productivity. Beneficiaries gained significantly in terms of productivity improvement,
waste reduction, cost saving, resource efficiency etc. due to investment in upgraded
technology.
✓ More than 85% beneficiaries witnessed an increase in production volume. In weaving
segment, more than 75% beneficiaries witnessed an increase in production volume of
greater than 5%. More than 90% beneficiaries opined that TUFS enhanced the overall
productivity, whereas more than 85% opined that TUFS helped significantly in improving
the product quality. Over the schemes, the highest increase in production volume was
exhibited during ATUFS scheme with 46% of the respondents suggesting an increase
>20%.
✓ Most of the non-beneficiary respondents from all sectors have witnessed growth in
production volume
✓ All the KII experts opined that TUFS had a significant impact on production and
productivity respectively, whereas as per expert panel, everybody opined that TUFS had
a significant impact on production and productivity.
4. Impact on Exports
✓ TUFS benefitted most companies in terms of product development and innovative
practices due to addition of technologically advanced machines. Exports in textile and
apparel industry grew along with increase in production and overall competitiveness.
However, total exports in T&A sector has witnessed a decline of CAGR 1.9% between 2014
and 2019. India’s exports of textile fibers have declined by 9% from 2014 to 2019. Yarn
and fabric exports have declined by 4% and 1% respectively in the same period.
✓ Overall, 75% beneficiaries have witnessed an increase in value of exports. Majority of the
segments witnessed an increase in exports’ value. Technical textile segment had the
highest positive response of 82% for export increase. Across the schemes, the highest
increase in value of exports was exhibited during ATUFS ~ 83% of the respondents
suggesting an increase in value of exports.
✓ Overall, 76% beneficiaries have witnessed an increase in volume of exports. Highest
change in volume of exports has been observed by Weaving and Garmenting segments.
✓ 69% of KII experts opined that TUFS had a significant impact on exports.
✓ Overall non-beneficiaries have reported lower change in exports than beneficiaries.
✓ Overall textile and garments export out of India have remained stagnant in last 5 years at
approx. USD 37 Bn. Exports market is affected by many other external factors such as FTA,
cost competitiveness, speed to market etc. Hence, we believe it is difficult to directly
correlate TUFS impact on exports.
Executive Summary
10
5. Impact on Employment Generation
✓ TUFS contributed positively to employment generation and helped in the growth of
income and improving livelihood of the workers. Since its launch, the scheme provided
employment to approx. 8.4 lacs people in factory sector, with approx. 1.6 lacs people
employed after RTUFS. No. of people engaged in the operational factories has witnessed
an increasing trend in the last 5 years, so have the wages per worker in T&A industry.
✓ Approx. 70% beneficiaries witnessed increase of total manpower after upgrading the
technologies under the scheme. 76% respondents in Weaving segment have seen
manpower addition. Among states, in Rajasthan and Uttar Pradesh ~90% respondents
have witnessed an increase in total manpower due to TUFS. During ATUFS scheme, 74%
respondents have witnessed an increase in labour.
✓ As per KIIs, more than 70% stakeholders opined that TUFS helped in promoting
employment generation.
6. Impact on Cost Savings
✓ TUFS scheme contributed significantly to the improvement of cost efficiencies and
resource efficiencies of the textile units. Majority of companies across all segments
witnessed cost reduction between 1% and 10%.
✓ As per UHS analysis, 76% of the beneficiary respondents indicated an increase in cost
savings per unit, vis-à-vis 78% of the non-beneficiary respondents. Units have also been
able to increase their cost savings and resource efficiencies to significant extent.
However, 21% beneficiary respondents in Processing segment have witnessed a decrease
in cost savings.
✓ As per KII analysis, 76% respondents opined that TUFS had a significant impact on cost
savings, whereas all expert panel opined that the scheme had a positive impact on cost
savings.
7. Impact on Quality
✓ TUF Scheme has helped companies to improve their product quality and value addition
by shifting to technologically upgraded machines. Factors such as product development,
value addition, quality improvement and innovative practices also helped in improving
Unit Value Realization (UVR) of textile sector.
✓ The product quality has improved significantly across various segments as reported by
the companies; enabled due to the TUFS. 89% of the beneficiaries opined that the scheme
led to improvement in product quality.
✓ KII analysis indicates that 82% respondents opined that TUFS had a positive impact on
improving quality of the products, whereas 100% of expert panel believed that the
scheme had a positive impact on quality.
Executive Summary
11
2.3 Technology Upgradation Assessment (Machinery Report)
Study of machinery Specifications and recommendations on ATUFS machinery list
Technopak team conducted 16 interviews with leading machinery manufacturers and industry
stakeholders. There are 469 machines and 590 machine manufacturers, which are approved
under ATUFS.
Technopak categorized the 469 machines listed under ATUFS into 2 categories, based on their
role in the manufacturing process:
• Core Process machines (285), which perform a major function, and
• Ancillary process machines (184), which have a supporting role.
• This classification is subjective and may require further deliberations along with the
stakeholders.
The study analyses the Core process machines, and provides technical recommendations on their
speed for each textile segment. In some cases, like weaving and knitting, Technopak has given
speed recommendations separately for MSME (Unorganized sector) and Non-MSME (Organized
sector).
Current Technology (Machinery) Level in India in Textile & Apparel
As per UHS analysis, only 24% of the beneficiaries felt that technology levels in India match global
standards, while the balance 76% felt that there is a gap between Indian and global standards.
As per KII analysis, 70% respondents opined that India has achieved global technology levels only
in spinning, while in all other segments we are lagging behind. The larger players in the organised
sector match global technology standards across segments, but their share in the industry is very
small. Hence, the overall standard of technology level in the industry is much lower than global
standards. Executive Summary
12
Global Benchmarking of Technology Level
Technopak conducted primary research with 17 industry experts (KII) to compare the technology
level in each segment in India with 5 other competing nations viz. China, Vietnam, Turkey,
Bangladesh and Pakistan.
Exhibit 3: Global Benchmarking of Technology Level
India is losing in capitalising the advantage of technology investment in Spinning, as the
downstream segments of Weaving, Knitting, Processing and Garmenting are unorganised and
fragmented.
Evaluation Matrix for Technology assessment of Textile Segments
An evaluation matrix with the following six parameters was developed for technology assessment
of all the textiles segments: Spinning, Weaving, Knitting, Processing, Garmenting and Technical
Textiles:
1. Percentage Machine cost in total project cost
2. Absolute capex required for viable project (INR Crores)
3. Current technology level in India
4. Return on Investment
5. Trade surplus/ deficit (in USD Mn)
6. Technology Obsolescence* (Number of years)
Recommendations have been given for TUFS subsidy, based on the ranking from this evaluation
matrix.
Executive Summary
13
2.4 Recommendations
• Promotion of TUFS
TUFS over the years has been regarded as a successful scheme for promoting investment in the
sector. But over the last 4-5 years, the scheme has lost its relevance and popularity. Technopak
suggests that the scheme should be revised and promoted afresh within the industry. It will help
re-energize the industry with fresh investments and technology upgrades.
• Balancing the production capacity of Textile value chain
Downstream investments into weaving, knitting and processing will help the industry in value
addition, especially in exports. It is estimated that 35% of the yarn produced in India is exported
due to lack of weaving and processing capacities. TUFS should be focused on building and
upgrading Weaving, Knitting and Processing capacities, to capture this gap and increase value
addition.
• Higher Subsidy for Weaving, Knitting and Processing
A higher allocation and subsidy for Weaving, Knitting and Processing sectors is proposed. The
recommendations are:
• Allocation: Weaving: 20%; Knitting: 20% and Processing: 30-40%
• Capital Subsidy: Increased to 15% for Weaving, Knitting and Technical Textiles and 20-
25% for Processing
It is recommended that spinners can be targeted in India to invest in Weaving / Knitting/
Technical Textiles and Processing. Spinners have the raw material availability and better financial
strength than standalone weavers, knitters and processors.
• Focus on Man Made Fiber (MMF) value chain
MMF has better potential for growth in both domestic and international markets. Within MMF
value chain, fabric segment can be focused. Clusters with MMF value chain production may be
focused for TUFS benefit.
• Differential Technology Specifications for MSME
MSME sector does not have financial capabilities to upgrade to best technology levels.
Differential technology specifications slab is proposed for MSME segment under ATUFS
machinery listing for some of the machines.
• Promote Technical Textile under TUFS
Technical textiles; especially Medical Textiles, should be given special impetus under TUFS to
promote more investments and latest technology use. Subsidy budget for technical textiles can
be 20% of total TUFS subsidy. Capital Subsidy for technical textiles may be kept at 15%.
• Timely Disbursement Executive Summary
14
All the industry stakeholders talked about the delay in disbursement at various stages of TUFS,
which hampers the basic impact of the scheme. For the future, the disbursement should be done
without any delay, with streamlined processes for approvals at each stage. TUFS cases need to
be cleared faster to regain the confidence of industry in TUFS.
• Technical Think Tank with industry participation
We propose that a strong Think Tank with serious industry participation from various
stakeholders should be created to advise and deliberate on all technology aspects of TUFS. This
Think Tank can consist of government officials, industry leaders, machinery experts, technical
consultants. This will help in addressing technology related issues and making the
implementation process faster.
• Updating Machine list under ATUFS
Current machine listing needs updating as per the current technology standards and industry
requirements. Some recommendations have been given by Technopak but a more detailed study
is required to finalize it. This should be done on a continual basis for the industry to benefit from
the latest technology developments.
• Promote Industry 4.0 technology
Separate list of machines, technology, and software to be included under ATUFS. Separate
budget may be allocated for this segment under ATUFS. Garment segment can be promoted in
this budget.
• Promote Domestic Machine Manufacturers
Sourcing of machines from domestic textile machine manufacturers should be promoted under
TUFS. This can be done through higher subsidy provision for domestic manufacturers. Domestic
machine manufacturing ecosystem needs to be improved significantly by promoting R&D and
innovation for developing state-of-the-art machines. This can be promoted through mega textile
parks for machine manufacturing. Encourage JVs (Joint Ventures) and FDIs (Foreign Direct
Investment) from European and Japanese machine manufacturers. Devise a special scheme with
liberal policies and long-term benefits for machine manufacturing including R&D and plug and
play facility.
Project Overview
15
3. PROJECT OVERVIEW
3.1 Objectives
TUFS has been under implementation for almost two decades now. Despite generating positive
interests in the unit holders/manufacturers, and acting as a catalyst for increasing investments
in the Indian textile industry, there is trepidation about the penetration and effectiveness of the
scheme, and whether the scheme is able to achieve its intended objectives or not. To understand
the impact of the scheme, NITI Aayog wanted to conduct an “Impact Assessment of Technology
Upgradation Fund Scheme” to assess the holistic impact of the scheme. A study had been
initiated to evaluate the impact of TUFS on parameters such as technology upgradation,
investments, financial performance, productivity and production, exports, employment
generation, cost savings, and quality.
Below are the objectives that Technopak Advisors analysed in this project.
Exhibit 4: Project Objectives Project Overview
16
3.2 Approach and Methodology
The overall approach is a combination of primary and secondary data collection from various
stakeholders across the value chain and previous evaluation reports (literature review). The
approach has been defined in below steps:
Field study and methodology involved collecting data through primary research. For the purpose
of this study, primary research is a combination of Key Informant Interviews (KIIs) and Unit Holder
Surveys (UHS).
Exhibit 5: Study Approach & Methodology Project Overview
17
3.2.1 Data Quality Assurance
Data Quality Assurance
A multi - pronged robust process for quality control was followed during data collection. The
following aspects were considered:
• The field investigators were engaged for conducting the Unit Holder Surveys with at least
3 years of experience in conducting similar surveys/interviews. Two-step training
(classroom and on-the-field training) was conducted for all field investigators
• Pilots were conducted on 8% (50 out of 648) of the sample size for Unit Holder Surveys to
fine tune the inquiry tools. A brief on the learnings from such a pilot exercise and
subsequent improvements in the tools/questionnaires was shared with NITI Aayog
• 100% data collected was validated using a validation checklist - missing data points were
recollected
• In case of Unit Holder Surveys, at least 50% data was verified on telephone and if not
verified via phone, back checks were undertaken to ensure at least 50% data verification
• Use of mobile - based real-time data collection and validation tools were done to ensure
efficiency and accuracy in data collection
Project Overview
18
3.2.2 Qualitative Analysis [Key Informant Interviews (KIIs)]
For the purpose of this study, Technopak interviewed 62 KIIs to understand the impact of TUF
Scheme on Indian textile industry. Summary of the stakeholders is given below:
Exhibit 6: Stakeholder wise and City wise sampling of KIIs
Note:
1
Delhi NCR includes New Delhi, Noida, Gurgaon, Ghaziabad and Faridabad Project Overview
19
3.2.3 Quantitative Analysis [Unit Holder Survey (UHS)]
An in-depth Unit Holder Survey (UHS) was conducted to assess the key impact of the scheme.
The population size for the survey was based on the geographical spread, segment type, scheme
type and scale type.
The sampling plan was based on “Stratified random sampling with quotas suggested in the ToR
(Terms of Reference).”
Technopak partnered with a research agency (Azul Research Advisory and Support Services) to
conduct face to face interviews and telephonic interviews. In total, 667 UHS were conducted as
part of this study (TUFS beneficiaries - 559 and non-beneficiaries - 108).
Approach for Quantitative Analysis – Overall Sampling Approach – Unit Holder Survey
Primary research of unit holders includes both 559 beneficiaries & 108 non-beneficiaries.
Segmentation of the sample size is based on the following four parameters:
1. State Wise
2. Segment Wise
3. Scheme Wise
4. Scale Wise
Exhibit 7: State wise sampling of UHS
Project Overview
20
Exhibit 8: Segment wise sampling of UHS
Exhibit 9: Scheme wise sampling of UHS beneficiaries
Exhibit 10 Scale wise sampling of UHS
MSME,
534
Non-MSME,
133 Project Overview
21
3.3 TUFS OVERVIEW
3.3.1 Overall Scheme Overview
Ministry of Textiles (MoT) launched Technology Upgradation Fund Scheme (TUFS) w.e.f. 1.4.1999
with an objective to catalyse capital investment for technology upgradation and modernization
of the Indian textile industry. This scheme is effective up to March, 2022. A budget provision of
INR 17,822 Cr. has been approved for a period of seven years, i.e., from 2015-16 to 2021-22 to
meet the committed liabilities of INR 12,671 Cr. and INR 5,151 Cr. for new cases under the
scheme. The budget outlay for past 5 years has been as follows:
Since its inception, the scheme has been revised multiple times over the years:
2016-17
(Acual)
INR 2,621 Cr.
2017-18
(Actual)
INR 1,904 Cr.
2018-19 (BE)¹
INR 2,300 Cr.
2018-19 (RE)²
INR 622 Cr.
2019-20 (BE)
INR 700 Cr.
2020-21 (BE)
INR 763 Cr.
ATUFS
(Amended
TUFS)
2016 -2022
RRTUFS
(Revised
Restructure
d TUFS)
2012 -2016
RTUFS
(Revised
TUFS)
2011 -2013
Black Out
Period
2010 -2011
MTUFS
(Modified
TUFS)
2007 -2010
TUFS
1999 -
2007
Note:
1
Budgeted Estimate
2
Revised Estimate Project Overview
22
3.3.2 Intended Contribution to Scheme’s Outcomes
In order to meet the requirements of organized textile industry for making it globally competitive,
a need for amendment of TUF scheme was realized. The intended objective of the amendment
was to increase the investment, productivity, quality, employment and exports in textile industry
through an efficient credit linked investment subsidy scheme. The scheme was also expected to
focus on import substitution. The following projections were anticipated under the proposed
ATUFS:
Exhibit 11: Anticipated Projections under A-TUFS
S. No. Particulars
Garmenting/
Technical
Textiles
(15% CIS)
Weaving for brand new
shuttle-less loom
(including weaving
preparatory and knitting)
and/ processing (10% CIS)
Total
1 No. of Cases 6,082 11,181 17,263
2
Investment
(Rs. Crores)
36,260 59,690 95,950
3
Term Loan
Sanctioned Amount
(Rs. Crores)
23,569 38,798 62,367
4
Term Loan eligible
under TUFS
(Rs. Crores)
21,756 35,814 57,570
5
Anticipated Subsidy
Claim Under the
Proposed Schemes
(Rs. Crores)
2,690 3,581 6,271
6 Employment 3,051,292 511,124 3,562,416
Source: ToR, NITI Aayog
Project Overview
23
3.4 Demand Analysis - Beneficiaries under RTUFS
3.4.1 Number of Beneficiaries under RTUFS
Geography-Wise and Scale-Wise
Exhibit 12: No. of Beneficiaries (RTUFS) - Geography and Scale Wise
State
MSME Share
Non-
MSME
Share Total Share
No. % No. % No. %
Gujarat 1,683 88% 230 12% 1,913 52%
Punjab 496 83% 103 17% 599 16%
Tamil Nadu 201 62% 125 38% 326 9%
Maharashtra 193 66% 100 34% 293 8%
Haryana 97 82% 21 18% 118 3%
Rajasthan 50 48% 55 52% 105 3%
Other 145 42% 204 58% 349 9%
Total 2,865 77% 838 23% 3,703 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat and Punjab had 68% of total beneficiaries during RTUFS. The share of MSMEs in Gujarat
was 88% during RTUFS
Note: Demand analysis indicates the popularity of the TUFS scheme among the unit holder. The popularity of the scheme is
measured by analysing the number of applications and beneficiaries under various TUFS Schemes. Project Overview
24
Segment-Wise and Scale-Wise
Exhibit 13: No. of Beneficiaries (RTUFS)- Segment and Scale Wise
Segment
MSME Share
Non-
MSME
Share Total Share
No. % No. % No. %
Weaving/ Knitting 1,644 93% 122 7% 1,766 48%
Garmenting 522 91% 54 9% 576 16%
Processing 292 62% 181 38% 473 13%
Spinning 123 32% 262 68% 385 10%
Technical Textiles 178 63% 104 37% 282 8%
Other 106 48% 115 52% 221 6%
Total 2,865 77% 838 23% 3,703
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Weaving/ Knitting had 48% of total beneficiaries during RTUFS. The share of MSMEs for
Weaving / Knitting segments was 93% Project Overview
25
3.5 Demand Analysis - Beneficiaries under RRTUFS
3.5.1 Number of Beneficiaries under RRTUFS
Geography-Wise and Scale-Wise
Exhibit 14: No. of Beneficiaries (RRTUFS)- Geography and Scale Wise
State
MSME Share
Non-
MSME
Share Total Share
No. % No. % No. %
Gujarat 669 60% 449 40% 1,118 28%
Punjab 688 85% 120 15% 808 20%
Tamil Nadu 430 56% 337 44% 767 19%
Maharashtra 200 55% 164 45% 364 9%
Haryana 128 68% 60 32% 188 5%
Rajasthan 67 44% 86 56% 153 4%
Uttar Pradesh 59 67% 29 33% 88 2%
Other 182 39% 280 61% 462 12%
Total 2,423 61% 1,525 39% 3,948
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat and Punjab had 48% of total beneficiaries during RRTUFS. The share of MSMEs in Gujarat
and Punjab was 70% during RRTUFS Project Overview
26
Segment-Wise and Scale-Wise
Exhibit 15: No. of Beneficiaries (RRTUFS)- Segment and Scale Wise
Segment
MSME Share
Non-
MSME
Share Total Share
No. % No. % No. %
Garmenting 985 90% 108 10% 1,093 28%
Processing 450 66% 230 34% 680 17%
Spinning 143 23% 488 77% 631 16%
Multi-Activity 129 26% 375 74% 504 13%
Technical Textiles 250 58% 183 42% 433 11%
Weaving/ Knitting 302 71% 122 29% 424 11%
Others 164 90% 19 10% 183 5%
Total 2,423 61% 1,525 39% 3,948
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Garmenting and Processing had 44% of total beneficiaries during RRTUFS. The share of MSMEs
for Garmenting and Processing segments was 81% of total beneficiaries during RRTUFS Project Overview
27
3.6 Demand Analysis - Applications under ATUFS*
3.6.1 Number of Applications under ATUFS
Geography-Wise
Exhibit 16: No. of Applicants (ATUFS) - Geography-Wise
State No. of Applicants Share (%)
Gujarat 6,294 52%
Karnataka 186 2%
Maharashtra 1,493 12%
Punjab 1,209 10%
Rajasthan 349 3%
Tamil Nadu 1,227 10%
Uttar Pradesh 274 2%
Other 1,041 9%
Total 12,073 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat, Maharashtra, Punjab, and Tamil Nadu have attracted the highest demand for ATUFS
applications
*As on 25
th
May 2020 Project Overview
28
Segment-Wise
Exhibit 17: No. of Applicants (ATUFS) - Segment-Wise
Scale – Wise
Exhibit 18: No. of Applicants (ATUFS) - Scale-Wise
Segment No. of Applicants Share (%)
Weaving 6,304 52%
Garmenting 1,682 14%
Processing 1,304 11%
Technical Textiles 1035 9%
Multi-Activity 951 8%
Other 797 7%
Total 12,073 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Scale No. of Applicants Share (%)
MSME 10,512 87%
Non-MSME 1,561 13%
Total 12,073 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Weaving, Garmenting, and Processing have witnessed higher demand for ATUFS
Higher demand for ATUFS has come from MSME sector i.e 87% of total, contrary to previous TUF
scheme Project Overview
29
Geography-Wise and Scale-Wise
Exhibit 19: No. of Applicants (ATUFS) - Geography and Scale Wise
State
MSME Share Non-MSME Share Total
No. % No. % No.
Gujarat 5,776 92% 518 8% 6,294
Karnataka 122 66% 64 34% 186
Maharashtra 1,365 91% 128 9% 1,493
Punjab 1,082 89% 127 11% 1,209
Rajasthan 254 73% 95 27% 349
Tamil Nadu 997 81% 230 19% 1,227
Uttar Pradesh 231 84% 43 16% 274
Other 685 66% 356 34% 1,041
Total 10,512 87% 1,561 13% 12,073
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat, Maharashtra, Punjab, and Tamil Nadu have higher no. of ATUFS applications, and have
witnessed greater percentage of applications from MSME sector vis-à-vis Non-MSME sector Project Overview
30
Segment-Wise and Scale-Wise
Exhibit 20: No. of Applicants (ATUFS) - Segment and Scale Wise
Segment
MSME Share Non-MSME Share Total
No. % No. % No.
Weaving 5,992 95% 312 5% 6,304
Garmenting 1,523 91% 159 9% 1,682
Processing 952 74% 331 26% 1,283
Technical Textiles 731 67% 352 33% 1,083
Multi-Activity 637 67% 314 33% 951
Other 677 88% 93 12% 770
Total 10,512 87% 1,561 13% 12,073
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
The 3 segments that have witnessed the highest no. of ATUFS applications have also witnessed
greater percentage of applications from the MSME sector vis-à-vis Non-MSME, with weaving
segment having the highest share of 95% Project Overview
31
3.6.2 Number of Beneficiaries under ATUFS
Geography-Wise
Exhibit 21: No. of Beneficiaries (ATUFS) - Geography-Wise
State No. of Beneficiaries Share (%)
Gujarat 392 47%
Karnataka 19 2%
Maharashtra 131 16%
Punjab 38 5%
Rajasthan 26 3%
Tamil Nadu 176 21%
Uttar Pradesh 10 1%
Other 51 6%
Total 843 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat, Maharashtra, and Tamil Nadu have the most beneficiaries for ATUFS applications
*As on 25
th
May 2020 Project Overview
32
Segment-Wise
Exhibit 22: No. of Beneficiaries (ATUFS) - Segment-Wise
Scale – Wise
Exhibit 23: No. of Beneficiaries (ATUFS) - Scale-Wise
Segment No. of Beneficiaries Share (%)
Weaving 600 71%
Garmenting 15 2%
Processing 111 13%
Technical Textiles 13 2%
Other 104 12%
Total 843 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Scale No. of Beneficiaries Share (%)
MSME 730 87%
Non-MSME 113 13%
Total 843 100%
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Weaving, Processing and Others have witnessed most beneficiaries for ATUFS
More beneficiaries for ATUFS have been availed by MSME sector i.e. 87% of total, contrary to
previous TUF scheme Project Overview
33
Geography-Wise and Scale-Wise
Exhibit 24: No. of Beneficiaries (ATUFS) - Geography and Scale Wise
State
MSME Share Non-MSME Share Total
No. % No. % No.
Gujarat 347 89% 40% 11% 392
Karnataka 19 100% 0% 0% 19
Maharashtra 127 97% 4% 3% 131
Punjab 30 79% 7% 21% 38
Rajasthan 14 54% 11% 46% 26
Tamil Nadu 153 87% 20% 13% 176
Uttar Pradesh 7 70% 3% 30% 10
Other 33 65% 16% 35% 51
Total 730 87% 113 13% 843
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
Gujarat, Maharashtra, and Tamil Nadu have higher no. of ATUFS beneficiaries, and have
witnessed greater percentage of beneficiaries from MSME sector vis-à-vis Non-MSME sector Project Overview
34
Segment-Wise and Scale-Wise
Exhibit 25: No. of Beneficiaries (ATUFS) - Segment and Scale Wise
Segment
MSME Share Non-MSME Share Total
No. % No. % No.
Weaving 552 92% 48 8% 600
Garmenting 14 93% 1 7% 15
Processing 89 80% 22 20% 111
Technical Textiles 7 54% 6 46% 13
Other 68 65% 36 35% 104
Total 730 87% 113 13% 843
Source: Office of Textile Commissioner, Ministry of Textiles, Technopak Analysis
The 2 segments that have witnessed the highest no. of ATUFS beneficiaries have also
witnessed greater percentage of beneficiaries from the MSME sector vis-à-vis Non-MSME,
with weaving segment having the highest share of 92% Project Overview
35
Summary
Gujarat and Punjab had 68% of total beneficiaries during RTUFS. The share of MSMEs in
Gujarat was 88% during RTUFS. Weaving/ Knitting had 48% of total beneficiaries during
RTUFS. The share of MSMEs for Weaving / Knitting segments was 93%.
Gujarat and Punjab had 48% of total beneficiaries during RRTUFS. The share of MSMEs in
Gujarat and Punjab was 70% during RRTUFS. Garmenting and Processing had 44% of total
beneficiaries during RRTUFS. The share of MSMEs for Garmenting and Processing segments
was 81% of total beneficiaries during RRTUFS.
Higher demand (no. of applications) for ATUFS has come from 4 states, namely, Gujarat,
Maharashtra, Punjab, and Tamil Nadu majorly from MSME sector. Weaving segment
witnessed highest number (52% of total) of applications under ATUFS majorly from MSME
sector.
Contrary to previous TUFS, actual beneficiaries under ATUFS are also more from MSME sector.
No. of beneficiaries were higher in 3 states, namely, Gujarat (highest at 47%), Maharashtra,
and Tamil Nadu. These geographies witnessed greater percentage of beneficiaries from the
MSME sector vis-à-vis Non-MSME sector ~ Gujarat - 89%, Maharashtra - 97%, and Tamil Nadu
- 87. Gujarat, Maharashtra, and Tamil Nadu combined together had 84% of total ATUFS
beneficiaries. Weaving witnessed highest number of beneficiaries under ATUFS ~ 71 % of
which 92% beneficiaries were from MSME sector. Higher no. of beneficiaries for ATUFS has
come from MSME sector ~ 87% of total. Impact of TUFS
36
4. IMPACT OF TUFS (INCLUDES LITERATURE OVERVIEW, KII ANALYSIS, UHS
ANALYSIS)
Exhibit 26: Parameters covered under UHS Analysis
Impact of TUFS
37
4.1 Investments
Past Trend Analysis - Literature Review
• Technopak Advisors Evaluation Report of TUFS (2006)
As per the report, TUF Scheme had a positive impact on investments. Maximum investments
were made in spinning, composite upgradation, processing and weaving sectors. Technical
textiles grew at a CAGR of 50%. None of the sectors showed negative growth on availing TUF
Scheme.
• CRISIL Evaluation Report of TUFS (2010)
In spinning segment approx. 70% of the investments were made towards technology
upgradation/machinery replacement. Whereas, in weaving, knitting and garmenting, higher
investments were made towards adding capacities. As per the report, the industry needed an
investment of INR 47,000 Cr. between 2009-10 and 2011-12 and extra INR 143,000 Cr. in the
12
th
five-year plan to meet the expected growth in demand.
• Comptroller and Auditor General of India on Technology Upgradation Fund Scheme (2015)
Investments of only INR 1,31,228 Cr. were attracted during the XI Five Year Plan, as against
targeted investment of INR 1,50,600 Cr. The shortfall in attracting investments was in spite of
increase in financial allocation from INR 10,273 Cr. to INR 15,404 Cr.
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
As per the report, Indian textile industry witnessed a significant amount of investment of INR
61,231 Cr. (as on 29.07.2015) through RTUFS & RRTUFS. Spinning accounted for highest share
of investments (25%), followed by processing (11%) and weaving (8%). Gujarat attracted
maximum share in investments under the scheme (29%), followed by Punjab (17%). More than
60% beneficiaries used their investments in adding capacities by using upgraded technologies,
while others replaced their old machineries with the new ones. Within the scheme benefits,
Interest reimbursement (IR) with capital subsidy (CS) benefit together attracted 70% (INR 3,551
Cr.) of the total investment in weaving segment and more than 90% investment in processing,
garmenting & technical textile segments. Weaving segment attracted approx. 70% (INR 3,551
Cr.) of the total investment and processing, garmenting & technical textile segments attracted
more than 90% of the investments - availing interest subsidy and capital subsidy benefits. 82% Impact of TUFS
38
of the total investments within RTUFS & RRTUFS were done by Non-MSME units, which
constitute only 24% of total number of RTUFS & RRTUFS beneficiaries. As mentioned in the
graph below, most of the investment in textile sector has been happening under TUFS ever
since TUFS scheme started in 1999. Total investment under TUFS was approx. 80% of total
investment in textile sector. During RTUFS and RRTUFS period, investment under TUFS has
reduced to 64% of total investment. This trend clearly indicates that TUFS scheme is widely
used by the industry for making investments for capacity addition or new projects
Investment under TUFS - Current Scenario
Exhibit 27: Investment Trend under TUF Scheme
Average investment from the industry during TUFS is INR 16,175 Crores per year (1999-2019).
Average investment in RTUFS, RRTUFS and ATUFS is Rs 13.7 Cr, Rs 5.1 Cr and Rs 4.2 Cr
respectively. Investments have reduced over the years in all the segments.
Note: ‘ 2010-11 Budgeted subsidy exhausted due to overwhelming response * 2015-16 Data not available
Source: Ministry of Textiles, Technopak Analysis Impact of TUFS
39
RTUFS RRTUFS ATUFS
INR 37,516 Crores INR 23,715 Crores INR 54,833 Crores
Exhibit 28: Investment Trend under TUF Scheme Segment-wise
8,694
3,528
4,791
86
2,637
6,532
1,962
177
1,314
1,819
2,078
333
18
997
Spinning Weaving/ KnittingProcessing Garmenting Technical Textiles
Investments in INR Crores
RTUFSRRTUFSATUFS
Source: Technopak Analysis
Summary of Total Investments Impact of TUFS
40
KII ANALYSIS
88%
12%
Significant ImpactNo Response
Base: 17
Source: Technopak Analysis
92%
8%
Significant ImpactNo Response
Base: 13Source: Technopak Analysis
Total Respondents Expert Panel*
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry
Exhibit 29: Increase in Investments
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry. Out of 17 respondents, 14 (88%) answered that TUFS had a
positive impact on Investments. Out of 13 expert views, 12 (92%) opined that TUFS had a
significant impact on Investments.
Impact of TUFS
41
UHS ANALYSIS
Beneficiaries
Project Investment
Out of 556 respondents to the question, 44% witnessed project investment between INR 1 and
20 crores. 39% of the respondents witnessed investment increase of < INR 1 Crores.
Exhibit 30: Project Investment (in Cr.)
64% of technical textiles’ respondents have witnessed project investment over INR 1 crore. 45%
of knitting sector’s respondents have witnessed investments between INR 1-5 crores. 46% of the
respondents in weaving have indicated increase in project investment greater than 1 crore.
Processing sector is another sector which is witnessing high investments above INR 5 crores (23%
of 64 respondents).
Exhibit 31: Project Investment - Segment Wise
39%
26%
18%
4% 2%
11%
0%
10%
20%
30%
40%
<1 1-5 5-20 20-50 > 50 No data
% Share of Respondents
Source:TechnopakAnalysis,Base-556;Orangeindicateshighest%
47%
43%
39%
45%
35%
17%
24%
21%
26%
45%
22%
22%
29%
26%
21%
17%
10%
8%
22%
27%
26%
2%
9%
10%
6%
7%
3%
1%6%
4%
2%
5%
8%
11%
6% 9% 8%
19%
12%
38 282 31 64 51 48 42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-556 Impact of TUFS
42
Among states, Karnataka, Maharashtra and Rajasthan have witnessed major investments INR 1-
20 Crores. Project Investments in Gujarat are primarily in INR 0-1 Crores (60% of the 206
respondents.
Exhibit 32: Project Investment - Geography Wise
Across schemes, the investments have reduced as 43% of the respondents are saying the project
investments during ATUFS is INR 0-1 Crores.
Exhibit 33: Project Investment - Scheme Wise
60%
22%
11% 10%
28%
6%
51%
45%
13%
44%
55%
37%
22%
31%
32%
17%
3%
22%
32%
36% 33%
38%
9%
24%
4%
7%
3%
3%
2%
13%
1%
7%
2%
4%
6%
4% 5%
18%
4%
13% 11%
6% 4% 2%
206 27 38 86 46 32 79 42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-556
42%
39%
30%
26%
25%
28%
16%
22%
14%
1%
8%
4%
1%
4%
3%
13%
4%
23%
276
200
80
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
ATUFS
RRTUFS
RTUFS
% Share of Respondents
<1 1-55-2020-50>50 No data
Source:TechnopakAnalysis,Base-556 Impact of TUFS
43
Machinery Investment
Out of 559 respondents to the question, 70% witnessed an increase in machinery investment
<INR 5 crores.
Exhibit 34: Machinery Investment (In Cr.)
58% of Technical textiles’ respondents have witnessed machinery investments over INR 1 crore.
45% of Knitting sector’s respondents have witnessed machinery investments between INR 1-5
crores. 43% of the respondents in weaving have indicated increase in machinery investment
greater than INR 1 crore. This indicates investments were of small scale. Processing sector is
another sector which is witnessing high investments above INR 5 crores (17% of 66 respondents).
Exhibit 35: Machinery Investment - Segment Wise
43%
27%
15%
2% 1%
12%
0%
10%
20%
30%
40%
<1 1-5 5-20 20-50 > 50 No data
% Share of Respondents
Source:TechnopakAnalysis,Base-559;Orangeindicateshighest%
45% 46%
39%
45% 45%
27%
33%
24%
27%
45%
24%
16%
35% 23%
21% 13%
9%
24% 21%
23%
2%
6%
2% 2%
2%
3%
1%
3% 2%
2%
5%
8%
11% 13% 14% 12% 15% 14%
38 282 31 66 51 48 43
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-559 Impact of TUFS
44
Among states, Rajasthan has witnessed major machinery investments between INR 1-20 Crores.
Punjab has witnessed significant machinery investments between INR 5-20 Crores. Investments
in Gujarat are primarily in INR 0-1 Crores range (60% of the 209 respondents).
Exhibit 36: Machinery Investment - Geography Wise
Across schemes, the machinery investments have reduced as 46% of the respondents are saying
the machinery investments during ATUFS is INR 0-1 Crores.
Exhibit 37 Machinery Investment - Scheme Wise
60%
33% 34%
19%
28%
9%
54%
43%
13%
48%
39%
48%
20%
34%
30%
19%
5%
15%
21%
20%
35%
34%
9%
21%
0%
3%
1%16%
3%
7%
0%
3%
7%
3%
1%
2%
21%
4%
13% 11%
3% 3%
7%
209 27 38 86 46 32 79 42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-559
46%
42%
33%
27%
24%
33%
11%
24%
6%
2%
2%
4%
1%
2%
1%
13%
6%
24%
276
203
80
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
ATUFS
RRTUFS
RTUFS
% Share of Respondents
<1 1-55-2020-50>50 No data
Source:TechnopakAnalysis,Base-559 Impact of TUFS
45
Change in Number of Machineries
Out of the 559 respondents to the question, 33% (19% and 14%) witnessed increase in the
number of machineries between 5 and 20%.
Exhibit 38: Increase in No. of Machineries
Spinning’s respondents have witnessed the highest increase (39%) in number of machineries
>20%. Garmenting, Knitting and others have also witnessed a high increase in number of
machineries >10%.
Exhibit 39: Increase in No. of Machines (%) - Segment Wise
35%
19%
14%
20%
4%
8%
0%
10%
20%
30%
40%
<5% 5-10% 10-20% >20% No Change No data
% Share of Respondents
Source:TechnopakAnalysis,Base-559;Orangeindicateshighest%
13%
39%
42% 41%
24%
35%
30%
21%
24%
6%
17%
20%
6%
9%
13%
11%
16%
11%
35%
19%
16%
39%
15%
26% 17%
14%
25% 35%
5% 3%
6%
3%
8%
2%
8% 9%
3%
12%
8% 6% 7%
38 282 31 66 51 48 43
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
<5% 5-10%10-20%>20% No changeNo data
Source:TechnopakAnalysis,Base-559 Impact of TUFS
46
Among states, Rajasthan, Tamil Nadu and Uttar Pradesh have witnessed high percentage
increase in machineries of >20% due to TUFS. Gujarat has witnessed lesser increase in
machineries (0-5%) responded by 57% of the 209 respondents.
Exhibit 40: Increase in No. of Machines (%) - Geography Wise
Across schemes, the highest increase in machineries was exhibited during RRTUFS scheme with
44% of the respondents (19%+25%) suggesting changes greater than 10%.
Exhibit 41: Increase in No. of Machines (%) - Scheme Wise
57%
26% 24% 26% 24%
9%
23%
17%
5%
26%
45%
33%
26%
22%
16%
24%
11%
41%
24%
14% 33%
3%
10%
2%
6%
4%
8%
17%
9%
56%
47%
48%
6%
2% 6%
1%
10%
14%
4%
10%
7%
3% 3%
209 27 38 86 46 32 79 42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<5%5-10%10-20%>20%No changeNo data
Source:TechnopakAnalysis,Base-559
42%
29%
29%
8%
22%
18%
20%
19%
13%
16%
25%
20%
4%
2%
5%
10%
2%
16%
276
203
80
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
ATUFS
RRTUFS
RTUFS
% Share of Respondents
<5% 5-10% 10-20% >20% No change No data
Source:TechnopakAnalysis,Base-559 Impact of TUFS
47
Non-Beneficiaries
Project Investment
Out of 108 non beneficiaries who responded to the question, 57% witnessed project investment
between INR 1 and 20 crores.
Exhibit 42: Project Investment (in Cr.)
71% of Garmenting respondents have witnessed project investment between INR 1-20 crores.
32% of Processing sector’s respondents have witnessed investments between INR 5-50 crores.
48% of the respondents in weaving have indicated increase in project investment between INR
1-20 crores.
Exhibit 43: Project Investment - Segment Wise
19%
34%
23%
2% 3%
19%
0%
10%
20%
30%
40%
<1 1-5 5-20 20-50 > 50 No data
% Share of Respondents
Source:TechnopakAnalysis,Base-108;Redindicateshighest%
30%
50%
5%
14% 14%
28%
41%
50%
29%
20%
20%
17% 27%
21%
14% 60%
3%
5%
3%
14%
20%18%
33%
23%
14%
29%
40 6 22 28 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
48
Among states, 80% non-beneficiaries respondents of Maharashtra have witnessed major
investments INR 5-20 Crores. Project Investments in Gujarat are <INR 1 Crore.
Exhibit 44: Project Investment - Geography Wise
50%
20%
33%
45%
11%
47%
87%
67%
20%
27%
67%
47%
13%
33%
27%
9%
7%
9%
11%7%
9%
50%
11%
80%
13%
18 9 15 10 15 15 15 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
49
Machinery Investment
Out of 108 non beneficiaries who responded to the question, 70% witnessed an increase in
machinery investment <INR 5 crores.
Exhibit 45: Machinery Investment (In Cr.)
59% of Processing segment’s respondents have witnessed machinery investments between INR
1-20 crores. 17% of Knitting sector’s respondents have witnessed machinery investments
between INR 5-20 crores. 33% of the respondents in weaving have indicated increase in
machinery investment between INR 1-20 crores.
Exhibit 46: Machinery Investment - Segment Wise
42%
28%
12%
1% 2%
16%
0%
10%
20%
30%
40%
50%
<1 1-5 5-20 20-50 > 50 No
Investment
% Share of Respondents
Source:TechnopakAnalysis,Base-108;Redindicateshighest%
53%
67%
14%
46%
43%
20%
23%
50%
29%
14%
20%
10%
17%
9%
11%
14%
40%
5%
14%
20%
15% 17%
23%
14% 14%
40 6 22 28 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving Knitting ProcessingGarmenting Technical
Textiles
including non-
woven
Others
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
50
Among states, 80% non-beneficiary respondents in Rajasthan has witnessed machinery
investments between INR 1-5 Crores. Haryana has witnessed significant machinery investments
between INR 5-20 Crores. Investments in Gujarat are less than INR 1 Crore.
Exhibit 47: Machinery Investment - Geography Wise
50%
53%
40%
67%
13%
47% 45%
22%
40%
33%
80% 13%
27%
56%
7%7%
33% 9%
9%
11%
9%
50%
11%
60%
7%
18 9 15 10 15 15 15 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<1 1-5 5-20 20-50 >50 No data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
51
Change in Number of Machineries
Out of the 108 non-beneficiaries who responded to the question, 38% witnessed increase in the
number of machineries greater than 20%.
Exhibit 48 Increase in No. of Machineries
Garmenting’s respondents have witnessed the highest increase in number of machineries >20%.
Processing segment has also witnessed a high increase in number of machineries >10%.
Exhibit 49 Increase in No. of Machines (%) - Segment Wise
24%
12%
10%
38%
3%
13%
0%
10%
20%
30%
40%
<5% 5-10% 10-20% >20% No changeNo data
% Share of Respondents
Source:TechnopakAnalysis,Base-108;Redindicateshighest%
30%
17%
27%
21%
14%
13%
33%
5%
7%
14%
40%
5%
18%
11%
14%
20%
35%
33% 32%
50%
29%
40%
3%5%
14%
15% 17%
14%
11%
14%
40 6 22 28 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
<5%5-10%10-20%>20%No changeNo data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
52
Among states, majority Punjab’s non beneficiary respondents have witnessed highest percentage
increase in machineries of >20% due to TUFS. Gujarat has witnessed lesser increase in
machineries (0-5%) responded by 50% of the 18 respondents.
Exhibit 50: Increase in No. of Machines (%) - Geography Wise
50%
7%
20%
53%
40%
33% 20%
7%
7%
13%
27%
22%
13% 27%
27%
44%
73%
20%
93%
27%
7%
45%
10%
13%
50%50%
18 9 15 10 15 15 15 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
<5%10-20%5-10%>20%No changeNo data
Source:TechnopakAnalysis,Base-108 Impact of TUFS
53
Summary of Impact on Investments
Literature review indicates that most of the investment in textile sector has been happening under
TUFS ever since TUFS scheme started in 1999. Total investment under TUFS was approx. 80% of total
investment in textile sector from 1999 to 2016.
As per the KII analysis, 82% opined that TUFS had a positive impact on investments, whereas as per the
expert panel 92% believed that TUFS had a significant impact on investments.
During the UHS survey, out of 556 beneficiaries, 44% witnessed project investment between INR 1 and
20 crores, whereas out of 108 non beneficiaries, 57% witnessed project investment in the same range.
The impact on project investment though positive has been moderate in terms of scale, with only 2%
projects reporting investments to the tune of Rs 50 Cr and more. While, 44 % beneficiaries reported
investments in the scale of Rs 1-20 Cr and 39% are less than Rs 1 Cr. 88% beneficiaries have witnessed
an increase in the number of machineries due to the investments done during TUFS. Impact of TUFS
54
4.2 Financial Performance
Past Trend Analysis - Literature Review
• Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
Domestic turnover across all segments varied between 0 % and 69% - at an average of 33%.
The increase in total annual turnover was on an average at 36%. Average increase in operating
profits was at an average of 15% across all the segments - varying between 0% and 30%,
whereas average increase in net profit was approx. 8%. As a result, it was evident that TUF
Scheme had a positive impact on the financial performance of the segments.
• Technopak Advisors Evaluation Report of TUFS (2006)
As per the report, under 20% Credit Linked Capital Subsidy Scheme, the domestic turnover of
companies increased significantly - more than 60% of organizations increased their turnover by
more than 50%. After installing modern machineries under TUFS, domestic turnover of half of
the companies grew by more than 100%. Segments such as garmenting, weaving, knitting,
made-ups and processing witnessed small increase in net profit. Jute industry witnessed net
profit increase to a very high level. In spinning, approx. one-third of the replies were for no or
low increase in net profit.
• NCEUS Evaluation Report on Impact of TUFS on the Unorganized Sector (2009)
An important barrier in the adoption of upgraded technology was lack of financial resources
with the units. In several cases, the cost of technology made it difficult for small units to obtain
modern technology. A large number of SSI units reported difficulty in obtaining sufficient funds
from banks and financial institutions. There was also lack of awareness about the credit
guarantee scheme. Factors such as lack of awareness and information about the availability of
technology, desire to avoid risk of adoption of upgraded technology, low level of indigenous
R&D, inadequate management skills and non-availability of technically qualified manpower to
operate upgraded machineries were some of the other barriers. TUFS was not very effective
from the point view of small units.
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
Companies witnessed improved financial health because of reduced cost of capital and
improved margins & turnovers of the textile companies. Since then, the propensity of on time Impact of TUFS
55
loan repayment improved, reducing the number of loan defaulters. As per RBI financial stability
reports, reduction in no. of loan defaulters overall decrease in the share of stressed advances
of banks for textile industry.
Impact of TUFS
56
KII ANALYSIS
82%
12%
6%
Significant ImpactNo ResponseInsignificant Impact
Base: 17
Source: Technopak Analysis
85%
8%
8%
Significant ImpactNo ResponseInsignificant Impact
Base: 13*
Source: Technopak Analysis
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry.
•Sales ~ Out of 17 respondents, 14 (82%) answered that TUFS had a positive impact on
Sales. Out of 13 respondents, 11 (85%) opined that TUFS had a significant impact
•Profits ~ Out of 17 respondents, 12 (70%) answered that TUFS had a positive impact on
Profit, whereas as per the expert panel, out of 13, 10 (77%) opined that TUFS had a
significant impact on Profit
•Average Sales Price ~ Out of 17 respondents, 8 (47%) answered that TUFS had a positive
impact on Average Sales Price, whereas as per the expert panel, Out of 13 respondents,
7 (54%) opined that TUFS had a significant impact
Total Respondents Expert Panel*
Exhibit 51: Increase in Sales Impact of TUFS
57
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry
70%
18%
12%
Significant ImpactInsignificant Impact
No Impact No Response
Base: 17
Source: Technopak Analysis
77%
15%
8%
Significant ImpactInsignificant ImpactNo Response
Base: 13*
Source: Technopak Analysis
Exhibit 52: Increase in Profits
Total Respondents Expert Panel*
47%
29%
6%
18%
Significant Impact Insignificant Impact
No ImpactNo Response
Base: 17
Source: Technopak Analysis
54%
31%
8%
8%
Significant ImpactInsignificant Impact
No Impact No Response
Base: 13
Source: Technopak Analysis
Exhibit 53: Increase in Average Sales Price Impact of TUFS
58
UHS ANALYSIS
Beneficiaries
Annual Sales
Of the 513 respondents to the question, the annual sales have risen with most annual sales of
>20% were reported by 31% of respondents. 36% of the respondents reported sales increase less
than 10%.
Exhibit 54: Change in Annual Sales
Majority of the segments have similar rise in annual sales. Among segments, in Weaving segment,
highest number of respondents have witnessed increase in sales. Relatively, Technical Textiles
has witnessed more increase in sales because this is not a commodity product. Greater than 10%
respondents in Knitting and Spinning segments have witnessed decrease in Annual sales.
Exhibit 55: Change in Annual Sales - Segment Wise
13%
23%
18%
31%
3% 6%0% 2% 2% 1% 0%
0%
10%
20%
30%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Annual SalesDecrease in Annual Sales
Source:TechnopakAnalysis,Base-513
10%
3%
14%
2% 2%
7% 5%
6%
5%
3%
10%
12% 2%
11%
84%
92%
83%
89% 86%
90%
84%
31 262 29 61 51 41 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513 Impact of TUFS
59
Among states, more than 90% respondents Rajasthan, Punjab and Haryana have witnessed
increase in annual sales due to TUFS. 16% respondents in Tamil Nadu have witnessed decline in
annual sales.
Exhibit 56: Change in Annual Sales - Geography Wise
Across schemes, both RTUFS and ATUFS have witnessed increase in annual sales as responded
by 92% respondents.
Exhibit 57: Change in Annual Sales - Scheme Wise
2%
8% 7%
16%
6%
4%
6%
12%
5% 3%
3%
10%
88%
92%
86%
79%
93% 97%
76%
88%
194 25 36 76 43 32 67 40
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513
5%5%
1%
4%
10%
7%
92%
85%
92%
25418673
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513 Impact of TUFS
60
Net Profit
Of the 257 respondents to the question, net profit increase >6% has been witnessed by 63% of
the respondents.
Exhibit 58: Change in Net Profit
Majority of respondents have witnessed an increase in net profit with weaving segment having
highest positive response. In Processing, Garmenting and Technical Textile segments ~85%
respondents have witnessed increase in net profits. Nearly 29% respondents in Knitting segment
have either witnessed no change or decline in net profit. Except weaving and processing, >10%
respondents in the other segments have witnessed decline in profits. Net profits increment can
be attributed to productivity improvement and wastage reduction.
Exhibit 59: Change in Net Profit - Segment Wise
19% 19%
15%
29%
3%
7%
1% 1% 2% 4% 1%
0%
10%
20%
30%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Net ProfitDecrease in Net Profit
Source:TechnopakAnalysis,Base-513
13%
6%
11%
7%
10% 10%
16%
6%
7%
18%
7%
4% 5%
8%
81%
87%
71%
86% 86% 85%
76%
31 266 28 58 51 41 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513 Impact of TUFS
61
Among states, in Rajasthan, Punjab and Haryana more than 90% respondents have witnessed
increase in net profits due to TUFS. 20% respondents in Tamil Nadu, 14% in Karnataka and 13%
in Uttar Pradesh have witnessed decline in net profits.
Exhibit 60: Change in Net Profit - Geography Wise
Across schemes, both RTUFS and ATUFS have witnessed increase in net profits as responded by
~85% respondents. 13% respondents during RRTUFS have witnessed decline in net profits.
Exhibit 61: Change in Net Profit - Scheme Wise
5% 4%
14%
9%
3%
20%
13%
6%
4%
8%
11%
5%
6%
9%
3%
89% 91%
78% 80%
95%
90%
70%
85%
197 23 37 79 43 31 64 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513
6%
13%
3%
7%
5%
9%
86%
81%
88%
25518375
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513 Impact of TUFS
62
Sales Price
Of the 509 respondents to the question, the response has been highly positive and the increase
in sales price has been witnessed across all segments in per unit sales price. 44% of the
respondents have witnessed per unit sales price increased greater than 10%.
Exhibit 62: Change in Average Sales Price (%)
Majority of respondents have witnessed an increase in average sales price with weaving segment
having highest positive response. In Spinning and Garmenting segments ~84% respondents have
witnessed increase in average sales price. Nearly 35% respondents in Knitting segment have
either witnessed no change or decline in sales price. More than 10% respondents in Knitting,
Technical Textile segments have witnessed decline in sales price.
Exhibit 63: Change in Average Sales Price - Segment Wise
15%
17%
44%
4%
13%
1% 2% 3% 0%
0%
10%
20%
30%
40%
50%
1-5% 6-10% >10% Percentage
unknown
No Change
% Share of Respondents
Increase in Sales PriceDecrease in Sales Price
Source:TechnopakAnalysis,Base-509
6%
3%
14%
9%
4%
13% 13%
10%
12%
21%
12%
12%
10%
13%
84% 85%
64%
79%
84%
77%
74%
31 266 28 58 49 39 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-509 Impact of TUFS
63
Among states, Haryana and Punjab, more than 90% respondents have witnessed increase in
average sales price due to TUFS. 16% respondents in Tamil Nadu and 11% in Karnataka have
witnessed decline in average sales price.
Exhibit 64: Change in Average Sales Price - Geography Wise
Both RTUFS and ATUFS have witnessed increase in average sales price as responded by ~82%
respondents. ~12% respondents across all schemes have witnessed no change.
Exhibit 65: Change in Average Sales Price - Scheme Wise
4%
11%
5%
2% 3%
16%
10%
15%
4%
11%
20%
7%
13%
10%
5%
82%
96%
78%
75%
91%
84%
75%
85%
196 25 36 76 43 31 63 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-509
4%
9%
4%
13%
12%
14%
83%
79%
82%
25418372
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-513 Impact of TUFS
64
Non-Beneficiaries
Annual Sales
Of the 86 non beneficiaries who responded to the question, the annual sales have risen with most
annual sales of >20% were reported by 21% of respondents.
Exhibit 66: Change in Annual Sales
All the non-beneficiary respondents in Knitting and Technical Textile sectors have witnessed an
increase in Annual sales. 31% of Processing segment non-beneficiary respondents have
witnessed a decline in annual sales.
Exhibit 67: Change in Annual Sales - Segment Wise
9%
15%
16%
21%
3%
24%
2%1%
7%
0%
10%
20%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Annual SalesDecrease in Annual Sales
Source:TechnopakAnalysis,Base-86
6%
31%
13%
24%
8%
38%
60%
70%
100%
62%
50%
100%
40%
33 5 13 24 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-86 Impact of TUFS
65
Among states, Gujarat and Tamil Nadu non-beneficiary respondents have witnessed increase in
annual sales. 67% of Non- beneficiary respondents in Karnataka have witnessed no change In
annual sales. 40% respondents in Punjab and have witnessed decline in Annual sales.
Exhibit 68: Change in Annual Sales - Geography Wise
13%
40%
67%67%
13%
60%
10%
100%
88%
33%
88%
33%
100%
90%
15 8 15 8 15 3 12 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-86 Impact of TUFS
66
Net Profit
Of the 86 non-beneficiaries who responded to the question, net profit increase >10% has been
witnessed 19% of the respondents while decrease >10% has been reported by 25% of the
respondents.
Exhibit 69: Change in Net Profit
83% of the non-beneficiary respondents in technical textiles have witnessed an increase in net
profit. 58% in Processing, 38% in Garmenting and 33% in Weaving respondents have witnessed
a decline in net profits
Exhibit 70: Change in Net Profit - Segment Wise
9%
19%
3%
16%
3%
15%
3% 1%
6%
19%
5%
0%
10%
20%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Net ProfitDecrease in Net Profit
Source:TechnopakAnalysis,Base-86
33%
58%
38%
40%
15%
33%
17%
8%
17%
20%
52%
67%
25%
54%
83%
40%
33 6 12 24 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-86 Impact of TUFS
67
All the non-beneficiary respondents in Gujarat have witnessed an increase in net profits. Majority
of non-beneficiary respondents in Punjab, Haryana and Rajasthan have witnessed decline in net
profits.
Exhibit 71: Change in Net Profit - Geography Wise
67%
47%
14%
67%
100%
14%
10%
20%
43%
13%
50%
100%
33% 33%
43%
20%
86%
40%
15 6 15 7 15 4 14 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-86 Impact of TUFS
68
Sales Price
Of the 77 non beneficiaries who responded to the question, the response has been mixed and
both the increase and decrease in sales price have been witnessed. 19% of the respondents have
witnessed per unit sales price increased greater than 10% while 18% have witnessed a decrease
in the same bracket.
Exhibit 72: Change in Average Sales Price (%)
In Knitting and Technical Textiles, 67% non-beneficiary respondents have witnessed an increase
in average sales price. 50% respondents in Processing and 40% respondents in Garmenting
segments have witnessed a decline in average sales price
Exhibit 73: Change in Average Sales Price - Segment Wise
14%
18%
19%
8%
10%
4%
6%
18%
1%
0%
10%
20%
1-5% 6-10% >10% Percentage
unknown
No Change
% Share of Respondents
Increase in Sales PriceDecrease in Sales Price
Source:TechnopakAnalysis,Base-77
30%
50%
40%
20%
7%
33%
10%
33%
63%
67%
50% 50%
67%
80%
30 6 10 20 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-77 Impact of TUFS
69
All the non-beneficiary respondents in Gujarat, Tamil Nadu and Rajasthan have witnessed
increase in average sales price. However, 80% of respondents in Punjab have witnessed a decline
in the average sales price.
Exhibit 74: Change in Average Sales Price - Geography Wise
33%
27%
17%
80%
40%
7%
50%
7%
30%
100%
67% 67%
33%
13%
100% 100%
30%
12 6 15 6 15 1 12 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-77 Impact of TUFS
70
Summary of Impact on Financials
The primary research finds positive impact on sales, profit etc across all segments and impact is of
higher magnitude in weaving. KIIs indicated that scheme subsidy is instrumental in improving financial
performance of the companies, given that many of textile companies operate with low profit margins.
This can be attributed to reduced cost of capital, improved margins and turnover of the textile
companies.
As per the KII analysis, 85% found positive impact on sales, 77% on profit and 54% on sales price.
89% beneficiaries have witnessed an increase in annual sales. In Weaving segment, highest number of
respondents (92%) have witnessed increase in sales. Around 50% of respondents in Knitting, Weaving
and Processing have witnessed an increase in sales >10%. In Rajasthan, Punjab and Haryana, more than
90% respondents have witnessed increase in annual sales due to TUFS.
85% beneficiaries have witnessed an increase in net profit with weaving segment having highest
positive response (87%). While majority of states reported profits, 20% respondents in Tamil Nadu,
14% in Karnataka and 13% in Uttar Pradesh have witnessed decline in net profits.
81% beneficiaries have witnessed an increase in per unit sales price. 71% respondents in weaving
segment have witnessed increase in sales price >6%.
Overall, non-beneficiaries have reported lower financial performance than beneficiaries. Broadly,
respondents from Processing and Punjab have witnessed decline in Annual sales, Net Profits and Sales
Price.
Impact of TUFS
71
4.3 Production and Productivity
Past Trend Analysis - Literature Review
• Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
As per the report by Dr. M.D Teli, cotton ginning witnessed maximum increase in productivity
on TUFS specific machineries, followed by synthetic filament yarn texturizing (67%),
independent weaving preparatory (62%), knitting (47%), and weaving (35%). Jute industry
indicated the least increase in productivity. Increase in productivity was a reflection of
modernization of units due to technology upgradation scheme.
• Technopak Advisors Evaluation Report of TUFS (2006)
As part of the Technopak report, it was found that the decentralised powerloom sector grew
with majority of industry fabric requirement that came from this sector. Hence, this sector
needed to be looked after and encouraged in order to upgrade their technology level for better
productivity. The installed capacity of handlooms is almost twice that of power looms but the
output is 5 times lesser. It also employs more than twice the number of people in powerloom.
This highlights the low productivity of the sector and the need for further encouragement. As
per the then survey, majority of the respondents witnessed increase in productivity in cotton
ginning, processing, knitting and made-ups manufacturing sector. Overall, the productivity
increase has been medium to high.
• NCEUS Evaluation Report on Impact of TUFS on the Unorganized Sector (2009)
As per the report, the most formidable problem faced by the SMEs in India was accessing
technology and maintaining competitiveness. One of the reasons behind this was emphasis on
production and not on production cost. Majority of the SME units continued to use obsolete
production processes. The study indicated that in Maharashtra, Delhi, Haryana, and Rajasthan,
more than. 70% of SSI units using improved technology showed quality improvement, 46%
showed reduction in cost of production and more than 20% indicated the achievement of
domestic and global competitiveness through adoption of improved technology. In Haryana,
out of the 100 units using improved technology, 51 indicated improvement in quality, 47
indicated increase in quantity produced and 31 showed reduction in production cost. In Delhi
more than 85% of the SSI units using upgraded technology indicated quality improvement and
more than 75% indicated rise in quantity produced. Whereas, in Rajasthan approx. 35% of the
units using upgraded technology indicated quality improvement, 17% units showed increase in
the quantity produced, and 14% indicated reduction in production cost. Impact of TUFS
72
• CRISIL Evaluation Report of TUFS (2010)
More than 65 per cent of Non-SSI units and above 55 per cent of SSI units showed a productivity
increase. This can be attributed to the installation of high RPM [Revolutions per Minute]
spindles, high production cards and combing machines, and state-of-the-art auto doffing
machines with auto corner. Average productivity increase for the sample units that
experienced increase in productivity was in the range of 9 - 10 percent. Production and sales
growth showed a dip in 2008 – 09. Despite impacted by the global economic slowdown, they
showed a strong recovery in 2009 - 10. The weaving segment showed a significant
improvement in productivity on account of TUFS. Around 45% of Non-SSI and SSI units
experienced improvement in quality on account of modern technology used under the TUFS.
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
Due to investment in modern technology, beneficiaries gained significantly in terms of various
operational and production aspects such as productivity improvement, waste reduction, cost
saving, resource efficiency etc. Maximum number of units witnessed productivity growth
between 1-5%. Highest productivity increase was seen in spinning & composite segments
followed by knitting segment. Production was also increased in all segments. The highest
production rise (9%) was witnessed in spinning, knitting & composite segments followed by
weaving & processing segments (8%). Growth in production of units was also supported by
increase in production output per factory for overall textile industry in the factory sector, with
growth of 6.3% during RTUFS period and 15.1% during RRTUFS period. The scheme also
facilitated companies to improve their product quality and value addition. Improvement in
product quality and value addition supported the increase of Gross Value Added (GVA) in
overall textile and apparel industry during RTUFS and RRTUFS period.
Impact of TUFS
73
Indian Textile Industry Production and Productivity - Current Scenario
• No. of Operational Factories and Total Production in India
Trend in total production output has been in tandem with the trend in no. of operational factories
in T&A industry. There was a decrease of approx. 1% in no. of operational factories in 2014-15
that explains the decrease in the same year in total production in Indian T&A industry. However,
since then, the Indian T&A industry has witnessed an increase in no. of factories, and hence the
production output. The total production increased by approx. 6% in year 2017-18 (highest since
2014-15).
20,426
20,204
20,417
21,039
21,546
3%
-1%
1%
3%
2%
-2%
-1%
-1%
0%
1%
1%
2%
2%
3%
3%
4%
19,500
20,000
20,500
21,000
21,500
22,000
2013-14 2014-15 2015-16 2016-17 2017-18
% increase (Y
-
o
-
Y)
No. of factories (in No.)
No. of Factories (in No.s)% increase (Y-o-Y)
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
4,976
4,839
4,982
5,213
5,511
24%
-3%
3%
5%
6%
-5%
0%
5%
10%
15%
20%
25%
30%
4,400
4,600
4,800
5,000
5,200
5,400
5,600
2013-14 2014-15 2015-16 2016-17 2017-18
% increase (Y
-
o
-
Y)
Total Production (in Bn)
Total Production (in Bn)% increase (Y-o-Y)
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
Exhibit 75: No. of Operational Factories (In Numbers)
Exhibit 76: Total Production (In Bn) Impact of TUFS
74
• Productivity
It was witnessed that productivity was negative in 2013-14. However, since then we have
observed positive productivity across all the years.
1.20
1.21
1.23 1.23
1.24
-3%
1%
2%
0.01%
1%
-4%
-3%
-2%
-1%
0%
1%
2%
1.18
1.19
1.20
1.21
1.22
1.23
1.24
1.25
2013-14 2014-15 2015-16 2016-17 2017-18
% increase (Y
-
o
-
Y)
Productivity
Productivity% increase (Y-o-Y)
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
Exhibit 77: Productivity Impact of TUFS
75
• Production Levels Across Textile Products
India’s cloth production has increased over the past 5 years and total yarn production has
remained fairly constant.
Exhibit 78: Production Levels of Textile Products
(Figures in Millions)
Period
Man-
made
fibre
Man-
made
filament
yarn
Cotton
yarn
Blended
& 100%
Non-
Cotton
yarn
Total
Spun
Yarn
Cloth
Mill sector
Decentralize
d sector
Grand Total
(Exc. Khadi,
Wool & Silk)
Kg Kg Kg Kg Kg Sq. mtr Sq. mtr Sq. mtr
2015-16 1,347 1,164 4,138 1,527 5,665 2,315 62,269 64,584
2016-17 1,364 1,159 4,055 1,604 5,659 2,264 61,216 63,480
2017-18 1,319 1,187 4,064 1,616 5,680 2,157 64,688 66,845
2018-19 1,442 1,160 4,208 1,682 5,890 2,078 67,992 70,070
2019-20 (E) 1,924 # 1,711 # 3,998 1,717 5,714 2,040 73,978 76,018
Note: # The increase production is mainly due to increase in the number of reporting units in financial year 2019-20 as compared to previous year;
Source: Ministry of Textiles, Secondary Research, Technopak Analysis
• India Yarn Production Trend
India’s production of different types of yarns have remained constant over the past 5 years.
-
1,000
2,000
3,000
4,000
5,000
2015-16 2016-17 2017-18 2018-19 2019-20
(Provisional)
Man-made filament yarn Cotton yarn Blended & 100% non-cotton yarn
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
Exhibit 79: India Yarn Production Trend (in Kg Mn) Impact of TUFS
76
Year-on-year growth (%) 2016-17 2017-18 2018-19
Man-made filament yarn -0.4% 2% 23%
Cotton yarn -2.0% 0.2% 3.5%
Blended & 100% non-
cotton yarn
5.0% 0.7% 4.1%
• India Fabric Production Trend
India’s hosiery fabric production has witnessed a steady growth of 6% over the past 4 years.
Year-on-year
growth (%)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Mill Sector 5% 5% 5% -2% 1% 1% 1% 1%
Handloom Sector 0% 1% 2% 1% 1% 1% 1% 1%
Powerloom Sector -1% 2% -3% 3% 1% 1% 1% 1%
Hosiery Sector -12% 12% 11% 4% 6% 6% 6% 6%
2,205
2,313 2,418
2,531 2,486 2,518 2,550 2,582 2,615
6,907 6,901 6,952 7,104 7,203 7,305 7,409 7,514 7,621
38,015 37,445 38,038
36,790
37,750 37,970 38,190
38,412 38,636
14,634
12,946
14,541
16,199 16,894
17,950
19,073
20,265
21,533
-
10,000
20,000
30,000
40,000
50,000
2010-112011-122012-132013-142014-152015-162016-172017-182018-19
Mill Sector Handloom Sector Powerloom Sector Hosiery Sector
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
Exhibit 80: Indian Fabric Production Trend (Mn Sq Mtrs) Impact of TUFS
77
KII ANALYSIS
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry
•Production ~ Out of 17 respondents, 16 (94%) answered that TUFS had a positive impact
on Production. Whereas, all the 13 experts (100%) opined that TUFS had a positive
impact on Production
•Productivity ~ Out of 17 respondents, 14 (82%) answered that TUFS had a positive impact
on productivity. Whereas all the 13 experts (100%) opined that TUFS had a positive
impact on Productivity
94%
6%
Significant ImpactInsignificant Impact
No Response
Base: 17
Source: Technopak Analysis
82%
6%
12%
Significant ImpactInsignificant ImpactNo Response
Base: 17
Source: Technopak Analysis
Exhibit 82: Increase in Productivity
100%
Significant Impact
Base: 13*
Source: Technopak Analysis
Exhibit 81: Increase in Production
100%
Significant Impact
Base: 13*
Source: Technopak Analysis
Total Respondents Expert Panel* Impact of TUFS
78
UHS ANALYSIS
Beneficiaries
Production Volume
Of the 256 respondents to the question, 88% witnessed an increase in production volume. 37%
of the respondents have reported >20% increase in production volume.
Exhibit 83: Change in Production Volume (%)
Most of the respondents from all sectors have witnessed high growth in production volume as a
result of productivity improvement. Most of the respondents from Weaving segments have
witnessed increased production volume through TUFS scheme. However, 12% of technical
textiles’ sector respondents have reported significant production volume losses.
Exhibit 84: Change in Production Volume (%) - Segment Wise
17% 17%
15%
37%
2% 6%0% 1% 2% 3% 0%
0%
10%
20%
30%
40%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Production Volume Decrease in Production Volume
Source:TechnopakAnalysis,Base-517
9%
5% 4% 5% 4%
12%
5%
3%
5%
11% 7% 8%
10%
11%
88%
90%
85%
88% 88%
79%
84%
32 269 27 59 51 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-517 Impact of TUFS
79
All the respondents in Haryana have witnessed increased production volume due to TUFS. More
than 90% respondents from Rajasthan and Uttar Pradesh have witnessed increase in production
volume. A significant 11% respondents from Maharashtra have witnessed decline in volumes.
Exhibit 85: Change in Production Volume (%) - Geography Wise
Across schemes, the highest number of respondents suggested increase in production volume
during ATUFS scheme (92% of 254 respondents).
Exhibit 86: Change in Production Volume (%) - Scheme Wise
4%
8%
11%
5%
9%
5%
7%
11%
8%
9%
3%
6%
2%
89%
100%
82% 82%
86%
97%
84%
93%
199 23 38 76 44 32 64 41
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-517
4%
9%
4%
4%
8%
9%
92%
83%
87%
25418776
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-517 Impact of TUFS
80
Respondents have a highly positive response in terms of overall productivity, better quality
products and generating higher value product mix. Overall cost savings have been significant,
primarily due to a combination of wastage reduction and productivity improvement. Higher
saving in power, water and steam have happened due to energy efficient machinery. Some of
the respondents have not seen an improvement in export competitiveness as responded by 28%
of the respondents.
Exhibit 87: Improvement in Production and Productivity
TUFS has led to productivity increase of the respondents. As much as 93% respondents (520
beneficiaries) believed that TUFS has enhanced overall productivity due to various reasons.
Majority of the respondents are in favour that overall productivity has increased and almost
everyone in Weaving segment have witnessed the improvement.
Exhibit 88: Overall Productivity - Segment Wise
93%
89%
81%
77%
74%
66%
56%
3%
7%
12%
12%
14%
19%
28%
4%
4%
7%
11%
12%
14%
16%
Overall Productivity
Product Quality
Product Development
Higher Value Product Mix
Cost Efficiency
Research & Development
Export Competitiveness
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559
89%
98%
77%
92%
88%
88%
88%
5%
1%
10%
5%
4%
4%
2%
5%
1%
13%
3%
8%
8%
9%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559 Impact of TUFS
81
TUFS has enabled companies to improve product quality. 89% of the respondents (498
beneficiaries) opine that this scheme has led to improvement in product quality. Majority of the
respondents are of opinion that product quality has increased.
Exhibit 89: Product Quality - Segment Wise
TUFS has also enabled companies to focus on product development. 81% of the respondents (452
beneficiaries) have the opinion that this scheme has led to product development in most of the
segments. However, some respondents (32% of the respondents) in Knitting have not witnessed
significant product development.
Exhibit 90: Product Development - Segment Wise
84%
91%
90%
86%
82%
90%
81%
8%
7%
6%
9%
8%
4%
7%
8%
1%
3%
5%
10%
6%
12%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559
82%
85%
55%
77%
84%
77%
79%
13%
9%
32%
18%
6%
15%
9%
5%
6%
13%
5%
10%
8%
12%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559 Impact of TUFS
82
TUFS has also enabled companies to increase per unit sales price which has led to higher value
product mix production to which 77% of the respondents (430 beneficiaries) have opined.
Exhibit 91: Higher Value Product Mix - Segment Wise
TUFS has also enabled companies to efficiently use the available resources and reduce wastage
to achieve higher cost efficiency as opined by 74% of the respondents (414 beneficiaries).
Exhibit 92: Cost Efficiency - Segment Wise
74%
79%
65%
68%
80%
79%
79%
16%
9%
26%
21%
8%
15%
9%
11%
12%
10%
11%
12%
6%
12%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559
74%
74%
65%
73%
80%
75%
77%
16%
13%
13%
24%
6%
17%
12%
11%
13%
23%
3%
14%
8%
12%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559 Impact of TUFS
83
TUFS has also enabled companies to focus on innovation using latest technologies. 66% of the
respondents (369 beneficiaries) opined that this scheme has led to R&D across some segments.
Almost half of the respondents in Knitting have not witnessed any Research and Development.
Exhibit 93: Research and Development - Segment Wise
TUFS has also increased export competitiveness as a result of technology upgradation and
combination of the factors previously mentioned. 56% of the respondents (313 beneficiaries)
opined that this scheme has led to improvement in export competitiveness.
Exhibit 94: Export Competitiveness - Segment Wise
71%
72%
39%
58%
63%
63%
67%
18%
17%
48%
26%
18%
13%
16%
11%
12%
13%
17%
20%
25%
16%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559
50%
61%
48%
41%
47%
56%
65%
21%
25%
32%
39%
39%
33%
9%
29%
14%
19%
20%
14%
10%
26%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559 Impact of TUFS
84
Non-Beneficiaries
Production Volume
Of the 85 respondents to the question, 76% witnessed an increase in production volume. 19% of
the respondents have reported >20% increase in production volume.
Exhibit 95: Change in Production Volume (%)
Most of the non-beneficiary respondents from all sectors have witnessed high growth in
production volume. 88% of the Weaving respondents have witnessed an increase in production
volume. 25% of the respondents in Processing segment have witnessed decrease in production.
Exhibit 96: Change in Production Volume (%) - Segment Wise
13%
19% 19% 19%
6%
14%
1%4%
6%
0%
10%
20%
1-5% 6-10% 11-20% >20% Percentage
unknown
No change
% Share of Respondents
Increase in Production Volume Decrease in Production Volume
Source:TechnopakAnalysis,Base-85
9%
20%
25%
8%
3%
20%
17%
25%
14%
20%
88%
60% 58%
67%
86%
80%
32 5 12 24 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-85 Impact of TUFS
85
All the non-beneficiary respondents in Gujarat, Tamil Nadu and Karnataka have witnessed
increase in production volume. However, 33% of respondents in Punjab have witnessed a decline
in the production volume. 50% of the respondents in Rajasthan have witnessed a decline in the
production volume.
Exhibit 97: Change in Production Volume (%) - Geography Wise
11%
33%
50%
20%
50%
40%
20%
100%
89%
100%
50%
27%
50%
100%
60%
15 9 15 8 15 2 11 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-85 Impact of TUFS
86
Non beneficiaries of ATUFS have also witnessed improvement in production and productivity
factors. Majority of them are witnessing improvement in product quality, and increased new
product development. Their export competitiveness has also improved as reported by 65% of the
108 respondents.
Exhibit 98: Improvement in Production and Productivity
As much as 93% respondents (100 non beneficiaries) believed that their overall productivity has
increased. Majority of the respondents are in favour that overall productivity has increased and
everyone in Technical Textiles segment have witnessed the improvement.
Exhibit 99: Overall Productivity - Segment Wise
93%
95%
88%
75%
69%
67%
65%
6%
4%
9%
8%
16%
19%
26%
2%
1%
3%
17%
15%
14%
9%
Overall Productivity
Product Quality
Product Development
Higher Value Product Mix
Cost Efficiency
Research & Development
Export Competitiveness
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108
98%
83%
91%
89%
100%
80%
3%
17%
5%
7%
20%
5%
4%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108 Impact of TUFS
87
95% of the respondents (103 non-beneficiaries) opined that their companies have witnessed
improvement in product quality. Majority of the respondents are in favour that product quality
has increased during ATUFS period.
Exhibit 100: Product Quality - Segment Wise
88% of the respondents (95 non-beneficiaries) opined that their companies have witnessed
product development across most of the segments. However, some respondents (33% of the
respondents) in Knitting have not witnessed significant product development.
Exhibit 101: Product Development - Segment Wise
98%
100%
100%
96%
71%
80%
3%
4%
14%
20%
14%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108
90%
67%
82%
93%
100%
80%
5%
33%
18%
4%
20%
5%
4%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108 Impact of TUFS
88
75% of the respondents (81 non-beneficiaries) opined that their companies have witnessed
higher value product mix across most of the segments. Although, Technical Textiles and others
segments have not significantly witnessed higher value product mix.
Exhibit 102: Higher Value Product Mix - Segment Wise
69% of the respondents (74 non-beneficiaries) opined that their companies have witnessed
improved cost efficiency across most of the segments. However, across technical textile segment,
majority of respondents have witnessed no improvement.
Exhibit 103: Cost Efficiency - Segment Wise
83%
83%
73%
79%
43%
40%
3%
9%
7%
29%
40%
15%
17%
18%
14%
29%
20%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108
80%
67%
59%
71%
43%
60%
5%
33%
27%
11%
29%
40%
15%
14%
18%
29%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108 Impact of TUFS
89
67% of the respondents (72 non-beneficiaries) opined that their companies have witnessed
better Research and Development across most of the segments. Although, knitting segment’s
respondents have not significantly witnessed better Research and Development.
Exhibit 104: Research and Development - Segment Wise
65% of the respondents (70 non-beneficiaries) opined that their companies have witnessed
better export competitiveness across most of the segments, whereas, knitting and technical
textile segments’ respondents have not significantly witnessed better export competitiveness.
Exhibit 105: Export Competitiveness - Segment Wise
70%
33%
64%
75%
57%
60%
13%
50%
18%
18%
29%
40%
18%
17%
18%
7%
14%
0%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108
75%
33%
68%
61%
43%
60%
23%
67%
23%
21%
43%
20%
3%
0%
9%
18%
14%
20%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108 Impact of TUFS
90
Summary of Impact on Production & Productivity
Literature review indicates that beneficiaries gained significantly in terms of productivity
improvement, waste reduction, cost saving, resource efficiency etc. due to investment in upgraded
technology. The research indicates that elements such as invested capital and fixed capital also
witnessed an increase in one year owing to the benefits provided under TUFS and other state-wise
textile policies.
The KII analysis suggests that 94% and 82% respondents opined that TUFS had a significant impact on
production and productivity respectively, whereas as per the expert panel, everybody opined that TUFS
had a significant impact on production and productivity.
More than 85% beneficiaries witnessed an increase in production volume. In weaving segment, more
than 75% beneficiaries witnessed an increase in production volume of greater than 5%. More than 90%
beneficiaries opined that TUFS enhanced the overall productivity, whereas more than 85% opined that
TUFS helped significantly in improving the product quality. Over the schemes, the highest increase in
production volume was exhibited during ATUFS scheme with 46% of the respondents suggesting an
increase >20%.
89% (559 beneficiaries) opined that the scheme contributed towards improvement in product quality,
vis-à-vis 95% of 108 non-beneficiaries. 81% (559 beneficiaries) responded that the scheme led to
product development in majority of the segments. 74% (559 beneficiaries) opined that TUFS enabled
companies to efficiently use the available resources and reduce wastage to achieve higher cost
efficiency, vis-à-vis 69% of 108 non-beneficiaries. 66% (559 beneficiaries) opined that TUFS led to R&D
across some segments. 56% (559 beneficiaries) responded that the scheme increased export
competitiveness as a result of technology upgradation and combination of the factors previously
mentioned.
Most of the non-beneficiary respondents from all sectors have witnessed high growth in production
volume. However, 33% of the non-beneficiary respondents in Punjab have witnessed a decrease in
production volume <20%.
Impact of TUFS
91
4.4 Exports
Past Trend Analysis - Literature Review
• Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
According to the study, all the segments that availed TUFS benefits witnessed an increase in
their average turnover on exports - the turnover varied between 8% and 58%, with average at
27%. Also, due to improvement in product quality in most segments, increase in UVR was
observed in exports - average increase in UVR was approx. 6%, with exceptional increase in
UVR in case of fabric embroidery at 113%.
• Technopak Advisors Evaluation Report of TUFS (2006)
As per the study, the export market share increased in composite industry, garment
manufacturing, processing, spinning, and weaving. As per the maximum responses, TUFS
played an important role in increasing exports in segments such as composite upgradation,
fabric embroidery, garment manufacturing, made up manufacturing, manufacture of viscose
filament yarn, processing of fibers, yarn, fabrics, garments and made-ups and synthetic
filament yarn texturizing, crimping and twisting sectors. The processing industry was not
upgraded to the same extent as increasing fabric and garment productivity, this acted as a
bottleneck for many manufacturers and exporters.
• NCEUS Evaluation Report on Impact of TUFS on the Unorganized Sector (2009)
As per the report, micro and small enterprises and traditional industries accounted for about
55% of national exports, yet India’s share in world export was only approx. 1.1% in 2006. This
indicated the lack of competitiveness of Indian manufacturing goods in international market,
majorly from unorganized organizations.
• CRISIL Evaluation Report of TUFS (2010)
According to CRISIL report, since the inception of TUF scheme, India’s position improved from
9th largest exporter in T&A in 1999 to 5th largest exporter in 2008. However, out of all the
segments, garmenting suffered from high degree of fragmentation - despite being the largest
exporter in the country it barely made up for less than 1% of the country's total garment
exports. Impact of TUFS
92
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
As per the report, with the addition of new technologies, most companies benefited in terms
of product development and innovative practices. Majority of units experienced domestic and
export UVR growth between 1-10%. Highest domestic & export UVR increase was observed in
garmenting, composite & others segments. Exports in textile and apparel industry grew along
with increase in production and overall competitiveness. T&A exports grew from USD 9 Bn in
1998 - 99 to USD 37.7 Bn in 2014 – 15, growing at a CAGR of 9%. India’s share in global exports
increased from 3.1% in 1998 - 99 to approx. 5% in 2014 - 15. India’s T&A export growth (CAGR
8.8%) was higher than world average (CAGR 5.6%) during the TUFS period. Most of the
beneficiaries admitted that technology upgradation & hence export competitiveness increased
due to RTUFS & RRTUFS. Exports growth was the highest during RTUFS period. During RRTUFS
period growth was sustainable except for fiber exports that witnessed a decline due to
unfavourable export market scenario.
Indian T&A Exports - Current Scenario
• T&A Exports Trend (2014-19)
16.716.3
21.6
19.2
20142019
Apparel Textiles
CAGR 2014-2019
Textiles -2.26% Apparel -0.52%
Source: Trade data from DGFT,Department of Commerce-India, Secondary Research, TechnopakAnalysis
CAGR – 1.95%
Exhibit 106: T&A Exports (USD Bn)
Impact of TUFS
93
• Textile Exports Scenario
Exhibit 107: Fibre Export Scenario
Fibre Export
(USD Mn)
2014 2019
Export Growth
(5-yr. CAGR)
Cotton 2,429 1,129 -14%
Manmade fibre 563 529 -1%
Wool 55 33 -10%
Silk 18 15 -4%
Others 177 291 10%
Total 3,242 1,997 -9%
Source: Trade data from DGFT, Department of Commerce- India, Secondary Research, Technopak Analysis
India’s exports of textile fibers have declined by 9% from 2014 to 2019 (Exhibit 107). Yarn and
fabric exports have declined by 4% and 1% respectively in the same period (Exhibit 108, Exhibit
109).
Exhibit 108: Yarn Export Scenario
Yarn Export
(USD Mn)
2014 2019
Export Growth
(5-yr. CAGR)
Cotton 4,044 2,927 -6%
Manmade Fibre 1,975 1,811 -2%
Wool 80 117 8%
Silk 5 2 -14%
Others 63 70 2%
Total 6,167 4,926 -4%
Source: Trade data from DGFT, Department of Commerce- India, Secondary Research, Technopak Analysis Impact of TUFS
94
Exhibit 109: Fabric and Woven Export Scenario
Fabric Export
(USD Mn)
2014 2019
Export Growth
(5-yr. CAGR)
Knit Fabric
Cotton 171 243 7%
Others 76 183 19%
Manmade fibre 10 15 8%
Wool 1 0 -24%
Woven Fabric
Cotton 1,884 1,975 1%
Others 485 341 -7%
Manmade fibre 2,225 1,830 -4%
Wool 46 32 -7%
Silk 118 67 -11%
Total 5,017 4,687 -1%
Source: Trade data from DGFT, Department of Commerce- India, Secondary Research, Technopak Analysis
Impact of TUFS
95
Fabric as a Weak Link
Exhibit 110: Capacity gap in the Textile & Apparel value chain
Percentage of India’s exports to production for Textile products
Product India’s exports / India’s production (%)
Yarn 35%
Fabrics 6%
Source: Technopak Analysis
Currently, the Indian textile value chain is not perfectly balanced in terms of production utilisation
from fiber upto garments. This means that fiber produced in India is not completely consumed for
making yarn. Similarly, yarn produced is not consumed entirely for fabric production and so on
throughout the value chain. Major gap is observed from yarn to fabric stage. This clearly indicates
that India’s fabric production capacity is not sufficient to consume the yarn produced in India. Fabric
capacity for weaving, knitting and processing is a weak link in the Indian Textile value chain.
Source: Ministry of Textiles Presentation given to PMO’s office (2015), Technopak Analysis
35% of total yarn produced in India gets exported. This indicates lack of capacity at the fabric stage.
Whereas, for fabrics, the exports are only 6% of total production. Impact of TUFS
96
Man-Made (MMF) vs Cotton Apparel
Synthetic Apparel trade is growing at a faster rate than Cotton Apparel trade and provides a
tremendous growth opportunity in the coming years
147
138 135
146
160
170
201420152016201720182019
215
196 195
205
214 217
201420152016201720182019
Manmade (MMF) vs Cotton Apparel
Exhibit 111: Global Synthetic Apparel Trade (USD Bn) Exhibit 112: Global Cotton Apparel Trade (USD Bn)
Source: ITC Trademap, Ministry of Textiles, Technopak Analysis Impact of TUFS
97
• Average export growth % of competing countries
India’s global competitiveness improved considerably due to TUF Scheme. India’s textiles &
clothing average export has been higher than the world average throughout the TUFS period
up to RRTUFS period. During ATUFS period, export from India has been sluggish and showed
negative growth trend.
Exhibit 113: Average export growth percentage of competing countries during schemes
Country TUFS MTUFS RTUFS RRTUFS ATUFS
India 10.5% 7.1% 19.4% 3.6% -3.1%
China 11.5% 6.9% 17.7% 4.8% 1.0%
Turkey 8.3% 2.6% 14.3% 5.2% 2.1%
Bangladesh 11.0% 17.0% 15.4% 12.3% 5.7%
Pakistan 8.9% 1.7% 17.0% 0.5% 9.7%
Vietnam 19.6% 19.5% 26.0% 7.8% 0.7%
World 6.2% 3.6% 16.9% 3.0% 4.2%
• India’s Share in Global Exports
India’ share in global exports has increased from 2.9% in 2001 to 4.3% in 2019 during TUFS.
India’s share in global exports has reached to a maximum of 5.1% in 2013. Since 2014, India’s
share of global exports has remained stable between 4.3% to 4.8%.
2.9%3.0%2.9%2.9%
3.3%3.4%3.4%
3.5%
3.9%
4.2%
4.4%4.4%
5.1%
4.6%
4.8%
4.7%4.7%
4.4%4.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2001200220032004200520062007200820092010201120122013201420152016201720182019
Source: ITC Trademap, Technopak analysis
Exhibit 114: India's Share in Global Exports
Source: ITC Trademap, Technopak analysis Impact of TUFS
98
• Change in share of top 15 T&A Exporting Nations
Exhibit 115: Change in Share of Global T&A Exports
S.
No.
Countries 2014 2015 2016 2017 2018 2019 Growth
1 China 34.63% 35.50% 33.84% 32.68% 31.91% 31.39% -1.95%
2 Bangladesh 3.71% 3.68% 4.66% 4.66% 4.90% 5.00% 6.13%
3 Vietnam 3.04% 3.54% 3.81% 4.03% 4.39% 4.92% 10.09%
4 Germany 4.38% 3.92% 4.08% 4.45% 4.66% 4.61% 1.04%
5 Italy 4.51% 4.11% 4.28% 4.31% 4.40% 4.41% -0.47%
6 India 4.65% 4.82% 4.70% 4.72% 4.44% 4.34% -1.37%
7 Turkey 3.54% 3.42% 3.48% 3.40% 3.34% 3.36% -1.02%
8 USA 3.15% 3.23% 3.13% 3.28% 3.25% 3.15% -0.05%
9 Spain 2.02% 2.03% 2.25% 2.42% 2.40% 2.44% 3.90%
10 Netherlands 1.83% 1.86% 1.99% 2.12% 2.27% 2.38% 5.37%
11 Hong Kong,
China
3.52% 3.44% 3.02% 2.70% 2.45% 2.17% -9.24%
12 France 2.01% 1.93% 2.00% 2.00% 2.10% 2.09% 0.72%
13 Belgium 1.89% 1.83% 1.91% 1.91% 1.95% 1.86% -0.34%
14 Indonesia 1.53% 1.59% 1.57% 1.59% 1.58% 1.64% 1.27%
15 Pakistan 1.66% 1.68% 1.65% 1.65% 1.64% 1.60% -0.73%
Source: ITC Trademap, Technopak Analysis
China’s share in global T&A exports has come down from 34.6% to 31.3% in last 5 years. This
share has been majorly captured by Bangladesh and Vietnam. India’s share in global exports has
reduced from 4.6% in 2014 to 4.3% in 2019. Impact of TUFS
99
KII ANALYSIS
65%6%
17%
12%
Significant Impact Insignificant Impact
No ImpactNo Response
Base: 17
Source: Technopak Analysis
69%
8%
15%
8%
Significant Impact Insignificant Impact
No Impact No Response
Base: 13*
Source: Technopak Analysis
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry. Out of 17 respondents, 11 (65%) answered that TUFS had a
positive impact on exports (value). Out of 13 expert respondents, 9 (69%) opined that TUFS had
a significant impact on Export Value
Exhibit 116: Increase in Exports Value
Total Respondents Expert Panel* Impact of TUFS
100
UHS ANALYSIS
Beneficiaries
Value of Exports
Of the 181 respondents to the question, an increase in values of exports >6% has been witnessed
by 56% of the respondents.
Exhibit 117: Change in Value of Exports (%)
Majority of the segments have witnessed an increase in exports value with technical textile
segment having highest positive response of 83% for export increase. Some respondents in
Spinning, Knitting and Garmenting have witnessed decrease in value of exports.
Exhibit 118: Change in Value of Exports (%) - Segment Wise
14%
27%
15%
14%
5%
13%
1% 2% 1% 4% 4%
0%
10%
20%
30%
1-5% 6-10% 11-20% >20% Percentage
unknown
No Change% Share of Respondents
Increase in Value of ExportsDecrease in Value of Exports
Source:TechnopakAnalysis,Base-181
25%
7%
17%
14%
17%
11% 9%
17%
17%
17%
9%
6%
6%
14%
58%
76%
67%
77% 78%
83%
77%
24 71 6 22 18 18 22
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-181 Impact of TUFS
101
Among states, in Haryana 92% of respondents have witnessed increase in value of exports of due
to TUFS. 23% of the respondents in Gujarat have witnessed a decrease in value of exports.
Exhibit 119: Change in Value of Exports (%) - Geography Wise
Across schemes, 79% respondents of RTUFS have witnessed increase in value of exports. 20%
respondents during RRTUFS have witnessed decline in value of exports.
Exhibit 120: Change in Value of Exports (%) - Scheme Wise
23%
4%
14%
8%
15%
14%
4%
20%
5% 17%
46%
11%
25%
63%
92%
80% 81%
75%
54%
74% 75%
35 24 10 37 12 13 46 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-181
8%
20%
4%
16%
9%
18%
77%
71%
79%
777628
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-181 Impact of TUFS
102
Volume of Exports
Of the 185 respondents to the question, an increase in volume of exports >6% has been
witnessed by 55% of them.
Exhibit 121: Change in Volume of Exports (%)
An increase in volume of exports has been observed most by Processing segment respondents.
Majority of segments have experienced export’s volume growth. However, 29% of the
respondents in Spinning segment have witnessed decline in volume of exports. Export volume
has increased due to factors like product development, quality improvement and innovation.
Exhibit 122: Change in Volume of Exports (%) - Segment Wise
17%
23%
13%
19%
4%
14%
1% 1% 1% 4% 4%
0%
10%
20%
1-5% 6-10% 11-20% >20% Percentage
unknown
No Change
% Share of Respondents
Increase in Volume of ExportsDecrease in Volume of Exports
Source:TechnopakAnalysis,Base-185
29%
4%
14%
8%
17% 17%
5%
21%
17%
14%
8%
6% 6%
14%
50%
79%
71%
83%
78% 78%
82%
24 72 7 24 18 18 22
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-185 Impact of TUFS
103
Among states, in Haryana 92% respondents have witnessed increase in volume of exports due to
TUFS. 16% respondents in Gujarat and 17% in Tamil Nadu have witnessed decline in volume of
exports.
Exhibit 123: Change in Volume of Exports (%) - Geography Wise
Across schemes, 83% respondents of RTUFS have witnessed increase in volume of exports. 20%
respondents during RRTUFS have witnessed decline in volume of exports.
Exhibit 124: Change in Volume of Exports (%) - Scheme Wise
16%
4%
8% 8% 8%
17%
16%
4%
20% 5%
17%
38%
13%
25%
68%
92%
80%
86%
75%
54%
71%
75%
37 24 10 37 12 13 48 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-185
5%
20%
3%
18%
9%
14%
78%
71%
83%
807629
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-185 Impact of TUFS
104
Average Unit Price
Of the 178 respondents to the question, an increase in average unit price >6% has been witnessed
by 45% of them. A significant 24% have not witnessed a change in average unit price of the
exports.
Exhibit 125: Change in Average Unit Price (%)
Highest increase in average unit price has been observed by Garmenting segment. Weaving and
technical textile respondents’ have indicated that almost one-third of them witnessed no change
in average unit sales price. Average unit price has increased due to above stated factors like high
value product mix, quality improvement and research and development.
Exhibit 126: Change in Average Unit Price (%) - Segment Wise
18%
24%
10%
11%
6%
24%
2% 2%4%
0%
10%
20%
30%
1-5% 6-10% 11-20% >20% Percentage
unknown
No Change
% Share of Respondents
Increase in Avg. Unit PriceDecrease in Avg. Unit Price
Source:TechnopakAnalysis,Base-178
29%
4%
29%
6%
13%
17%
32%
26%
6%
31%
19%
54%
63%
71%
74%
88%
56%
81%
24 71 7 23 16 16 21
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-178 Impact of TUFS
105
Among states, in Haryana 92% respondents have witnessed highest percentage increase in
average unit price of due to TUFS. 20% of the respondents in Tamil Nadu have witnessed a
decrease in average unit price.
Exhibit 127: Change in Average Unit Price (%) - Geography Wise
Across schemes, around two-third respondents have witnessed increase in average unit price.
12% respondents during RRTUFS have witnessed decline in average unit price.
Exhibit 128: Change in Average Unit Price (%) - Scheme Wise
6%6%
8% 8%
20%
37%
8%
20%
25%
42%
58%
9%
33%
57%
92%
80%
69%
50%
33%
72%
67%
35 24 10 36 12 12 46 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-178
6%
12%
4%
27%
19%
29%
66%68%68%
777328
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-178 Impact of TUFS
106
Non-Beneficiaries
Value of Exports
Of the 47 non beneficiaries who responded to the question, an increase in values of exports >6%
has been witnessed by 52% of the respondents. However, 26% respondents have witnessed a
decrease in value of exports >11%.
Exhibit 129: Change in Value of Exports (%)
According to responses by non-beneficiaries, 25% in weaving segment and 33% in garmenting
segments have witnessed a decrease in the value of exports.
Exhibit 130: Change in Value of Exports (%) - Segment Wise
6%
26%
13% 13%
9%
6%
11%
15%
2%
0%
10%
20%
30%
1-5% 6-10% 11-20% >20% Percentage
unknown
No Change
% Share of Respondents
Increase in Value of ExportsDecrease in Value of Exports
Source:TechnopakAnalysis,Base-47
25%
60%
33%
10%
7%
65%
100%
40%
60%
100% 100%
20 2 5 15 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-47 Impact of TUFS
107
Among states, in Punjab 47% of 15 non-beneficiaries’ respondents have witnessed decrease in
value of exports.
Exhibit 131: Change in Value of Exports (%) - Geography Wise
25% 27%
47%
25%
20%
100%
75%
53% 53%
100%
75%
4 4 15 15 5 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gujarat Haryana Karnataka Punjab Tamil NaduUttar Pradesh
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-47 Impact of TUFS
108
Volume of Exports
Of the 46 respondents to the question, an increase in volume of exports >6% has been witnessed
by 39% of them. Some of the non-beneficiaries have also witnessed decrease in volume of
exports.
Exhibit 132: Change in Volume of Exports (%)
According to responses by non-beneficiaries, 55% in weaving segment and 60% in garmenting
segments have witnessed an increase in the volume of exports. Also, decrease in volume of
exports has been witnessed by -25% of non-beneficiary respondents both in weaving and
garmenting.
Exhibit 133: Change in Volume of Exports (%) - Segment Wise
9% 9%
15% 15%
9%
20%
15%
7%
2%
0%
10%
20%
1-5% 6-10% 11-20% >20% Percentage
unknown
No Change
% Share of Respondents
Increase in Volume of ExportsDecrease in Volume of Exports
Source:TechnopakAnalysis,Base-46
25%
40%
27%
20%
20%
13%67%
55%
100%
40%
60%
100%
33%
20 1 5 15 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-46 Impact of TUFS
109
Among states, in Punjab, 33% of 15 non-beneficiaries’ respondents have witnessed decrease in
value of exports.
Exhibit 134: Change in Volume of Exports (%) - Geography Wise
25% 27%
33%33%
47%
13%
100%
75%
27%
53%
100%
67%
4 4 15 15 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gujarat Haryana Karnataka Punjab Tamil NaduUttar Pradesh
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-46 Impact of TUFS
110
Average Unit Price
Of the 39 non-beneficiaries who responded to the question, an increase in average unit price
>6% has been witnessed by 72% of them.
Exhibit 135: Change in Average Unit Price (%)
All the non-beneficiary respondents in Weaving segment have witnessed an increase in average
unit price. 92% respondents in Garmenting segment have witnessed an increase in average unit
price.
Exhibit 136: Change in Average Unit Price (%) - Segment Wise
13%
41%
28%
3% 8%
13%
5% 3%
0%
10%
20%
30%
40%
50%
1-5% 6-10% 11-20% >20% Percentage
unknown
% Share of Respondents
Increase in Avg. Unit PriceDecrease in Avg. Unit Price
Source:TechnopakAnalysis,Base-39
33%
8%
25%
100% 100%
67%
92%
100%
75%
16 2 3 13 1 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
Decreased
Source:TechnopakAnalysis,Base-39 Impact of TUFS
111
Among states, in Karnataka all the non-beneficiary respondents have witnessed increase in
average unit price. 87% of the respondents in Punjab have witnessed an increase in average unit
price.
Exhibit 137: Change in Average Unit Price (%) - Geography Wise
13%
50%
100% 100% 100%
87%
100%
50%
1 2 15 15 4 2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gujarat Haryana Karnataka Punjab Tamil NaduUttar Pradesh
% Share of Respondents
Increased
Decreased
Source:TechnopakAnalysis,Base-39 Impact of TUFS
112
Summary of Impact on Exports Value
Literature review indicates that most companies benefited in terms of product development and
innovative practices due to addition of technologically advanced machineries ~ Exports in textile and
apparel industry grew along with increase in production and overall competitiveness. The research
indicates that exports growth was the highest during RTUFS period. In addition, as fabric is the weak
link in the textile value chain, it needs to be strengthened to consume the excess spinning production
and to boost apparel industry requirements by supplying right price, quality and quantity of fabric.
India’s share in global exports has remained in the range of 4-5% in the last 5 years.
As per the KII analysis, 65% opined that TUFS had a significant impact on exports value, which is in line
with the expert panel’s opinion (69%).
The UHS analysis indicates that TUFS beneficiaries as well as non-beneficiaries experienced an
increased export volume and an increase in average unit price. This led to an increase in overall value
of exports. 42% of beneficiary units witnessed an increase in value of exports greater than 6%, vis-à-
vis 52% of non-beneficiary units. Weaving and garmenting segments have seen highest gains in export
value. Export volume has increased due to factors such as product development, quality improvement
and improved export competitiveness. Weaving sector showed increased exports volume as lot of
high-speed shuttle less looms were installed for export products.
Impact of TUFS
113
4.5 Employment Generation
Past Trend Analysis - Literature Review
• Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
As per the report, on an average, garment segment (72%) indicated maximum increase in
employment generation, which can be attributable to the fact that garment industry is highly
labour intensive. Other segments that witnessed an increase in no. of workers were knitting
(61%), processing (47%) and fabric embroidery (37%). Spinning was the only segment to
witness a decline in employment generation. There was a significant increase in annual
turnover per worker (1.3-28%) after implementation of TUFS, except in garment manufacturing
- in more than 15% of the cases it was because of expansion in business activities.
• CRISIL Evaluation Report of TUFS (2010)
Cumulative investments under TUF Scheme created direct employment opportunities for
approx. 10-11 Lakh people - garmenting sector contributed significantly to employment
generation, followed by cotton ginning and fabric embroidery sectors.
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
As per the report, TUF Scheme contributed positively to employment generation and helped in
growth of income and improving livelihood of the workers. Since its launch, the scheme
provided employment to approx. 8.4 lakhs people in factory sector, with approx. 1.6 lakh
people employed after RTUFS. With an increase in technologically upgraded machineries,
machinery operators were required to learn new skills for operating the upgraded machineries
- this contributed in skill development of labour across textile segments. Even though
technology upgradation typically reduces manpower requirement, in this case, it contributed
to employment generation due to the increase in capacity addition. Capacity additions across
the textile segments created new jobs for skilled and unskilled labour - demand for skilled
labour increased with the installation of technologically upgraded machines across segments.
Composite segment added highest number of skilled and unskilled labour per unit, primarily
because of larger scale of investments. However, overall, most of the companies witnessed
approx. 50 added skilled and unskilled labour. Impact of TUFS
114
Current Scenario of Employment Generation in India
No. of people engaged in operational factories in T&A have grown at a CAGR of ~3% and have
witnessed YoY growth in number of people between 2 - 6 % between 2013 and 2018.
Year on year growth in wages per worker were in the range of 6 – 10% between 2014 and 2018.
Textile sector witnessed higher growth in wages per worker vis-à-vis apparel sector.
2.47
2.53
2.65
2.70
2.87
2.20
2.30
2.40
2.50
2.60
2.70
2.80
2.90
2013-14 2014-15 2015-16 2016-17 2017-18
No. of People (in Mn.)
No. of People
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
15,787
17,356
18,956
20,351
21,584
15,000
17,000
19,000
21,000
23,000
2013-14 2014-15 2015-16 2016-17 2017-18
Wages per worker per month (INR)
Year
Source:Annual Survey of Industries 2017-18, MOSPI, Technopak Analysis
Exhibit 138: No. of people engaged in operational factories in T&A (Mn)
Exhibit 139: Wages per Worker in T&A (INR) Impact of TUFS
115
KII ANALYSIS
76%
18%
6%
Significant Impact Insignificant Impact
No ImpactNo Response
Base: 17
Source: Technopak Analysis
69%
23%
8%
Significant ImpactInsignificant ImpactNo Impact
Base: 13*
Source: Technopak Analysis
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry
Exhibit 140: Increase in Employment Generation
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry. Out of 17 respondents, 13 (76%) answered that TUFS had a
positive impact on employment generation. Out of 13 experts, 9 (69%) opined that TUFS had a
significant impact on Employment Generation
Total Respondents Expert Panel* Impact of TUFS
116
UHS ANALYSIS
Beneficiaries
Change in Total No. of Employees before and after Taking Loan
Of the 506 respondents to the question, 39% of them have indicated increase of total manpower
<20 after upgrading the technologies under these schemes.
Exhibit 141: Change in Total Manpower
Total manpower has increased across all the segments. 76% respondents in Weaving segment
have seen manpower addition. Although, technology upgradation normally reduces the
manpower requirement but no. of employees has been increased by capacity addition in this
case. Capacity additions across the textile value chain have created new jobs for skilled as well as
unskilled manpower.
Exhibit 142: Change in Total Manpower - Segment Wise
39%
21%
6% 3% 2%
19%
6% 4% 0% 0% 0%
0%
10%
20%
30%
40%
<20 20-50 51-100 >100 Change
unknown
No Change% Share of Respondents
Increase in total manpower after taking loanDecrease in total manpower after taking loan
Source:TechnopakAnalysis,Base-506
6%
9%
14%
9%
13% 12%
19%
29%
15%
41%
20%
17%
26%
16%
66%
76%
45%
71% 70%
63% 65%
35 259 29 56 47 43 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-506 Impact of TUFS
117
Among states, in Rajasthan and Uttar Pradesh -90% respondents have witnessed an increase in
total manpower due to TUFS. More than 15% respondents in Karnataka and Maharashtra have
witnessed a decline in total manpower. 43% respondents in Punjab have witnessed no change in
total manpower.
Exhibit 143: Change in Total Manpower - Geography Wise
During ATUFS scheme, 74% respondents have witnessed an increase in labour. 18% respondents
in RTUFS have witnessed decline in total manpower.
Exhibit 144: Change in Total Manpower - Scheme Wise
12%
19%
16%
7%
3% 5%
8%
15%
26%
22%
18%
43%
6%
30%
3%
74% 74%
59%
66%
50%
90%
65%
89%
189 23 37 74 42 31 74 36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-506
7%
12%
18%
19%
22%12%
74%
66%
70%
25018967
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-506 Impact of TUFS
118
Change in Skilled Manpower before and after Taking Loan
Of the 494 respondents to the question, 45% of them have indicated increase of skilled
manpower <20 after upgrading the technologies under these schemes.
Exhibit 145: Change in Skilled Manpower
Overall majority of the segments have witnessed less than 20 additional skilled labour. Demand
for skilled labour has increased due to installation of new technology machines across the
segments. Garmenting, Technical Textiles and Others segments have seen decline of skilled
labour.
Exhibit 146: Change in Skilled Manpower - Segment Wise
45%
18%
2% 1% 2%
22%
7% 1% 1% 0% 0%
0%
10%
20%
30%
40%
50%
<20 20-50 51-100 >100 Change
unknown
No Change% Share of Respondents
Increase in skilled manpower after taking loanDecrease in skilled manpower after taking loan
Source:TechnopakAnalysis,Base-494
6%
9% 7% 7%
11% 12%
22%
29%
19%
33%
20%
26%
29%
19%
66%
72%
59%
73%
64%
60% 59%
35 251 27 55 47 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-494 Impact of TUFS
119
Among states, 90% respondents Rajasthan have witnessed an increase in skilled manpower due
to TUFS. 19% of the respondents from Karnataka and 17% of the respondents from Punjab have
indicated a decrease in skilled manpower.
Exhibit 147: Change in Skilled Manpower - Geography Wise
Across schemes, 73% respondents who availed benefits under ATUFS scheme have witnessed an
increase in skilled manpower. 21% beneficiaries under RTUFS scheme witnessed a decrease in
skilled manpower.
Exhibit 148: Change in Skilled Manpower - Scheme Wise
10% 9%
19%
11%
17%
3% 4% 6%
19%
39%
22%
26%
38%
6%
26%
6%
71%
52%
59%
64%
45%
90%
69%
89%
183 23 37 74 42 31 68 36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-494
7%
10%
21%
21%
26%
14%
73%
63%65%
24218666
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-494 Impact of TUFS
120
Change in Unskilled Manpower before and after Taking Loan
Of the 490 respondents to the question, 44% of them have indicated increase of unskilled
manpower <20 after upgrading the technologies under these schemes. Overall, majority of the
companies have witnessed less than 50 additional unskilled labour.
Exhibit 149: Change in Unskilled Manpower
Majority of segments have witnessed no change or decline in the unskilled manpower. In
Weaving segment, a significant 69% of the respondents have indicated an increase in unskilled
manpower.
Exhibit 150: Change in Unskilled Manpower - Segment Wise
44%
13%
2% 1% 1%
26%
10% 1%0% 0%
0%
10%
20%
30%
40%
50%
<20 20-50 51-100 >100 Change
unknown
No Change
% Share of Respondents
Increase in unskilled manpower after taking loanDecrease in unskilled manpower after taking loan
Source:TechnopakAnalysis,Base-490
11% 12%
20%
4%
17%
14% 16%
34%
19%
52%
41%
32%
29%
16%
54%
69%
28%
56%
51%
57%
68%
35 250 25 54 47 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-490 Impact of TUFS
121
Among states, -86% respondents in Rajasthan and Uttar Pradesh have witnessed increase in
unskilled manpower due to TUFS. 22% of Haryana’s respondents indicated a decrease of <20 in
unskilled manpower.
Exhibit 151: Change in Unskilled Manpower - Geography Wise
Across schemes, 70% respondents who availed benefits under RTUFS scheme have witnessed an
increase in unskilled manpower. 16% beneficiaries under RRTUFS scheme witnessed a decrease
in unskilled manpower.
Exhibit 152: Change in Unskilled Manpower - Scheme Wise
10%
22%
11% 12% 14%
7%
18%
9%
20%
30%
38% 34%
36%
7%
40%
6%
70%
48%
51%
54%
50%
87%
42%
86%
182 23 37 74 42 30 67 35
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-490
10%
16%
9%
26%
29%
21%
64%
56%
70%
23918566
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-490 Impact of TUFS
122
Change in Average Salary of Skilled Manpower before and after Taking Loan
Of the 528 respondents to the question, majority witnessed an overall increase in average salary
of the skilled manpower. 37% of the respondents witnessed an increase of >10% in salary of the
skilled manpower.
Exhibit 153: Change in Average Salary of Skilled Manpower
Nearly 90% respondents in majority of the segments have witnessed an increase in average salary
of skilled manpower. 15% respondents in Others have witnessed a decrease in average salary of
skilled manpower.
Exhibit 154: Change in Average Salary of Skilled Manpower - Segment Wise
9%
17%
21%
37%
8% 3%6% 0% 1% 5%
0%
10%
20%
30%
40%
1-2% 3-5% 6-10% >10% Percentage
unknown
No Change
% Share of Respondents
Increase in Average Salary-Skilled StaffDecrease in Average Salary-Skilled Staff
Source:TechnopakAnalysis,Base-528
6% 4% 4%
8% 6%
9%
15%3%
2%
4%
8%
4%
2%
3%
91%
94%
92%
84%
90% 89%
83%
34 270 24 63 51 46 40
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-528 Impact of TUFS
123
All the respondents in Karnataka have witnessed an increase in average salary of the skilled
manpower. More than 90% respondents of majority of states have witnessed an increase in
average salary of skilled manpower. 17% respondents in Maharashtra have witnessed decrease
in average salary of skilled manpower,
Exhibit 155: Change in Average Salary of Skilled Manpower - Geography Wise
Across schemes, around 95% respondents in both ATUFS and RTUFS have witnessed an increase
in average salary of skilled manpower whereas 10% respondents of RRTUS have seen decrease.
Exhibit 156: Change in Average Salary of Skilled Manpower - Scheme Wise
5% 4%
17%
4% 3% 4%
1% 4%
4%
2% 6%
9%
3%
94% 93%
100%
79%
93%
91%
87%
97%
202 27 38 78 45 32 67 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-528
4%
10%
3%
2%
6%
95%
84%
97%
25619478
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-528 Impact of TUFS
124
Change in Average Salary of Unskilled Manpower before and after Taking Loan
Of the 256 respondents to the question, majority witnessed an overall increase in average salary
of the unskilled manpower. 61% of the respondents witnessed an increase of >10% in salary of
the unskilled manpower.
Exhibit 157: Change in Average Salary of Unskilled Manpower
In weaving sector, 90% of the 159 respondents have witnessed increase in the salary of the
unskilled manpower.
Exhibit 158: Change in Average Salary of Unskilled Manpower - Segment Wise
2% 6% 13%
61%
10%0% 0% 1% 7%
0%
10%
20%
30%
40%
50%
60%
1-2% 3-5% 6-10% >10% No Change
% Share of Respondents
Increase in Average Salary-Unskilled StaffDecrease in Average Salary-Unskilled Staff
Source:TechnopakAnalysis,Base-256
10% 8%
13%
9%
6%
14%
33%
20%
2%
25% 30%
12%
10%
6%
70%
90%
63% 61%
82%
76%
61%
10 159 8 23 17 21 18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-256 Impact of TUFS
125
Among states, 87% respondents from Gujarat and 94% respondents in Karnataka have witnessed
an increase in average salary of unskilled manpower due to TUFS. 23% respondents in
Maharashtra have witnessed a decrease in average salary of unskilled manpower.
Exhibit 159: Change in Average Salary of Unskilled Manpower - Geography Wise
Across schemes, during ATUFS and RTUFS scheme - 90% of respondents have witnessed increase
in average salary increase of unskilled labour. 19% respondents who benefited from RRTUFS have
witnessed a decrease in average salary of unskilled manpower.
Exhibit 160: Change in Average Salary of Unskilled Manpower - Scheme Wise
8%
6%
23%
6%
9%
4%
33%
5%
25%
18%
32%
87%
67%
94%
72%
75% 76%
59%
100%
95 3 36 60 4 17 22 19
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-256
6%
19%
7%
3%
16%
4%
90%
65%
89%
1468327
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-256 Impact of TUFS
126
Change in training costs before and after taking loan
Of the 143 respondents to the question, majority witnessed an increase in training costs. 39%%
of the respondents witnessed an increase of 3-5% in training costs. The increase in the training
costs is justified with the advanced machinery being purchased requiring enhanced training.
Exhibit 161: Change in Training Cost
Almost all the segments have witnessed an increase in training costs. 13% respondents in
Technical Textiles segments have witnessed a decrease in training costs.
Exhibit 162: Change in Training Cost - Segment Wise
15%
39%
21%
16%
6% 1%1%1%
0%
10%
20%
30%
40%
1-2% 3-5% 6-10% >10% Percentage
unknown
No Change% Share of Respondents
Increase in Training Costs Decrease in Training Costs
Source:TechnopakAnalysis,Base-143
4%
13%
5%
100%
96%
100%
95%
100%
87%
100%
20 56 5 21 16 15 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-143 Impact of TUFS
127
Almost all the respondents across all the states have witnessed increase in training cost. 13%
respondents from Maharashtra have witnessed decrease in training costs.
Exhibit 163: Change in Training Cost - Geography Wise
All the respondents who benefited from RRTUFS witnessed an increase in training costs. 96%
respondents in ATUFS witnessed an increase in training costs.
Exhibit 164: Change in Training Cost - Scheme Wise
6%
13%
5%
5%
100% 100%
94%
87%
100%
90%
100% 100%
17 21 16 15 17 21 31 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-143
2%
11%
2%
96%
100%
89%
536228
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-143 Impact of TUFS
128
Non-Beneficiaries
Change in total no. of employees before and after taking loan
Of the 99 non-beneficiaries who responded to the question, 32% of them have indicated increase
of total manpower <20.
Exhibit 165: Change in Total Manpower
Total manpower has increased across all the segments. Nearly 60% non-beneficiary respondents
in Processing and weaving segments have seen an increase in total manpower. 80% non-
beneficiary respondents in Knitting have witnessed an increase in total manpower.
Exhibit 166: Change in Total Manpower - Segment Wise
32%
11%
7%
2% 2%
23%
11%
10%
1%
0%
10%
20%
30%
<20 20-50 51-100 >100 Change
unknown
No Change
% Share of Respondents
Increase in total manpower after taking loanDecrease in total manpower after taking loan
Source:TechnopakAnalysis,Base-99
25%
10%
36%
20%
17%
20%
29%
21%
20%
75%
58%
80%
62%
43%
60%
25%
36 5 21 28 5 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-99 Impact of TUFS
129
All the non-beneficiary respondents in Gujarat and Haryana have witnessed an increase in total
manpower. 93% respondents in Punjab have witnessed a decrease in total manpower.
Exhibit 167: Change in Total Manpower - Geography Wise
40%
93%
17%
40%
38%
7%
53%
17%
27%
100% 100%
20%
63%
47%
67%
73%
16 7 15 8 15 15 12 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-99 Impact of TUFS
130
Change in skilled manpower before and after taking loan
Of the 95 non-beneficiaries who responded to the question, 33% of them have indicated increase
of skilled manpower <20.
Exhibit 168: Change in Skilled Manpower
Overall majority of the segments have witnessed less than 20 additional skilled labour. Weaving
and processing segments have seen influx of skilled labour.
Exhibit 169: Change in Skilled Manpower - Segment Wise
33%
11%
1% 1% 3%
29%
17%
3% 1%1%
0%
10%
20%
30%
40%
<20 20-50 51-100 >100 Change
unknown
No Change
% Share of Respondents
Increase in skilled manpower after taking loanDecrease in skilled manpower after taking loan
Source:TechnopakAnalysis,Base-95
26%
10%
32%
20%
17%
50%
40%
29%
20%
100%
57%
50% 50%
39%
60%
35 4 20 28 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-95 Impact of TUFS
131
All the non-beneficiary respondents from Gujarat and Haryana have witnessed an increase in
skilled manpower. 87% of the respondents from Punjab have witnessed decline in skilled
manpower.
Exhibit 170: Change in Skilled Manpower - Geography Wise
40%
87%
20%
47%
38%
13%
80%
36%
100% 100%
13%
63%
20%
80%
64%
16 5 15 8 15 15 10 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-95 Impact of TUFS
132
Change in unskilled manpower before and after taking loan
Of the 94 non-beneficiaries who responded to the question, 40% of them have indicated increase
of unskilled manpower less than 20. Overall, the respondents have witnessed less than 50
additional unskilled labour and 31% have witnessed no change.
Exhibit 171: Change in Unskilled Manpower
Weaving and processing segments have witnessed primarily additional unskilled labour changes
<20. 25% respondents from Garmenting, 21% from Weaving segments have witnessed a
decrease in unskilled labour.
Exhibit 172: Change in Unskilled Manpower - Segment Wise
40%
7%3%
31%
18%
0%
10%
20%
30%
40%
<20 20-50 Change unknown No Change
% Share of Respondents
Increase in unskilled manpower after taking loanDecrease in unskilled manpower after taking loan
Source:TechnopakAnalysis,Base-94
21%
10%
25%
20%
24%
25%
35%
32%
20%
100%
56%
75%
55%
43%
60%
34 4 20 28 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-94 Impact of TUFS
133
All the non-beneficiary respondents from Gujarat witnessed an increase in unskilled manpower.
73% respondents in Punjab have witnessed a decrease in unskilled manpower.
Exhibit 173: Change in Unskilled Manpower - Geography Wise
29%
73%
20%
40%
57%
50%
20%
60%
27%
100%
60%
14%
50%
7%
40%
80%
73%
16 5 14 8 15 15 10 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-94 Impact of TUFS
134
Change in average salary of skilled manpower before and after taking loan
Of the 102 non-beneficiaries who responded to the question, 27% witnessed an increase in
average salary of the skilled manpower between 6-10%. 16% of the respondents witnessed an
increase of >10 in average salary of the skilled manpower.
Exhibit 174: Change in Average Salary of Skilled Manpower
In Processing segment 81% of the respondents witnessed an increase in average salary of skilled
manpower. 32% respondents in Garmenting and 23% in Weaving segments have witnessed a
decline in the annual salary of skilled manpower.
Exhibit 175: Change in Average Salary of Skilled Manpower - Segment Wise
1%
9%
27%
16%
9%
19%
2% 3%
15%
0%
10%
20%
30%
1-2% 3-5% 6-10% >10% Percentage
unknown
No Change
% Share of Respondents
Increase in Average Salary-Skilled StaffDecrease in Average Salary-Skilled Staff
Source:TechnopakAnalysis,Base-102
23%
10%
32%
20%
23%
33%
10%
11%
29%
40%
54%
67%
81%
57%
71%
40%
35 6 21 28 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-102 Impact of TUFS
135
All the non-beneficiary respondents from the states of Gujarat, Haryana, Rajasthan and Tamil
Nadu have witnessed an increase in average salary of skilled manpower. 89% respondents from
Punjab have witnessed a decrease in average salary of skilled manpower.
Exhibit 176: Change in Average Salary of Skilled Manpower - Geography Wise
47%
87%
53%
50%
13%
45%
100% 100%
50%
100% 100%
55%
16 9 15 8 15 15 13 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-102 Impact of TUFS
136
Change in average salary of unskilled manpower before and after taking loan
Of the 57 non-beneficiaries who responded to the question, majority witnessed in an overall
increase in average salary of the unskilled manpower. 26% of the respondents witnessed an
increase of >10 in salary of the unskilled manpower.
Exhibit 177: Change in Average Salary of Unskilled Manpower
Some of the segments have witnessed primarily no change in average salary of unskilled workers.
56% respondents in Garmenting segment have witnessed a decrease in average salary of the
unskilled manpower.
Exhibit 178: Change in Average Salary of Unskilled Manpower - Segment Wise
4%2%
26%
39%
11%
19%
0%
10%
20%
30%
40%
50%
60%
3-5% 6-10% >10% No Change
% Share of Respondents
Increase in Average Salary-Unskilled StaffDecrease in Average Salary-Unskilled Staff
Source:TechnopakAnalysis,Base-57
21%
25%
56%
33%
46%
50%
25%
19%
100%
67%
33%
50% 50%
25%
24 4 8 16 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-57 Impact of TUFS
137
Among states, all the non-beneficiary respondents from Gujarat and Rajasthan have witnessed
increase in average salary of unskilled manpower. 93% respondents from Punjab have witnessed
a decrease in average salary of unskilled manpower.
Exhibit 179: Change in Average Salary of Unskilled Manpower - Geography Wise
20%
93%
80%
80%
7%
63%
100%
20%
100%
38%
7 15 5 15 7 8
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gujarat KarnatakaMaharashtra Punjab RajasthanUttar Pradesh
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-57 Impact of TUFS
138
Change in training costs before and after taking loan
Of the 33 non-beneficiaries who responded to the question, majority witnessed an increase in
training costs. 39% of the respondents witnessed an increase of 3-5% in training costs.
Exhibit 180: Change in Training Cost
91% of the non-beneficiary respondents in processing segment responded that the training costs
were increased.
Exhibit 181: Change in Training Cost - Segment Wise
6%
39%
36%
3% 3%
12%
0%
10%
20%
30%
40%
1-2% 3-5% >10% Percentage
unknown
No Change
% Share of Respondents
Increase in Training Costs Decrease in Training Costs
Source:TechnopakAnalysis,Base-33
17%
9%
15%
100%
83%
91%
85%
100%
6 11 13 2 1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving Processing GarmentingTechnical Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-33 Impact of TUFS
139
Among states, all the non-beneficiary respondents from both Rajasthan and Tamil Nadu have
witnessed an increase in training costs.
Exhibit 182: Change in Training Cost - Geography Wise
80%
50%
20%
100%100%
50%
515112
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Punjab Rajasthan Tamil Nadu Uttar Pradesh
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-33 Impact of TUFS
140
Summary of Impact on Employment Generation
Literature review indicates that TUF Scheme contributed positively to employment generation and
helped in growth of income and improving livelihood of the workers. Since its launch, the scheme
provided employment to approx. 8.4 lakhs people in factory sector, with approx. 1.6 lakh people
employed after RTUFS. No. of people engaged in the operational factories has witnessed an increasing
trend in the last 5 years, so have the wages per worker in T&A industry.
The KII analysis indicates that 76% of respondents opined that TUFS had a significant impact on
employment, vis-à-vis 69% of the expert panel.
As per the UHS analysis, total manpower has increased across all the segments. 70% of the
beneficiaries have indicated increase of total manpower after upgrading the technologies under these
schemes, vis-à-vis 52% of non-beneficiaries. Processing segment witnessed a significant increase in
manpower of >20, primarily because it is technology intensive and demands skilled labour. Capacity
additions across the textile value chain have created new jobs for skilled as well as unskilled manpower.
Overall, majority of the companies have witnessed <50 additional skilled labour. However, a significant
>30% of the respondents have however indicated no change in unskilled manpower primarily in
Spinning, Knitting, Processing and Garmenting segment. 37% of the beneficiaries witnessed an increase
of >10 in salary of the skilled manpower, whereas 61% of the beneficiaries witnessed an increase of
>10 in salary of the unskilled manpower.
Among states, 75% respondents from Rajasthan have witnessed increase in average salary of skilled
manpower of >10% due to TUFS. Among states, 86% respondents from Gujarat have witnessed
increase in average salary of unskilled manpower of >10% due to TUFS. Majority of states have
witnessed average salary of unskilled manpower increase >6%. Majority of states have witnessed
average training costs increased by >6%. 87% of the non-beneficiary respondents in Punjab have
witnessed decrease in average salary >10%. 13% of the non-beneficiary respondents from Karnataka
have witnessed a decrease in average salary >10%
Impact of TUFS
141
4.6 Cost Savings
• Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
As per the report, the average reduction in unit cost across segments ranged between (3%) and
36%. In case of machineries, average cost reduction varied between 1% and 21% - average cost
reduction was approx. 12% for TUFS specific machineries and 8% for overall machineries.
Technologically upgraded machineries witnessed higher cost reduction than overall machinery
units.
• Technopak Advisors Evaluation Report of TUFS (2006)
Under 10% Credit – Linked Capital Subsidy on Processing Sector Overall cost saving was low to
medium. Most of the companies using upgraded machineries under TUF Scheme indicated cost
savings up to 20%. About 60% of the companies were able to save up to 10%. Most of the
segments witnessed cost savings in low to medium range. 100% respondents in weaving
segment witnessed cost savings in their operations due to investment in technologically
upgraded machineries
• NCEUS Evaluation Report on Impact of TUFS on the Unorganized Sector (2009)
With the help of improved technology, in states such as Maharashtra, Delhi, Haryana and
Rajasthan, approx. 46% of the SSI units indicated reduction in cost. In Haryana, out of 100 SSI
units, 31 witnessed cost reduction, whereas in Rajasthan only 14% of SSI units indicated cost
reduction.
• CRISIL Evaluation Report of TUFS (2010)
More than 60 per cent of the Non-SSI and SSI units showed a reduction in costs because of
reduction in labor costs, lower wastage and lower maintenance cost. 66% Non-SSI units and
78% of SSI units experienced cost reduction between 1% and 5%, whereas 34% of Non-SSI units
and 22% SSI units saw reduction in the range of 6-10%. The main reason behind lower labor
cost was the increase in output per machine due to the large diameter, resulting in low labor
requirement. Cost reduction in the garmenting sector mainly came because of productivity
enhancing machineries and reduced the labor requirements.
Impact of TUFS
142
• Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
As per the report, units were able to improve their cost efficiencies and resource efficiencies
to significant extent. Majority of companies across all segments witnessed cost reduction
between 1% and 10%. Highest cost saving was observed in composite segment, followed by
spinning segment. Energy efficient machineries helped in higher savings in power, water and
steam. In all, factors such as wastage reduction and improvement in productivity contributed
to cost savings.
Impact of TUFS
143
KII ANALYSIS
76%
12%
12%
Significant ImpactInsignificant ImpactNo Response
Base: 17
Source: Technopak Analysis
Significant Impact
Base: 13*
Source: Technopak Analysis
Total Respondents Expert Panel*
Exhibit 183: Increase in Cost Savings
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry. Out of 17 respondents, 13 (76%) answered that TUFS had a
positive impact on Cost Savings. Whereas, all the 13 experts (100%) opined that TUFS had a
positive impact on Cost Savings Impact of TUFS
144
UHS ANALYSIS
Beneficiaries
Change in Cost Savings per Unit
Of the 512 respondents to the question, 76% of them have indicated increased cost savings per
unit. 32% respondents have responded >10% cost savings per unit.
Exhibit 184: Change in Cost Savings per Unit
Around 75% respondents in all the segments have seen an increase in cost savings per unit.
However, 21% respondents in Processing segment have witnessed a decrease in cost savings.
Exhibit 185: Change in Cost Savings Per Unit - Segment Wise
12%
18%
11%
32%
3%
10%
3% 3% 2% 6% 2%
0%
10%
20%
30%
1-3% 4-5% 6-10% >10% Percentage
unknown
No change
% Share of Respondents
Increase in Cost Savings per unit Decrease in Cost Savings per unit
Source:TechnopakAnalysis,Base-512
10%
14% 14%
21%
15% 14% 14%
13%
7%
17%
16%
8% 9% 11%
77% 79%
69%
64%
77% 77% 76%
31 266 29 58 48 43 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-512 Impact of TUFS
145
Among states, 91% respondents in Punjab have witnessed an increase in cost savings per unit.
Except Gujarat, more than 75% respondents in all the states have witnessed an increase in
average cost savings per unit. However, 21% respondents in Gujarat have witnessed a decrease
in cost savings.
Exhibit 186: Change in Cost Savings Per Unit - Geography Wise
Across schemes, during RRTUFS scheme, 77% respondents have witnessed increase in cost
savings per unit. 19% respondents who receive RTUFS witnessed a decrease in cost savings.
Exhibit 187: Change in Cost Savings Per Unit - Scheme Wise
21%
8% 8%
16%
9%
12%
15%
10%
12%
8%
8%
9%
13%
12% 5%
69%
80%
83%
76%
91%
78%
75%
79%
193 25 36 79 43 32 65 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-512
13%
15%
19%
11%7%
10%
76%77%
71%
25818272
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-512 Impact of TUFS
146
Non-Beneficiaries
Change in Cost Savings per Unit
Of the 76 respondents to the question, 78% of them have indicated increased cost savings per
unit. 25% respondents have responded that they have witnessed 4-5% cost savings per unit.
Exhibit 188: Change in Cost Savings per Unit
All the non-beneficiary respondents of Knitting and Processing segments witnessed an increase
in cost savings per unit. 82% of the respondents in Weaving segment witnessed an increase in
the cost saving per unit
Exhibit 189: Change in Cost Savings Per Unit - Segment Wise
9%
25%
14%
21%
9%
3%
4%
9%
1% 3% 1%
0%
10%
20%
30%
1-3% 4-5% 6-10% >10% Percentage
unknown
No change
% Share of Respondents
Increase in Cost Savings per unitDecrease in Cost Savings per unit
Source:TechnopakAnalysis,Base-76
18%
21%
40% 40%
5%
20%
82%
100% 100%
74%
40%
60%
34 3 10 19 5 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-76 Impact of TUFS
147
All the respondents from Haryana and Rajasthan witnessed an increase in cost savings per unit.
31% of the respondents from Gujarat witnessed a decrease in cost savings per unit.
Exhibit 190: Change in Cost Savings Per Unit - Geography Wise
31%
40%
13%14% 14%
20%
7%
69%
100%
40%
80%
100%
86% 86%
13 6 5 15 1 14 7
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
GujaratHaryanaMaharashtraPunjabRajasthanTamil NaduUttar
Pradesh
% Share of Respondents
Increased
No change
Decreased
Source:TechnopakAnalysis,Base-76 Impact of TUFS
148
Summary of Impact on Cost Savings
Literature review indicates that units were able to improve their cost efficiencies and resource
efficiencies to significant extent. Majority of companies across all segments witnessed cost reduction
between 1% and 10%.
As per the KII analysis, 76% respondents opined that TUFS had a significant impact on cost savings,
whereas 100% of expert panel opined that the scheme had a positive impact on cost savings.
As per the UHS analysis, 76% of the 512 beneficiary respondents indicated an increase in cost savings
per unit, vis-à-vis 78% of the 76 non-beneficiary respondents. Units have also been able to increase
their cost savings and resource efficiencies to significant extent. 32% of beneficiary respondents
experienced cost saving of >10%. Cost saving of >10% was observed to be highest in weaving segment
(43%) followed by knitting segment (31%).
Among states, 72% of respondents from Karnataka have witnessed increase in cost savings per unit of
>10% due to TUFS. Of the 193 respondents from Gujarat, 38% witnessed increase in cost savings per
unit >10%. Over 15% respondents across the states Gujarat, Maharashtra and Uttar Pradesh have
witnessed decrease in cost savings.
Impact of TUFS
149
4.7 Quality
Past Trend Analysis - Literature Review
1. Prof. Dr. M.D. Teli, Head of Department of Fibers & Textile Processing Technology on
Technology Upgradation Fund Scheme (2003)
As per the report, all the segments witnessed improvement in quality due to technology
upgradation suggested by more than 98% of units. 98% of SSI and 98.5 % of Non-SSI have
experienced improvement in product quality.
2. Technopak Advisors Evaluation Report of TUFS (2006)
In all, TUF Scheme had a positive impact on improving quality of products. Approx. 80% of
the units in processing sector and weaving sector experienced quality improvement. The
industry welcomed the decision to extend the scheme up to 2007. However, to sustain this
development the industry felt that this scheme should be further extended
3. NCEUS Evaluation Report on Impact of TUFS on the Unorganized Sector (2009)
As per the report, units in Maharashtra, Delhi, Haryana and Rajasthan, more than 70% of the
SSI units indicated substantial quality improvement. Out of 100 SSI units, in Haryana 51 units
witnessed quality improvement, in Delhi more than 85% of SSI units witnessed quality
improvement, whereas in Rajasthan only 35% of SSI units indicated improvement in quality.
4. CRISIL Evaluation Report of TUFS (2010)
The scheme had a significant impact on quality improvement in various segments and well as
units. Approx. 45% of Non-SSI and SSI units experienced improvement in quality, whereas
more than 65% of SSIs and Non-SSIs achieved an increase in price realizations up to 5 per cent
on improving yam quality. In texturizing industry, approx. 40% of the units experienced
improvement in product quality of filament yarn on parameters such as strength, evenness
and better temperature control mechanism on machines installed under TUF Scheme; in
garmenting, approx. 67% of units in Non-SSI and 37% of units in SSI experienced an
improvement in quality by using computerized machine, high end cutting machine and laying
equipment that provided better finishing to the garment products; in weaving, more than
65% of Non-SSI and SSI units showed improvement in quality, cost reduction and wastage;
and in knitting approx. 50% of SSI and Non-SSI units experienced improved quality products
on account of improved technology. Impact of TUFS
150
5. Wazir Advisors Evaluation Report of RTUFS and RRTUFS (2016)
As per the report, TUF Scheme encouraged companies to improve their product quality and
value addition by shifting to technologically upgraded machineries. Increase in Gross Value
Added (GVA) in overall T&A industry during RTUFS and RRTUFS period was supported by
improvement in product quality and value addition. GVA in factory sector grew from INR 0.18
lakh crore in 1998-99 to INR 0.83 lakh crore in 2013-14, with a CAGR of approx. 11%. Particular
segments in particular have experienced an improvement in product quality. In spinning,
upgraded technology helped India become the most competitive yarn manufacturing country
globally and helped India achieve 27-30% share in global cotton tarn trade. In weaving,
companies were able to invest in hi-tech warping, sectional warping and sizing machines to
produce high quality, wider width and longer length required for the high-speed shuttle less
looms. In processing, investment in technology upgradation in yarn and fiber dyeing
machines helped in reducing color variations and improving product quality. In garmenting,
modern sewing machines and other support machines such as pocket setter, belt loop
making, fusing machines, etc. improved productivity and overall quality. In technical textiles,
investment in specialized finishing and heat setting machines helped in improving the product
quality. Factors such as product development, value addition, quality improvement and
innovative practices also helped in improving Unit value realization (UVR) of textile sector.
Impact of TUFS
151
KII ANALYSIS
82%
6%
12%
Significant ImpactInsignificant ImpactNo Response
Base: 17
Source: Technopak Analysis
100%
Significant Impact
Base: 13*
Source: Technopak Analysis
Exhibit 191: Improvement in Quality
Out of 62 responses, 17 of them (27%) responded to the question asked on impact of TUFS on
Indian textile & apparel industry. Out of 17 respondents, 14 (82%) answered that TUFS had a
positive impact on improving Quality of the products. Whereas, all the 13 experts (100%) opined
that TUFS had a positive impact on Quality
Total Respondents Expert Panel
* Out of 23 Expert Panel, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry Impact of TUFS
152
UHS ANALYSIS
Beneficiaries
Improvement in Product Quality
TUFS has enabled companies to improve product quality. 89% of the respondents (497
beneficiaries) opined that this scheme has led to improvement in product quality.
Exhibit 192: Improvement in Product Quality
The product quality has improved significantly across the various segments as reported by the
companies.
Exhibit 193: Change in Product Quality - Segment Wise
89%
7%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
YesNoMaybe/ Not Sure
% Share of Respondents
YesNoMaybe/ Not Sure
Source:TechnopakAnalysis,Base-559
84%
91%
90%
86%
82%
90%
81%
8%
7%
6%
9%
8%
4%
7%
8%
1%
3%
5%
10%
6%
12%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles…
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-559 Impact of TUFS
153
Non-Beneficiaries
Improvement in Product Quality
Of the 108 non beneficiaries who have responded to the question, 95% believe that their product
quality has increased.
Exhibit 194: Improvement in Product Quality
The product quality has improved significantly across the various segments as reported by the
non-beneficiary companies.
Exhibit 195: Change in Product Quality - Segment Wise
95%
4%
1%
0%
20%
40%
60%
80%
100%
120%
YesNoMaybe/ Not Sure
% Share of Respondents
YesNoMaybe/ Not Sure
Source:TechnopakAnalysis,Base-108
98%
100%
100%
96%
71%
80%
3%
4%
14%
20%
14%
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Others
YesNoMaybe/Not Sure
Source:TechnopakAnalysis,Base-108 Impact of TUFS
154
Summary of Impact on Quality
As per the literature review, TUF Scheme encouraged companies to improve their product quality and
value addition by shifting to technologically upgraded machineries. Factors such as product
development, value addition, quality improvement and innovative practices also helped in improving
Unit value realization (UVR) of textile sector.
The KII analysis indicates that 82% respondents opined that TUFS had a positive impact on improving
quality of the products, whereas 100% of the expert panel believed that the scheme had a positive
impact.
The product quality has improved significantly across the various segments as reported by the
companies enabled due to the TUFS. 89% of the respondents (497 beneficiaries) opined that the
scheme led to improvement in product quality, vis-à-vis 95% of the non-beneficiary respondents. Analysis of macro-economic factors affecting Textile Value chain
155
5. ANALYSIS OF MACRO-ECONOMIC FACTORS AFFECTING TEXTILE VALUE CHAIN
For India: Lending rate, Power cost and Labour cost are relatively higher than competing
countries. Higher lending rates have been one of the biggest barriers to investments into textiles
sector in India. Other competing countries like China, Vietnam, Bangladesh have better fiscal
incentives than India for making investments into textiles.
5.1 Investments in Textiles and Apparels
KII Analysis
Out of 62 responses, 22 of them (35%) responded to the question asked on major factors
impacting investments in the Indian textile & apparel industry. Major factors impacting
investments are Power, Interest Rate, and Lack of Scale. Out of 22 respondents, 55% ranked
power and interest rate as the major factors impacting investments into Indian T&A; Out of 14
respondents from expert panel, 50% ranked power as the major factor impacting investments.
Exhibit 196: Major Factors Affecting Investments
36%
55%
55%
Interest RatePowerLack of Scale
Base: 22
43%
50%
43%
Base: 14
*
Total Respondents Expert Panel
*Out of 23 Industry experts, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry;
Source: Technopak Analysis
Note: EODB- Ease of Doing Business
Source: Invest India Report on T&A Industry: The Change Agent of India, July 2020 Analysis of macro-economic factors affecting Textile Value chain
156
UHS ANALYSIS
Major factors impacting investments - Man power cost, interest rates, and GST. As per the KII
analysis, one of the major factors impacting investments is “lack of scales”, which as per UHS
analysis is ranked as the least impacting factors.
17%
13%
13%
12%
11%
10%
8%
7%
6%
3%
1%
0%
Man-Power Cost
Interest Rates
GST
Raw Material Cost
Corporate Tax
Power Cost
Labor Productivity
Infrastructure Cost
Supply Chain Cost
Government Clearances
Lack of Scale
Lack of visionary entrepreneurs
Base: 299
Exhibit 197: Factors Affecting Investments into Textiles
Source: Technopak Analysis Analysis of macro-economic factors affecting Textile Value chain
157
5.2 Exports
KII Analysis
Out of 62 responses, 20 of them (32%) responded to the question asked on factors affecting
exports in Indian textile & apparel industry. Major factors impacting exports - Trade Agreements,
Scale (Small Units), and Raw Material Cost. Out of 20 respondents, 70% ranked trade agreement
as the major factor impacting exports of the Indian T&A; Out of 14 respondents from expert
panel, 79% ranked trade agreement as the major factor impacting exports.
70%
40%
30%
Trade Agreements Scale (Small units) Raw Material Cost
Base: 20
79%
43%
36%
Base: 14*
Exhibit 198: Major Factors Affecting Exports
Total Respondents Expert Panel
*Out of 23 Industry experts, 13 (57%) responded to the question asked on impact of TUFS on Indian textile & apparel industry;
Source: Technopak Analysis
Analysis of macro-economic factors affecting Textile Value chain
158
UHS ANALYSIS
15%
14%
13%
12%
10%
10%
9%
8%
4%
3%
1%
Labor Productivity
Man-Power Cost
Interest Rates
Raw Material Cost
Corporate Tax
Power Cost
Infrastructure Cost
GST
Supply Chain Cost
Government Clearances
Trade Agreements
Base: 299
Major factors impacting exports - Labour productivity, man-power cost, and Interest rates. As
per the KII analysis, the major factor impacting exports is “trade agreements”, which as per
UHS analysis is ranked as the least impacting factor
Exhibit 199: Factors Affecting Exports of Garments
Source: Technopak Analysis Analysis of macro-economic factors affecting Textile Value chain
159
5.3 FDI Investment in Textile and Apparel
Exhibit 200: FDI in Textiles in USD Millions
197
230
619
454
166
379
443
366
422 408
0
100
200
300
400
500
600
700
2014 2015 2016 2017 2018
IndiaBangladesh
Source: Ministry of Textiles; FDI Survey Report; Statistical Department Bangladesh Bank
FDI in India witnessed a drastic decrease from 2016 to 2018 at the rate of 73%, in contrast to
an increase of 214.21% from 2014 to 2018 - whereas FDI inflow in Bangladesh has remained
constant over the years Analysis of macro-economic factors affecting Textile Value chain
160
5.4 Promoting domestic machinery manufacturing
Exhibit 201: Indian Textile Machinery Overview
Category 2014-15 2015-16 2016-17 2017-18 2018-19
CAGR
(2014-2019)
Spinning & allied machines 3,445 3,480 3,615 3,815 3,625 1.3%
Synthetic filament yarn
machines
800 440 400 385 400 -15.9%
Weaving & allied machines 890 870 900 885 890 0.0%
Processing machines 575 625 635 650 750 6.9%
Misc. (spinning, weaving,
and processing) machines
25 25 30 35 25 0.0%
Textile testing & measuring
instruments
90 115 100 130 165 16.4%
Hosiery machines/ hosiery
needles
60 60 65 80 85 9.1%
Spares & accessories 1,075 965 905 920 925 -3.7
Total production 6,960 6,580 6,650 6,900 6,865 -0.3%
Exports 2,466 2,351 2,438 2,939 3,665 10.4%
Imports 8,858 10,305 10,098 10,687 10,834 5.2%
Total demand 12,308 13,547 13,313 13,613 13,004 1.4%
% Share of demand met by
imported machinery
63% 69% 69% 71% 75%
Note: All numbers in Rs Crores
Source: Textile Machinery Manufacturers' Association (India)
Over the years, imports of textile machinery are increasing in India. During 2014-15, 63%
demand of machinery was met by imports, however, during 2018-19 the imports meet 75%
of the domestic demand of machinery Technology Upgradation Assessment
161
6. TECHNOLOGY UPGRADATION ASSESSMENT (MACHINERY REPORT)
Objectives
As part of this project, 3 major objectives of this technology upgradation assessment are
mentioned below. The Consultant has included evaluation matrix as part of this assessment as it
helps in arriving at major recommendations for TUFS
1. Study of machinery specifications and recommendations on ATUFS machinery list
2. Current level of Technology in India and upgradation achieved by TUFS
3. Global benchmarking – Comparison with competing countries on technology level
4. Evaluation matrix for technology assessment of textile segments
6.1 Study of machinery Specifications and recommendations on ATUFS machinery list
6.1.1 Primary Research, Methodology and Limitations
Primary Research:
The Consultant team conducted 16 interviews with leading machinery manufacturers and
industry stakeholders in textile machinery segment to take their inputs. Some of them gave
inputs on the machinery specifications for ATUFS and some gave inputs on other topics of the
objective. The list of stakeholders interviewed is attached as Appendix 2
Methodology and Limitations of this Study of Technical Specifications of the Machines:
Textile value chain is quite complex as it involves multiple fibers, multiple processes, multiple end
products and multiple applications. All this complexity has made the list of machinery under
ATUFS quite big. In the last 4 years TUFS machinery list has only increased; machines have not
been removed from any segment. There are 469 types of machines listed under ATUFS for
subsidy. There are approx. 590 machine manufacturers approved under ATUFS.
Exhibit 202: Recommendations on ATUFS Machines Listing Technology Upgradation Assessment
162
The Consultant observed that lots of these machines listed under ATUFS have no technical
specifications provided; it is just name of a machine or a process. There is clear need to provide
specifications for such machines; which is not under the scope of this study.
After deliberations with the machinery experts, the Consultant has decided to categorize the long
list of machines listed under ATUFS into 2 categories – “Core Process machines” and “Ancillary
process machines”. This is a subjective classification and may require further deliberations along
with the industry. Core Process machines (285 out of 469) perform the major process in the
manufacturing of the product. Most of the total investment into machinery, by the industry, is
for these core machines. Ancillary process machines (184 out of 469) mainly support the
manufacturing process and contribute lesser to the overall machinery investments. The
Consultant further analysed only ‘Core process machines’ and have provided technical
recommendations for them only. The Consultant has covered Spinning, Weaving, Knitting,
Processing, Garmenting, Technical Textiles, Handloom, Jute, Silk segments.
After a lot of deliberation with experts, concluded that “speed” is the best individual parameter
of the level of technology for the textile machine. There are many other important parameters
considered while choosing a machine, but speed is the most acceptable parameter to keep the
process of specification simple. Hence, the Consultant has made recommendations on speed for
the selected machinery for each textile segment. In some cases, like weaving and knitting, the
Consultant has given speed recommendations separately for MSME (Unorganized sector) and
Non-MSME (Organized sector)
Technology Upgradation Assessment
163
6.1.2 Recommendations on ATUFS Machines Listing
Summary of Machines
There are 469 machines available in ATUFS machines’ list, out of which the Consultant shortlisted
285 core machines and commented on most of them.
Exhibit 203: Summary of ATUFS machinery
S.no. Segment
Number
of
Machines
Number of Core
Machines
Number of
Ancillary
Machines
Number of MSME
and Non-MSME
suggestions
1 Weaving (Loom Shed) 14 7 7 7
2 Weaving Preparatory 18 8 10 8
3 Knitting 19 8 11 5
4 Processing 100 71 29 0
5 Technical Textiles 87 57 30 0
6 Handloom 16 16 0 0
7 Garmenting 116 43 73 18
8 Jute 54 30 24 0
9 Silk 45 45 0 0
Total 469 285 184 38
Technology Upgradation Assessment
164
6.2 Current Technology (Machinery) Level in India in Textile & Apparel
Primary Research
The Consultant conducted primary research with 17 industry experts (KII) to get inputs on level
of technology across all textile and apparel segments and for global benchmarking. The list of
Industry experts interviewed for primary research is mentioned in Appendix 2 for reference.
Current Level of Technology in India - Segment Wise
17 informants responded to the question asked on “Level of technology achieved globally for
each segment”. The scheme has witnessed non-uniform benefits across the different textile value
chain segments. Most respondents (70%) opined that in spinning segment India has achieved
global technology standards vis-à-vis other segments had not gained modernization. One of the
reasons for this is that among all textile segments, spinning is mostly in organized sector. In all
other segments, India lags behind in terms of technology. One of the major reasons for that
weaving, knitting, processing and garmenting has a big number of unorganized players; who are
not using high level of technology. Most of the respondents also shared that big players
(organized sector) uses global level of technology across segments. But the number and share of
such organized players in Indian textile value chain is quite low. Hence, overall standard of
technology level in textile segments is much lower than global standards. A summary of the
responses is given below:
Exhibit 204: Current Technology level in India - Segment Wise
12
3
2
1 1 11
3 5
6
5 5
1
2
3 1
2 2
1
5
8
9
10
9 9
15
14
0
2
4
6
8
10
12
14
16
18
SpinningWeavingKnittingProcessingGarmentingTechnical
textile
including
non woven
CompositeEmbroidery
No. of Respondents
Segments
No Response May be Not Achieved Achieved
Source -Technopak analysis
Respondent-17 Technology Upgradation Assessment
165
UHS Analysis - Beneficiaries
The Consultant conducted primary research with 559 Unit holders (UHS) to get inputs on level of
technology across all textile and apparel segments and for global benchmarking. Out of 559
respondents, 24% respondents felt that technology levels across segments have reached global
standards. 76% respondents felt that across segments India is yet to match global technology
standards. Spinning is one segment where the technology levels in India match the global
technology levels.
Exhibit 205: Technology upgradation level achieved by TUFS
Segment-wise Technology Upgradation level achieved by TUFS – Beneficiary Analysis
In UHS, the Consultant covered 559 respondents in total. The respondent base for each segment
is mentioned below under the individual segment graphs. Segment wise response on technology
levels by all the 559 respondents is given below:
Exhibit 206: Segment-wise Technology Upgradation level achieved by TUFS- Beneficiaries
24%
35%
40%
As per Global standards
As per Indian standards
As per requirements/Budget
Source-Technopak analysis
Respondents: 559
13%
50%
37%
Spinning
Source-Technopak analysis
Respondents: 38
19%
32%
49%
Weaving
Source-Technopak analysis
Respondents: 282 Technology Upgradation Assessment
166
23%
36%
41%
Processing
Source-Technopak analysis
Respondents: 66
45%
45%
10%
Knitting
Source-Technopak analysis
Respondents: 31
27%
43%
29%
Garmenting
Source-Technopak analysis
Respondents: 51
42%
30%
28%
Others
Source-Technopak analysis
Respondents: 43
33%
33%
33%
Technical Textiles
including non-woven
Source-Technopak analysis
Respondents: 48
As per global standards As per Indian standards As per requirements/ budget
Technology Upgradation Assessment
167
Segment-wise Technology Upgradation level achieved by TUFS – Non- Beneficiary Analysis
In UHS, the Consultant covered 108 non-beneficiaries. The respondent base for each segment is
mentioned below under the individual segment graphs. Segment wise response on technology
levels by all the 108 respondents is given below:
Exhibit 207: Segment-wise Technology Upgradation level achieved by TUFS- Non-Beneficiaries
29%
57%
14%
Technical Textiles
including non-woven
Source-Technopak analysis
Respondents: 7
100
%
0%0%
Others
Source-Technopak analysis
Respondents: 5
55%
20%
25%
Weaving
Source-Technopak analysis
Respondents: 40
83%
0%
17%
Knitting
Source-Technopak analysis
Respondents: 6
36%
55%
9%
Processing
Source-Technopak analysis
Respondents: 22
61%
25%
14%
Garmenting
Source-Technopak analysis
Respondents: 28
As per global standards As per Indian standards As per requirements/ budget
Technology Upgradation Assessment
168
Secondary Research
To understand India’s position in different segments, The Consultant has analysed past
shipments. India has been above the global average for modernization rate in Spinning (Exhibit
208). India is way ahead of all other competing nations except China in shipments of Spinning
machinery (Exhibit 209). India has maintained its share of shipments and installed capacity over
last 4 years.
Exhibit 208: Global Machinery Shipments - Spinning
Countries
Spindles (Spinning)
Installed
Capacity
Cumulative
Shipments
Rate of
Modernization
Installed
Capacity
Cumulative
Shipments
Rate of
Modernization
Installed
Capacity
Cumulative
Shipments
Rate of
Modernization
2013 2005 – 13 2016 2008 – 16 2017 2009 – 17
India 50,451 20,893 41% 53,529 19,292 36% 53,491 21,190 40%
China 113,623 57,178 50% 103,623 49,645 48% 103,620 53,581 52%
Bangladesh 9,815 3,784 39% 11,665 4,006 34% 12,515 4,516 36%
Vietnam 5,102 2,831 55% 6,952 4,127 59% 6,952 4,373 63%
Pakistan 11,981 3,394 28% 13,469 2,135 16% 13,435 2,626 20%
Turkey 7,875 3,297 42% 8,675 3,506 40% 8,675 3,704 43%
Indonesia 11,901 3,349 28% 12,207 3,843 31% 12,303 4,245 35%
Brazil 5,270 494 9% 4,671 551 12% 4,500 565 13%
Italy 2,930 128 4% 2,925 99 3% 2,925 118 4%
Mexico 3,767 257 7% 2,576 319 12% 2,577 366 14%
World 259,060 100,294 39% 249,702 92,318 37% 251,038 101,035 40%
Exhibit 209: Share of shipments (Spinning)
Countries
Shipments
2014
Global
Share
2014
Shipments
2017
Global
Share
2017
Shipments
2018
Global
Share
2018
China 4,446 45% 3,936 45% 3,865 44%
India 2,188 22% 1,899 22% 1,455 17%
Vietnam 750 8% 246 3% 868 10%
Bangladesh 349 4% 510 6% 708 8%
Turkey 661 7% 198 2% 537 6%
Pakistan 347 3% 491 6% 274 3%
Indonesia 502 5% 401 5% 143 2%
World 9,942 8,717 8,798
Exhibit 210: Share of installed capacity (Spinning)
Countries
Installed
Capacity
2013
Global
Share
2014
Installed
Capacity
2016
Global
Share
2017
Installed
Capacity
2017
Global
Share
2018
China 113,623 44% 103,623 41% 103,620 41%
India 50,451 19% 53,529 21% 53,491 21%
Pakistan 11,981 5% 13,469 5% 13,435 5%
Bangladesh 9,815 4% 11,665 5% 12,515 5%
Indonesia 11,901 5% 12,207 5% 12,303 5%
Turkey 7,875 3% 8,675 3% 8,675 3%
Vietnam 5,102 2% 6,952 3% 6,952 3%
World 259,060 249,702 251,038
Note: Figures in thousands, Rate of modernization is given by cumulative shipments divided by installed capacity
Source: ITMF, Secondary Research, Technopak Analysis Technology Upgradation Assessment
169
India has low rate of modernization due to presence of high number of shuttle looms in MSME
sector (Exhibit 211). In 2018, India imported more shuttle less looms than next 5 competing
countries put together (Exhibit 212). Type of looms (level of technology) being imported in
India is similar to all other competing nations.
Exhibit 211: Global Machinery Shipments - Weaving
Exhibit 212: Share of shipments (Weaving)
Countries
Shipments
2014
Global
Share
2014
Shipments
2017
Global
Share
2017
Shipments
2018
Global
Share
2018
China 33 46% 50 52% 91 68%
India 16 23% 21 22% 17 13%
Indonesia 2 3% 4 4% 5 3%
Bangladesh 5 8% 6 6% 4 3%
Turkey 2 3% 3 3% 4 3%
Vietnam 2 3% 2 2% 2 1%
Pakistan 2 2% 2 2% 2 1%
World 72 96 134
Exhibit 213: Share of installed capacity (Weaving)
Countries
Capacity
Installed
2013
Global
Share
2013
Capacity
Installed
2017
Global
Share
2017
China 740 56% 860 53%
India 21
+
2% 116
+
7%
Indonesia 56 4% 75 5%
Turkey 45 3% 50 3%
Bangladesh 27 2% 40 2%
Pakistan 28 2% 38 2%
Vietnam 7 1% 7 0%
World 1,333 1,627
Note: Figures in thousand, Rate of modernization is given by cumulative shipments divided by installed capacity
*Data quoted for the shuttleless looms is for mill sector only and it also includes shuttle looms in both organized and unorganized sectors;
+Data quoted for the shuttleless looms is for mill sector only
Technology Upgradation Assessment
170
India is ranked 2
nd
with 8% share of imports (2009-18) of Circular Knitting Machinery. India is
ranked 5
th
with 2% share of imports (2009-18) of Flat Knitting machinery.
Exhibit 214: Global Machinery Shipments - Knitting
India is ranked 2
nd
with 7% share of imports (2009-18) of Draw-Texturing Machinery shipments
Exhibit 215: Global Machinery Shipments - Draw-Texturing
Countries
Cumulative Shipments of Draw-Texturing Machinery
2005-14 2008-17 2009-18
Total Share % Total Share % Total Share %
India 413,236 10% 345,322 8% 354,202 7%
China 2,925,300 68% 2,930,216 66% 3,281,208 66%
Vietnam 62,464 1% 61,872 1% 79,152 2%
Turkey 75,084 2% 105,264 2% 111,744 2%
Bangladesh 4,800 0% 1,512 0% 1,752 0%
Pakistan 14,160 0% 13,200 0% 14,880 0%
USA 27,512 1% 44,590 1% 46,986 1%
Egypt 39,774 1% 41,766 1% 41,766 1%
Indonesia 28,212 1% 36,828 1% 41,388 1%
Brazil 36,936 1% 41,166 1% 40,978 1%
Chile 9,600 0% 15,840 0% 17,520 0%
Germany 7,644 0% 11,040 0% 11,280 0%
World 4,301,268 4,435,271 4,944,503
Countries
Cumulative Shipments of Circular Knitting Machinery Cumulative Shipments of Flat Knitting Machinery
2005-14 2008-17 2009-18 2005-14 2008-17 2009-18
Total
Share
%
Total
Share
%
Total
Share
%
Total
Share
%
Total
Share
%
Total
Share
%
India 13,594 4% 22,856 8% 25,546 8% 10,179 1% 12,999 2% 18,208 2%
China 213,031 70% 189,464 64% 202,040 62% 509,355 47% 477,360 68% 599,903 70%
Vietnam 3,124 1% 7,217 2% 8,760 3% 11,115 1% 14,774 2% 18,916 2%
Turkey 11,541 4% 11,246 4% 12,709 4% 14,270 1% 18,074 3% 20,461 2%
Bangladesh 10,613 4% 12,025 4% 13,344 4% 409,328 37% 80,633 12% 94,415 11%
Pakistan 1,148 0% 1,816 1% 2,342 1% 891 0% 1,151 0% 1,318 0%
Italy 1,440 0% 1,380 0% 1,501 0% 9,049 1% 9,910 1% 10,909 1%
Indonesia 6,859 2% 8,356 3% 9,504 3% 11,727 1% 4,026 1% 4,745 0%
Thailand 2,634 1% 2,691 1% 2,930 1% 5,858 1% 8,127 1% 8,432 1%
Brazil 5,554 2% 4,298 1% 4,473 1% 1,819 0% 2,623 0% 3,166 0%
World 302,718 298,061 324,876 1,094,790 698,147 858,555
Source: ITMF, Secondary Research, Technopak Analysis
Source: ITMF, Secondary Research, Technopak Analysis Technology Upgradation Assessment
171
6.3 Global Benchmarking – Comparison with competing countries on technology level
The Consultant tried to compare the technology level in each segment with 5 other competing
nations. The Consultant got response from 17 Key Informants on the question “rank the
following countries in terms of the level of technology (machines) being used for each sector.
Their responses were collated and Segment wise analysis is given below:
In spinning segment, India ranks at top in terms of technology along with China among the 6
countries followed by Vietnam, Turkey, Bangladesh and Pakistan.
Exhibit 216: Spinning
In the weaving segment, India has been ranked low, in terms of technology level, majorly because
of high number of power looms in India. Power looms and handlooms have the lowest technology
level in weaving. More than 70% of weaving production in India comes from decentralised power
loom sector. India has more than 2 lac power loom units and significantly large number of
handlooms. China ranks at the top in terms of technology followed by Turkey.
Exhibit 217: Weaving/Knitting
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopak analysis
Respondent -17
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopakanalysis
Respondent-17 Technology Upgradation Assessment
172
In processing segment, India has been ranked among the lowest in terms of technology among
these 6 countries. India has a lot of unorganized players in processing segment, who use outdated
technology. Processing consists of removing dirt, natural and synthetic oils bring out lustre to
fibers, but most of the processing in India is still carried out by batch technology that reduces
uniformity in fabric properties. The continuous processing range provides best uniformity in
fabric properties. Independent Process houses and composite units with processing facility
contribute only a little to the total processed fabric produced in India.
Exhibit 218: Processing
In garmenting segment, India’s has been ranked number 4 in terms of technology amongst these
6 countries. India has more than 2.5 lac garmenting units. Average size of a garmenting unit in
India is much lower than that of China, Bangladesh and Vietnam. Lot of these units in unorganized
sector does not use high level of technology.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopak analysis
Respondent -17
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopak analysis
Respondent -17
Exhibit 219: Garmenting Technology Upgradation Assessment
173
In the Technical Textiles segment, India has been ranked 4 by the respondents in terms of
technology among these 6 countries. China is the leader in technical textiles technology levels
like in most other segments.
In Textile Machine Manufacturing segment, India has been ranked 3 in terms of technology
among these 6 countries. European countries such as Germany, Switzerland, Italy and Japan are
considered the leaders for textile machinery manufacturing. Companies from these countries
have set up units in China in last 10-15 years making China also a major player in textile machine
manufacturing. India is strong in spinning machinery manufacturing. Most of the infrastructure
of domestic machinery manufacturers is outdated and produce obsolete machinery. This is one
of major reason; India imports most of the textile machinery. In other segments like processing,
weaving India’s technology levels is way behind the global leaders.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopak analysis
Respondent -17
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cumulative Score
Country
Source-Technopak analysis
Respondent -17
Exhibit 221: Textile Machine Manufacturing
Exhibit 220: Technical Textiles Technology Upgradation Assessment
174
6.4 Evaluation Matrix for Technology assessment of Textile Segments
The Consultant conducted primary and secondary research to find out which textile segment
should be given preference for subsidy under TUFS. The Consultant created an evaluation matrix
with six parameters important for technology assessment of all major 6 textile segments viz
Spinning, weaving, knitting, processing, garmenting, technical textiles. After multiple discussions
with industry experts, six parameters considered for the evaluation matrix are –
1. % of machine cost in total project cost
2. Absolute capex required for viable project
3. Current technology level in India
4. Return on investment
5. Trade surplus/deficit (Export-Import)
6. Technology obsolescence period.
Information was gathered for each segment for all the 6 selected parameters and Exhibit 222
was filled. These figures are based on the Consultant’s industry knowledge, primary research with
machinery experts and textile consultants. There is some subjectivity to these numbers for each
segment as there are multiple variables involved. The Consultant used thumb rules and industry
benchmarks to arrive at the figures for each textile segments.
Separate grades were allotted to each segment on basis of values assigned to each parameter.
An average grade has been evaluated and all the segments are ranked on the basis of grades.
Based on the machinery ranking analysis segment-wise recommendations have also been
provided for every segment.
Exhibit 222: Machinery Matrix
Segment
% Machine
cost in
total
project
cost
Absolute
capex
required for
viable project
(INR Crores)
Current
technology
level in
India
(Grade 1-5)
Return on
Investments
(Number of
years)
Trade
surplus/
deficit (in
USD Mn)
Technology
Obsolescence*
(Number of
years)
Spinning 55-60% 85-95 5 6 3,671 9-10
Weaving 60-65% 30-40 3 7 2,604 7-8
Knitting 65-70% 25-30 3 6 -59.2 5-6
Processing 55-60% 140-150 2 6.5 2,604 4-5
Garmenting 30-35% 15-25 4 5.5 14,164 5-6
Technical
Textiles
55-60% 35-40 3 5 -100.3 6-7
Note: Grade 1 indicates lowest level of technology, Grade 5 indicates highest level of technology ; Source: Technopak Analysis Technology Upgradation Assessment
175
Exhibit 223 represents the scores and grades given for each parameter across textile segments.
Each segment was ranked against each other for all the six parameters. Final score was arrived
for all the 6 textile segments. The lowest score segment got the highest rank in terms of priority
to be given for TUFS subsidy. Processing emerged as the highest ranked segment and
garmenting as the lowest ranked segment.
Exhibit 223: Evaluation Matrix (Ranking of segments) for Technology Assessment
Segment
%
Machine
cost in
total
project
cost
Absolute
capex
required
for viable
project
(INR
Crores)
Current
technology
level in India
(Grade 1-5)
Return on
Investments
(Number of
years)
Trade
surplus/
deficit
(Score
1-6)
Technology
Obsolescence
(Number of
years)
Overall
score
Rank of
sector
Spinning 3 2 6 3 5 6 4.2 5
Weaving 2 4 2 1 3 5 2.8 3
Knitting 1 5 2 3 2 2 2.5 2
Processing 3 1 1 2 3 1 1.8 1
Garmenting 6 6 5 5 6 2 5 6
Technical
Textiles
3 3 2 6 1 4 3.2 4
Source: Technopak Analysis
Exhibit 224 represents the recommendations for TUFS subsidy based on the ranking arrived from
the evaluation matrix. Highest subsidy % and highest budget allocation should be given to the
highest ranked segment Processing. Technopak propose that Subsidy % for processing may be
increased to 20-25% and budget allocation for processing should be 30-40%. Similar
recommendations have been made for all the textile segments. Technopak propose that spinning
and garmenting may be kept out of ATUFS going forward and more focus to be given to
processing, weaving, knitting and technical textiles.
Technology Upgradation Assessment
176
Exhibit 224: Segment–wise Recommendations for ATUFS subsidy
Segment
Overall rank
of sector
Proposed
subsidy (%)
Share in total
subsidy budget
(%)
Expected
investment per
year under TUFS
(2022 onwards)
Spinning 5 0% 0% 0
Weaving 3 15% 20% Rs. 5,300 Cr.
Knitting 2 15% 20% Rs. 2,300 Cr.
Processing 1 20-25% 30-40% p
Garmenting 6 0%
*
0% 0
Technical Textiles 4 15% 20% Rs. 5,100 Cr.
Total Expected Investments Rs 20,300 Cr.
(USD 2.7 Bn)
Note: * Latest machinery (Industry 4.0) should be given subsidy under TUFS
Expected investments are based on broad level assumptions and investment thumb rules for each textile segment.
Source: Technopak Analysis
Additional questions for this project
177
7. ADDITIONAL QUESTIONS FOR THIS PROJECT
1. Whether the intended technological upgradation has taken place?
Refer the Sections 6.2 (Current Technology (Machinery) Level in India in Textile & Apparel - Page
164-170) and 6.3 (Global Benchmarking – Comparison with competing countries on technology
level – Page 171-173)
• India has been above the global average for modernization rate in Spinning
• India has low rate of modernization in weaving due to presence of high number of shuttle
looms in MSME sector. Type of looms (level of technology) being imported in India is similar
to all other competing nations.
• India is ranked 2nd and 5th for import of Circular Knitting and Flat Knitting shipments M/c
respectively
• India is ranked 2
nd
in imports of Draw-Texturing Machinery shipments
Exhibit 225: ATUFS Beneficiaries’ - Weaving, Knitting Machinery analysis
Knitting Machines
Number of units Number of machines Average Machines/units
2016-17 2017-18 2018-19 2016-17 2017-18 2018-19 Total 2016-17 2017-18 2018-19
High speed circular knitting
(20 RPM)
14 8 4 87 58 42 187 6 7 11
High speed circular
knitting(15 RPM)
26 17 9 119 55 43 217 5 3 5
40 25 13 206 113 85 404 5 5 7
• 43% of the looms installed during ATUFS are high speed air jet looms (WIR>=1200 mpm)
• Average number of shuttle-less looms per unit are 12 indicating that most of the units are
from MSME sector
Weaving Machines
Number of units Number of machines Average Machines/units
2016-17 2017-18 2018-19 2016-17 2017-18 2018-19 Total 2016-17 2017-18 2018-19
Rapier WIR>= 380 mpm 46 88 47 389 894 459 1,742 8 10 10
Air Jet WIR>=1200 mpm 57 76 20 471 1,946 375 2,792 8 26 19
Air Jet WIR>=900 mpm 3 8 5 96 169 90 355 32 21 18
Water Jet WIR>= 1000
mpm
12 25 21 316 445 191 952 26 18 9
Water Jet WIR>= 800 mpm 3 32 5 73 515 42 630 24 16 8
121 229 98 1,345 3,969 1,157 6,471 11 17 12
Source: Office of the Textile Commissioner, Technopak Analysis Additional questions for this project
178
2. Whether the benefits have been cornered by only a few large companies or has the
benefit flowed to MSME as well?
Exhibit 226: Subsidy released under schemes
• Benefits to MSMEs has been increasing under TUFS schemes. 87% of total beneficiaries under
ATUFS are MSMEs.
• Amount of subsidy received by MSMEs has increased from 10% to 36% from RTUFS to ATUFS
period.
• Number of MSME beneficiaries have risen from 77% to 87% from RTUFS to ATUFS period with
a fall to 61% during RRTUFS period.
Source: Office of the Textile Commissioner, Technopak Analysis Additional questions for this project
179
3. Whether benefits have flowed to the complete value chain of the Textile Industry or
just a particular sector & its impact?
Exhibit 227: Subsidy released under schemes segment-wise
RTUFS
(28.04.11 - 31.03.12)
RRTUFS
(01.04.12 - 02.01.16)
ATUFS
(13.01.16 - 31.01.20)
Segments
Total
(in INR
Crores)
Share
Total
(in INR
Crores)
Share
Total
(in INR
Crores)
Share
Spinning 1,176 25% 722 13% - -
Weaving/ Knitting 643 14% 436 8% 155 51%
Processing 602 13% 615 11% 60 19%
Garmenting 164 3% 393 7% 43 14%
Technical Textiles 417 9% 626 11% 48 16%
Multi-Activity 1,490 32% 2,806 49% - -
Others 239 5% 90 2% 1 0%
Total 4,731
5,688
307
• TUFS benefits has been taken by all segments of textile value chain.
• During RTUFS, Spinning segment received ~25% of the released subsidy.
• During RRTUFS, Spinning, Processing and Technical Textiles received ~13%, ~11%, ~11%
of the released subsidy respectively.
• During ATUFS, Weaving segment has received ~51% of the released subsidy.
Source: Office of the Textile Commissioner, Technopak Analysis Additional questions for this project
180
4. Whether productivity of the textile sector has improved?
Refer the Exhibit 81, Exhibit 82 and Exhibit 83
• Productivity of Textile sector has improved as indicated by the UHS and KII Analysis.
• During TUFS period, all the segments witnessed an increase in production, owing to
upgraded technology and improvement in capacity addition
• 37% of the respondents witnessed production increase of greater than 20%
• 94% of the interview respondents and 10% of the expert panels felt that there was
significant impact of TUFS on increase of Production
5. Whether commensurate investments from the industry side have taken place?
From Exhibit 27,
Average investment from the industry during TUFS is INR 16,175 Crores per year (1999-2019).
Average investment in RTUFS, RRTUFS and ATUFS is Rs 13.7 Cr, Rs 5.1 Cr and Rs 4.2 Cr
respectively.
Note: ‘ 2010-11 Budgeted subsidy exhausted due to overwhelming response * 2015-16 Data not available
Source: Ministry of Textiles, Technopak Analysis Additional questions for this project
181
• Share of investments by MSMEs have increased from 11% to 32% from RTUFS to ATUFS
period.
• Non-MSMEs in spinning segment have invested heavily during RTUFS and RRTUFS
Exhibit 228: Project Investments under schemes
Segment MSME Share Non-MSME Share Total
Multi-Activity 307 3% 10,571 97% 10,878
Spinning 312 4% 7,261 96% 7,573
Technical Textiles 669 28% 1,722 72% 2,391
Processing 648 28% 1,676 72% 2,325
Garmenting 757 50% 768 50% 1,524
Weaving/ Knitting 538 41% 762 59% 1,300
Others 316 57% 238 43% 554
Total 3,547 13% 22,998 87% 26,545
Segment MSME Share Non-MSME Share Total
Weaving/ Knitting 971 47% 1,108 53% 2,078
Processing 208 22% 742 78% 950
Garmenting 75 11% 595 89% 669
Technical Textiles 115 21% 427 79% 542
Other 14 85% 2 15% 17
Total 1,382 32% 2,875 68% 4,257
Segment MSME Share Non-MSME Share Total
Spinning 114 2% 6,194 98% 6,308
Multi-Activity 34 1% 6,070 99% 6,104
Weaving/ Knitting 838 33% 1,670 67% 2,508
Processing 398 18% 1,754 82% 2,151
Technical Textiles 338 20% 1,358 80% 1,696
Others 119 11% 978 89% 1,096
Garmenting 327 49% 342 51% 669
Total 2,167 11% 18,365 89% 20,532
RTUFS
(28.04.11 - 31.03.12)
RRTUFS
(01.04.12 - 02.01.16)
ATUFS
(13.01.16 - 31.01.20) Additional questions for this project
182
6. Whether there is a causal relationship between the subsidy provided, technology
upgradation and the increase in exports?
Refer Exhibit 113, Exhibit 114
India’s global competitiveness improved considerably in Spinning due to TUF Scheme and the
global textiles & clothing trade share increased from 3% to 5.1% until RTUFS and decreasing post-
RTUFS.
Exports in T&A industry grew along with increase in production and overall competitiveness due
to addition of technologically advanced machineries. Although, since exports are highly
dependent on macro-economic factors hence causal relationship between subsidy provided
cannot be established with increase in exports.
7. Whether intended jobs have been generated?
Refer Exhibit 140, Exhibit 141
• TUF Scheme contributed positively to employment generation and helped in growth of
income and improving livelihood of the workers as indicated by the UHS and KII analysis.
• 39% of the respondents witnessed total manpower increase of < 20, while 21%
respondents witnessed total manpower increase between 20 and 50.
• Weaving, Processing, Garmenting have witnessed an increase in total manpower by 65-
75% of the respondents
Issues and Challenges
183
8. ISSUES AND CHALLENGES
From qualitative analysis (KII), Technopak have summarized the major issues and challenges
faced by the industry for ATUFS scheme and related issues of textile value chain:
DISBURSEMENT OF SUBSIDY
The delays in disbursement of subsidy is a very serious issue highlighted by KIIs. All industry
experts and industry association persons were of the opinion that disbursal has been painfully
slow in last 2-3 years. The delays were much lesser in earlier schemes. Key reasons for delays
were attributed to the lack of funds, delays in submission of JIT (Joint Inspection Team) report,
delays due to processing of documents, rejection of applications for additional requirements
because of the complex guidelines, and lack of staff for inspections. Out of total TUFS subsidy outlay
of Rs 6,271 Crores under ATUFS for 2016-2022; less than Rs 800 Crores has been disbursed till May
2020. Out of anticipated investment of Rs 95,000+ Crores under ATUFS for 2016-2022; only Rs
54,833 investments have happened from 2016 till 2020. Average investment per year has reduced
from Rs 18,000+ Crores under RTUFS (2011-2013) to Rs 1,100+ Crores under ATUFS (2016-2020).
IMPLEMENTATION MECHANISIM
Majority of the respondents find the implementation mechanism followed under TUFS
application process as complex and cumbersome. Out of 12,073 applications filed under ATUFS
till May 2020; only 873 applications have got the subsidy till May 2020. Checklist of JIT inspection
is cumbersome to comply with including machine serial numbers on the shipping documents
and Invoices. Applications and claims are processed and scrutinized at multiple levels and
stages; leading to inordinate delays.
JIT inspections are being done for 8-10 years old cases under RTUFS and some of the required
documents are not available with the beneficiaries as guidelines were different then. This is
further delaying the ATUFS cases. Some respondents shared that current e-filing mechanism in
i-TUF software is less convenient and takes sufficient amount of time in uploading documents,
which in turn delays UID (Unique Identification) generation.
Several imported machines do not have serial number and year of make. Such machines are
not considered. Cumbersome process of Certificate authentication from machinery
manufacturers. Several leading textile machinery manufacturers (having the best technology in
the world) are yet to be enlisted as they are not able to provide certain documents and the
approval process takes very long time.
SCHEME GUIDELINES / SCHEME STRATEGY
TUFS is no more looked as an industry friendly scheme and is losing importance. Most of
industry experts felt that TUFS must be revived to promote investments in textile value chain
and upgrade technology. Need of TUFS is felt more to support MSME and unorganized sectors
in weaving, processing, knitting and garmenting. Issues and Challenges
184
Fabric manufacturing (Weaving, Knitting and Processing) was regularly mentioned as weak link
in India’s textile value chain. As per industry estimates, more than 70% of production in these 3
segments comes from MSME segment. This segment does not have the financial strength to
make big investments into technology. Hence, the overall technology levels in these 3 segments
have remained much lower than global competitors. Out of total of ~24 lac looms in India; only
around 1.2 lacs are shuttle less looms. Investment into fabric segment has to be encouraged the
most to balance India’s textile production capability and enhance value added exports of
garments, made ups, technical textile products. Over the years, TUFS has failed to attract major
investments into weaving, knitting and processing.
Man-made value chain has got higher potential for growth in exports and domestic markets,
but MMF production machines like Texturizing have not been covered under TUFS. Processing
of MMF fabric is more complex for the unorganized sector; hence lot of good quality MMF based
fabric is being imported.
Industry is of the opinion that earlier schemes of TUFS were more industry friendly as they covered
working capital and interest subsidy and also their mechanism of disbursement was better.
Demand for TUFS is higher in certain states and clusters and hence some clusters are not getting
benefit of the scheme. Demand for TUFS is skewed towards 4 states viz Gujarat, Tamil Nadu,
Maharashtra, Punjab. More textile clusters in other states need to be encouraged to avail TUFS
benefits.
LIST OF MACHINES AND MACHINE MANUFACTURERS
Industry feedback is that machinery list under ATUFS needs relook. Lots of new machinery needs
to be added. New machines, technology, software and other best in class technology
advancements under Industry 4.0 should be included under ATUFS. Adoption of Industry 4.0 by
few players will have a cascading effect on the technology levels in the country. Lots of
machinery listed are outdated technology and can be excluded from the list.
Enlistment of textile machinery manufacturers also needs to be revised. Several leading
manufacturers (best in class) are yet to be enlisted due to cumbersome requirements of
enlisting.
Some industry experts from spinning segment believe that spinning should be included again in
ATUFS otherwise India may lose its competitive edge in spinning. Technopak believes that
spinning should be kept out of ATUFS. Industry experts also highlighted that domestic machinery
manufacturing is not progressing and TUFS is promoting import of textile machinery. It was
suggested to support the domestic machine manufactures through TUFS scheme.
Overall Summary of Findings
185
9. OVERALL SUMMARY OF FINDINGS
9.1 Impact of TUFS
Investments
As per the industry experts and other key stakeholders, TUF Scheme has helped a lot in
increasing the investments into textile sector over the years through capacity addition. As
per them, the investments into textile value chain would have been much lesser in absence
of TUFS. Factors such as ROI (Return on Investment), industry demand, profitability and
other macroeconomic factors affect the investments into Indian textiles industry. Over the
years, textile has become less attractive sector to invest vis-à-vis other sectors.
Investment trend under TUFS has dropped over the years, from INR 24,364 Crores per year
(during RTUFS) to INR 18,278 Crores per year (during ATUFS). Spinning and technical
textiles in particular, witnessed a significant decrease in investments from RTUFS to ATUFS
period. This drop may be attributed to lack of funds for the subsidy.
Spinning segment witnessed highest investments before it was removed under ATUFS.
After removal of spinning, weaving has become the segment with most investments. Over
70% of the investments in the spinning sector were made towards upgradation or
replacement of machinery.
UHS analysis indicates that mostly small-scale project investments have happened in textile
sector. 65% projects had investment of less than 5 crores and only 2% projects had
investments of more than 50 crores (beneficiaries). 54% of the beneficiary respondents
witnessed an increase in number of machines by less than 10%. Overall, this indicates that
industry has not been adding much machinery during the latest TUF schemes.
KII analysis indicates that 82% opined that TUFS had a positive impact on investments,
whereas 92% of the expert panel believed that TUFS had a significant impact on
investments. The industry experts commented that significant investments happened in
spinning segment after introduction of TUFS over the years. India is now, globally, among
the leading nations in spinning and a lot of this success is attributed to the TUF Scheme.
After removal of spinning under TUFS, weaving is now the leading segment taking TUFS
advantage to attract investments.
Financial Performance
TUFS subsidy had a positive impact on the financial performance of the companies over the
years, owing to reduced cost of capital, improved margins and turnovers of the textile
companies. This is one of the reasons that Indian textile industry has witnessed a lot of
demand for TUFS subsidy (10,972 applications under ATUFS till Jan 2020). Most of the
textile segments operate in the low profitability ranges of less than 10%. The factor costs
for the industry have been rising with negative impact on their profits. The research
indicates that TUFS had overall positive impact on sales, net profit and average sales price Overall Summary of Findings
186
on textile companies. Weaving segment witnessed more significant impact on financial
performance parameters than the other segments.
UHS analysis indicates that 31% respondents witnessed more than 20% rise in annual sales.
It is mainly due to an increase in production volume, a result of higher speed machines.
Weaving segment showed the highest increase in sales with 37% respondents reporting
more than 20% increase in sales. This can be attributed to the fact that lots of power looms
have been replaced by shuttle less looms in recent years. Shuttle less looms have much
higher production and lead to increase in sales. 44% of the respondents witnessed an
increase of more than 10% in net profit. Weaving and knitting segments showed positive
response of 55% and 39% respectively for profit increase of more than 10%. 44% of the
respondents witnessed an increase in per unit sales price of more than 10%, which is in line
with the increase in sales value and net profits.
The Consultant finds that UHS analysis is a better indicator of the present financial
performance of the textile units as individual companies are in a better position to
comment on the financial performance of their respective companies’ vis-à-vis industry
experts or industry associations.
The KII analysis shows that 82% respondents opined that TUFS had a significant impact on
increasing sales, 71% responded with significant impact on increasing profit, and 47%
responded with a significant impact on increasing average sales price. Whereas, as per the
expert panel, 85%, 77%, and 54% opined that TUFS had a significant impact on increasing
sales, profit, and average sales price respectively.
Production and Productivity
During TUFS period, all the segments in the textile value chain witnessed a significant
increase in production, owing to investment in upgraded technology and improvement in
capacity addition. TUFS had a positive impact on productivity and operational parameters
such as product quality, new product development, cost efficiency, better product mix etc.
This was corroborated in the UHS and KII findings.
As per the UHS analysis, 88% of the 256 respondents (beneficiary) witnessed an increase in
production volume, whereas 76% of the 85 respondents (non-beneficiaries) witnessed an
increase in production volume. 77% of the weaving segment respondents (beneficiaries)
witnessed increase in production volume >5%, while 65% of weaving respondents (non-
beneficiaries) recorded increase in production volume >5%. 93% of 559 beneficiaries
respondents believe that TUFS enhanced the overall productivity of their respective units
that is in line with responses from 108 non beneficiaries. 89% of 559 respondents
(beneficiaries) opine that the scheme contributed towards improvement in product quality,
vis-à-vis 95% of 108 respondents (non-beneficiaries). 81% (559 beneficiaries) responded
that the scheme led to product development in majority of the segments. 74% of 559
respondents (beneficiaries) opined that TUFS enabled companies to efficiently use the
available resources and reduce wastage to achieve higher cost efficiency, vis-à-vis 69% of
108 respondents (non-beneficiaries). 66% of 559 beneficiaries respondents opined that Overall Summary of Findings
187
TUFS led to R&D across some segments. 56% of 559 beneficiaries responded that the
scheme increased export competitiveness as a result of technology upgradation and
combination of the factors previously mentioned.
The KII analysis suggests that 94% and 82% respondents opined that TUFS had a significant
impact on production and productivity respectively, whereas as per the expert panel,
everybody opined that TUFS had a significant impact on production and productivity.
Exports
Most companies in Indian textile industry benefited in terms of product development and
innovative practices due to addition of technologically advanced machineries. Exports in
textile and apparel industry grew along with increase in production and overall
competitiveness. The research indicates that fabric is the weak a link in the textile value
chain, and hence it needs to be strengthened to consume the excess spinning production
and to boost apparel industry requirements by supplying right price, quality and quantity
of fabric. India’s share in global exports for T&A has remained in the range of 4-5% in the
last 5 years.
The UHS analysis indicates that TUFS beneficiaries as well as non-beneficiaries experienced
an increased export volume and an increase in average unit price. This led to an increase in
overall value of exports. 42% of beneficiary units witnessed an increase in value of exports
greater than 6%, vis-à-vis 52% of non-beneficiary units. Weaving and garmenting segments
have seen highest gains in export value. Export volume has increased due to factors such
as product development, quality improvement and improved export competitiveness.
Weaving sector showed increased exports volume as lot of high-speed shuttle less looms
were installed for export products. KII analysis indicates that 64% of respondents felt that
exports increased due to TUFS.
As per KII analysis, 65% opined that TUFS had a significant impact on exports value, which
is in line with expert panel’s opinion (69%).
Overall textile and garments export out of India have remained stagnant in last 5 years at
approx. USD 37 Bn. Exports market is affected by many other external factors such as FTA,
cost competitiveness, speed to market etc. Hence, it is difficult to directly correlate TUFS
impact on exports.
Employment Generation
TUF Scheme contributed positively to employment generation and helped in growth of
income and improving livelihood of the workers. No. of people engaged in the operational
factories has witnessed an increasing trend in the last 5 years, so have the wages per
worker in T&A industry.
UHS analysis indicates that capacity additions across the textile value chain have created
new jobs for skilled as well as unskilled manpower. Overall, majority of the companies have Overall Summary of Findings
188
witnessed <50 additional skilled labour. In Spinning, Knitting, Processing and Garmenting
segment, a significant >30% of the respondents have indicated no change in unskilled
manpower. 37% of the beneficiary’s respondents witnessed an increase of >10% in salary
of the skilled manpower, whereas 61% of the beneficiary’s respondents witnessed an
increase of >10% in salary of the unskilled manpower.
KII analysis indicates that 76% of respondents opine that TUFS had a significant impact on
employment, vis-à-vis 69% of expert panel.
Cost Savings
TUFS scheme contributed significantly to the improvement of cost efficiencies and resource
efficiencies of the textile units. Majority of companies across all segments witnessed cost
reduction between 1% and 10%.
As per UHS analysis, 76% of the 512 beneficiary respondents indicated an increase in cost
savings per unit, vis-à-vis 78% of the 76 non-beneficiary respondents. Units have also been
able to increase their cost savings and resource efficiencies to significant extent. 32% of
beneficiary respondents experienced cost saving of >10%. Cost saving of >10% was
observed to be highest in weaving segment (43%) followed by knitting segment (31%).
As per KII analysis, 76% respondents opined that TUFS had a significant impact on cost
savings, whereas 100% of expert panel opined that the scheme had a positive impact on
cost savings.
Product Quality
TUF Scheme has helped companies to improve their product quality and value addition by
shifting to technologically upgraded machines. Factors such as product development, value
addition, quality improvement and innovative practices also helped in improving Unit Value
Realization (UVR) of textile sector.
The product quality has improved significantly across the various segments as reported by
the companies; enabled due to the TUFS. 89% of the respondents (497 beneficiaries)
opined that the scheme led to improvement in product quality, vis-à-vis 95% of the non-
beneficiaries’ respondents.
KII analysis indicates that 82% respondents opined that TUFS had a positive impact on
improving quality of the products, whereas 100% of expert panel believed that the scheme
had a positive impact on quality.
Overall Summary of Findings
189
Exhibit 229 Issues, Challenges and Recommendations from KIIs
In the discussions with key informants, the above phrases were frequently mentioned. In
the above “Word Cloud”, the larger fonts indicate that a greater number of informants
shared the same opinion.
As per the analysis of the above ‘Word Cloud’; TUFS has played a major role in the growth
of Indian textile industry - in attracting investments, increasing employment generation,
and improving capacity addition. However, majority of the Indian textile industry is still
unorganized and requires sufficient financial support from the Government to be able to
invest in large capacities and are able to use technologically advanced machines. This
analysis suggests that TUFS Scheme should be continued to help the industry become
technologically advanced and achieve its maximum potential. Indian textile industry lacks
balancing of textile value chain and that significant amount of investment is required to
develop downstream capacities. It was suggested that we do segment wise gap analysis
and add value to each segment accordingly. The Indian textile industry needs to promote
MMF in order to become globally competitive. The normal grievance of industry is also
highlighted as delays in disbursements and request to expedite TUFS subsidy and simplify
TUFS process implementation. Overall Summary of Findings
190
9.2 Macroeconomic factors
Investments in Textile and Apparels
As per KII analysis, major factors impacting investments are power, interest rate, and lack
of scale. 55% respondents ranked power and interest rates as major factors, which is in line
with expert panel’s opinion (50%).
Whereas, as per the UHS analysis, major factors impacting investments are manpower cost,
interest rate, and GST. As per the KII analysis, one of the major factors impacting
investments is “lack of scales”, which as per UHS analysis is ranked as the least impacting
factors.
Exports
As per KII analysis, major factor impacting exports are trade agreements, scale (small units),
and raw material cost. 70% ranked trade agreement as a major factor impacting exports,
which is in line with expert panel’s opinion (79%).
Whereas, as per the UHS analysis, major factors impacting exports are labor productivity,
man-power cost, and interest rates. As per the KII analysis, the major factor impacting
exports is “trade agreements”, which as per UHS analysis is ranked as the least impacting
factor. Overall Summary of Findings
191
FDI Investment in Textile and Apparel
CHALLENGES RECOMMENDATIONS
Lower Interest Rates
Competing nations such as
Bangladesh and Vietnam have
interest rates between 5-7%, vis-à-
vis India’s between 11 and 13%
Increase FTAs with Major and
Emerging Markets
Duty advantages provided
through FTA will help improve
cost competitiveness of exports
with competing nations
Fast Track Clearances
Dedicated staff should be available
24*7 for the clearance of import
and export goods ~ it is also
important to effectively create
single window clearance for the
processing of the documents
Lack of Single Window Clearance
Lack of single window and time
bound clearance impacts India’s
image for the FDI investors
List of Industries for automatic
approval
Government can consider having a
dedicated FDI policy for apparel
sector spelling out where the
approvals will be automatic and
where they will be case by case basis
High Cost of Financing
As per the KIIs, high interest rates
impact
cost of production and as a result
impact investment
Lack of FTAs with Major Markets
Competing nations such as
Bangladesh, Vietnam enjoy FTAs
with US/EU markets, giving them
competitive advantage over India
List of Industries for automatic
approval
Indian T&A industry is still out of
the list of industries enjoying
automatic approval for 51% FDI Overall Summary of Findings
192
Promoting domestic machinery manufacturing
1 2 3
•Around 75% of the textile
machines are imported
•Lack of investment into R&D
and latest technology by
domestic machine
manufacturers
•No attractive scheme for the
textile machinery
manufacturing
•Encourage JVs (Joint Ventures)
and FDIs (Foreign Direct
Investment) and leverage Anti-
China sentiment
•Establish mega parks for textile
machine manufacturing at TN
and Gujarat
•Devise a special scheme with
liberal policies and long-term
benefits for machine
manufacturing including R&D,
plug and play facility
•Domestically manufactured
machines with JVs will be of
same international quality at a
much lower price
•Ensure sustained growth of
the textiles and clothing
manufacturing industry
•Lower cost of machinery and
also consumables will lead to
better margins for textile
manufacturers
CHALLENGE SUGGESTIONS IMPACT Overall Summary of Findings
193
9.3 Technology Upgradation Assessment
Study of machinery Specifications and recommendations on ATUFS machinery list
Technopak team conducted 16 interviews with leading machinery manufacturers and
industry stakeholders in textile machinery segment to take their inputs. There are 469 types
of machines listed under ATUFS for subsidy. There are approx. 590 machine manufacturers,
who are approved under ATUFS.
Technopak categorized the long list of machines listed under ATUFS into 2 categories –
“Core process machines” and “Ancillary process machines”. This is a subjective
classification and may require further deliberations along with the industry. Core Process
machines (285 out of 469) perform the major process in the manufacturing of the product.
Ancillary process machines (184 out of 469) mainly support the manufacturing process.
Technopak further analysed only ‘Core process machines’ and have provided technical
recommendations for them only. Technopak has made recommendations on speed for the
selected machinery for each textile segment. In some cases, like weaving and knitting,
Technopak has given speed recommendations separately for MSME (Unorganized sector)
and Non-MSME (Organized sector).
Current Technology (Machinery) Level in India in Textile & Apparel
Technopak conducted primary research with 559 beneficiary and 108 non-beneficiary unit
holders to get inputs on level of technology across various segments of textile value chain
and for global benchmarking. We also conducted primary research with 17 industry experts
(KII) to assess current technology level in India.
As per UHS analysis, 24% of the beneficiaries felt that technology levels in India have
reached global standards and 76% felt that technology levels across segments India is yet
to achieve global standard. Spinning was found be the most upgraded segment amongst
all because of the organized infrastructure.
As per KII analysis, 70% (12) respondents opined that in spinning segment India has
achieved global technology standards, while in all other segments we are lagging behind.
India lacks behind in technology in all other segments. Hence, the overall standard of the
Indian textile industry is quite low and needs modernization. Most of the respondents also
shared that big players (organized sector) uses global level of technology across segments.
But the number and share of such organized players in Indian textile value chain is quite
low. Hence, overall standard of technology level in textile segments is much lower than
global standard.
Overall Summary of Findings
194
Global Benchmarking of Technology Level
Technopak conducted primary research with 17 industry experts (KII) to compare the
technology level in each segment in India with 5 other competing nations viz. China,
Vietnam, Turkey, Bangladesh and Pakistan.
In spinning segment, India ranks at top in terms of technology along with China among the
6 countries followed by Vietnam, Turkey, Bangladesh and Pakistan. In the weaving
segment, India has been ranked last, in terms of technology majorly because of high
number of power looms in India. China ranks at the top in terms of technology. In
processing segment, India has been ranked among the lowest in terms of technology
among these 6 countries. India has a lot of unorganized players in processing segment, who
use outdated technology. In garmenting segment, India’s has been ranked number 4 in
terms of technology amongst these 6 countries. In the Technical Textiles segment, India
has been ranked 4 by the respondents in terms of technology among these 6 countries.
China is the leader in technical textiles technology levels like in most other segments. In
Textile Machine Manufacturing segment, India has been ranked 3 in terms of technology
among these 6 countries. European countries such as Germany, Switzerland, Italy and
Japan are considered the leaders for textile machinery manufacturing.
Evaluation Matrix for Technology assessment of Textile Segments
Technopak conducted primary and secondary research to find out which textile segment
should be given preference for subsidy under TUFS. Technopak created an evaluation
matrix with six parameters important for technology assessment of all major 6 textile
segments viz Spinning, weaving, knitting, processing, garmenting, technical textiles.
Technopak has made recommendations for TUFS subsidy based on the ranking arrived from
this evaluation matrix. Highest subsidy % and highest budget allocation should be given to
the highest ranked segment viz. Processing. Technopak proposes that Subsidy % for
processing may be increased to 20-25% and budget allocation for processing should be 30-
40%. Similar recommendations have been made for all the textile segments. We propose
that spinning and garmenting may be kept out of ATUFS going forward and more focus to
be given to processing, weaving, knitting and technical textiles
Recommendations
195
10. RECOMMENDATIONS
TUFS is the flagship scheme of Ministry of Textiles and has matured over the years since its
TUFS is the flagship scheme of Ministry of Textiles and has matured over the years since its
inception in 1999. This scheme is very important for the industry and is always taken into
consideration while planning investments. During interactions with industry stakeholders
(KII), various recommendations and suggestions were discussed. Technopak have
summarised the major recommendations given by the stakeholders:
SCHEME STRATEGY AND GUIDELINES
Promotion of TUFS: Most of the industry people support TUFS and
strongly believe that it can help promote investment into textile sector.
Overall, TUF scheme is regarded as a successful scheme by the industry.
But, in last few years, the scheme has lost its popularity. TUFS should
be promoted to the industry at large after some overall changes. It will
help to boost investment into textile sector and help to upgrade
technology.
Balancing the Production Capacity of Textile Value Chain: India has
capacity imbalance from yarn to fabric to garments. ~35% of yarn
produced in India is exported as fabric capacity is not available. We lose
out on value added exports opportunity. Healthy fabric industry will
help utilize capacity of spinning and will boost the garmenting segment
by providing quality raw material. We should focus to promote fabric
sector viz. weaving, knitting and processing under TUFS. Still, fabric
segment is mostly unorganized in India and lacks financial strength to
invest in latest technology and add large capacity.
Higher Subsidy for weaving, knitting and processing: Weaving, knitting
and processing may be given higher allocation in TUFS subsidy budget.
It can be 30-40% for processing and 20% each for weaving and knitting
of the overall TUFS budget. Capital Subsidy for these segments may also
be kept higher. Capital Subsidy may be increased to 20-25% for
processing and 15% each for weaving and knitting.
It will be useful to target spinners in India to go for value addition into
high end technology machines for weaving, knitting, processing,
technical textiles. They already have the raw material availability and
better lending capabilities than standalone weavers, knitters and
processors.
Recommendations
196
Focus on Man Made Fiber (MMF) Value Chain: MMF has better
potential for growth in domestic and exports markets. Within MMF
value chain fabric segment can be focused as mentioned above.
Clusters with MMF value chain production may be focused for TUFS
benefit.
Differential Technology Specifications for MSME: MSME sector does
not have financial capabilities to upgrade to best technology levels.
Differential technology specifications slab is proposed for MSME
segment under ATUFS machinery listing for some of the machines.
Promote Technical Textile under TUFS: Technical textiles; especially
Medical Textiles, should be given special impetus under TUFS to
promote more investments and latest technology use. Subsidy budget
for technical textiles can be 20% of total TUFS subsidy. Capital Subsidy
for technical textiles may be kept as 15%.
TUFS IMPLEMENTATION
Delays in Disbursements: All the industry stakeholders talked about
the delay in disbursements at various stages. Addressing the delays in
disbursement of subsidy such as document approval, JIT, final approval
and actual disbursement needs to be done. TUFS cases need to be
cleared faster to regain the confidence of industry in TUFS.
Technical Think Tank with Industry Participation: Technopak propose
that a strong Think Tank with strong industry participation from various
industry segments should be created to advise on all technology aspects
of TUFS. This Think Tank will consist of government officials, industry
leaders, machinery experts, technical consultants. This will help in
addressing technology related issues and making the implementation
process faster. Recommendations
197
MACHINE LISTING AND MANUFACTURERS LISTING UNDER ATUFS
Revision of Machine list: Current machine listing needs revision as per
the current technology standards and industry requirements. Some
recommendations have been given by us but more detailed study is
required to finalize it.
Promote Industry 4.0 Technology: Separate list of machines,
technology, and software to be included under ATUFS. Separate budget
may be allocated for this segment under ATUFS. Garment segment can
be promoted in this budget.
Promote Domestic Machine Manufacturers: Sourcing of machines
from domestic textile machine manufacturers should be promoted
under TUFS. This can be done through higher subsidy provision for
domestic manufacturers. Domestic machine manufacturing ecosystem
needs to be improved significantly by promoting R&D and innovation
for developing state-of-the-art machines. This can be promoted
through mega textile parks for machine manufacturing. Encourage JVs
(Joint Ventures) and FDIs (Foreign Direct Investment) from European
and Japanese machine manufacturers. Devise a special scheme with
liberal policies and long-term benefits for machine manufacturing
including R&D, plug and play facility.
Limitations of the study
198
11. LIMITATIONS OF THE STUDY
The findings of this study must be seen in light of some limitations. These limitations are
mentioned below:
1. Technology Upgradation Assessment (Machinery report) – There is lack of data
availability (at pan India level) required for the technology assessment across various
textile segments and comment on technology upgradation over a period of last 10-15
years. It is difficult to assess the past levels of technology due to data constraints. For
this study, we have tried to overcome this limitation by analyzing machine shipment
data into India over last many years. We have also done global benchmarking of
technology levels in India with other competing nations, using machine shipment data.
2. ATUFS machine listing study was done with the help of inputs from few industry experts
and recommendations are provided in this study, based on limited time for this
purpose. Detailed study needs to be further done for revising the machine listing under
ATUFS; wherein more technical experts from all segments of textile value chain need to
contribute.
3. There is lack of existing data available at pan India level for production, total no of
machines, no. of units, type and technology of machines, capacity utilization, efficiency,
sales output, employment etc. for different segments of textile value chain. For the
purpose of this study, we tried to collect this data from different industry experts and
available reports.
4. There was limitation of “Recall Bias” for RTUFS and RRTUFS, as data asked from the
respondents during UHS was 5-10 years old.
5. There were some cases in the study, where contact details shared were for multiple
beneficiaries (for UHS) were of same person. This person was consultant for multiple
beneficiaries in the state of Punjab. We observed that Punjab showed contrary trends to
other states for some parameters of impact of TUFS.
Appendix
199
12. APPENDIX
Appendix 1- Machinery Recommendations
Machinery for Weaving, Weaving Preparatory, Knitting
Machinery for Weaving (Loom shed)
Weaving (Loom Shed)
Sr.
No.
Name of the machine with
specifications
Technology
Core/Ancillary
Technopak
Recommendations
Unit
MSME Non-MSME
1 Rapier Loom with Weft Insertion
Rate (WIR) not less than 380 mtrs
per minutes with or without Electric
Dobby/Electronic Jacquard
core 500 1000 Metre/min
2 Projectile Loom with Weft Insertion
Rate (WIR) not less than 750 mtrs
per minutes with or without Electric
Dobby/Electronic Jacquard
core 850 1000 Metre/min
3 Air Jet Loom with
(i) Weft Insertion Rate (WIR) not less
than 1200 mtrs per minutes with or
without Electric Dobby/Electronic
Jacquard
core 2650 1800 Metre/min
(ii) Weft Insertion Rate (WIR) not
less than 900 mtrs per minutes with
or without Electric Dobby/Electronic
Jacquard
core 1250 1500 Metre/min
4 Water Jet Loom with (i) Weft
Insertion Rate (WIR) not less than
1000 mtrs per minutes with or
without Electric Dobby/Electronic
Jacquard
core 1200 1350 Metre/min
(ii) Weft Insertion Rate (WIR) not
less than 800 mtrs per minutes with
core 1000 1200 Metre/min Appendix
200
or without Electric Dobby/Electronic
Jacquard
5 PLC based Circular Looms with
Minimum 6 shuttles, Minimum
tubular lay flat width of 90 cms and
WIR of 600 mpm or more.
core 84 120 cm
6 Carpet loom (Spool gripper
looms/Jacquard gripper looms/
Wire loom weaving / Brussels
weaving / Face to face weaving)
core 550 1400 Metre/min
7 Electronic Jacquard and Electronic
Dobby suitable for Shuttleless
Looms having Weft Insertion Rate
WIR of 380 mpm or more.
core 650 1600 Metre/min
8 Air Compressor 15 H.P. and above
with inbuilt invertors and air driers
for Air Jet looms only
Ancillary
9 Battery operated trolley for beam
gaiting
Ancillary
10 Automatic Beam storage system Ancillary
11 Over Head Travelling Clearers Ancillary
12 Ultrasonic Cleaning machines for
Reed
Ancillary
13 Electronic Jacquard Computerized
Pattern machine for weaving
Patterns and Brand Names on the
Selvedge.
Ancillary
14 Shuttleless / Rapier Loom for Sample
weaving with or without Electronic
Dobby/ Jacquard
Ancillary
Appendix
201
Machines for Weaving Preparatory
Weaving Preparatory
Sr.
No.
Name of the machine with
specifications
Technology
core/Regular
Technopak
Recommendations
Unit
MSME Non-MSME
1 Single yarn sizing machine with
minimum speed of 250 mtrs per minute.
core 250 300 Metre/min
2 High speed multi cylinder sizing
machine/ zero twist sizing machine
having minimum 8-10 cylinders for
single size box and 12-14 cylinders for
double size box and minimum speed of
40 mtrs per minutes
core 80 100 Metre/min
3 Direct beam warper with minimum 300
ends creel capacity and minimum speed
of 1000 mtrs per minutes
core 1000 1100 Metre/min
4 Computer aided designs system for
weaving
Ancillary
5 Two-for-one Twister operating at the
speed of minimum 8000 rpm with
cradle, drop wires & overfeed system
core 10400 12000 RPM, For
Pot
diameter
=135 mm
6 Three-for-one Twister operating at the
speed of minimum 5000 rpm with
cradle, drop wires & overfeed system
Ancillary
7 Chenille Yarn Manufacturing Machine
with spindle speed of more than 7500
rpm
core 8000 8500 RPM
8 Draw/ Air Texturising machine having
minimum speed of 800 mtrs per
minutes
core 900 1000 Metre/min
9 Sectional warping machine with auto
stop & tension control along with
core 500 600 Metre/min Appendix
202
minimum 300 ends creel capacity and
minimum speed of 350 mtrs per
minutes
10 Water Softening / R.O. Plant for
Waterjet Looms
Ancillary
11 Automatic Drawing in/ Warp Reaching,
Tying and Leasing-in machine
Ancillary
12 Automatic Sample Warper Machine Ancillary
13 Direct Warping Machine for denim
application with bigger flange Dia more
than 1000 mm and minimum speed of
700 mpm
core 800 1000 Metre/min
14 Beam to Cone winding machine for
Indigo Package.
Ancillary
Machines for Weaving Preparatory (Energy-Saving)
Weaving Preparatory – Energy saving
Technology
Core/Ancillary
Sr.
No.
Name of the machine with specification
1 Single yarn sizing machine with minimum speed of 250 mtrs per
minute with Servo drive and Servo Motor and PLC based.
Ancillary
2 High speed multi cylinder sizing machine/ zero twist sizing
machine having minimum 8-10 cylinders for single size box and
12-14 cylinders for double size box and minimum speed of 100
mtrs per minutes with Servo drive and Servo Motor and PLC
based
Ancillary
3 Direct beam warper with minimum 300 ends creel capacity and
minimum speed of 1000mtrs per minutes and with Servo drive
and Servo Motor and PLC based
Ancillary
4 Sectional warping machine with auto stop & tension control
along with minimum 300 ends creel capacity and minimum speed
of 500 mtrs per minutes with Servo drive and Servo Motor and
PLC based
Ancillary Appendix
203
Machines for Knitting
Knitting
Sr.
No.
Name of the machine with
specifications
Technology
core/Ancillary
Technopak
Recommendations
Unit
MSME Non-MSME
1 High speed circular knitting machine with
yarn tension and clearers along with
Creel
l) Having Dia up to 26" with a minimum
speed of 20 RPM and above
core 30 40 RPM
2) Having Dia above 26" with a minimum
speed of 15 RPM and above
core 20 25 RPM
2 High speed socks knitting machine having
minimum production of 15 pairs per hour
& gloves knitting machines having
minimum production of 3 gloves per
minute with or without electronic
jacquard
core
3 Computerized flatbed knitting machine
with minimum speed of 11 revolutions
per minute/minimum speed of 0.3
mts/sec.
core
4 Warp/ Rasehel knitting machine having
minimum working width of 60" and
minimum speed of 500 RPM
core 600 700 RPM
5 High speed computerized warping
machine for knitting with minimum
closed creel capacity of 200 and
minimum speed of 500 RPM and
minimum speed of 100 mtrs/min.
core 600 700 RPM
6 Computerized label making Knitting
machine with minimum 2 heads and
minimum speed of 500 RPM & minimum
working width of 50 mm per head.
core 600 700 RPM Appendix
204
7 Computerized Strap (Collar/Cuff) Flat Bed
Knitting Machine a minimum speed of 0.3
mts/sec with minimum working width of
12".
core
8 High performance Tricot Machinery with
minimum 3 Bar and speed of 2300 rpm
and above.
core 2300 3000 RPM
9 Full Fashioned Knitting Machines Ancillary
10 Air Compressor 15 H.P. and above with
in-built invertors and air driers
Ancillary
Appendix
205
Machines for Knitting (Energy Savings)
Knitting – Energy Saving
Sr.
No.
Name of the machine with specification
Technology –
Core/Ancillary
1 High speed circular knitting machine with servo motors and servo
amplifiers and with yarn tension and clearers along with Creel -
Ancillary
l) Having Dia up to 26" with a minimum speed of 20 RPM and
above, 2) Having Dia above 26" with a minimum speed of 15 RPM
and above.
2 High speed socks knitting machine having minimum production of
5 pairs per hour and gloves knitting machines having minimum
production of 3(three) gloves per minute with servo motors and
servo amplifiers and with or without electronic jacquard.
Ancillary
3 Computerized flatbed knitting machine with servo motors and
servo amplifiers and with minimum speed of 11 revolutions per
minute / minimum speed of 0.3 Mts/ Sec-
Ancillary
4 Warp/ Raschel knitting machine having minimum working width
of 60" and minimum speed of 500 RPM with servo motors and
servo amplifiers.
Ancillary
5 High speed computerised warping machine for knitting with
minimum closed creel capacity of 200 and minimum speed of 100
Mts/ Min and with servo motors and servo amplifiers.
Ancillary
6 Computerised label making Knitting machine with minimum 2
heads and minimum speed of 500 RPM and minimum working
width of 50 mm per head with servo motors and servo amplifiers.
Ancillary
7 Computerized Strap (Collar/Cuff) Flat Bed Knitting Machine with
servo motors and amplifiers and with a minimum speed of 0.3
mts/Sec along with minimum working width of 12".
Ancillary
8 High performance Tricot Machinery with minimum 3 Bar and
speed of 2300 rpm and above and with servo motors and servo
amplifiers.
Ancillary
9 Spin - Knit machine (Rove fed Circular Knitting machine) Ancillary
Appendix
206
Machines for Processing
Machinery for Processing of Fibre/Yarn/Fabric
Technology
Core/Ancillary
Comments
Sr.
No.
Name of the machine with specifications
1 PLC controlled dye Kitchen management system Core
2 Soft Package Precision Winding machine with
individual drum/Spindle driven
Core
3 Automatic Arm Hank Dyeing machine Core
4 Air Flow Dyeing machine Core
5 Automatic Cabinet type Yarn Dyeing machine Core
6 Automatic Sample Yarn Dyeing Machine Core
7 PLC based full automatic Jigger with
servo/microprocessor control
Core
8 Industrial washing/drying machine for
garments/made ups/industrial tumble
dryers/washers
Core
9 Reverse Osmosis, Nano Filtration , Multiple stage
prefabricated steel evaporator excluding civil
construction
Core
10 PLC controlled Shearing/ Cropping machine more
than 05 mtrs per minute
Core
11. PLC based yarn / fabric Singeing machine with auto
mixing of air & fuel for temperature and flame control
with or without pre and post brushing and desizing
unit.
Core
12 PLC controlled Singeing machine for tubular fabrics Core
13 PLC controlled Knit tubular mercerizing machine or
bleaching cum mercerising machine with knit fabric
diameter adjuster.
Core water
consumption 6-
8 litres/kg Appendix
207
14 PLC controlled Ammonia mercerising machine for
fabrics
Core with ammonia
recovery
system
15 PLC controlled fully automatic Yarn / fabric
mercerizing machine
Core Mercerization
machine steam
0.5 to 0.7 kg and
water
consumption 5
to 7 litres/kg
minimum speed
50
meters/minute
16 PLC controlled continuous Knit fabric bleaching plant Core
17 Balloon Padder with silicate dosing along with level
control & ratio control mechanism
Core
18 Slit opener with open width squeeze mangle for
knitted fabric.
Core
19 Fabric automatic reversing machine Core
20 PLC & Inverter Controlled Automatic Reeling Machine
with stop motion and with length Measuring Device
Core With auto
leasing system
21 PLC based open width/rope and squeezing machine
with detwister
Core No Comments
22 PLC based J Box Core Fabric content
50 meter
23 PLC based Solvent Scouring Machine / Vaporlock
machine
Core
24 PLC based Rotary Drum Washer Core
25 PLC based Float Dryer with padding mangle. Core
26 Fibre cake opener for fibre dyeing machine for yarn
dyeing unit
Core
27 Yarn conditioning machine for Yarn Dyeing units Core Appendix
208
28 Precision flock cutting / printing machine for textile
processing unit only
Core
29 PLC based Relax dryer Core
30 PLC based Sueding / peach finishing machine with
brushing / raising / contipress / pile cutting
Ancillary
31 Automatic Pleating/Creasing Folding machine for
fabrics.
Core
32 PLC based Microwave dryer / Hot air dryer / Infrared
dryer.
Core
33 Automatic Crush machine for uneven pleat for grey
/dyed fabrics.
Core
34 PLC based Dipping machine Core
35 PLC based Foam finishing machine Core
36 Water softening plant. Ancillary
37 Deminerlisation plant. Ancillary
38 Open-width continuous scouring and bleaching range
with microprocessor attachments and automatic
chemical dosing.
Core Continous
scouring and
bleaching
machine steam
0.8 to 1.1 kg/kg
and water
consumption 6
to 9 litres/kg,
fabric speed of
80
meters/minute
for 150 gsm
plain fabric
39 PLC based Package Dyeing machines (cheese, cone,
Tops, fibres, dye springs, yarn beam) and with
maximum liquor ratio of 1:5
Core With multi feed
input water and
multiple
discharge Appendix
209
40 PLC controlled Fully Automatic Flat Bed Printing
machine with pneumatic blanket control
Core With 10-16
colors and
printing cycles
of minimum 10
cycles/minute
41 PLC based Soft flow Dyeing Machine with pre heating
chamber (liquor ratio max I : 4)
Core Two feed water
connections,fab
ric spped to
maintain
minimum 2
minutes cycle
time,teflon
lining and With
multi funtion
rinsing systems
42 PLC based Rapid Jet Dyeing Machines with minimum
capacity of 100 kgs and fabric speed of minimum 60
mtrs per minute (liquor ratio max 1:4)
Ancillary
43 Compact continuous dyeing and finishing machine for
tapes / narrow width woven fabric
Ancillary
44 Open width Pad-dry and / or Pad-Steam continuous
dyeing
Core Speed
minimum 30
meters per
minute
45 Indigo Rope /Sheet dyeing range including indigo
dyeing cum sizing machine
Core Number of
ropes and 28
speed meters
per minute with
2 % shade
46 Digital / laser / len engraving / screen making system
for rotary screens for textile processing units only
Ancillary
47 PLC based fully Automatic Rotary Screen Printing
Machine with magnetic / Air flow squeegee system,
automatic design setting, and quick change over
facility/ flying design change (FDC) system with or
without on-line washing arrangement
Core Number of
Colours and
paste recovery
system Appendix
210
48 Digital/lnk jet printing machines (For textile
processing units only).
Core Number of
printing
minimum 4
heads with
guaranteed
head life of
4000 working
hours
49 High Speed Micro inkjet engraver with UV exposing
unit. (For textile processing units only).
Core
50 Continuous transfer printing machine (cylinder
based) for synthetics.
Core Cylinder
diameter and
speed
meters/minute
51 PLC controlled Thermosoling range (For Synthetics
only).
Core
52 PLC controlled continuous crabbing machine with
minimum speed of 15 mtrs per minute.
Core
53 PLC based scouring and milling machine with
minimum speed of 25 mtrs per minute and maximum
liquor ratio of 1:5
Core
54 PLC based Loop ager with arrangement for moist and
superheated steaming with minimum speed of 20
mtrs per minute
Core
55 PLC based Powder dot coating / laminating machine
for fabrics with dot roll temperature control.
Core
56 Continuous weight reduction machine through micro
wave technique (for Polyester goods only) with
minimum speed of 20 mtrs per minute
Core Appendix
211
57 PLC controlled Multi Chamber Washing range with
minimum 5 chambers
Core Washing range
for COLD Pad
batch steam
consumption
0.8 to 1.6 kg and
water
consumption 8
to 16 litres/kg
speed minimum
50
meters/minute
58 PLC controlled Multi cylinder Drying range with
individual cylinder drives with or without padding
mangle
Core with alternate
cylinder with
independent
drive
59 PLC controlled Multi chamber /MuIti layer Stenter
(minimum 4 chambers) with arrangement of Thermic
fluid / gas heating
Core
60 PLC controlled Compressive Shrinking range Core Minimum
Speed 60
meters per
minute
61 PLC controlled continuous decatising machine with
Wrapper tension and auto clave programming and
minimum working speed of 30 mtrs per minute
Core
62 PLC based Airo Machine (for durable mechanical
finishes)
Core
63 PLC controlled Calendering Machine having
Thermoplast/DurapIast/Polyamide sleeve
Ancillary
64 PLC based Compacting machine Core Minimum fabric
speed of 80
meters/minute
for woven
fabrics/40
meters/minute
for knitted
fabrics Appendix
212
65 PLC Controlled Radio frequency / Radiant gas fired /
Loop dryers
Ancillary
66 Brushing machines for denims Core
67 PLC controlled Machine for Softening/Stone wash
effect on fabric/ garments.
Core
68 Robotised automatic roll packing machine. Core
69 PLC controlled Plasma Treatment machines Core
70 PLC controlled Continuous Pressing and Setting
Machine / Super finish machine
Core
71 AC invertor driven PLC based Fabric inspection
machine with fault analyzer and report generator and
length measuring and cutting device
Core
72 Hand held spectro photometer for shop floor colour
matching
Core
73 PLC based HusWoil / gas fired boiler (Steam /Thermic
fluid) with automatic control on combustion
efficiency, 02 Monitoring Equipments, and with
Electrostatic precipitator and Micro dust collector
Ancillary
74 Wool Carbonising Line / Plant for textile unit only Ancillary
75 Automatic Hydroextractor Ancillary
76 PLC controlled Curing/ Polymerising Machine Core
77 PLC controlled Coating/ Embossing Machine Core
78 Multi Cross Linking Resin Finishing Machine. Core
79 Pile Lifting Machine. Core
80 Latex mixing and dispensing system for Coating Line. Core
81 Air compressor 15 H.P, and above with in-built
invertors and air driers.
Ancillary Appendix
213
82 Testing Equipments in Quality Control Lab accredited
by National Accrediation Board for Lab (NABL) India
and set up in the textile & jute unit.
Ancillary
83 Full automatic material handling system Ancillary
84 Ultrasonic Cleaning machine for fabrics and strips Ancillary
85 PLC controlled Denim wet finishing and Shrinking
range with inverter motors.
Core Fabric speed
minimum 50
meters/minute
Machines for Processing – Energy Saving
Energy Saving Machinery for Processing of fibre/yarn/fabric – Energy
saving
Technology
Core/Ancillary
Sr.
No.
Name of the machine with specification
1 PLC controlled Knit tubular mercerizing machine or bleaching cum
mercerizing machine with knit fabric diameter adjuster and with caustic
recovery system
Ancillary
2 PLC controlled Ammonia mercerizing machine for fabrics, including
ammonia recovery plant
Ancillary
3 PLC controlled fully automatic yarn/fabric mercerizing machine with
caustic recovery unit
Ancillary
4 PLC based soft flow Dyeing machine with pre heating chamber (liquid
ratio max 1:1)
Ancillary
5 PLC based Rapid jet Dyeing machines with minimum 60 mtrs per minute
(liquid ratio max 1:1)
Ancillary
6 Open width pad-dry and/or Pad-steam continuous dyeing range with
microprocessor-based energy control & water monitoring
Ancillary
7 Indigo dyeing range including indigo dyeing cum sizing machine with heat
recovery system
Ancillary
8 Continuous weight reduction machine through micro wave technique
(for poly goods only) with min speed of 20 mtrs per minute with
preheating system for recovery tank
Ancillary Appendix
214
9 PLC controlled Multi chamber washing range with minimum 5 chambers
with water recovery/reusable system
Ancillary
10 PLC controlled Multi cylinder drying range with individual cylinder drives
with heat recovery system & padding mangle
Ancillary
11 PLC controlled Multi chamber stenter (min. 4 chambers) with
arrangement of Thermic fluids / gas heating & with Heat recovery system
Ancillary
12 PLC controlled compressive shrinking range & with Heat recovery system Ancillary
13 PLC controlled calendering machine having thermoplast / duraplast /
polyamide sleeve & with Heat recovery system
Ancillary
14 PLC based compacting machine with Heat recovery system Ancillary
15 PLC based oil/gas fibred boiler (steam/ thermic fluid) with automatic
control on combustion efficiency , and heat recovery system with O2
monitoring equipment
Ancillary
Appendix
215
Machines for Apparel
Machinery for Apparel and Garments
Sr.
No.
Name of the machine with specifications
Technology
Core/Ancillary
Technopak
Recommendations
MSME Non-MSME
1 Single / two needle power operated industrial
lockstitch sewing machine with or without
trimmer having speed 4000 RPM and above.
Core 4000 4000
2 Blind stitch machine/ multi needle Chain
Stitching machine having speed of 3850 rpm
Core 3850 3850
3 Power Operated loop making and sewing
machine having speed of 2500 rpm and above
Core 2500 2500
4 Power Operated flat lock/ overlock machine. Core
• Four / five thread overlock machine with or
without trimmer having speed of 4500 rpm and
above
Core 4500 4500
• Five thread flat lock machine with or without
trimmer having speed of 4500 rpm and above
Core 4500 4500
• Five thread flat lock machine with seam
joining device Having speed of 4500 rpm and
above
Core 4500 4500
5 Zigzag flatbed sewing machine having speed of
2200 rpm and above
Core 2200 2200
6 Button Stitch sewing machine having speed of
3000 rpm and above
Core 3000 3000
7 Label/ elastic attaching machine Ancillary
8 Decorative Stitching machine having speed of
2000 rpm and above
Ancillary
9 Automatic J Stitch Sewing machine having speed
of 3000 rpm and above
Ancillary Appendix
216
10 Edge cutting sewing machine having speed of
4000 rpm and above
Core 4000 4000
11 Automatic Button hole sewing machine having
speed of 2500 rpm and above
Ancillary
12 Trouser gripper making machines Core
13 Hydraulic diecutting / clicking machine for collars
and cuffs
Ancillary
14 Socks boarding machine having a minimum cycle
time of 2.5 sec-per piece
Core
15 Belt attaching machine having speed of 3500 rpm
and above
Ancillary
16 Zip attaching machine having speed of 4000 rpm
and above
Ancillary
17 Electronic / mechanical Bar tacking machine
having speed of 3000 rpm and above
Core 3000 3000
18 Bottom Hemstitch machine having speed of 2500
rpm and above
Ancillary
19 Smocking machine/ Automatic multi needle
shirring machine having speed of 2000 rpm and
above
Ancillary
20 Computerized Pattern maker/ grader/marker
machine[Laser marker
Ancillary
21 Power driven cloth cutting machine having speed
of 2000 rpm / laser fabric or label cutting
machine/ laser engraving machine
Core/ Ancillary 2000 2000
22 Power operated Band Knife-cutting machine
having speed of 2000 rpm and above
Core 1000 1000
23 Collar/cuff turning/blocking machine/ Pressing
machine
Core Appendix
217
24 Electronic/pneumatic Button and snap fasteners
fixing machine having speed of 1000 rpm and
above
Core 1000 1000
25 Pocket creasing and welting machine/ Auto
Pocket making machine
Ancillary
26 Industrial stream iron with vacuum table and/or
buck press having 2.5 kg/cm2 steam pressure.
Core
27 Boiler exclusively for steam press/vacuum press,
Steam Cabinet/ Vacuum table
Core
28 Fusing Press having minimum pressure of 1.5
kg/cm
Core
29 Collar Contour Trimmer Core
30 Automatic Spreading & Cutting table with
vacuum and/or air blowing device having speed
of 18 mtr/min
Ancillary
31 Shoulder pad- attaching machine Ancillary
32 Pocket cutting machine Ancillary
33 Automatic Pocket Attaching machine with
production capacity 2000 pcs and above
Ancillary
34 Round Knife cutting machine having minimum
blade size of 3.5" and 1000 rpm and above
Core 1000 1000
35 End Cutter with cloth press track Core
36 Power operated Cloth drilling machine having
speed of 800 rpm and above
Core 800 800
37 Collar Point trimmer/ notch making machine Core
38 Computerized High speed fully fashioned flatbed
knitted garment manufacturing machine with
speed of 10 rpm and above
Ancillary Appendix
218
39 Whole garment making machine for knitted
garments or power operated garment panel
forming knitting machine with linking machine
Ancillary
40 Automatic thread trimming/sucking machine
equipped with two motors.
Ancillary
41 Shirt folding machine with pneumatic system. Ancillary
42 Stain/spot removing machine Core
43 Pearl/Beads/Stones/GIassete/Hook and Bar
attaching machine having speed of 1000 rpm
Core 1000 1000
44 Single and multihead Quilting machine Ancillary
45 Fabric inspection/checking machine with fault
analyzer and report generator and length
measuring and cutting device.
Ancillary
46 Needle/metal detector machine Core
47 Multi head computerized embroidery machine
with minimum six heads with or without
electronic sequin
Ancillary
48 Computerised label making
machine/computerized label printing machine
Ancillary
49 Button wrapping/shanking machine Core
50 Feed-off-the-arm industrial sewing machine
having speed of 2500 rpm and above
Core 2500 2500
51 Automatic dart/pleat making machine having
speed of 2000 rpm and above
Ancillary
52 Automatic label/ply picking machine Ancillary
53 Pin tucking machine Ancillary
54 Mechanised fabric pinning table Ancillary
55 Single needle basting machine having speed of
1500 rpm and above
Core 1500 1500 Appendix
219
56 Single needle post bed sleeve setting machine
having speed of 1000 rpm and above
Ancillary
57 Programmable Unit Production hanger and
conveyor system with minimum of 24 machines
operations
Ancillary
58 Crochet machine for laces and bands with
electronic bar operation
Ancillary
59 String thrusting machine Core
60 Plastic Staple attacher Core
61 Brushing machine for jeans Ancillary
62 Computer Colour matching machine Ancillary
63 Automatic placket making machine for knitted
garments.
Ancillary
64 Belt Loop attaching machine having speed of
2000 rpm and above
Ancillary
65 Collar Heat Notcher Core
66 Spot Welting machine Core
67 Laser Colour Fading/Marking/Drawing Machine Ancillary
68 Laser operated Color Spraying Machine Ancillary
69 RMG curing Wheat setting oven with a tolerance
limit of +/- 2
0
C
Ancillary
70 Air Compressor 15 H.P. and above with in-built
invertors and air driers
Core
71 Computerized Strap(CoIIar/Cuff) Flat Bed
Knitting Machine with minimum speed of 0.3
mts/sec and minimum working width of 12"
Ancillary
72 Cup Seamer Ancillary Appendix
220
73 Automatic Strap cutter machine with electronic
feed & cutting device
Core
74 Cup moulding machine Ancillary
75 Auto reeling stitch machine Core
76 Automatic combine panel-joining/ tape
attaching machine for curtains.
Ancillary
77 Electronic, pre-programmed, straight line
lockstitch curtain pleat tacker with fully
automatic curtain hook feeding device
Ancillary
78 Automatic Combined Panel-joining & [lemming
Machine
Ancillary
79 Automatic Lockstitch Curtain Hemming Machine
having speed of 2500 rpm
Ancillary
80 Fully Automatic Combined Thread Chain Stitch
Ring attach/pinch pleat tacking machine
Ancillary
81 Hydraulic combined cutting/pressing machine
for processing metal curtain rings
Ancillary
82 Fully automatic fabric inspection, measure and
length cutting machine equipped with meter
counter.
Ancillary
83 Fully Automatic, Programmable, Electronic
vertical curtain cutting machine
Ancillary
84 Fully Automatic drapery pinch pleater with
integrated Microflex (r) adjustable curtain hook
feeder
Ancillary
85 Curtain feeding device for fully automatic pinch
pleater
Ancillary
86 High performance motor driven curtain ironing
table
Ancillary
87 Fully automatic front loaded Garment washing/
Dyeing machine
Ancillary Appendix
221
88 Tumble dryer Core
89 Garment Colour Spray Cabinet Ancillary
90 Trouser topper/ Form Finisher machine Ancillary
91 Trouser turning machine Ancillary
92 Fabric Grinding Machine Ancillary
93 Hem Breaking Machine Ancillary
94 Fagoting/ Picoting machine having speed of 2500
rpm and above
Core 2500 2500
95 Packeting machine having speed of 4000 rpm
and above
Core 4000 4000
96 Sequin punching machine having speed of 800
rpm and above
Core 800 800
97 Paddle Dyeing machines for
Rugs/Garments/Made-ups
Core
98 Open Pocket Dyeing Machines for
Rugs/Garments/Made-ups
Core
99 Automatic Length & Cross Cutting Machine for
Sheets/ToweIs
Ancillary
100 Automatic machine for length and cross
hemming machinery for Flat Fitted
Sheet/ToweIs/Pillow/PiIIow Sham
Ancillary
101 Automatic folding and stacking machine for
Flat/Fitted Sheets/Towels & Pillow/Pillow
sham/Dust Ruffle
Ancillary
102 Automatic Comforter shell making machine Ancillary
103 Compression Bagger for packing (electronic
pneumatic bagging machine)
Ancillary
104 Automatic machine for flange pillow case Ancillary Appendix
222
105 Blending, Opening and Pillow Filling Lines Ancillary
106 Vacumising Packing Units for Filled Pillow &
Quilts
Ancillary
107 Die Cutting Machine Ancillary
108 Table Top Tufting Machine Core
109 Moustache making machine Core
110 Computerised Bed filling machine Ancillary
111 Ball fibre machine Ancillary
112 Seamless Knitting machine Ancillary
113 Computerized Multi Head printing Machine for
Garment and Garment Panels
Ancillary
114 Dry to Dry cleaning machine for garments Ancillary
115 Continuous pressing / folding, machine Ancillary
116 Ozone Generator with or without Fully
Automatic front loaded Garment Washing
Machine
Ancillary
Appendix
223
Machines for Technical Textiles
Machinery for Manufacturing of Technical Textiles
Technology
Core/Ancillary
Comments
Sr.
No.
Name of the machine with specifications
1 Machinery for POI Tetro Fluro Ethylene (PTFE) Breathable
film
Ancillary
b Weaving Preparatory
Name of the machine with specifications
1 PLC controlled High speed computerized warping /
sectional warping machine
• For Direct warping machines warping speed should
be 1000 mpm and above
Core With creel
minimum
300
position
• For sectional warping machines warping speed
should be 900 mpm & above
Core With creel
minimum
300
position
2 PLC Controlled, 4 axis filament winding machine for
composites. Specifications: Mandrel Rotation of 150 rpm
or more.
Ancillary
c Weaving
Name of the machine with specifications
1 PLC based Shuttle less weaving machine with or without
creel & weft yarn feeding device for the manufacturing of
technical textiles (with specifications given in MC1)
Core With
Heavy
duty let off
and take
up with
minimum
1.5 kw
motor Appendix
224
2 Minimum 5.0 mtr wide shuttle loom with computer
controlled shedding mechanism to produce seamless
tubes, substrate for wide width belting and other
technical textiles
Ancillary
3 PLC based Geo Grid Weaving Machine having minimum
width of 380cm with impregnation plant
Ancillary
4 Multi-axial Loom. Core
5 3-D and Block weaving machine/ Non Crimp Weaving
Machines for 3D Weaving of Glass and Carbon Fibres.
Ancillary
6 High Speed Needle looms for narrow woven fabrics Core
7 Position Driven Compressor stand assembly for weaving Ancillary
8 Narrow width shuttle loom with positive let off and take
up motions with electronic jacquard / dobby and with
micro-processor controls for producing tubular fabric
meant for filters, medical textiles and other technical
textiles.
Core
d Knitting
Name of the machine with specifications
1 PLC based Weft Inserted warp Knitting machine (WIWK). Core machine
1000 rpm
minimum
2 PLC based Knitting machine for spacer fabrics Core machine
1500 rpm
minimum
3 PLC based Bi- axial & Multi axial knitting machine Core
4 PLC based Tricot machinery for the manufacture of
technical textiles (Eligible for units having in house
capacities for converting grey fabrics into technical
textiles)
Core
5 PLC based Rachel double needle bar Machine Core
6 PLC based Rachel machine for netting Core Appendix
225
7 PLC based Knitting Machine for the manufacturing of Fish
nets with warp knotting system
Core
8 PLC based Circular warp knitting machine for compression
garments
Core yarn and
lycra
feeder
9 PLC based Stitch bonding knitting machine Core
10 PLC based Seamless Knitting machine Core with
maximum
diameter
16 inch
e Processing
Name of the machine with specifications
1 Mechanical foamer with Crush calendar. Core
2 Pultrusion machine and equipment for manufacturing of
textile composites
Core
3 FRP (Fibre Reinforced Plastic) processing machine &
equipment for manufacturing of textile composites
Core
4 RTM (Resin Transfer Moulding) machine and equipment
for manufacturing of textile composites
Core
5 Multi cylinder Calendering machines with following
specifications:
Running Speed : Minimum
Pressure : Minimum 35 ton
Heating : Steam, Electric, Gas
Core
6 Finishing machinery for impregnating yarn or fabrics Core
7 PLC based Dipping machine for tyre cord / industrial
fabrics / belting ducks
Core
8 PLC based Dipping machine for single end or cord for
reinforcement of v-belts / hoses / hose tires
Core Appendix
226
9 PLC based Coagulated PU or PVC dip coating machine / PU
or PVC coating line or coating dl in / knife machine with
infrared dryer
Core
10 PLC based Hotmelt and Hot Glue applicators for coating
with working width of 500-2600 mm and working speed
of
Core
11 High precision Plasma Welding and Cutting machines for
Sealed Edge Cutting
Core
12 PLC based Precision Annealing Furnace for Stress relieving
of fabrics
Core
15 HTHP Jigger to process nyIon, aramid fabrics Core
f Made-up Technical Textile (T T) Store
Name of the machine with specifications
1 RF Radio Frequency welding equipment Core
2 Automatic Ultrasonic cutting and sealing equipment. Core
3 Laser cutting and sealing equipment. Ancillary
4 PLC based Back Coating Lines Ancillary
5 PLC based Braiding machinery Ancillary
6 Machine for manufacture of clay liner Ancillary
7 Machinery for manufacture of prefabricated vertical
drains / prefabricated wick drains
Core
8 Complete line for manufacturing chopped strand glass
mat
Ancillary
g Non-woven textile manufacturing machines:
Name of the machine with specifications
1 Complete production lines or the component / parts
forming the production line for the manufacture of
Appendix
227
following non-woven up to rolled goods preparation and
packing, viz.,
i Chemically bonded non-woven
ii Stitch bonded non-woven Core
iii Spun bonded non-woven Core
iv Melt bonded non-woven Core
v Spun bond melt blown non-woven (SMS non-woven) Core
vi Needle punch non-woven Core
vii Thermal bond non-woven Core
viii Spun lace non-woven Core
ix 3-D non-woven machines Core
x Electrospun nonwoven machines Core
h Finishing machines:
Sr.
No.
Name of the machine with specifications
1 Hot melt cold glue applicators for coating Core
2 Ultrasonic slitting machines/edge sealer Core
3 Brazing machine with torch (for hot air) Core
4 PLC operated system with servo drives for
measurement/control of tension and temperature
Core
5 Heatset oven with stenter facility Ancillary
6 Pilot/lab coating line Ancillary
7 High pressure pump for water jet cutting system Ancillary
8 Robotic waterjet cutting system Ancillary
9 Robot for water jet cutting system Ancillary Appendix
228
10 Water softening Ancillary
11 Machines for powder scattering Ancillary
12 PLC based Coating for fusible interlinings Ancillary
13 PLC based Padding mangle Ancillary
14 PLC based Lamination machine for technical textiles Ancillary
15 PLC based Clip / pin stenter for heat setting Ancillary
16 PLC based Flame lamination machine Core
17 Jacquard machines for joining two edges by inter weaving. Core
18 Turret winder and unwinder Core
19 High speed precision mixers for lastisols/ or anosols. Core
20 Gunning and cutting machine. Core
21 PU tumbling machine and drying machine. Core
22 DimethyI formamide DMF recoverant and distillation
plant
Core
23 Multi cylinder drying range Core
24 Plasma Machine for Finishing Lines For Technical Textiles Core
Note: The machineries listed at Sr. No. h of above are eligible for non-wovens, wovens,
knitted technical textiles and convertors of nonwovens into finished products
i Non-woven converting machinery:
Name of the machine with specifications
1 Complete thermo moulding lines Core
2 Complete thermosetting lines Core
3 Machinery of carpet/NVH moulding lines oven/press Core
4 Conveyor/thermo pack for heating/chiller for cooling Core Appendix
229
5 Machinery for moulded roofliners Ancillary
6 Machinery for conversion of nonwovens into face masks /
dust masks / duck bill masks / earloop mask sealing / tie
on mask sealing / blank mask /Gloves
Ancillary
7 Machinery for conversion of nonwovens into bouffont
caps / surgical caps / medicap making machine
Ancillary
8 Machinery for conversion of nonwovens into gowns /
pillowslip / shoe covers / ice pack body / ice pack band
sealing and cutting / hand bags / filter pocket /head rest
cover / CD / DVD cover and other such items
Ancillary
9 Machinery for conversion of nonwovens into sanitary
napkins / baby diapers / adult diapers
Core
10 Machinery for conversion of nonwovens into dry and wet
wipes
Core
11 Machinery for slitting and rewinding of nonwoven roll Core
12 Surgical gauze machine making Core
13 Combined dressing making machine Core
14 Bandage Roll making machine Core
15 Machine to compress Ancillary
16 Abdominal s one making machine Ancillary
17 Automatic packing machines Ancillary
18 Machine for manufacture Of tubular filter bag Ancillary
j Complete Production Line for Manufacture of Surgical Bleached Cotton
Appendix
230
Machines for Handloom
Machinery For Handlooms
S. No Name of the Machine
Technology
Core/Ancillary
Comments
1 Electrical winding machine Core Required
2 Electrical Warping machine Core Required To improve
productivity sectional
warper capable of
making weaver beams
with accurate length
may be adopted in
cluster.
3 Motorised/Pneumatic/Electronic Jacquard Core Required This
improves working and
ease of operation
4 Semi-automatic (ordinary frame handloom
with minimum width of 52", with or without
dobby / jacquard and benchmarked technology
features, viz., take-up motion, smooth sley
movement, bigger shuttle and bobbin
(minimum 4"), negative let-off motion. It may
include attachments such as multiple weft
butta mechanism, pick & pick sliding
shuttlebox, solid border weaving catchcord
attachment. The frame loom should be made
out of h" x I h" x 3" steel U channel or steel pipe
2 h" diameter and 8 gauge or sturdy wood with
minimum 4" widthx4" thickx6' height. The
looms may have additional warp and cloth
rollers made of wood or steel to ensure
weaving of long length fabric.
Core Required for better
quality and
productivity Appendix
231
5 Handlooms of fly shuttle frame loom fitted with
Dobby like lattice /barrel/tappet/draw bar/iron
frame vertical/centre closed shed/wooden
frame vertical/double cylinder iron border,
Jacquard like single lift single cylinder wooden
frame/single lift single cylinder iron frame
bar/double lift single cylinder iron
frame/double lift double cylinder iron
frame/janata/lino Combination of jala and
dobby or jacquard; Fly shuttle sley fitted with
drop box on one side/drop box on both sides
/circular shuttle box pick & pick sley;
Core Required for better
quality and
productivity
6 Fly shuttle frame loom fitted with let off
motions like lever and weight let off
motion/special spring motion/rope let off
motion/weight system/spring system.
Core Required
7 Fly shuttle frame loom fitted with take up
motion like ratchet & pawl motion/3 wheel
Ichalkaranji type motion/5 wheel take up
motion without emery roller/7 wheel take up
motion.
Core Required
8 Handlooms fitted with special attachments like
catch card system/swivel loom/ lappet
motion/terry motion/lino
mechanism/chennaile weaving (automatic
cutting of chennaile while weaving), metal
frame handloom/vvider width wooden frame
handloom/long length cloth weaving
mechanism etc.
Core Required
Note: In addition, handloom units may also be
provided with piano card punching
machine/electronic card punching machine.
Core
9 Winding machine with multi spindle for
preparation of pins/bobbins/drums operated
by hand/ peddle/ power.
Core Required
10 High Speed Doubling machine having spindle
fitted on bolster with ball bearing.
Core Required Appendix
232
11 The mobile textile quality testing equipment
only for handloom sector and capable of
testing all of the following :
Core Required
i Colour fastness to washing at about 40 degree
Celsius.
Core Required
ii Colour fastness to crocking rubbing Core Required
iii Shrinkage Core Required
iv Ends-Picks per inch Core Required
v Count of yarn Core Required
vi Percentage crimp of yarn Core Required
vii Fabric width, and Core Required
viii Grams per square meter etc. Core Required
12 Coating machine for Metallic yarn for jari
processing only
Core Required
13 Universal Double Covering machine for jari
processing only
Core Required
14 Micro slitting machine for jari processing only Core Required
15 Coating/Vacuum Metalizer for jari processing
only
Core Required
16 Twisting/DoubIing machine for jari processing
only
Core Required
Appendix
233
Machines for Jute
Machinery for Jute Industry
Technology -
Core/Ancillary
S. No. Machine Description
1 Two for One Twister with cradle, drop wires and
overfeed system and 4500 rpm as minimum speed
Core
2 Winding machine With individual spindle/drum driven
With minimum speed of48() mpm
Core
3 PLC Controlled Pre-beaming having minimum speed 135
mpm and , Beaming & Sizing machine having minimum
speed of 125 mpm
Core
4 PLC based Dressing Machine/Direct Warper with
minimum speed of 30 mpm
Core
5 PLC based Circular Looms with minimum WIR of 400
mpm
Core
6 Warp Knitting Machine with minimum 60" width and
minimum speed of 300 rpm
Core
7 Automatic Cutting Machine having minimum speed of 25
cuts per minute
Core
8 Automatic Lapping and Measuring Machine with
minimum 25 strokes per minute
Core
9 Sewing Machine with minimum 2900 rpm Core
10 Automatic Branding (Screen Printing) Machine with
minimum speed of 30 rpm
Core
11 Automatic Integrated Damping and Calendering
Machine with minimum speed of 27 mpm
Core
12 Integrated Herakle and Safety Stitching Machine with
minimum speed of 1400 rpm
Core
13 Automatic Bag Making machine with a capacity of
minimum 50 Bags per hour
Core Appendix
234
14 Processing Machines for Jute Diversified Products. Core
15 Singeing Machine with minimum speed of 30 mpm Core
16 Pressure Kier/Jumbo jigger with minimum speed of 50
mpm
Core
17 Cloth/ yarn mercerising with minimum speed of 25 mpm Core
18 Pad batch (Mangle with minimum speed of 25 mpm Core
19 Winch with minimum speed of 25 mpm Core
20 Semi-automatic/automatic Jiggers with minimum speed
of 50 mpm
Core
21 Automatic PLC based Jet dyeing machine Core
22 Automatic PLC based Soft Flow Dyeing machine Core
23 Automatic PLC based Cabinet Dyeing Machine (for yarn) Core
24 Automatic PLC based Dyeing Machine Core
25 PLC based Macro Extractor/Hydro Extractor with
minimum speed of 200 rpm
Core
26 PLC based Multi Cylinder Dyeing Range with minimum
speed of 25 mpm
Core
27 Automatic PLC based Stenter with minimum 3 chambers
and minimum speed of 25 mpm
Core
28 Coating machine with or without stenter with minimum
speed of 20 mpm
Core
29 Carpet Backing coating machine with minimum speed of
20 mpm
Core
30 Ball making machine (Yarn) with minimum speed of 200
rpm
Core
31 Machinery for Testing Jute Textiles Ancillary
32 Evenness tester Ancillary Appendix
235
33 Jute bundle strength tester Ancillary
34 Yarn tensile strength tester Ancillary
35 Jute fineness tester Ancillary
36 Fabric strength tester Ancillary
37 Jute Moisture meter Ancillary
38 Scotch guard applicator tester Ancillary
39 Electronic twist tester Ancillary
40 Abrasion tester Ancillary
41 Bending rigidity tester Ancillary
42 Colour fastness tester Ancillary
43 Computerized colour matching Ancillary
44 Rubbing fastness tester Ancillary
45 Fire Retardancy Tester Ancillary
46 Light fastness tester Ancillary
47 Count balance Ancillary
48 Laundero meter Ancillary
48 Yarn twist tester Ancillary
49 Yarn appearance tester (manual/automatic) Ancillary
50 Ballistic raw jute strength tester Ancillary
50 Latexing tester Ancillary
51 Water proofing Ancillary
52 Computer colour matching machine Ancillary
53 Coating & Laminating Machinery for Jute Industry Ancillary Appendix
236
54 Complete Lamination Plant suitable for Poly/Rubber
lamination of jute fabric with facility for sandwich
lamination/ both side lamination
Ancillary
Machines for Silk
Machinery for Silk
Technology -
Core/Ancillary
A. Silk Reeling Automated Plant
1 Automatic silk Reeling Plant having 400 ends capacity and
comprising of below mentioned eligible machinery
Core
a. Cocoon peeling machine Core
b. Cocoon sorting machine Core
c. Vacuum permeating machine Core
d. Cocoon cooking machine (Conveyer type) Core
e. Automatic silk reeling machine (400 ends) Core
f. Reeled silk humidifier Core
g. Re-reeling machine (40 Windows) Core
h. Basket conditioning oven Core
k. Frision scraping machine Core
i. Frision treatment machine Core
j. Dewater machine Core
k. Skein winder Core
l. Reel carrier Core
m. Conveyer cocoon drier — 2 ton capacity Core
n. IBR Boiler (l ton capacity) Core Appendix
237
o. RO based Water Softening equipment (2500 liters/day) Core
2
Automatic Dupion silk Reeling Plant having 142 ends capacity and comprising
of below mentioned eligible machine
a. Cocoon peeling machine Core
b. Cocoon sorting machine Core
c. Vacuum permeating machine Core
d. Cocoon cooking machine (Conveyer type) Core
e. Automatic Dupion Silk reeling machine (142 ends) Core
f. Re-reeling machine (20 Windows) Core
g. Cocoon Drying Machine Core
h. IBR Boiler (1 ton capacity) Core
k. RO Water Softening equipment (2500 liters/day) Core
B. Silk Twisting , Weaving & Knitting Machinery:
a. Two for One Twisting Machine having 288 X 2 Spindle Core
b. Parallel winder with minimum speed of 300 mts per minute Core
c. Cone winding machine 24 spindles capacity having minimum
speed of 400 mtrs per minute High speed direct beam
warping machine with creel having minimum warping speed
of 500 mtrs per minutes and beaming speed of 100 mtrs per
minute, Shuttle less loom (Rapier loom) with WIR of 280
mpm
Core
d. Electronic jacquard with minimum 480 hooks Core
e. Electronic fiat bed knitting machine Core
f. Automatic circular knitting machine of minimum 22 "dia Core
g. Automatic warp knitting machine Core
h. Computerized Embroidery machine 16 heads, 8 colours Core Appendix
238
C. Silk Wet Processing Machinery:
a. Automatic 2 Arm Spray Dyeing Machine Core
b. 4 Arm Spray Dyeing Machine Core
c. Winch Dyeing Machine Core
d. Calendaring Machine/ Mini Felt Calendaring Machine Core
e. Decatizing Machine having Core
f. Soft Flow Dyeing Machine with capacity of minimum 5kg Core
g. Digital Printing Machine For Silk (8 Heads) Core
h. Stenter Machines (4 Chambers) Core
i. Reverse Osmosis, Nano Filtration, Multiple stage
prefabricated steel evaporator excluding civil
Core
j. Cabinet dyeing machine for silk (20kg Cap.) Core
k. Computer colour matching and automatic dispensing unit Core
l. Package dyeing machine for cone or cheese (l Okg/load)
Drying system for hanks
Core
Appendix
239
Appendix 2- KII List of Machine Manufacturers and other Stakeholders
S. No. Name of the Person Sector
Name of the
Organization
Designation
1 Mr. Sachin Arora Machinery
Manufacturer
TMMA Executive Director
2 Mr. Vallabh bhai Machinery
Manufacturer
Weavetech M.D.
3 Mr. P. Kasiviswanathan Machinery
Manufacturer
Picanol Executive Director,
India
4 Mr. G.V.Aras Machinery
Manufacturer
Ate enterprises pvt ltd. Director
5 Mr. S. Rajendran Machinery
Manufacturer
Ate enterprises pvt ltd. Senior Vice
President -
Processing,
Accessories and
After Sales Services
6 Mr. Navin Agarwal Machinery
Manufacturer
Ate enterprises pvt ltd. Vice president
7 Mr. Kiran P Hanchate Machinery
Manufacturer
Ate enterprises pvt ltd. Vice president
8 Mr. S.P. Setia Industry Expert
(Machinery)
S.P Setia Consulting Owner
9 Mr. S.P. Verma Government
Official
Textile commissioner
office
Deputy Director
10 Mr. Vipan Kohli Government
Official
Textile commissioner
office
Deputy Director
11 Mr. M.S. Pradeep Apparel Industry
Expert
Technopak Advisors Associate Vice
President
12 Mr. Rohit Bhardwaj Machinery
Manufacturer
Rieter General Manager Appendix
240
13 Mr. Guru Prasad Machinery
Manufacturer
Tsudokoma Sales head
14 Mr. Dharamshil Kothari Machinery
Manufacturer
Benninger General Manager
15 Mr. Randeep Sahani Machinery
Manufacturer
Brothers President
16 Ashish Ameen Machinery
Manufacturer
Premier loom Owner
Appendix
241
Appendix 3- List of Expert Panel of 17 from the overall KII list
S.No. Stakeholder Name of the Person Name of the Organisation
1 Industry Expert S.P. Setia S.P. Setia consulting
2 Industry Expert Sanjay Chatrath SRF Ltd
3 Industry Expert S.P Oswal Vardhman Textiles Ltd
4 Industry Expert B.K Goenka Welspun Group
5 Industry Expert Harish Ahuja Shahi Exports Ltd
6 Industry Expert Chetan FICCI
7 Industry Expert Sanjay Kumar Jain CITI Past Chairman
8 Research Associations Anjan K. Mukhopadhyay BTRA
9 Government Official Ajay Pandit
Regional Office of the
Textile Commissioner NA
Noida
10 Industry Association Mr. Vallabh Bhai Weavetech Engineers
11 Industry Association Dr. S. Sunanda CITI
12 Industry Expert Pulkit Seth Pearl Global
13 Industry Association Sunil Satgonda Patil PDEXCIL
14 Industry Association Ronak Rughani SRTEPC
15 Industry Expert C A Khan Saluja
16 Industry Association Dr. K Selvaraju SIMA
17 Industry Association D.K Nair CITI (Former)
Appendix
242
Appendix 4- List of total KIIs of 62 (Key Informant Interviews)
S. No. Name of the Person Sector Organization Designation
1 Prem Malik Industry
Associations
Confederation of
Indian Textile
Industry
Past Chairman
2 Dr. S. Sunanda Industry
Associations
Confederation of
Indian Textile
Industry
Secretary General
3 T.K. Sengupta Industry
Associations
The Textile
Association of India
President
4 Sharad Kumar Industry
Associations
Federation of Indian
Export Organisation
President
5 Chetan Bijesure Industry
Associations
FICCI Senior Director &
Head
Manufacturing
6 Sanjay Jain Industry
Associations
CITI Immediate past
Chairman
7 Sri Narain Aggarwal Industry
Associations
SRTEPC Chairman
8 Ashok Juneja Industry
Associations
The Textile
Association of India
President
9 Rahul Mehta Industry
Associations
Clothing
Manufacturers
Association of India
President
10 Sunil Satgonda Patil Industry
Associations
PDEXCIL Chairman
11 Siddharatha
Rajagopal
Industry
Associations
Texprocil (The
Cotton Textiles
Export Promotion
Council)
Executive Director
12 K Selvaraju Industry
Associations
SIMA Secretary General
13 Balaraju Industry
Associations
SRTEPC Executive Director
14 Ronak Rughani Industry
Associations
SRTEPC Chairman
15 D.K Nair Industry
Associations
CITI Former CITI
Chairman
16 Ashwin Chandran Industry
Associations
SIMA Chairman Appendix
243
17 R.C Kesar Industry
Associations
OGTC (Okhla
Garment & Textile
Cluster)
Director General
18 Raja Shanmugham Industry
Associations
TEA (Tirupur
Exporters
Association)
President
19 Sanjay Chatrath Industry Experts SRF Ltd President
20 Gautam Nair Industry Experts CII, Matrix Managing Director
21 B.K. Goenka Industry Experts Welspun Chairman
22 Pulkit Seth Industry Experts Pearl Global MD
23 Harish Ahuja Industry Experts Shahi Exports Ltd. Managing Director
24 K.K Lalpuria Industry Experts Indocount CEO
25 S.P. Setia Industry Experts SP Setia Consulting Technical
consultant
26 S.P.Oswal Industry Experts Vardhman Textiles
Limited
Chairman
27 Girish Luthra Industry Experts GETP Chairman
28 Dhirubhai Shah Industry Experts Fairdeal textile Owner
29 R.Swaminathan Industry Experts ABFRL COO
30 Jacob John Industry Experts Dixcy Textiles CEO
31 R.D.Udeshi Industry Experts Reliance President, Polyester
Chain
32 C A Khan Industry Experts Saluja President
33 Mr. Tayal Industry Experts Shivalik Exports Head of Finance
34 Makrand Kulkarni Industry Experts Polygenta CEO
35 Amit Jain Industry Experts Shingora CEO
36 Wicrant Gambhir Industry Experts Jockey Head of Sourcing
37 M.S Pradeep Industry Experts Technopak Advisors AVP
38 Mr. Ramakrishna Industry Experts Tarak Textiles Pvt
Ltd
Director
39 GV Aras Machinery
Manufacturers
ATE Director
40 Randeep Sahani Machinery
Manufacturers
Brother President
41 Mr. Vallabhai Machinery
Manufacturers
Weavetech Managing Director
42 Navin Agrawal Machinery
Manufacturers
A.T.E. Enterprises
pvt ltd
Vice President
43 S. Rajendran Machinery
Manufacturers
A.T.E. Enterprises
pvt ltd
Senior Vice
President
44 Kiran P. Hanchate Machinery
Manufacturers
A.T.E. Enterprises
pvt ltd
Vice President Appendix
244
45 Sachin Arora Machinery
Manufacturers
TMMA Executive Director
46 Ashish Ameen Machinery
Manufacturers
Premier Loom Owner
47 P. Kasiviswanathan Machinery
Manufacturers
PICANOL Executive Director
48 Rohit Bharadwaj Machinery
Manufacturers
KTTM Sales Manager
49 Dharmshil Kothary Machinery
Manufacturers
Tsudokoma Sales Manager
50 Guru Prasad Machinery
Manufacturers
Benninger Sales Manager
51 S.P. Verma Government
Officials
TxC Joint TxC
52 Ajay Pundit Government
Officials
Regional Office of
the Textile
Commissioner –
Noida
Director
53 Vipin Kumar Kohli Government
Officials
TxC Joint TxC
54 Darlie o Koshy Academia ATDC (Apparel
Training & Design
Centre)
Director General &
CEO
55 Dr. Rakesh Mohan
Joshi
Academia IIFT Chairperson,
Professor
56 Dr. Biswajit Nag Academia IIFT Professor, Textile
Department
57 Dr. Deepti Gupta Academia IIT Delhi Professor
58 Vikas Lending Agency Bank of India (BOI) Nodal Officer
59 Mukesh Kumar Lending Agency Canara Bank Divisional Manager
60 Mr. Nilanjan Lending Agency State Bank of India Nodal Officer
61 Dr. Anjan K.
Mukhopadhyay
Textile Research
Associations
BTRA Director
62 R Bachkaniwala Textile Research
Associations
MANTRA President
Appendix
245
Appendix 5- Data Quality Assurance measures
Data Quality Check Measures
1. Screening of Investigators: Pre-Study
Profile and Experience
• Experience of having worked in field primary data collection work
• Experience of having worked on B2B studies was the priority in
selection process
Telephonic Screening
• Telephonic conversation with the field Investigators to understand
their experience, communication skills and command of language
2. Training the Field Investigators: During Study
Team structure
• There was a supervisor to oversee a team of field investigators. In
normal cases supervisor and interviewers are maintained in the ratio
of 1 : 5
• Investigators were primarily graduates; others were 10+2 pass outs
with sound experience in market/filed survey experience
Briefing the
Investigators
• A briefing document was created with broad requirements, sample
size, explanation of terms and specific instructions on questions
• Briefing was given to teams, using the questionnaire and the briefing
document. This document was available with each and every
investigator while on the field for their reference
• In case app-based data collection link was shared along with
questionnaire for practice
Debriefing of
Investigators
and Mock Round
• After the briefing, mock call was conducted. After the mock call,
debrief was done with all Interviewers
• In outstations, Azul agency checked with the supervisor and ensured
that the supervisor debriefed the investigators to ascertain whether
the nuances of the study, and its various requirements were captured
and understood by them
3. Application - How Does an App Ensure Quality Control?
Location
• Location wise tracking of latitude and longitude
• The captured latitude and longitude should match the location of the
respondent, as per address mentioned in database
B2B – Business to Business Appendix
246
4. Data Quality Control Measures
Once the application was ready, questionnaire was programmed, and screening/briefing of the
investigators and teams was done, the data collection process was commenced. The data
collection process (fieldwork) had the following quality control measures:
Initial Pilot
• Initial data from all teams
• Target was to have initial interviews (at least 1-2) from at least 40%
investigators’ - part of the pilot exercise
• Data was reviewed from the pilot study to revise the questionnaire,
to make suitable changes in the questionnaire to get best possible
response rate. After that review action was taken to ensure that the
post-pilot output was standardized, as much as possible
Open-end Responses
• Quality of open-end responses was reviewed as part of the quality
control effort
Same Column
Responses
• Checked for duplicate responses in the datasheet
• Investigators were replaced in case of suspicious output beyond an
acceptable limit
Scrutiny
• 100% of responses were scrutinized for quality. The agency does
100% scrutiny and ensures 70% responses (data) are valid, with
emphasis on priority questions
Back-Checks
• Back checks (call backs) of at least 50% respondents were done to
ascertain the date, time and quality of interviewing¹
Source: Research Agency
¹ <5%
Length of Interview
• The app feature had the length of interview, which helps Azul project
managers to understand the time when the interview started and no.
of minutes (approx. 40 minutes) it took to finish the interview
Photos
• Image was taken of the sign board of the unit or image of the
respondent or the visiting card
Random Recording
• Some apps had provisions of randomly recording whole or part of an
interview to ascertain the interview done with respondent Appendix
247
Appendix 6- Detailed Sampling Plan
Proposed Sampling as per the ToR
Revised Sampling Plan
• On collecting the list of beneficiaries from the Office of Textile Commissioner, it was
noticed that the number of beneficiaries under the ATUFS was very limited. The total
number of beneficiaries in ATUFS was 584 as per the list shared. Further, the beneficiaries
were skewed towards certain states (Gujarat - 49%), sectors (Weaving - 72%) and scale
(MSME - 82%). This created issues for us to meet the quotas as mentioned in the TOR for
ATUFS.
• In order to address the issue of availability of beneficiaries under ATUFS, Technopak
shifted its sampling plan from states where data is not enough, such as Punjab, Haryana,
UP, and Rajasthan, to states where data is available in abundance, such as Gujarat, Tamil
Nadu, and Maharashtra. To reduce the skewness for these 3 states, Technopak adjusted
higher numbers in other states for non-beneficiary quota.
• In addition, in order to address the issue of skewness of data Technopak decided to
change the sampling plan for non-beneficiaries (108 sample total). Details of the revised
sampling plan is given below (next page):
Exhibit 230: Proposed Sampling (UHS) as per ToR Appendix
248
Exhibit 231: Overall Revised Sampling Plan
State
State-wise and Scheme-wise Beneficiary Sampling Plan
Non-Beneficiary
Sampling Plan
Total Sampling
Plan
Face to Face/ Telephonic
270
ATUFS RRTUFS RTUFS
Total
Samplin
g Plan as
per ToR
Total
Proposed
Sampling
No of
Beneficiari
es in
ATUFS
ATUFS
Samplin
g as per
TOR
Proposed
ATUFS
Sampling
No of
Beneficiari
es in
RRTUFS
Propose
d
RRTUFS
Sampling
No of
Beneficiari
es in
RTUFS
Proposed
RTUFS
Sampling
Samplin
g Total
as per
TOR
Non
beneficia
ry Total
as per
TOR
Propose
d
Samplin
g for
Non-
Benefici
ary
Total
Samplin
g as per
TOR
Proposed
Total
Sampling
Data
Available
Sample
Plan
Sample
Suggeste
d
Data
Available
Sample
Plan
Data
Available
Sample
Plan
ATUFS RRTUFS RTUFS
Gujarat 274 101 117 1118 61 1921 41 203 219 41 44 244 263 58 30 20
Mahara
shtra
81 33 46 364 20 293 13 66 79 13 5 79 84 23 10 6
Punjab 22 33 11 808 20 604 13 66 44 13 5 79 49 5 10 7
Tamil
Nadu
144 30 75 767 18 328 12 60 105 12 15 72 120 38 9 6
Haryana 8 20 4 188 12 125 8 40 24 8 9 48 33 2 6 4
Rajastha
n
12 19 6 153 11 101 7 37 24 7 5 44 29 3 5 4
Uttar
Pradesh
4 17 2 88 10 42 7 34 19 7 21 41 40 1 5 4
Karnata
ka
17 17 9 39 10 33 7 34 26 7 4 41 30 5 5 4
Total 562 270 270 3525 162 3447 108 540 540 108 108 648 648 135 80 55
Source: Technopak Analysis Appendix
249
Research Coverage
As per the revised sampling plan, Technopak have completed 559 beneficiaries and 108 non
beneficiaries. In addition, due to pandemic of COVID-19, some of the face-to-face interviews
were converted into telephonic interviews after taking permission from NITI Aayog. The revised
sampling plan was shared with NITI Aayog team and was approved by them
Exhibit 232: Actual Sampling of UHS
Appendix
250
State Wise Sampling Plan - Beneficiary
Exhibit 233: State Wise Sampling - Beneficiary
Parameters ATUFS RRTUFS RTUFS
State
Proposed
Sampling
Sample
Covered
Proposed
Sampling
Sample
Covered
Proposed
Sampling
Sample
Covered
Gujarat 117 129 61 51 41 29
Maharashtra 46 59 20 23 13 4
Punjab 11 9 20 29 13 8
Tamil Nadu 75 39 18 38 12 2
Haryana 4 9 12 11 8 7
Rajasthan 6 9 11 14 7 9
Uttar Pradesh 2 5 10 28 7 9
Karnataka 9 17 10 9 7 12
Total 270 276 162 203 108 80
Source: Sampling analysis by Technopak
Scale Wise Sampling - Beneficiary
Exhibit 234: Scale Wise Sampling - Beneficiary
Scheme/Scale
Proposed
MSME
MSME –
Current
Status
% Share
Proposed
Non-
MSME
Non-MSME –
Current Status
% Share
ATUFS 224 247 57% 33 29 24%
RRTUFS 129 135 31% 43 68 55%
RTUFS 85 54 12% 26 26 21%
Total 438 436 78% 102 123 22%
Source: Sampling analysis by Technopak
Appendix
251
Segment Wise Sampling - Beneficiary
Exhibit 235: Segment Wise Sampling Plan - Beneficiary
Segments
ATUFS RRTUFS RTUFS
Sample
Proposed
Sample
covered
Sample
Proposed
Sample
covered
Sample
Proposed
Sample
covered
Standalone Spinning 0 0 20 31 10 7
Weaving/Knitting
172 233 54 46 36 11
Processing (Fibers,
Yarn, Fabrics,
Garments, and Made-
ups)
42 25 17 30 12 11
Technical textiles and
Non-woven
15 6 9 27 6 15
Garmenting 5 6 34 40 22 5
Others 23 6 38 29 25 8
Total 257 131 172 203 111 80
Source: Sampling analysis by Technopak
Appendix
252
State Wise Sampling Plan - Non-Beneficiary
Exhibit 236: State Wise Sampling - Non-Beneficiary
State Proposed Sampling Sample Covered
Gujarat 44 18
Maharashtra 5 10
Punjab 5 15
Tamil Nadu 15 15
Haryana 9 9
Rajasthan 5 15
Uttar Pradesh 21 11
Karnataka 4 15
Total 108 108
Source: Sampling analysis by Technopak
Scale Wise Sampling - Non-Beneficiary
Exhibit 237: Scale Wise Sampling - Non-Beneficiary
Scale Sample Covered
MSME 98
Non-MSME 10
Total 108
Source: Sampling analysis by Technopak
Appendix
253
Segment Wise Sampling - Non-Beneficiary
Exhibit 238: Segment Wise Sampling - Non-Beneficiary
Segment Sample Covered
Standalone Spinning 0
Weaving/Knitting 46
Processing (Fibers, Yarn, Fabrics, Garments, and Made-ups) 22
Technical textiles and Non-woven 7
Garmenting 28
Others 5
Total 108
Source: Sampling analysis by Technopak
Appendix
254
Profile Analysis
In total, 667 Unit Holder Surveys (UHS) were undertaken to conduct the quantitative analysis. Out
of 667, 559 were beneficiary and 108 were non-beneficiary.
Profile of Unit Holder Surveyed - Beneficiaries
Segment Wise
Scheme Wise
7%
50%
6%
12%
9%
9%
8%
Spinning
Weaving
Knitting
Processing
Technical Textiles &…
Garmenting
Other
Loan Beneficiaries
Segment
Source:TechnopakAnalysis;Base-559
14%
36%
49%
RTUFS
RRTUFS
ATUFS
Loan Beneficiaries
Scheme
Source:TechnopakAnalysis;Base-559
50% of UHS were from weaving sector, which is in line with the TUFS applications
Scheme-wise target was 50:30:20 for ATUFS: RRTUFS: RTUFS. However, the sample had more
applications from RRTUFS as there were fewer beneficiaries available in ATUFS
Exhibit 239: UHS Profile – Segment Wise
Exhibit 240: UHS Profile - Scheme Wise Appendix
255
Scale Wise
78%
22%
MSME Non - MSME
Source:TechnopakAnalysis,Base-559
MSME sector witnessed higher no. of beneficiaries (78%) as no. of applications are skewed
towards MSME sector
For the purpose of the report, Technopak has completed 667 UHS across different geographies,
segments, and scale. Of 667 UHS, 559 were beneficiaries. Of 559 beneficiaries, 50% were
completed from weaving sector, which is in line with the TUFS applications. The scheme-wise
survey was completed in the ratio of 50:36:14 for ATUFS: RRTUFS: RTUFS. The sample had more
applications from RRTUFS as there were fewer beneficiaries available in ATUFS.
Summary
Exhibit 241: UHS Profile - Scale Wise Appendix
256
Profile of Unit Holder Surveyed - Non-Beneficiaries
Segment Wise
Scale Wise
1%
37%
6%
19%
26%
6%
5%
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles
Others
Loan Beneficiaries
Segment
Source:TechnopakAnalysis;Base-108
37% of UHS were from weaving sector, which is in line with the TUFS applications
MSME sector witnessed higher no. of non-beneficiaries (91%) as no. of applications are skewed
towards MSME sector
91%
9%
MSME Non - MSME
Source:TechnopakAnalysis,Base-108
Of 667 UHS, 108 were non-beneficiaries. Of 108 non beneficiaries, 37% were completed from
weaving sector. More number of MSME were included in the UHS sample, in line with the higher
number of MSME demand.
Summary
Exhibit 242: UHS Profile - Segment Wise
Exhibit 243: UHS Profile - Scale Wise Appendix
257
Appendix 7- Deep dive into UHS Analysis
FINANCIAL PERFORMANCE
Beneficiaries
Annual Sales
Majority of the segments have similar rise in annual sales. Knitting, Weaving and Processing have
witnessed high percentage increase in sales >10% by around 50% of the respondents. Relatively,
Technical Textiles has witnessed more increase in sales (37% of respondents, 6-10%) because this
is not a commodity product.
Exhibit 244: Change in Annual Sales - Segment Wise
Among states, Rajasthan and Karnataka have witnessed high percentage increase in annual sales
of >20% due to TUFS responded by ~50% of their respondents. Punjab has witnessed lesser
increase in annual sales (6-10%) responded by 53% of the 43 respondents.
2%3%
1%
7%
3%
2%
3%
2%
3%
0%
3%
2%
5%
5%
6%
5%
3%
10%
12% 2%
11%
16%
11%
17%
18% 12%
15%
18%
29%
21%
14%
20%
31%
37%
24%
13%
20%
21%
23%
18%
15%
8%
26%
37%
31% 25%
18%
24%
29%
3%3%
8%
5%
31 262 29 61 51 41 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-513 Appendix
258
Exhibit 245: Change in Annual Sales - Geography Wise
Across schemes, the highest increase in annual sales was exhibited during ATUFS scheme with
39% of the respondents suggesting an increase >20%.
Exhibit 246: Change in Annual Sales - Scheme Wise
1%
7%
3%
5%
4%
1%
6% 1%
4%
1%
6%
4%
6%
12%
5% 3%
3%
10%
11% 20%
11%
30%
9%
18%
18%
16%
52%
3%
20%
53%
6%
25%
40%24%
8%
33%
18%
7%
28%
9%
3%
37%
12%
50%
30%
2%
53%
24% 28%
4% 4%3% 2%4% 3%
194 25 36 76 43 32 67 40
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but don’t
know/can’t say
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but don’t
know/can’t say
Source:TechnopakAnalysis,Base-513
1%2%1%
2%1%1%
1%3%0%
4%
10%
7%
12%
15%
14%
18%
28%
29%
20%
16%
19%
39%
22%29%
3%4%
1%
254186
73
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but percentage
unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 6-10%
Decreased by 11-20%
Decreased by >20%
Decreased but percentage
unknownSource:TechnopakAnalysis,Base-513 Appendix
259
Net Profit
Majority of respondents have witnessed an increase in net profit with weaving segment having
highest positive response of 63% for profit increase greater than 6%. Some respondents in
Spinning (6%) and Knitting (7%) segments have witnessed high reduction in net profit of >20%.
Net profits increment can be attributed to productivity improvement and wastage reduction.
Exhibit 247: Change in Net Profit - Segment Wise
Among states, Rajasthan (55%), Karnataka (46%) and Gujarat (39%) have witnessed high
percentage increase in net profit of >20% due to TUFS. Tamil Nadu has witnessed decrease in net
profits responded by 22% of the 64 respondents.
1%
3% 2%
6%
2%
7% 2% 4%
5%
11%
3%
2%
4%
2%
0%
4%
5%
3%
1%2%
2%
6%
7%
18%
7%
4% 5%
8%
32%
12%
18%
28% 29%
24%
26%
16%
18%
14% 22%
25%
29%
16%
10%
18%
14%
21% 10%
7%
3%
23%
37%
25%
14%
14%
24%
29%
3%2%
8%
3%
31 266 28 58 51 41 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but percentage
unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but percentage
unknown
Source:TechnopakAnalysis,Base-513 Appendix
260
Exhibit 248: Change in Net Profit - Geography Wise
Across schemes, the highest increase in net profit was exhibited during ATUFS scheme with 36%
of the respondents suggesting an increase >20%.
Exhibit 249: Change in Net Profit - Scheme Wise
2%1%2%
2%5% 1%3%
11%
10%
1%
3%
5%
5%
1%
4%
5%
2%
1%
1%
2%
3%
6%
4%
8%
11%
5%
6%
9%
3%
12%
26%
3%
10%
58%
10%
22%
44%
17%
57%
8%
19%
28%
13%
16%
23%
18%
9%
22%
18%
7%
13%
11%
5%
39% 46%
29%
55%
17%
10%
3%4% 2%
5%
3%
197 23 37 79 43 31 64 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-513
0%2%1%2%
7%3%
1%
0%
2%
1%
0%
2%
7%
5%
9%
12%
25%
28%
17%
24%
17%
18%
9%
17%
36%
20%25%
3%4%
25518375
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but percentage
unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 6-10%
Decreased by 11-20%
Decreased by >20%
Decreased but percentage
unknownSource:TechnopakAnalysis,Base-513 Appendix
261
Sales Price
Weaving segment has had tremendous gains >10% in the per unit sales price with 56%
respondents suggesting the same. Spinning segment has also witnessed high increase in average
sales price. Knitting respondents have witnessed lower sales price growth as compared to the
other segments.
Exhibit 250: Change in Average Sales Price - Segment Wise
Majority of the states, have witnessed high percentage increase in net profit due to TUFS.
Karnataka has witnessed the highest growth in the average sales price (72% respondents
responding >10% increases in sales price). However, some of the respondents (12% of the 64
respondents) of Tamil Nadu have witnessed decrease in average sales price.
0%2%2%
14%
2%5%
3%3%
2%3%
10% 12%
21%
12%
12%
10%
13%
16%
10%
21%
24%
20%
26% 18%
23%
15%
14%
16%
27%
26%
18%
45%
56%
21%
33% 29%
26%
34%
4%
7% 7% 8%
3%
31 266 28 58 49 39 38
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-509 Appendix
262
Exhibit 251: Change in Average Sales Price - Geography Wise
Across schemes, the highest increase in average sales price was exhibited during ATUFS scheme
with 56% of the respondents suggesting an increase >10%.
Exhibit 252: Change in Average Sales Price - Scheme Wise
1%2%1%
8%
3%
8%
8%
2%
2%
3%15%
4%
11%
20%
7% 13%
10%
5%
9% 32%
3%
5%
44%
3%
11%
54%
14%
44%
3%
11%
33%
23%
24%
15%
56%
16%
72%
54%
9%
58%
30%
13%
4% 4%5% 5%
10%
3%
196 25 36 76 43 31 63 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-509
0%1%
3%3%
1%
1%
1%
13%12%14%
10%
18%
26%
13%
22%
19%
56%
32%
35%
4%
6%
1%
25418372
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but percentage
unknown
Increased By >10%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by >10%
Decreased but percentage
unknown
Source:TechnopakAnalysis,Base-509 Appendix
263
Non-Beneficiaries
Annual Sales
Weaving has witnessed high increase in annual sales with 21 % of the respondents reporting
>20% increase. Processing segment has witnessed increase of >20% in annual sales as reported
by 31% of 13 respondents.
Exhibit 253: Change in Annual Sales - Segment Wise
Among states, Uttar Pradesh’s non beneficiary respondents have witnessed increase in annual
sales of >20% as responded by ~60% of their respondents. Punjab has witnessed decrease in
annual sales >10% as responded by ~40% of their respondents.
Exhibit 254: Change in Annual Sales - Geography Wise
6%
15%
8%
4%
15%
24%
8%
38%60%
12%
8%
8%
17%
9%
20%
15%
25%
17%
27%
40%
4%
33%
21%
40%
31%
8%
33%
20%
8%
4%
20%
33 5 13 24 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-86
13%
33%
7%
67%67%
13%
60%
10%
7%
33%
42%
10%
20%
13%
7%
25%
42%
10%
40%
20%
38%
8%
10%
40%
38%
25%
8%
60%
38%
15 8 15 8 15 3 12 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-86 Appendix
264
Net Profit
24% respondents in weaving segment have witnessed >20% increase in net profits. Significant
number of respondents in weaving (24%), and garmenting (25%) segments have witnessed high
reduction in net profit of >20%. In processing segment 58% of the respondents have witnessed
loss in net profits.
Exhibit 255: Change in Net Profit - Segment Wise
Among states, Punjab (67%) and Karnataka (33%) have witnessed decrease in net profit of >20%.
Gujarat is the only state to report an increase in net profit with no unit holder responding
decrease in net profits.
Exhibit 256: Change in Net Profit - Geography Wise
17%
4%
20%
24%
8%
25%
20%9%
17%
8%
8%
8%
15%
33%
17%
8%
17%
20%3%
17%
8%
17%
17%
21%
17%
17%
17%
33%
3%
4%
17%
24%
17% 17%
20%
33%
20%
33 6 12 24 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased By 6-10%
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-86
50%
7%
33%
67%
7%
17%
13%
25%
10%
14%
75%
20%
43%
13%
50%
7%
14%
29%
20%
47%
29%
36%
20%
13%
7%
47%
20% 20%7%
33%
7%
15 6 15 7 15 4 14 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased By 6-10%
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-86 Appendix
265
Sales Price
Weaving segment has had tremendous gains >10% in the per unit sales price with 37%
respondents suggesting the same. Garmenting segment has witnessed decrease in average sales
price with 35% responses indicating >10% decrease.
Exhibit 257: Change in Average Sales Price - Segment Wise
Non-beneficiaries’ respondents in Gujarat (58% of the 12 respondents) have witnessed increase
in average sales price >10%. However, respondents in Punjab have witnessed a decline in the
average sales price (80% of respondents responding >10% decrease in sales price).
Exhibit 258: Change in Average Sales Price - Geography Wise
5%
13%
20%
35%
20%
7%
10%
7%
33%
10%
33%
10%
17%
30% 10%
33%17%
10%
25%
17%
40%
37%
17%
10%
10%
33%
5%
17%
40%
30 6 10 20 6 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >10%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-77
17%
80%
20%
7%
20%
7%
50%
7%
30%
33%
13%
17%
100%
8%
20%
8%
20%
7%
75%
58%
33%
17%
7%
10%
67%
17%
12 6 15 6 15 1 12 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased By >10%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-77 Appendix
266
PRODUCTION AND PRODUCTIVITY
Beneficiaries
Production Volume
Most of the respondents from all sectors have witnessed high growth in production volume as a
result of productivity improvement; however, 11% of technical textiles’ sector respondents have
reported significant production volume losses. 77% of weaving unit respondents have witnessed
increase in production volume >5%.
Exhibit 259: Change in Production Volume (%) - Segment Wise
Among states, Rajasthan (59%), Karnataka (55%) and Gujarat (42%) have witnessed high
percentage increase in production volume of >20% due to TUFS. 57% of the respondents in
Haryana have witnessed an increase in production volume between 6-10%.
3%
3%
3% 4% 3%2%
2%
2%
5%
3%
2%
2%
2%
3%
3%
2%3%
5%
11% 7% 8%
10%
11%
28%
11%
19%
22%
29%
17%
24%
16%
16%
15% 12%
22%
21%
22%
16%
16%
11%
22%
12%
12% 8%
28%
45%
41%
31%
22% 29% 30%
3%2%
4%
32 269 27 59 51 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-517 Appendix
267
Exhibit 260: Change in Production Volume (%) - Geography Wise
Across schemes, the highest increase in production volume was exhibited during ATUFS scheme
with 46% of the respondents suggesting an increase >20%.
Exhibit 261: Change in Production Volume (%) - Scheme Wise
2%2%
7%5% 5%2%5%
4%
2%
1%
3%
2%
2%
1%
2%
7%
11%
8%
9%
3%
6%
2%
11%
22%
12%
57%
3%
17%
37%
12%
57%
8%
11%
14%
19%
30%
20%
23%
9%
18%
13%
9%
16%
5% 5%
42%
13%
55%
42%
5%
59%
30%
32%
2%4% 2%3%
199 23 38 76 44 32 64 41
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-517
1%2%
3%3%
1%
3%
1%1%
1%
1%
4%
8%
9%
12%
24%
17%
15%
18%
20%
18%
11%
18%
46%
27%
32%
1%
4%
25418776
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but percentage
unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 6-10%
Decreased by 11-20%
Decreased by >20%
Decreased but percentage
unknown
Source:TechnopakAnalysis,Base-517 Appendix
268
Non-Beneficiaries
Production Volume
Most of the respondents from all sectors have witnessed high growth in production volume. 69%
of weaving unit respondents have witnessed increase in production volume >5%.
Exhibit 262: Change in Production Volume (%) - Segment Wise
Among states, 94% respondents in Gujarat have witnessed increase in production volume of
>10% due to TUFS. 33% of the respondents in Punjab have witnessed a decrease in production
volume <20%. 20% of the respondents in Uttar Pradesh witnessed a decrease in production
volume between 11-20%.
Exhibit 263: Change in Production Volume (%) - Geography Wise
6%8% 8%
3%
20%
8%
8%
3%
20%
17%
25%
14%
20%
19%
13%
14%
20%
25%
20% 17%
17%
14%
22%17%
21%
14% 20%
22%
20%
25%
13%
29%
20%
4%
14%
40%
32 5 12 24 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-85
33%
11%
20%
50%50%
40%
20%
47%
50%
27%
7%
47%
64%
10%
47%
22%
7%
25%
20%
10%
47%
22%
25%
7%
40%
44%
9%
15 9 15 8 15 2 11 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-85 Appendix
269
EXPORTS
Beneficiaries
Value of Exports
Majority of the segments have witnessed an increase in exports value with technical textile
segment having highest positive response of 84% for export increase. Garmenting segment
respondents have witnessed highest increase in value of exports >20%. Some respondents in
Spinning and Knitting have witnessed decrease in value of exports.
Exhibit 264: Change in Value of Exports (%) - Segment Wise
Among states, in Karnataka 40% of 10 respondents have witnessed highest percentage increase
in value of exports of >20% due to TUFS. 54% of the respondents in Haryana have witnessed an
increase in value of exports between 6-10%.
17%
1%
17%
6% 6%3%
9%
6% 6%
5%
4%
6%
4%
1%
5%1%
5%
17%
17%
17%
9%
6%
6%
14%
4%
6%
17% 36%
17%
17%
23%
21%
25%
17%
23%
33%
39%
27%
21%
23%
9%
11%
14%
8%
15%
17%
9%
22%
11%
14%
4%
7%
17%
6% 6%
24 71 6 22 18 18 22
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-181 Appendix
270
Exhibit 265: Change in Value of Exports (%) - Geography Wise
Across schemes, the highest increase in value of exports was exhibited during ATUFS scheme
with 76% of the respondents suggesting an increase in value of exports.
Exhibit 266: Change in Value of Exports (%) - Scheme Wise
3%3%
8%
11%
11%
4%
5%
3%
2%
3%
5%
3%
2%
14%
4%
20%
5% 17%
46%
11%
25%
31%
17%
5%
25%
11%
11%
54%
10%
30%
17% 23%
28%
25%
3%
17%
30%
16%
8%
23%
20%
25%
11%
4%
40% 22%
25%
8%
7% 25%
6%
8%9%
35 24 10 37 12 13 46 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but percentage
unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-181
3%
7%
4%
3%
7%
3%
1%
3%
1%
1%
16%
9%
18%
12%
13%
21%
22%
32%
25%
19%
11%
18%
18%
12%7%
5%4%
7%
777628
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but percentage
unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-181 Appendix
271
Volume of Exports
Highest change in volume of exports has been observed by Weaving and Garmenting segments.
Majority of segments have experienced export’s volume growth > 6%. Processing has witnessed
increase in volume of exports between 1-5% as reported by 50% of the 24 respondents. Export
volume has increased due to above stated factors like product development, quality
improvement and innovation.
Exhibit 267: Change in Volume of Exports (%) - Segment Wise
Among states, in Maharashtra, 30% of 37 respondents have witnessed highest percentage
increase in volume of exports of >20% due to TUFS. 54% of the respondents in Haryana have
witnessed an increase in volume of exports between 6-10%.
17%
3%
6% 6%
4%
1%
14%
8%
6% 6%
5%
6%
4%
4%
6%
21%
17%
14%
8%
6% 6%
14%
4%
4%
50%
33%
17%
32%
21%
33%
14%
8%
6%
28%
18%
8%
13%
14%
8%
17%
17%
18%
8%
25%
29%
17%
22% 11%
14%
8%
4%
14%
6%
24 72 7 24 18 18 22
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-185 Appendix
272
Exhibit 268: Change in Volume of Exports (%) - Geography Wise
Across schemes, the highest increase in volume of exports of >20% was exhibited during ATUFS
scheme with 24% of the respondents reporting the same.
Exhibit 269: Change in Volume of Exports (%) - Scheme Wise
3%3%
8%10%
11%
4%
3%
4%
3%
3%
8%
2%
16%
4%
20% 5%
17%
38%
13%
25%
27%
21%
10%
14%
25% 17%
16%
54%
22%
17%
15%
23%
11%
13%
40%
16%
8%
15%
6%
25%
11%
4%
30%
30%
17%
23%
19%
50%
3%
5%
8%6%
37 24 10 37 12 13 48 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-185
3%
7%
3%
3%
8%
1%
1%
3%
18%
9%
14%
10%
22%
24%
29%
17%
21%
11%
12%
21%
24%
16%
14%
4%4%3%
807629
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 1-5%
Decreased By 6-10%
Decreased By 11-20%
Decreased by >20%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-185 Appendix
273
Average Unit Price
Highest change in average unit price has been observed by Garmenting segment. Weaving and
technical textile respondents’ have indicated that almost one-third of them witnessed no change
in average unit sales price. Average unit price has increased due to above stated factors like high
value product mix, quality improvement and research and development.
Exhibit 270: Change in Average Unit Price (%) - Segment Wise
Among states, in Maharashtra 31% of 36 respondents have witnessed highest percentage
increase in average unit price of >20% due to TUFS. 54% of the respondents in Haryana have
witnessed an increase in average unit price between 6-10%.
17%
1%
14%
6%
4%
1%
14%
6%
8%
1%6%
17%
32%
26%
6%
31%
19%
13%
14%
39%
31%
19%
24%
29% 21%
29%
9%
38%
31%
24%
13%
10%
9%
6%
6%
14%
4%
14%
14%
9%
6%19%
8%
6%
14%
9%
6%
24 71 7 23 16 16 21
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but percentage
unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 6-10%
Decreased By 11-20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-178 Appendix
274
Exhibit 271: Change in Average Unit Price (%) - Geography Wise
Across schemes, the highest increase in volume of exports of >20% was exhibited during ATUFS
scheme with 24% of the respondents reporting the same.
Exhibit 272: Change in Average Unit Price (%) - Scheme Wise
3%
8%
11%
3%
8%
4%
3%3%
4%
37%
8%
20%
25%
42%
58%
9%
33%
23%
25%
6%
17%
26%
67%
11%
54%
30%
22%
8%
17%
24%
9%
4%
30%
8%
8%
8%
11%
6%
4%
20%
31%
8%
8%
2%
9%
4%3%
8%9%
35 24 10 36 12 12 46 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 6-10%
Decreased By 11-20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-178
3%
5%4%
3%
3%1%
4%
27%
19%
29%
17%21%
14%
22%
23%
29%
8%
8%
18%
14%
11%
5%5%7%
777328
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but
percentage unknown
Increased by >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No Change
Decreased By 6-10%
Decreased By 11-20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-178 Appendix
275
Non-Beneficiaries
Value of Exports
According to responses by non-beneficiaries, 25% in weaving segment and 34% in garmenting
segments have witnessed a decrease >11% in the value of exports.
Exhibit 273: Change in Value of Exports (%) - Segment Wise
Among states, in Punjab 40% of 15 non-beneficiaries’ respondents have witnessed highest
percentage decrease in value of exports of >20%.
Exhibit 274: Change in Value of Exports (%) - Geography Wise
20%
10%
20%
27%
15%
20%
7%10%
7%5%
13%
35%
50%
20%
7%
50%
33%
10%
20%
33%
15%
20%
13%
50%
7%
50%
33%
20 2 5 15 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-47
25%
7%
40%
20%
7%
25%
20%
7% 7%
20%
75%
27%
7%
40%
50%
25%13%
20%
7%
20%
20%
25%
75%
20%
4 4 15 15 5 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
GujaratHaryanaKarnatakaPunjabTamil NaduUttar
Pradesh
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-47 Appendix
276
Volume of Exports
According to responses by non-beneficiaries, 25% in weaving segment and 27% in garmenting
segments have witnessed a decrease >11% in the volume of exports. Also, the increase in volume
of exports >20% has been witnessed by 20% of non-beneficiary respondents both in weaving and
garmenting.
Exhibit 275: Change in Volume of Exports (%) - Segment Wise
Among states, in Punjab, 33% of 15 non-beneficiaries’ respondents have witnessed highest
percentage decrease in value of exports of >11%.
Exhibit 276: Change in Volume of Exports (%) - Geography Wise
20%
5%
20%
7%
20%
20%
20%
20%
13%67%
10%
13%
15%
7%
10%
40%
13%
50%
20%
20%
100%
7%
50%
33%
20 1 5 15 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-46
25%
7%
13%
20%
20%
33%
47%
13%
13%
40%
50%
7%
7%25%
7%
13%
20%
67%
25%
13%
20%
20%
75%
20%
4 4 15 15 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
GujaratHaryanaKarnatakaPunjabTamil NaduUttar
Pradesh
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
No change
Decreased by 11-20%
Decreased by >20%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-46 Appendix
277
Average Unit Price
Highest change in average unit price has been observed by Garmenting segment with 54% of 13
respondents suggesting an increase between 11-20%.
Exhibit 277: Change in Average Unit Price (%) - Segment Wise
Among states, in Punjab 47% of 15 non-beneficiaries’ respondents have witnessed highest
percentage increase in average unit price between 11-20%. 67% of the respondents in Karnataka
have witnessed an increase in average unit price between 6-10%.
Exhibit 278: Change in Average Unit Price (%) - Geography Wise
8%
33%
25%25%
50%
50%33%
31%
100% 50%
25%
54%
33%
50%
8%
25%
16 2 3 13 1 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-39
7%
7%
50%
7%
7%
50%
50%
100%
67%
27%
25%
27%
47%
7%
100%
25%
1 2 15 15 4 2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
GujaratHaryanaKarnatakaPunjabTamil NaduUttar
Pradesh
% Share of Respondents
Increased but percentage
unknown
Increased By >20%
Increased By 11-20%
Increased By 6-10%
Increased By 1-5%
Decreased by 11-20%
Decreased by >20%
Source:TechnopakAnalysis,Base-39 Appendix
278
EMPLOYMENT GENERATION
Beneficiaries
Change in Total Manpower before and after Taking Loan
Total manpower has increased across all the segments. Processing segment has seen significant
>100 manpower addition. Although, technology upgradation normally reduces the manpower
requirement but no. of employees has been increased by capacity addition in this case. Capacity
additions across the textile value chain have created new jobs for skilled as well as unskilled
manpower.
Exhibit 279: Change in Total Manpower - Segment Wise
Among states, Rajasthan and Tamil Nadu have witnessed highest percentage increase in total
manpower of 20-50 due to TUFS. Majority of states have witnessed total manpower increase <20
while 12% of 74 of Maharashtra’s respondents indicating a decrease between 20 and 50.
2%0%
3%
0%3%
3%
9%
11%
3%
5%
10%
9%
4%
9%
8%
29%
15%
41%
20%
17%
26%
16%
14%
51%
31%
20%
32%
33%
30%
29%
19%
10%
25%
23%
23%
24%
20%
4%
9%
9%
2%
3%
1%
16%
2%
5%
5%
3%
1%
3% 2%
4%3%
35 259 29 56 47 43 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but
change unknown
Source:TechnopakAnalysis,Base-506 Appendix
279
Exhibit 280: Change in Total Manpower - Geography Wise
Across schemes, during ATUFS scheme primarily increase in labour was <50 while during RTUFS
and RRTUFS ~15% have achieved an increase of >50 in total manpower.
Exhibit 281: Change in Total Manpower - Scheme Wise
3%2% 3% 1%2%
5%
12%
3%
3%
10%
14%
4%
5%1%
3%
15%
26%
22%
18%
43%
6%
30%
3%
53%
61%
16%
39%
17%
29%
12% 58%
12%
9%
30%
20%
26%
35%
35%
19%
2%
8%
4%
2%
16%
14%
8%
4%
4% 5%
6%
4% 3%2%3%
5% 3%
189 23 37 74 42 31 74 36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-506
1%0%1%0%2%
5%4%
4%
6%
12%
19%
22%12%
50%
26%34%
20%
23%
19%
3%
8%9%
1%
7%3%
1%2%
4%
25018967
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but change
unknownSource:TechnopakAnalysis,Base-506 Appendix
280
Change in Skilled Manpower before and after Taking Loan
Overall majority of the segments have witnessed less than 20 additional skilled labour. Demand
for skilled labour has increased due to installation of new technology machines across the
segments. Spinning and processing segments have seen influx of skilled labour between 20 and
50.
Exhibit 282: Change in Skilled Manpower - Segment Wise
Among states, Rajasthan, Uttar Pradesh and Tamil Nadu have witnessed highest percentage
increase in skilled manpower of 20-50 due to TUFS. Majority of states have witnessed skilled
manpower increase <20 while 14% of the respondents from Karnataka and Punjab have indicated
a decrease of <20.
0%2%4%
0%2%3%1%2%
2%
5%
6%
7% 4%
5%
9%
7%
14%
29%
19%
33%
20%
26%
29%
19%
23%
57%
48%
33%
34%
40%
24%
34%
13%
7%
31%
15%
12%
30%
6%
1%
2%
9%
5%
0%
5% 2%
2%
3%
3%
1%
4% 2%
4%3%
35 251 27 55 47 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-494 Appendix
281
Exhibit 283: Change in Skilled Manpower - Geography Wise
Across schemes, during ATUFS scheme primarily increase in skilled labour was <20 while during
RTUFS and RRTUFS ~30% achieved an increase of >20 in skilled manpower.
Exhibit 284: Change in Skilled Manpower - Scheme Wise
1%
3%2%1%3%3%1%
3%
3%4%
9%
9%
14%
8%
14%
3%
19%
39%
22%
26%
38%
6%
26%
6%
57%
48%
35%
54% 17%
39%
25%
53%
11%
22%
7%
21%
35%
32%
33%
1%
3%
2%
10%
9%
1% 4%6% 1% 3%2%3% 5%
1%
183 23 37 74 42 31 68 36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-494
0%1%0%1%3%2%1%
2%4%
8%
17%
21%
26%
14%
60%
32%
29%
11%
23%
27%
0%
4%5%
1%
2%
1%2%
5%
24218666
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased by >100
Decreased but change
unknownSource:TechnopakAnalysis,Base-494 Appendix
282
Change in Unskilled Manpower before and after Taking Loan
In Spinning, Knitting, Processing and Garmenting segment, a significant >30% of the respondents
have indicated no change in unskilled manpower. Spinning segment has witnessed 29%
respondents suggesting increase in unskilled manpower 20-50.
Exhibit 285: Change in Unskilled Manpower - Segment Wise
Among states, Rajasthan and Uttar Pradesh have witnessed highest percentage increase in
unskilled manpower of 20-50 due to TUFS. Majority of states have witnessed unskilled manpower
increase <20 while 22% of Haryana’s respondents indicating a decrease of <20.
2%
0%
4%2%2%
11%
9%
16%
4%
15%
12% 16%
34%
19%
52%
41%
32%
29%
16%
20%
56%
20%
30%
26%
43%
41%
29%
10%
4%
15%
19%
10%
19%
3%
1%
6%
2%
5%
0%
6%
5%
3%
1%
4%4%3%
35 250 25 54 47 42 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-490 Appendix
283
Exhibit 286: Change in Unskilled Manpower - Geography Wise
Across schemes, during ATUFS scheme primarily increase in unskilled labour was <20 while during
RTUFS and RRTUFS ~20% have achieved an increase of >20 in unskilled manpower.
Exhibit 287: Change in Unskilled Manpower - Scheme Wise
3%2% 3%
10%10%
22%
11% 12%
12%
3%
7%
6%
20%
30%
38% 34%
36%
7%
40%
6%
59%
43%
32%
46%
21%
40%
18%
49%
7%
14%
4%
24%
37%
18%
31%
1%3% 1% 2%
7%
3%
6%1% 4% 3%3% 1%
2%3% 2%1%
182 23 37 74 42 30 67 35
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-490
1%0%2%2%1%
8%
14%
8%
26%
29%
21%
56%
29%
42%
6%
19%21%
0%
4%2%
1%
2%
2%
1%2%3%
23918566
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by >100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-490 Appendix
284
Change in Average Salary of Skilled Manpower before and after Taking Loan
In weaving sector, 70% of the 270 respondents have witnessed >6% growth in the salary of the
skilled manpower. Majority of the segments have witnessed majorly average salary increases of
>6% for skilled manpower.
Exhibit 288: Change in Average Salary of Skilled Manpower - Segment Wise
Among states, 75% respondents from Rajasthan have witnessed increase in average salary of
skilled manpower of >10% due to TUFS. Majority of states have witnessed average salary of
skilled manpower increase >6%.
4% 4%
6%
2%
7%
15%
6%
2%
2%
2%
2%
3%
2%
4%
8%
4%
2%
3%
18%
3%
17%
19%
12%
7%
15%
32%
16%
17%
6%
25%
26%
8%
9%
25%
25%
19%
22%
13%
10%
24%
45%
29%
29%
20%
30%
43%
9%
6%
4%
11% 12% 13%
8%
34 270 24 63 51 46 40
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-528 Appendix
285
Exhibit 289: Change in Average Salary of Skilled Manpower - Geography Wise
Across schemes, during ATUFS scheme respondents have witnessed primarily increase in average
salary increase of skilled labour of >10% and almost 70% have witnessed an increase in average
salary >6% during ATUFS.
Exhibit 290: Change in Average Salary of Skilled Manpower - Scheme Wise
4% 4%
15%
3% 3%
1%
1%
2%
1%2%
1% 4%
4%
2% 6%
9%
3%
3%
4%
1% 29% 15% 36%
8%
56%
16%
9%
36%
3%
24%
28%
27%
11%
24%
36%
2%
9%
12%
5%47%
11%
58%
27%
11%
75%
27%
21%
8%
11%
3%
6%
16%
3%
9% 8%
202 27 38 78 45 32 67 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-528
3%
8%
3%
1%
2%
6%
4%
13%
13%
14%
21%
17%
27%
14%
17%
44%
29%
35%
6%7%
17%
25619478
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-528 Appendix
286
Change in Average Salary of Unskilled Manpower before and after Taking Loan
In weaving sector, 65% of the 159 respondents have witnessed >10% growth in the salary of the
unskilled manpower. Majority of the segments have witnessed; majorly average salary increases
of >6% for unskilled manpower.
Exhibit 291: Change in Average Salary of Unskilled Manpower - Segment Wise
Among states, 86% respondents from Gujarat have witnessed increase in average salary of
unskilled manpower of >10% due to TUFS. Majority of states have witnessed average salary of
unskilled manpower increase >6%.
8%
13%
9%
6%
14%
33%
10%
1%
20%
2%
25%
30%
12%
10%
6%
2%
4%
5%
6%
6%
9%
18%
5%
17%
12%
10%
6%
70%
65%
63%
48%
53%
57%
50%
10 159 8 23 17 21 18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-256 Appendix
287
Exhibit 292: Change in Average Salary of Unskilled Manpower - Geography Wise
Across schemes, during ATUFS scheme respondents have witnessed primarily increase in average
salary increase of unskilled labour of >10% and almost 80% have witnessed an increase in average
salary >6% during ATUFS.
Exhibit 293: Change in Average Salary of Unskilled Manpower - Scheme Wise
8%
3%
23%
6% 5%
3%
5%
4%
33%
5%
25%
18%
32%
3%
2%
21%
11%
7%
37%
1%
28%
33%
5%
86%
67%
53%
30%
75% 76%
59%
37%
95 3 36 60 4 17 22 19
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-256
5%
18%
7%
1%
1%
3%
16%
4%1%
2%
11%
5%
5%
11%
17%
2%19%
67%
55%
48%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-256 Appendix
288
Change in training costs before and after taking loan
Almost 45% of the respondents in spinning and weaving segments responded that the training
costs were increased >6%. Technical textiles primarily witnessed an increase in training costs
between 3-5% as responded by 60% of the 15 respondents.
Exhibit 294: Change in Training Cost - Segment Wise
Among states, 48% of respondents from Rajasthan have witnessed increase in training costs of
>10% due to TUFS. Majority of states have witnessed average training costs increased by >6%.
2%
7%2%
7%
5%
10%
13% 20%
33%
19%
7%
35%
41%
40%
29%
44%
60%
20%
30%
27%
19%
20%
20%
15%
13%
40%
10%
25%
50%
10%
4%5%
13%
10%
20 56 5 21 16 15 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by >10%
Source:TechnopakAnalysis,Base-143 Appendix
289
Exhibit 295: Change in Training Cost - Geography Wise
Across schemes, during RTUFS scheme respondents have witnessed primarily increase in training
costs of >3% and almost 78% have witnessed an increase in training costs >3% during RRTUFS.
Exhibit 296: Change in Training Cost - Scheme Wise
7%5%6%
7%
5%
24%
5%
6%
20%
29%
19% 20%
24%
71%
50%
33%
29%
24%
42%
20%
18%
14%
38%
27%
12%
19%
26%18%
5%
7%
12% 48%
13%
40%
18%
5%
18%20%
17 21 16 15 17 21 31 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by >10%
Source:TechnopakAnalysis,Base-143
7%
2%
4%
2%
17%
16%
7%
43%
44%
21%
23%
16%
29%
11%
18%
21%
2%
6%
11%
536228
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased By 3-5%
Decreased by >10%
Source:TechnopakAnalysis,Base-143 Appendix
290
Non-Beneficiaries
Change in total no. of employees before and after taking loan
Total manpower has increased across all the segments. Processing and weaving segments have
seen significant <20 manpower addition.
Exhibit 297: Change in Total Manpower - Segment Wise
Among states, non-beneficiaries’ respondents in Tamil Nadu have witnessed highest percentage
increase in total manpower of 50-100. 60% of 15 respondents in Punjab have witnessed a
decrease <20 in total manpower.
Exhibit 298: Change in Total Manpower - Geography Wise
20%
14%
10% 11%
11%
25%
17%
20%
29%
21%
20%
75%
39%
60%
43%
18%
20%
11%
20%
14%
11%
6%
5%
7%
40%
4%
25%
3%4%
36 5 21 28 5 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Source:TechnopakAnalysis,Base-99
8%
27%
33%
8%
13%
60%
40%
38%
7%
53%
17%
27%
94%
43%
38%
40%
45%14%
13%
13%
7%
25%
27%
6%
14%
42%14%
13%14%
7%
16 7 15 8 15 15 12 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Source:TechnopakAnalysis,Base-99 Appendix
291
Change in skilled manpower before and after taking loan
Overall majority of the segments have witnessed less than 20 additional skilled labour. Weaving
and processing segments have seen influx of skilled labour <20.
Exhibit 299: Change in Skilled Manpower - Segment Wise
Among states, non-beneficiaries in Gujarat have witnessed highest percentage increase in skilled
manpower of <20. Majority of states have witnessed skilled manpower increase <20 while 80%
of the respondents from Punjab have indicated a decrease of <20.
Exhibit 300: Change in Skilled Manpower - Geography Wise
3%
20%
3%7%
20%
10%
25%
17%
50%
40%
29%
20%
100%
43%
50%
35%
21%
20%
9%10%
11%
40%
5%
4%
6%4%
35 4 20 28 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-95
7%
10%
7%
7%
10%
27%
80%
47%
38%
13%
80%
36%
94%
60%
38%
20%
10%
55%
6%
13%
70%
9%
20%
13%
20%
13%
16 5 15 8 15 15 10 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased by >100
Increased by 50-100
Increased By 20-50
Increased By <20
No change
Decreased by <20
Decreased by 20-50
Decreased by 50-100
Decreased but change
unknown
Source:TechnopakAnalysis,Base-95 Appendix
292
Change in unskilled manpower before and after taking loan
Weaving and processing segments have witnessed primarily additional unskilled labour changes
<20. 25% respondents from garmenting segment have witnessed a decrease in unskilled labour
<20.
Exhibit 301: Change in Unskilled Manpower - Segment Wise
Among states, all the non-beneficiaries in Gujarat have witnessed increase in unskilled manpower
of <20. In Punjab, 73% of the respondents witnessed decrease in unskilled manpower <20.
Exhibit 302: Change in Unskilled Manpower - Geography Wise
21%
10%
25%
20%
24%
25%
35%
32%
20%
100%
47%
75%
50% 25%
40%
3%
5%
14% 20%
6%4%
34 4 20 28 5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but change
unknown
Increased By 20-50
Increased By <20
No change
Decreased by <20
Source:TechnopakAnalysis,Base-94
29%
73%
20%
40%
57%
50%
20%
60%
27%
100% 20%
38%
7%
40%
40%
64%
20%
13%
40%
9%
20%
14%
16 5 14 8 15 15 10 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but change
unknown
Increased By 20-50
Increased By <20
No change
Decreased by <20
Source:TechnopakAnalysis,Base-94 Appendix
293
Change in average salary of skilled manpower before and after taking loan
In weaving sector, 26% of the 37 respondents have witnessed >10% growth in the salary of the
skilled manpower. In processing sector, 43% of the 28 respondents have witnessed average
growth in the salary of the skilled manpower between 6-10%.
Exhibit 303: Change in Average Salary of Skilled Manpower - Segment Wise
Among states, 44% respondents from Gujarat have witnessed increase in average salary of skilled
manpower of >10%. 67% non-beneficiaries from Rajasthan have witnessed an average salary of
skilled manpower increase between 6-10%. 87% of the respondents in Punjab have witnessed
decrease in average salary >10%. 13% of the respondents from Karnataka have witnessed a
decrease in average salary >10%
Exhibit 304: Change in Average Salary of Skilled Manpower - Geography Wise
11%10%
32%9%
3%
20%
23%
33%
10%
11%
29%
40%
14%
3%
14%
14% 14%
26%
17%
43%
29%
14%
26%
17%
14%
7%
14%
33%
10% 7%
14%
40%
35 6 21 28 7 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by 3-5%
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-102
13%
87%
20%
13%
53%
50%
13%
45%
8%6%
13%
38%
9%
50%
22%
38%
67%
31%
9%
44%
13%
20%
8% 36%
78%
15%
16 9 15 8 15 15 13 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by 3-5%
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-102 Appendix
294
Change in average salary of unskilled manpower before and after taking loan
In weaving sector, 29% of the 24 respondents have witnessed >10% growth in the salary of the
unskilled manpower. Majority of the segments have witnessed majorly average salary increases
of >6% for unskilled manpower.
Exhibit 305: Change in Average Salary of Unskilled Manpower - Segment Wise
Among states, all respondents from Gujarat have witnessed increase in average salary of
unskilled manpower of >10%. Majority of states have witnessed no change in average salary.
Punjab has witnessed decrease in average salary >10% of unskilled labour with 67% of the
respondents reporting same.
Exhibit 306: Change in Average Salary of Unskilled Manpower - Geography Wise
13%
25%
38%
8%
19%
33%
46%
50%
25%
19%
100%
67%
4%
13%
25%
29%
25%
38%
25%
24 4 8 16 2 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including non-
woven
Others
% Share of Respondents
Increased by >10%
Increased by 6-10%
Increased By 3-5%
No change
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-57
7%
67%
13%
27%
80%
80%
7%
63%
29%
13%
100%
20%
71%
25%
7 15 5 15 7 8
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
GujaratKarnatakaMaharashtraPunjabRajasthanUttar
Pradesh
% Share of Respondents
Increased by >10%
Increased by 6-10%
Increased By 3-5%
No change
Decreased by 6-10%
Decreased by >10%
Source:TechnopakAnalysis,Base-57 Appendix
295
Change in training costs before and after taking loan
55% of the respondents in processing segment responded that the training costs were increased
>6%.
Exhibit 307: Change in Training Cost - Segment Wise
Among states, 60% of non-beneficiary respondents from Rajasthan have witnessed increase in
training costs of >10. Majority of states have witnessed average training costs increased by >3%.
Exhibit 308: Change in Training Cost - Geography Wise
17%
9%
15%
100%
8%
50%
50%
36%
38%
50%17%
55%
38%
17%
6 11 13 2 1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving ProcessingGarmenting Technical
Textiles
including non-
woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by >10%
Source:TechnopakAnalysis,Base-33
80%
50%
7%9%
33%
64%
50%
20%
60%
18%
9%
5 15 11 2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Punjab Rajasthan Tamil Nadu Uttar Pradesh
% Share of Respondents
Increased but
percentage unknown
Increased by 6-10%
Increased By 3-5%
Increased By 1-2%
No change
Decreased by >10%
Source:TechnopakAnalysis,Base-33 Appendix
296
COST SAVINGS
Beneficiaries
Change in Cost Savings per Unit
43% of the respondents in weaving segments responded that the cost savings per unit were
increased >10%. Technical textiles witnessed an increase in cost savings between 4-5% as
responded by 28% of the 43 respondents.
Exhibit 309: Change in Cost Savings Per Unit - Segment Wise
Among states, 72% of respondents from Karnataka have witnessed increase in cost savings per
unit of >10% due to TUFS. Of the 193 respondents from Gujarat, 38% witnessed increase in cost
savings per unit >10%. Over 15% respondents across the states Gujarat, Maharashtra and Uttar
Pradesh have witnessed decrease in cost savings.
1%
5%
2% 2% 3%
5%
10%
5% 13%
2%
11%
2%
3%
2%
3%
4%
3%
2%
2%
6%
3%
5%
5%
13%
7%
17%
16%
8%
9%
11%
23%
7%
10%
22%
17%
14%
16%
13%
14%
17%
17%
23% 28%
30%
26%
11%
3%
9%
17%
7%
5%
13%
43%
31%
14%
19%
26%
24%
3% 3%
7%
2% 2% 2%
31 266 29 58 48 43 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SpinningWeavingKnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 4-5%
Increased By 1-3%
No Change
Decreased By 1-3%
Decreased By 4-5%
Decreased By 6-10%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-512 Appendix
297
Exhibit 310: Change in Cost Savings Per Unit - Geography Wise
Across schemes, during ATUFS scheme, 42% respondents have witnessed increase in cost savings
per unit of >10%.
Exhibit 311: Change in Cost Savings Per Unit - Scheme Wise
3%1%
5%
8%
4% 6%
8%
6%
5%
3%
1%
3%
2%
5%
3%
4%
3%
3%
4%
3%
3%
5%
5%
10%
12%
8%
8%
9%
13%
12% 5%
10%
8%
6%
30%
16%
8%
31%
12%
36%
8%
11%
51%
9%
12%
31%
7%
24%
3%
5%
2%
25%
32%
5%
38%
12%
72%
48%
2%
25% 17%
13%
2%
5% 5% 3%
6%
193 25 36 79 43 32 65 39
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 4-5%
Increased By 1-3%
No Change
Decreased By 1-3%
Decreased By 4-5%
Decreased By 6-10%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-512
1%
4%4%
8%
8%
2%
1%
1%3%
1%6%
3%
2%
4%
11%7%
10%
9%
15%
18%13%
24%
17%
9%
14%10%
42%
22%
24%
3%2%3%
25818272
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ATUFSRRTUFSRTUFS
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 4-5%
Increased By 1-3%
No Change
Decreased By 1-3%
Decreased By 4-5%
Decreased By 6-10%
Decreased by >10%
Decreased but
percentage unknown
Source:TechnopakAnalysis,Base-512 Appendix
298
Non-Beneficiaries
Change in Cost Savings per Unit
26% of the respondents in weaving segment responded that average cost savings per unit were
increased by >10%. 32% respondents in garmenting have witnessed that the average cost savings
per unit have increased by 6-10%.
Exhibit 312: Change in Cost Savings Per Unit - Segment Wise
Among states, 54% respondents in Gujarat have witnessed average cost savings per unit
increased by >10%. 47% respondents in Punjab have witnessed increase in average cost savings
per unit between 6-10%.
Exhibit 313: Change in Cost Savings Per Unit - Geography Wise
3%
11%3%
9%
11%
20% 20%
3%
20% 20%
5%
20%
15%
20%
29%
33%
20%
21%
20%
20%
9%
33%
32%
20%
26% 33%
40%
11%
3%
20%
11%
40%
34 3 10 19 5 5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weaving KnittingProcessingGarmentingTechnical
Textiles
including
non-woven
Others
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 4-5%
Increased By 1-3%
No Change
Decreased By 1-3%
Decreased By 4-5%
Decreased By 6-10%
Decreased by >10%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-76
7%
13%
8%
15%
40%
8%
7%
14%
20%
7%
8%
100%
7%
8%
20%
50%
57%47%
14% 14%
54%
20%
33%
7%
14%
100%
7%
13 6 5 15 1 14 7
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Share of Respondents
Increased but
percentage unknown
Increased by >10%
Increased By 6-10%
Increased By 4-5%
Increased By 1-3%
No Change
Decreased By 1-3%
Decreased By 4-5%
Decreased By 6-10%
Decreased by >10%
Decreased but
percentage unknownSource:TechnopakAnalysis,Base-76 Appendix
299
Appendix 8- Implementation Mechanisms for ATUFS
As a part of this study Technopak undertook an assessment of the application process followed
under ATUFS. The findings of the assessment and the gaps therein are explained in section 8 and
10, under “issues and challenges” and “recommendations”.
Please find below the various stages of application process under ATUFS as mentioned in ATUFS
policy:
Stage I
The implementation process begins with the registration of the entity in i-TUFS software. The entity is
supposed to provide all the relevant documents, after which the entity can apply for term loan from
ATUFS notified lending agency. The minimum loan amount must be at least 50% of the total eligible cost
of machinery. After the completion of the process, an ATUFS reference number is generated and the
application is taken forward to the lending agency. Once the proposal is scrutinized and considered viable,
the loan is sanctioned and the application is forwarded to the Textile Commissioner Office. Once the loan
is sanctioned, a Unique Identification number (UID) is automatically generated. The lending agency is
supposed to complete the process of sanction of term loan within 4 months from the receipt of
application
Stage II
The next step in the process is installation of machinery. The beneficiary can avail the loan on the new
machinery and not on the second-hand machinery. The whole process is supposed to be completed within
a year. Once the machinery is installed, the beneficiary is supposed to file an online application for Joint
Inspection (JIT). The JIT is supposed to complete physical inspection within 88 days of application for JIT
Stage III
Once the JIT is through with its physical verification, the Regional Office (RO) of Textile Commissioner
provides a report in i-TUFS. Within 25 days of the filing of JIT report online by RO, the textile commissioner
approves the subsidy claim for which an automatic challan is generated in i-TUFS. The challan is sent to
the Ministry, which then releases the subsidy into the account of the beneficiary within next 15 working
days Appendix
300
Appendix 9- Questionnaire for Industry Associations
Name
Designation
E-mail Id
Phone No.
Name of the Organization
Organization Address
Total Experience in Textile Industry
1. What is your opinion on the current situation of Indian textile industry? What are the major
challenges faced by the Indian Textile Industry at the Macro level? What are the key
suggestions for the growth of the Indian Textile Industry?
2. Please share your views on the current situation & growth of your focus sector
(Spinning/Weaving/Processing/Garmenting/ Technical textiles/Made-ups)?
3. Please rank the following factors affecting the investment into textile sector and kindly
explain why with some examples.
S.
No.
Parameters Your
Ranking
Remarks
1 Interest Rates
2 Corporate Tax
3 Power (Cost, Availability)
4 Man-Power (Cost, availability)
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Lack of Scale
9 Lack of visionary entrepreneurs
10 Others (Pl specify)
4. What are your suggestions to the government for attracting more investment into the
Indian Textile Value Chain?
5. What are your suggestions to the entrepreneurs for attracting more investment into the
Indian Textile Value Chain?
6. What is hindering the FDI (Foreign Direct Investment) into the Indian Textile Industry?
7. Please rank the following factors affecting the growth of Exports of Garments/Made-
ups/Technical Textiles out of India:
S. No. Parameters Your Ranking Remarks
1 Trade Agreements
2 Labor (Cost, Availability)
3 Scale (small units) Appendix
301
4 Power (Cost, Availability)
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Interest rates
9 Corporate Tax
10 Others (Pl. specify)
8. What are your suggestions for the government to increase value added exports of the
Indian Textile Industry?
9. What are your suggestions for the entrepreneurs to increase value added exports of the
Indian Textile Industry?
10. Please rank the following counties in terms of level of technology (machines) being used for
each sector:
Sector India China Bangladesh Vietnam Pakistan Turkey
Spinning
Weaving
Processing
Garmenting
Technical Textiles
Textile Machine
manufacturing
11. Where is India lacking in terms of technology (Machine)? What can we learn from other
countries?
12. How can machine manufacturing be encouraged to grow in India?
13. Which textile segments require more support for technology upgradation and overall
growth of textile value chain? Why?
14. What is the impact of the scheme on following parameters?
Parameters Significant
Impact
Insignifican
t Impact
No Impact Your
Remarks
Employment Generation
Average salary
Increase in Production
Increase in Sales
Increase in Profit
Increase in Average Sales Price
Increase in Productivity
Increase in Cost Savings
Reduction in wastage
Increase in Exports (Value)
Increase in Investments Appendix
302
Increase in Quality
Increase in Higher Value Product mix
15. What level of technology benchmark TUFS beneficiaries were able to achieve in the
following segments?
Level of
Machine
(Technology)
achieved after
TUFS
TUFS / Indian Standard Achieved Global Standard Your
Remarks
Segment Achieved
Not
Achieved
May
be
Achieved
Not
Achieved
May
be
Spinning
Weaving
Knitting
Processing
Garmenting
Technical
Textiles
including non-
woven
16. What are your views on the current TUFS scheme implementation mechanism?
17. What are the major issues faced while availing TUFS? What are the major reasons for delay
in disbursements?
18. What are your suggestions to improve the TUFS implementation? Appendix
303
Appendix 10- Questionnaire for Industry Experts
Name
Designation
E-mail Id
Phone No.
Name of the Organization
Organization Address
Total Experience in Textile Industry
1. What is your opinion on the current situation of Indian textile industry?
2. What are the major challenges faced by the Indian Textile Industry at the Macro level?
3. What are the key suggestions to the government for the growth of the Indian Textile Industry?
4. What are the key suggestions to the Entrepreneurs for the growth of the Indian Textile Industry?
5. Please share your suggestions on the current situation & growth of your focus sector
(Spinning/Weaving/Processing/Garmenting/ Technical textiles/Made-ups)?
6. Please rank the following factors affecting the investment into textile sector and kindly explain why
with some examples.
S. No. Parameters Your Ranking Remarks
1 Interest Rates
2 Corporate Tax
3 Power (Cost, Availability)
4 Man-Power (Cost, availability)
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Lack of Scale
9 Lack of visionary entrepreneurs
10 Others (Pl specify)
7. What are your suggestions to the government for attracting more investment into the Indian
Textile Value Chain?
8. What are your suggestions to the entrepreneurs for attracting more investment into the Indian
Textile Value Chain?
9. What is hindering the FDI into the Indian Textile Industry?
10. Please rank the following factors affecting the growth of Exports of Garments/Made-ups/Technical
Textiles out of India:
S. No. Parameters Your Ranking Remarks
1 Trade Agreements
2 Labor (Cost, Availability)
3 Scale (small units)
4 Power (Cost, Availability) Appendix
304
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Interest rates
9 Corporate Tax
10 Others (Pl. specify)
11. What are your suggestions for the government to increase value added exports of the Indian
Textile Industry?
12. What are your suggestions for the Industry leaders to increase value added exports of the Indian
Textile Industry?
13. Please rank the following counties in terms of level of technology (machines) being used for each
sector:
Sector India China Bangladesh Vietnam Pakistan Turkey
Spinning
Weaving
Processing
Garmenting
Technical Textiles
Textile Machine manufacturing
14. Where is India lacking in terms of technology (Machine)? What can we learn from other countries
for upgrading level of technology in India?
15. How can machine manufacturing be encouraged to grow in India?
16. Which textile segments require more support for technology upgradation and overall growth of
17. How important is scale for global competitiveness? How can Indian textile companies acquire scale?
18. How to encourage investments in garment, made ups and technical textile sectors?
19. What is the impact of the scheme on following parameters?
Parameters Significant
Impact
Insignificant
Impact
No Impact Your Remarks
Employment Generation
Average salary
Increase in Production
Increase in Sales
Increase in Profit
Increase in Average Sales Price
Increase in Productivity
Increase in Cost Savings
Reduction in wastage
Increase in Exports (Value)
Increase in Investments
Increase in Quality Appendix
305
Increase in Higher Value Product mix
20. What level of technology benchmark TUFS beneficiaries were able to achieve in the following
segments?
Level of Machine
(Technology) achieved
after TUFS
TUFS / Indian Standard Achieved Global Standard Your
Remarks
Segment Achieved
Not
Achieved
May
be
Achieved
Not
Achieved
May
be
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Composite*
Embroidery
Others# (segments to
be indicated
separately)
21. What are your views on the current TUFS scheme implementation mechanism?
22. What are the major issues faced by your sector? What are the major reasons for delay in
disbursements?
23. What are your suggestions to improve the TUFS implementation?
Appendix
306
Appendix 11- Questionnaire for Machinery manufacturers
Name
Designation
E-mail Id
Phone No.
Name of the Organization
Organization Address
1. What is your opinion on the current situation of Indian textile industry? What are
the major challenges faced by the Indian Textile Industry at the Macro level? What
are the key suggestions for the growth of the Indian Textile Industry?
2. Please rank the following factors affecting the investment into textile sector and kindly
explain why with some examples.
S.
No.
Parameters Your
Ranking
Remarks
1 Interest Rates
2 Corporate Tax
3 Power (Cost, Availability)
4 Man-Power (Cost,
availability)
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Lack of Scale
9 Lack of visionary
entrepreneurs
10 Others (Pl specify)
3. What are your suggestions for attracting more investment into the Indian Textile Value
Chain?
4. How can machine manufacturing be encouraged to grow in India?
5. Which textile segments require more support for technology upgradation and overall
growth of textile value chain? Why?
6. What is the impact of the TUFS scheme on following parameters?
Parameters Significant
Impact
Insignificant
Impact
No
Impact
Your Remarks
Employment Generation 0
Average salary
Increase in Production
Increase in Sales
Increase in Profit Appendix
307
Increase in Average Sales
Price
Increase in Productivity
Increase in Cost Savings
Reduction in wastage
Increase in Exports (Value)
Increase in Investments
Increase in Quality
Increase in Higher Value
Product mix
7. What level of technology benchmark TUFS beneficiaries were able to achieve in the
following segments?
Level of Machine
(Technology)
achieved after
TUFS
Achieved Indian Standard Achieved Global Standard Your
Remarks
Segment Achieved
Not
Achieved
May
be
Achieved
Not
Achieved
May
be
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-
woven
8. What are your views on the degree of technological upgradation achieved due to TUFS?
How far the TUFS beneficiaries were able to achieve TUFS scheme technology benchmark?
9. Please share your views on where does India stand in terms of technology in various
segments of textile as per global standards? Also share your views how does TUFS
technology specifications compare with global standards?
10. What are your suggestions to include new machinery or change in technology/machinery
specifications for TUFS scheme?
11. What are your views on the current TUFS scheme implementation mechanism?
12. What are the major issues faced by industry while availing TUFS? What are the major
reasons for delay in disbursements?
13. What are the major issues faced by machinery manufactures or their supply chain partners
related to TUFS scheme?
14. What are your suggestions to improve the TUFS implementation? Appendix
308
Appendix 12- Questionnaire for Lending Agency
Name
Designation
E-mail Id
Phone No.
Name of the Organization
Organization Address
1. What is your opinion on the current situation of Indian textile industry? What are the major
challenges faced by the Indian Textile Industry at the Macro level? What are the key
suggestions to the government for the growth of the Indian Textile Industry?
2. Please rank the following factors affecting the investment into textile sector and kindly
explain why with some examples.
S.
No.
Parameters Your
Ranking
Remarks
1 Interest Rates
2 Corporate Tax
3 Power (Cost, Availability)
4 Man-Power (Cost,
availability)
5 Raw Material Cost
6 Supply Chain Cost
7 Government Clearances
8 Lack of Scale
9 Lack of visionary
entrepreneurs
10 Others (Pl specify)
3. What are your suggestions for attracting more investment into the Indian Textile Value
Chain?
4. What is the impact of the scheme on following parameters?
Parameters Significant
Impact
Insignificant
Impact
No Impact Your Remarks
Employment Generation
Average salary
Increase in Production
Increase in Sales
Increase in Profit
Increase in Average Sales Price
Increase in Productivity Appendix
309
Increase in Cost Savings
Reduction in wastage
Increase in Exports (Value)
Increase in Investments
Increase in Quality
Increase in Higher Value Product mix
5. What are your views on the current TUFS scheme implementation mechanism?
6. What are the major issues faced by your sector? What are the major reasons for delay in
disbursements?
7. What are your suggestions to improve the TUFS implementation?
8. Please share your viewpoint on the current subsidy disbursement model under TUFS?
9. What are the major issues faced by lending agency while availing TUFS benefits?
10. What are the major reasons for delay in disbursements under TUFS? How it can be
improved?
11. What is the level of bad loan and NPAs in the Textile Value Chain? How does it compare
with other Industries?
Appendix
310
Appendix 13- Questionnaire for UHS (Unit Holder Survey) – Beneficiaries
Name of the Company
Company Address
Respondent Name
Respondent Designation
E-mail Id
Phone No.
Type of company: MSME / Non-MSME / SSI / Non – SSI
Name of the bank & branch used for TUFS subsidy
Name of the fiber the company manufactures/deals in:
Month/Year of Machinery Installation
1. Production Volumes & Financials of the Company –
Segments Production*
(Volume)
Total Sales
Turnover (Rs
Cr)
Domestic (%) Export (%)
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Composite
Embroidery
Others# (segments to
be
indicated
separately)
*Production Volume can be in terms of Ton, Meters or No. of Pieces.
# Cotton ginning & pressing; Silk sector (i.e. reeling, twisting, spinning, and weaving); Wool sector (i.e.
scouring, combing, spinning (worsted, shoddy and woolen) and weaving); Synthetic filament yarn
texturizing, crimping & twisting; Manufacturing Viscose filament yarn / viscose staple fiber; Independent
weaving preparatory; Made-up manufacturing; Jute Industry; Carpet manufacturing; Handloom weaving
2. Segments presence and loan/subsidy availed:
Segments
Please tick all applicable Please provide details
Company
segment
presence
Segment for
which loan
availed under
Total
Project
Cost
Loan availed
under RTUFS /
RRTUFS/ Appendix
311
RTUFS /
RRTUFS/ATUFS
ATUFS
1 2 3 4 5
Spinning
Weaving
Knitting
Processing
Garmenting
Technical Textiles
including non-woven
Composite*
Embroidery
Others# (segments to
be indicated separately)
* Spinning units with weaving / knitting and processing and garmenting
# Cotton ginning & pressing; Silk sector (i.e. reeling, twisting, spinning, and weaving); Wool sector (i.e.
scouring, combing, spinning (worsted, shoddy and woolen) and weaving); Synthetic filament yarn
texturizing, crimping & twisting; Manufacturing Viscose filament yarn / viscose staple fiber; Independent
weaving preparatory; Made-up manufacturing; Jute Industry; Carpet manufacturing; Handloom weaving
3. What has been the impact of machinery bought under RTUFS/RRTUFS/ATUFS on
following parameters?
a. Impact on Employment (Yearly Change)
Parameter Value in
(2011)
Value in
(2012)
Value in
(2013)
Value in
(2014)
Value in
(2015)
Value in
(2016)
Value in
(2017)
Value in
(2018)
Total Man Power
Skilled Man Power
Un-Skilled Man Power
Contractual Man
Power
Average Salary
Training Cost
Appendix
312
b. Impact on Financial Health (Yearly Change)
Parameter Value in
(2011)
Value in
(2012)
Value in
(2013)
Value in
(2014)
Value in
(2015)
Value in
(2016)
Value in
(2017)
Value in
(2018)
Sales (Value)
Production(Volume)
Net Profit
Average Sales Price
c. Impact on Productivity (Yearly Change)
Parameter Value in
(2011)
Value in
(2012)
Value in
(2013)
Value in
(2014)
Value in
(2015)
Value in
(2016)
Value in
(2017)
Value in
(2018)
Efficiency %
Cost per unit
Wastage %
d. Impact on Exports (Yearly Change)
Parameter Value in
(2011)
Value in
(2012)
Value in
(2013)
Value in
(2014)
Value in
(2015)
Value in
(2016)
Value in
(2017)
Value in
(2018)
Exports (Value)
Exports (Volume)
Average Price of
Exports
e. Impact on Investments (Yearly Change)
Parameter Value in
(2011)
Value in
(2012)
Value in
(2013)
Value in
(2014)
Value in
(2015)
Value in
(2016)
Value in
(2017)
Value in
(2018)
Project Investment
(Value – Rs Cr/Year)
Machinery Investment
(Value – Rs Cr/Year)
Number of Machines
Note: Supporting data / details may please be provided. Appendix
313
4. Has there been improvement in following aspects due to RTUFS/RRTUFS/ATUFS?
(Please tick appropriate option for all aspects)
Aspects Yes No Maybe/Not
Sure
Remarks (if any)
Overall Productivity*
Product Quality
Product Development
Research & Development
Higher Value Product Mix
Export Competitiveness
Cost Efficiency
*Productivity (output per unit of input) can be in terms of Ton (for spinning), Meters (for
weaving or processing) or No. of Pieces (for garmenting)
Note: Supporting data may please be provided.
5. What is the efficiency of the TUFS fund disbursement process?
Process
Actual
Time
Please tick mark the applicable range if exact no. is
not
Available (Months/Days)
Entity applies for the loan
through i-TUFS - Sanction of
term loan by Lending
Agency(Bank)
a) 4-5
months
b) 5-6
months
c) 6-8
months
d) >8
months
e) 1-4
months
JIT Physical Inspection
a) 89-100
days
b) 100-110
days
c) 110-120
days
d) >120
days
e) <88
days
Approval of Subsidy Claim by
Textile commissioner Office
a) 25-35
days
b) 35-45
days
c) 45-60
days
d) >60
days
e) <25
days
Ministry of Textiles will
release the subsidy into the
account of entity
a) 15-30
days
b) 30-90
days
c) 90-180
days
d) >180
days
e) <15
days
6. Have you faced any difficulty in availing RTUFS / RRTUFS/ATUFS benefits?
a. No
b. Yes (If yes, Tick the appropriate reason with relevant details)
Reasons Tick Details (if
yes) Appendix
314
Required machinery is not listed
Complicated and long process
Delay in processing application by
lending agency
Delay in submission of Final JIT report
to Textile Commissioner Office
Lack of Fund Availability under TUFS
Government processes / policy
Any other:
………………………………………………………………………………………………………………………………………...
…………………………………………………………………………………………………………………………………………
7. Was there any degree of Technological Up-gradation under RTUFS/RRTUFS/ATUFS in the
following segments:
Level of
Machine
Technology
after TUFS
Segment
As per TUFS As per Indian
Standard
As per Global
Standard
Spinning a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Weaving a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Knitting a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Processing
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Garmenting
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Technical Textiles
including non-woven
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Composite* a) Yes a) Yes a) Yes Appendix
315
b) No
c) May be
b) No
c) May be
b) No
c) May be
Embroidery a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Others# (segments to
be indicated
separately)
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
a) Yes
b) No
c) May be
Comments ------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
8. Please rate the following factors affecting the growth of Garments/Made-ups/Technical
Textiles Exports out of India
S. No. Parameters Your Ranking
1 Interest Rates
2 Corporate Tax
3 GST
4 Power Cost
5 Man-Power Cost
6 Labor Productivity
7 Raw Material Cost
8 Supply Chain Cost
9 Infrastructure Cost
10 Government Clearances
11 Trade Agreements
12 Others
Your Suggestions ----------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
9. Please rate the following factors affecting the investment into textile sector
S. No. Parameters Your Ranking
1 Interest Rates
2 Corporate Tax
3 GST
4 Power Cost
5 Man-Power Cost
6 Labor Productivity
7 Raw Material Cost
8 Supply Chain Cost
9 Infrastructure Cost Appendix
316
10 Government Clearances
11 Lack of Scale
12 Lack of visionary entrepreneurs
13 Others
Your Suggestions ----------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
10. What is the impact of the scheme on following parameters?
(Please tick appropriate option for all parameters)
Parameters Significant Impact Insignificant Impact No Impact
Technology up gradation
Employment Generation
Capacity expansion
Export competitiveness
Quality improvement
Cost Efficiency
Resource Efficiency
Any other:
11. Please mention if you have any suggestions for improving the scheme?
List of Exhibits
317
13. LIST OF EXHIBITS
Exhibit 1: Summary of UHS Analysis for impact of TUFS ................................................................ 7
Exhibit 2: Summary of KII Analysis for impact of TUFS ................................................................... 7
Exhibit 3: Global Benchmarking of Technology Level ................................................................... 12
Exhibit 4: Project Objectives ......................................................................................................... 15
Exhibit 5: Study Approach & Methodology .................................................................................. 16
Exhibit 6: Stakeholder wise and City wise sampling of KIIs .......................................................... 18
Exhibit 7: State wise sampling of UHS .......................................................................................... 19
Exhibit 8: Segment wise sampling of UHS .................................................................................... 20
Exhibit 9: Scheme wise sampling of UHS beneficiaries ................................................................ 20
Exhibit 10 Scale wise sampling of UHS ......................................................................................... 20
Exhibit 11: Anticipated Projections under A-TUFS ....................................................................... 22
Exhibit 12: No. of Beneficiaries (RTUFS) - Geography and Scale Wise ......................................... 23
Exhibit 13: No. of Beneficiaries (RTUFS)- Segment and Scale Wise.............................................. 24
Exhibit 14: No. of Beneficiaries (RRTUFS)- Geography and Scale Wise ........................................ 25
Exhibit 15: No. of Beneficiaries (RRTUFS)- Segment and Scale Wise ........................................... 26
Exhibit 16: No. of Applicants (ATUFS) - Geography-Wise ............................................................. 27
Exhibit 17: No. of Applicants (ATUFS) - Segment-Wise ................................................................ 28
Exhibit 18: No. of Applicants (ATUFS) - Scale-Wise ...................................................................... 28
Exhibit 19: No. of Applicants (ATUFS) - Geography and Scale Wise ............................................. 29
Exhibit 20: No. of Applicants (ATUFS) - Segment and Scale Wise ................................................ 30
Exhibit 21: No. of Beneficiaries (ATUFS) - Geography-Wise ......................................................... 31
Exhibit 22: No. of Beneficiaries (ATUFS) - Segment-Wise ............................................................ 32
Exhibit 23: No. of Beneficiaries (ATUFS) - Scale-Wise .................................................................. 32
Exhibit 24: No. of Beneficiaries (ATUFS) - Geography and Scale Wise ......................................... 33
Exhibit 25: No. of Beneficiaries (ATUFS) - Segment and Scale Wise ............................................ 34
Exhibit 26: Parameters covered under UHS Analysis ................................................................... 36
Exhibit 27: Investment Trend under TUF Scheme ........................................................................ 38
Exhibit 28: Investment Trend under TUF Scheme Segment-wise ................................................ 39
Exhibit 29: Increase in Investments .............................................................................................. 40 List of Exhibits
318
Exhibit 30: Project Investment (in Cr.) .......................................................................................... 41
Exhibit 31: Project Investment - Segment Wise ........................................................................... 41
Exhibit 32: Project Investment - Geography Wise ........................................................................ 42
Exhibit 33: Project Investment - Scheme Wise ............................................................................. 42
Exhibit 34: Machinery Investment (In Cr.) .................................................................................... 43
Exhibit 35: Machinery Investment - Segment Wise...................................................................... 43
Exhibit 36: Machinery Investment - Geography Wise .................................................................. 44
Exhibit 37 Machinery Investment - Scheme Wise ........................................................................ 44
Exhibit 38: Increase in No. of Machineries ................................................................................... 45
Exhibit 39: Increase in No. of Machines (%) - Segment Wise ....................................................... 45
Exhibit 40: Increase in No. of Machines (%) - Geography Wise ................................................... 46
Exhibit 41: Increase in No. of Machines (%) - Scheme Wise......................................................... 46
Exhibit 42: Project Investment (in Cr.) .......................................................................................... 47
Exhibit 43: Project Investment - Segment Wise ........................................................................... 47
Exhibit 44: Project Investment - Geography Wise ........................................................................ 48
Exhibit 45: Machinery Investment (In Cr.) .................................................................................... 49
Exhibit 46: Machinery Investment - Segment Wise...................................................................... 49
Exhibit 47: Machinery Investment - Geography Wise .................................................................. 50
Exhibit 48 Increase in No. of Machineries .................................................................................... 51
Exhibit 49 Increase in No. of Machines (%) - Segment Wise ........................................................ 51
Exhibit 50: Increase in No. of Machines (%) - Geography Wise ................................................... 52
Exhibit 51: Increase in Sales .......................................................................................................... 56
Exhibit 52: Increase in Profits ....................................................................................................... 57
Exhibit 53: Increase in Average Sales Price ................................................................................... 57
Exhibit 54: Change in Annual Sales ............................................................................................... 58
Exhibit 55: Change in Annual Sales - Segment Wise ..................................................................... 58
Exhibit 56: Change in Annual Sales - Geography Wise ................................................................. 59
Exhibit 57: Change in Annual Sales - Scheme Wise ...................................................................... 59
Exhibit 58: Change in Net Profit .................................................................................................... 60
Exhibit 59: Change in Net Profit - Segment Wise ......................................................................... 60
Exhibit 60: Change in Net Profit - Geography Wise ...................................................................... 61 List of Exhibits
319
Exhibit 61: Change in Net Profit - Scheme Wise ........................................................................... 61
Exhibit 62: Change in Average Sales Price (%) .............................................................................. 62
Exhibit 63: Change in Average Sales Price - Segment Wise .......................................................... 62
Exhibit 64: Change in Average Sales Price - Geography Wise ...................................................... 63
Exhibit 65: Change in Average Sales Price - Scheme Wise........................................................... 63
Exhibit 66: Change in Annual Sales ............................................................................................... 64
Exhibit 67: Change in Annual Sales - Segment Wise ..................................................................... 64
Exhibit 68: Change in Annual Sales - Geography Wise ................................................................. 65
Exhibit 69: Change in Net Profit .................................................................................................... 66
Exhibit 70: Change in Net Profit - Segment Wise ......................................................................... 66
Exhibit 71: Change in Net Profit - Geography Wise ...................................................................... 67
Exhibit 72: Change in Average Sales Price (%) .............................................................................. 68
Exhibit 73: Change in Average Sales Price - Segment Wise .......................................................... 68
Exhibit 74: Change in Average Sales Price - Geography Wise ...................................................... 69
Exhibit 75: No. of Operational Factories (In Numbers) ................................................................ 73
Exhibit 76: Total Production (In Bn) .............................................................................................. 73
Exhibit 77: Productivity ................................................................................................................. 74
Exhibit 78: Production Levels of Textile Products ........................................................................ 75
Exhibit 79: India Yarn Production Trend (in Kg Mn) ..................................................................... 75
Exhibit 80: Indian Fabric Production Trend (Mn Sq Mtrs) ............................................................ 76
Exhibit 81: Increase in Production ................................................................................................ 77
Exhibit 82: Increase in Productivity .............................................................................................. 77
Exhibit 83: Change in Production Volume (%) .............................................................................. 78
Exhibit 84: Change in Production Volume (%) - Segment Wise .................................................... 78
Exhibit 85: Change in Production Volume (%) - Geography Wise ................................................ 79
Exhibit 86: Change in Production Volume (%) - Scheme Wise ..................................................... 79
Exhibit 87: Improvement in Production and Productivity ............................................................ 80
Exhibit 88: Overall Productivity - Segment Wise .......................................................................... 80
Exhibit 89: Product Quality - Segment Wise ................................................................................. 81
Exhibit 90: Product Development - Segment Wise ...................................................................... 81
Exhibit 91: Higher Value Product Mix - Segment Wise ................................................................. 82 List of Exhibits
320
Exhibit 92: Cost Efficiency - Segment Wise ................................................................................... 82
Exhibit 93: Research and Development - Segment Wise ............................................................. 83
Exhibit 94: Export Competitiveness - Segment Wise .................................................................... 83
Exhibit 95: Change in Production Volume (%) .............................................................................. 84
Exhibit 96: Change in Production Volume (%) - Segment Wise .................................................... 84
Exhibit 97: Change in Production Volume (%) - Geography Wise ................................................ 85
Exhibit 98: Improvement in Production and Productivity ............................................................ 86
Exhibit 99: Overall Productivity - Segment Wise .......................................................................... 86
Exhibit 100: Product Quality - Segment Wise ............................................................................... 87
Exhibit 101: Product Development - Segment Wise .................................................................... 87
Exhibit 102: Higher Value Product Mix - Segment Wise ............................................................... 88
Exhibit 103: Cost Efficiency - Segment Wise ................................................................................. 88
Exhibit 104: Research and Development - Segment Wise ........................................................... 89
Exhibit 105: Export Competitiveness - Segment Wise .................................................................. 89
Exhibit 106: T&A Exports (USD Bn) ............................................................................................... 92
Exhibit 107: Fibre Export Scenario ................................................................................................ 93
Exhibit 108: Yarn Export Scenario ................................................................................................. 93
Exhibit 109: Fabric and Woven Export Scenario ........................................................................... 94
Exhibit 110: Capacity gap in the Textile & Apparel value chain ................................................... 95
Exhibit 111: Global Synthetic Apparel Trade (USD Bn) ................................................................. 96
Exhibit 112: Global Cotton Apparel Trade (USD Bn) ..................................................................... 96
Exhibit 113: Average export growth percentage of competing countries during schemes ......... 97
Exhibit 114: India's Share in Global Exports ................................................................................. 97
Exhibit 115: Change in Share of Global T&A Exports .................................................................... 98
Exhibit 116: Increase in Exports Value .......................................................................................... 99
Exhibit 117: Change in Value of Exports (%) ............................................................................... 100
Exhibit 118: Change in Value of Exports (%) - Segment Wise..................................................... 100
Exhibit 119: Change in Value of Exports (%) - Geography Wise ................................................. 101
Exhibit 120: Change in Value of Exports (%) - Scheme Wise ...................................................... 101
Exhibit 121: Change in Volume of Exports (%) ........................................................................... 102
Exhibit 122: Change in Volume of Exports (%) - Segment Wise ................................................. 102 List of Exhibits
321
Exhibit 123: Change in Volume of Exports (%) - Geography Wise .............................................. 103
Exhibit 124: Change in Volume of Exports (%) - Scheme Wise ................................................... 103
Exhibit 125: Change in Average Unit Price (%) ........................................................................... 104
Exhibit 126: Change in Average Unit Price (%) - Segment Wise ................................................. 104
Exhibit 127: Change in Average Unit Price (%) - Geography Wise ............................................. 105
Exhibit 128: Change in Average Unit Price (%) - Scheme Wise................................................... 105
Exhibit 129: Change in Value of Exports (%) ............................................................................... 106
Exhibit 130: Change in Value of Exports (%) - Segment Wise..................................................... 106
Exhibit 131: Change in Value of Exports (%) - Geography Wise ................................................. 107
Exhibit 132: Change in Volume of Exports (%) ........................................................................... 108
Exhibit 133: Change in Volume of Exports (%) - Segment Wise ................................................. 108
Exhibit 134: Change in Volume of Exports (%) - Geography Wise .............................................. 109
Exhibit 135: Change in Average Unit Price (%) ........................................................................... 110
Exhibit 136: Change in Average Unit Price (%) - Segment Wise ................................................. 110
Exhibit 137: Change in Average Unit Price (%) - Geography Wise ............................................. 111
Exhibit 138: No. of people engaged in operational factories in T&A (Mn) ................................ 114
Exhibit 139: Wages per Worker in T&A (INR) ............................................................................. 114
Exhibit 140: Increase in Employment Generation ...................................................................... 115
Exhibit 141: Change in Total Manpower..................................................................................... 116
Exhibit 142: Change in Total Manpower - Segment Wise .......................................................... 116
Exhibit 143: Change in Total Manpower - Geography Wise ....................................................... 117
Exhibit 144: Change in Total Manpower - Scheme Wise ............................................................ 117
Exhibit 145: Change in Skilled Manpower .................................................................................. 118
Exhibit 146: Change in Skilled Manpower - Segment Wise ........................................................ 118
Exhibit 147: Change in Skilled Manpower - Geography Wise .................................................... 119
Exhibit 148: Change in Skilled Manpower - Scheme Wise ......................................................... 119
Exhibit 149: Change in Unskilled Manpower .............................................................................. 120
Exhibit 150: Change in Unskilled Manpower - Segment Wise.................................................... 120
Exhibit 151: Change in Unskilled Manpower - Geography Wise ................................................ 121
Exhibit 152: Change in Unskilled Manpower - Scheme Wise ..................................................... 121
Exhibit 153: Change in Average Salary of Skilled Manpower ..................................................... 122 List of Exhibits
322
Exhibit 154: Change in Average Salary of Skilled Manpower - Segment Wise ........................... 122
Exhibit 155: Change in Average Salary of Skilled Manpower - Geography Wise ....................... 123
Exhibit 156: Change in Average Salary of Skilled Manpower - Scheme Wise ............................ 123
Exhibit 157: Change in Average Salary of Unskilled Manpower ................................................. 124
Exhibit 158: Change in Average Salary of Unskilled Manpower - Segment Wise ...................... 124
Exhibit 159: Change in Average Salary of Unskilled Manpower - Geography Wise ................... 125
Exhibit 160: Change in Average Salary of Unskilled Manpower - Scheme Wise ........................ 125
Exhibit 161: Change in Training Cost .......................................................................................... 126
Exhibit 162: Change in Training Cost - Segment Wise ................................................................ 126
Exhibit 163: Change in Training Cost - Geography Wise............................................................. 127
Exhibit 164: Change in Training Cost - Scheme Wise.................................................................. 127
Exhibit 165: Change in Total Manpower..................................................................................... 128
Exhibit 166: Change in Total Manpower - Segment Wise .......................................................... 128
Exhibit 167: Change in Total Manpower - Geography Wise ....................................................... 129
Exhibit 168: Change in Skilled Manpower .................................................................................. 130
Exhibit 169: Change in Skilled Manpower - Segment Wise ........................................................ 130
Exhibit 170: Change in Skilled Manpower - Geography Wise .................................................... 131
Exhibit 171: Change in Unskilled Manpower .............................................................................. 132
Exhibit 172: Change in Unskilled Manpower - Segment Wise.................................................... 132
Exhibit 173: Change in Unskilled Manpower - Geography Wise ................................................ 133
Exhibit 174: Change in Average Salary of Skilled Manpower ..................................................... 134
Exhibit 175: Change in Average Salary of Skilled Manpower - Segment Wise ........................... 134
Exhibit 176: Change in Average Salary of Skilled Manpower - Geography Wise ....................... 135
Exhibit 177: Change in Average Salary of Unskilled Manpower ................................................. 136
Exhibit 178: Change in Average Salary of Unskilled Manpower - Segment Wise ...................... 136
Exhibit 179: Change in Average Salary of Unskilled Manpower - Geography Wise ................... 137
Exhibit 180: Change in Training Cost .......................................................................................... 138
Exhibit 181: Change in Training Cost - Segment Wise ................................................................ 138
Exhibit 182: Change in Training Cost - Geography Wise............................................................. 139
Exhibit 183: Increase in Cost Savings .......................................................................................... 143
Exhibit 184: Change in Cost Savings per Unit ............................................................................. 144 List of Exhibits
323
Exhibit 185: Change in Cost Savings Per Unit - Segment Wise ................................................... 144
Exhibit 186: Change in Cost Savings Per Unit - Geography Wise ............................................... 145
Exhibit 187: Change in Cost Savings Per Unit - Scheme Wise .................................................... 145
Exhibit 188: Change in Cost Savings per Unit ............................................................................. 146
Exhibit 189: Change in Cost Savings Per Unit - Segment Wise ................................................... 146
Exhibit 190: Change in Cost Savings Per Unit - Geography Wise ............................................... 147
Exhibit 191: Improvement in Quality .......................................................................................... 151
Exhibit 192: Improvement in Product Quality ............................................................................ 152
Exhibit 193: Change in Product Quality - Segment Wise ............................................................ 152
Exhibit 194: Improvement in Product Quality ............................................................................ 153
Exhibit 195: Change in Product Quality - Segment Wise ............................................................ 153
Exhibit 196: Major Factors Affecting Investments ..................................................................... 155
Exhibit 197: Factors Affecting Investments into Textiles ........................................................... 156
Exhibit 198: Major Factors Affecting Exports ............................................................................. 157
Exhibit 199: Factors Affecting Exports of Garments ................................................................... 158
Exhibit 200: FDI in Textiles in USD Millions ................................................................................ 159
Exhibit 201: Indian Textile Machinery Overview ........................................................................ 160
Exhibit 202: Recommendations on ATUFS Machines Listing ...................................................... 161
Exhibit 203: Summary of ATUFS machinery ............................................................................... 163
Exhibit 204: Current Technology level in India - Segment Wise ................................................. 164
Exhibit 205: Technology upgradation level achieved by TUFS ................................................... 165
Exhibit 206: Segment-wise Technology Upgradation level achieved by TUFS- Beneficiaries .... 165
Exhibit 207: Segment-wise Technology Upgradation level achieved by TUFS- Non-Beneficiaries
..................................................................................................................................................... 167
Exhibit 208: Global Machinery Shipments - Spinning ................................................................. 168
Exhibit 209: Share of shipments (Spinning) ............................................................................... 168
Exhibit 210: Share of installed capacity (Spinning) ..................................................................... 168
Exhibit 211: Global Machinery Shipments - Weaving ................................................................ 169
Exhibit 212: Share of shipments (Weaving) ................................................................................ 169
Exhibit 213: Share of installed capacity (Weaving) ..................................................................... 169
Exhibit 214: Global Machinery Shipments - Knitting .................................................................. 170 List of Exhibits
324
Exhibit 215: Global Machinery Shipments - Draw-Texturing ..................................................... 170
Exhibit 216: Spinning................................................................................................................... 171
Exhibit 217: Weaving/Knitting .................................................................................................... 171
Exhibit 218: Processing ............................................................................................................... 172
Exhibit 219: Garmenting ............................................................................................................. 172
Exhibit 220: Technical Textiles .................................................................................................... 173
Exhibit 221: Textile Machine Manufacturing .............................................................................. 173
Exhibit 222: Machinery Matrix.................................................................................................... 174
Exhibit 223: Evaluation Matrix (Ranking of segments) for Technology Assessment ................. 175
Exhibit 224: Segment–wise Recommendations for ATUFS subsidy ........................................... 176
Exhibit 225: ATUFS Beneficiaries’ - Weaving, Knitting Machinery analysis ................................ 177
Exhibit 226: Subsidy released under schemes ............................................................................ 178
Exhibit 227: Subsidy released under schemes segment-wise .................................................... 179
Exhibit 228: Project Investments under schemes ...................................................................... 181
Exhibit 229 Issues, Challenges and Recommendations from KIIs............................................... 189
Exhibit 230: Proposed Sampling (UHS) as per ToR ..................................................................... 247
Exhibit 231: Overall Revised Sampling Plan ................................................................................ 248
Exhibit 232: Actual Sampling of UHS .......................................................................................... 249
Exhibit 233: State Wise Sampling - Beneficiary .......................................................................... 250
Exhibit 234: Scale Wise Sampling - Beneficiary .......................................................................... 250
Exhibit 235: Segment Wise Sampling Plan - Beneficiary ............................................................ 251
Exhibit 236: State Wise Sampling - Non-Beneficiary .................................................................. 252
Exhibit 237: Scale Wise Sampling - Non-Beneficiary .................................................................. 252
Exhibit 238: Segment Wise Sampling - Non-Beneficiary ............................................................ 253
Exhibit 239: UHS Profile – Segment Wise ................................................................................... 254
Exhibit 240: UHS Profile - Scheme Wise ..................................................................................... 254
Exhibit 241: UHS Profile - Scale Wise .......................................................................................... 255
Exhibit 242: UHS Profile - Segment Wise .................................................................................... 256
Exhibit 243: UHS Profile - Scale Wise .......................................................................................... 256
Exhibit 244: Change in Annual Sales - Segment Wise ................................................................. 257
Exhibit 245: Change in Annual Sales - Geography Wise ............................................................. 258 List of Exhibits
325
Exhibit 246: Change in Annual Sales - Scheme Wise .................................................................. 258
Exhibit 247: Change in Net Profit - Segment Wise ..................................................................... 259
Exhibit 248: Change in Net Profit - Geography Wise .................................................................. 260
Exhibit 249: Change in Net Profit - Scheme Wise ....................................................................... 260
Exhibit 250: Change in Average Sales Price - Segment Wise ...................................................... 261
Exhibit 251: Change in Average Sales Price - Geography Wise .................................................. 262
Exhibit 252: Change in Average Sales Price - Scheme Wise ...................................................... 262
Exhibit 253: Change in Annual Sales - Segment Wise ................................................................. 263
Exhibit 254: Change in Annual Sales - Geography Wise ............................................................. 263
Exhibit 255: Change in Net Profit - Segment Wise ..................................................................... 264
Exhibit 256: Change in Net Profit - Geography Wise .................................................................. 264
Exhibit 257: Change in Average Sales Price - Segment Wise ...................................................... 265
Exhibit 258: Change in Average Sales Price - Geography Wise .................................................. 265
Exhibit 259: Change in Production Volume (%) - Segment Wise ................................................ 266
Exhibit 260: Change in Production Volume (%) - Geography Wise ............................................ 267
Exhibit 261: Change in Production Volume (%) - Scheme Wise ................................................. 267
Exhibit 262: Change in Production Volume (%) - Segment Wise ................................................ 268
Exhibit 263: Change in Production Volume (%) - Geography Wise ............................................ 268
Exhibit 264: Change in Value of Exports (%) - Segment Wise..................................................... 269
Exhibit 265: Change in Value of Exports (%) - Geography Wise ................................................. 270
Exhibit 266: Change in Value of Exports (%) - Scheme Wise ...................................................... 270
Exhibit 267: Change in Volume of Exports (%) - Segment Wise ................................................. 271
Exhibit 268: Change in Volume of Exports (%) - Geography Wise .............................................. 272
Exhibit 269: Change in Volume of Exports (%) - Scheme Wise ................................................... 272
Exhibit 270: Change in Average Unit Price (%) - Segment Wise ................................................. 273
Exhibit 271: Change in Average Unit Price (%) - Geography Wise ............................................. 274
Exhibit 272: Change in Average Unit Price (%) - Scheme Wise................................................... 274
Exhibit 273: Change in Value of Exports (%) - Segment Wise..................................................... 275
Exhibit 274: Change in Value of Exports (%) - Geography Wise ................................................. 275
Exhibit 275: Change in Volume of Exports (%) - Segment Wise ................................................. 276
Exhibit 276: Change in Volume of Exports (%) - Geography Wise .............................................. 276 List of Exhibits
326
Exhibit 277: Change in Average Unit Price (%) - Segment Wise ................................................. 277
Exhibit 278: Change in Average Unit Price (%) - Geography Wise ............................................. 277
Exhibit 279: Change in Total Manpower - Segment Wise .......................................................... 278
Exhibit 280: Change in Total Manpower - Geography Wise ....................................................... 279
Exhibit 281: Change in Total Manpower - Scheme Wise ............................................................ 279
Exhibit 282: Change in Skilled Manpower - Segment Wise ........................................................ 280
Exhibit 283: Change in Skilled Manpower - Geography Wise .................................................... 281
Exhibit 284: Change in Skilled Manpower - Scheme Wise ......................................................... 281
Exhibit 285: Change in Unskilled Manpower - Segment Wise.................................................... 282
Exhibit 286: Change in Unskilled Manpower - Geography Wise ................................................ 283
Exhibit 287: Change in Unskilled Manpower - Scheme Wise ..................................................... 283
Exhibit 288: Change in Average Salary of Skilled Manpower - Segment Wise ........................... 284
Exhibit 289: Change in Average Salary of Skilled Manpower - Geography Wise ....................... 285
Exhibit 290: Change in Average Salary of Skilled Manpower - Scheme Wise ............................ 285
Exhibit 291: Change in Average Salary of Unskilled Manpower - Segment Wise ...................... 286
Exhibit 292: Change in Average Salary of Unskilled Manpower - Geography Wise ................... 287
Exhibit 293: Change in Average Salary of Unskilled Manpower - Scheme Wise ........................ 287
Exhibit 294: Change in Training Cost - Segment Wise ................................................................ 288
Exhibit 295: Change in Training Cost - Geography Wise............................................................. 289
Exhibit 296: Change in Training Cost - Scheme Wise.................................................................. 289
Exhibit 297: Change in Total Manpower - Segment Wise .......................................................... 290
Exhibit 298: Change in Total Manpower - Geography Wise ....................................................... 290
Exhibit 299: Change in Skilled Manpower - Segment Wise ........................................................ 291
Exhibit 300: Change in Skilled Manpower - Geography Wise .................................................... 291
Exhibit 301: Change in Unskilled Manpower - Segment Wise.................................................... 292
Exhibit 302: Change in Unskilled Manpower - Geography Wise ................................................ 292
Exhibit 303: Change in Average Salary of Skilled Manpower - Segment Wise ........................... 293
Exhibit 304: Change in Average Salary of Skilled Manpower - Geography Wise ....................... 293
Exhibit 305: Change in Average Salary of Unskilled Manpower - Segment Wise ...................... 294
Exhibit 306: Change in Average Salary of Unskilled Manpower - Geography Wise ................... 294
Exhibit 307: Change in Training Cost - Segment Wise ................................................................ 295 List of Exhibits
327
Exhibit 308: Change in Training Cost - Geography Wise............................................................. 295
Exhibit 309: Change in Cost Savings Per Unit - Segment Wise ................................................... 296
Exhibit 310: Change in Cost Savings Per Unit - Geography Wise ............................................... 297
Exhibit 311: Change in Cost Savings Per Unit - Scheme Wise .................................................... 297
Exhibit 312: Change in Cost Savings Per Unit - Segment Wise ................................................... 298
Exhibit 313: Change in Cost Savings Per Unit - Geography Wise ............................................... 298
List of Abbreviations/Terminologies
328
14. LIST OF ABBREVIATIONS/TERMINOLOGIES
INR – Indian Rupee
USD – U.S Dollar
Bn – Billion
Mn – Million
Cr. – Crore
ToR – Terms of Reference
TUFS – Technology Upgradation Funds Scheme
KII – Key Informant Interviews
UHS – Unit Holder Survey
Beneficiaries – Treatment Group who received TUFS subsidy
Non – Beneficiaries – Control Group who applied but didn’t receive TUFS subsidy
Base – No. of KIIs/UHS covered for the purpose of the mid-term report
NCEUS – National Commission for Enterprises in the Unorganised Sector
Others – Includes segments like Embroidery, Composites, Other