A Leading Garment Manufacturing Industry in India is available for 100% Acquisition, Takeover, Equity Participation.
TEXTILES AND GARMENTS
SUMMARY
REASONS TO INVEST
India has the second largest manufacturing capacity globally.
The Indian textile industry accounts for about 24% of the world's spindle capacity and 8% of global rotor capacity.
India has the highest loom capacity (including hand looms) with 63% of the world's market share.
India accounts for about 14% of the world's production of textile fibre and yarn and is the largest producer of jute and the second largest producer of silk and cotton.
A strong production base of a wide range of fibre/yarn from natural fibres like cotton/jute, silk and wool to synthetic/man-made fibres like polyester, viscose, nylon and acrylic.
Increased penetration of organised retail, favourable demographics and rising income levels to drive textile demand.
India enjoys a comparative advantage in terms of skilled manpower and cost of production over major textile producers.
Abundant raw material and increasing demand for exports to boost fibre production.
Abundant availability of raw materials such as cotton, wool, silk and jute.
We are looking for Venture Capitalist as 100% FDI is allowed under the automatic route in the textile sector; investment is subject to all applicable regulations and laws.
Any of the following two deductions can be availed:
1. Investment allowance (additional depreciation) at the rate of 15% to manufacturing companies that invest more than INR 1 Billion in plant and machinery acquired and installed between 01.04.2013 and 31.03.2015, provided the aggregate amount of investment in new plant and machinery during the said period exceeds INR 1 Billion.
2. In order to provide a fillip to companies engaged in manufacturing, the said benefit of additional deduction of 15% of the cost of new plant and machinery, exceeding INR 250 Million, acquired and installed during any previous year, until 31.03.2017.
TAX INCENTIVES:
R&D Incentives: Industry/private-sponsored research programmes:
A weighted tax deduction is given under Section 35 (2AA) of the Income Tax Act.
A weighted deduction of 200% is granted to assesses for any sums paid to a national laboratory, university or institute of technology, or specified persons with a specific direction that the said sum would be used for scientific research within a program approved by the prescribed authority.
COMPANIES ENGAGED IN MANUFACTURE HAVING AN IN-HOUSE R&D CENTRE:
A weighted tax deduction of 200% under Section 35 (2AB) of the Income Tax Act for both capital and revenue expenditure incurred on scientific research and development. Expenditure on land and buildings are not eligible for deductions.
STATE INCENTIVES:
Apart from the above, each state in India offers additional incentives for industrial projects. Some of the states also have separate policies for the textiles sector.
Incentives are in areas like subsidised land cost, relaxation in stamp duty exemption on sale/lease of land, power tariff incentives, concessional rates of interest on loans, investment subsidies/tax incentives, backward areas subsidies and special incentive packages for mega projects.
EXPORT INCENTIVES:
Export Promotion Capital Goods Scheme (PCGS).
Duty Remission Scheme.
Focus Product Scheme, Special Focus Product Scheme, Focus Market Scheme.
INVESTMENT OPPORTUNITIES
Entire value chain of synthetics.
Value added and speciality fabrics.
Fabric processing set-ups for all kind of natural and synthetic textiles.
Technical textiles.
Garments.
Retail brands.
Awaiting your serious interest in this respect.
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