Brandix India Apparel City (BIAC)

Asia's most competitive manufacturing destination

BIAC is promoted by Brandix, a top Asian apparel co.

Leading Apparel company Global retailer clientele Experienced leaders

• Priyan Fernando

• Chairman• Senior Advisor, BCG

• Ashroff Omar

• ED/ CEO

• Non-exec Board member,

John Keells & CSE1

• Aslam Omar

• ED/ Head- TAC2

• CEO, Phoenix Ventures

• Feroz Omar

• ED/ Head- BIAC

1

• ~$ 750 Mn revenues

– 25% CAGR

• Employs 48K associates

• Manufacturing plants in 4

countries (Sri Lanka, India,

Bangladesh,Haiti)

• Ethical manufacturing –

Garments without Guilt

BIAC is a world-class Integrated Textile Park

1000-acre textile park

with world-class

infrastructure,

developed and managed

by Apparel industry

veterans

• Exports >250M USD

per annum

• Employs >18,000

people

Andhra

Pradesh

New Delhi

Telangana

Karnataka

Tamil NaduKerala

BIAC Vishakhapatnam

Labor pool

Vicinity to

cotton, yarn

Vicinity to port

World-class

infrastructure

2

BIAC has attracted world-class tenants

3

Product category Tenant Products Nationality

Knit apparel Brandix Apparel India 1 Ladies Underwear SL

Knit apparel Brandix Apparel India 2Ladies, Mens underwear,

t-shirtsSL

Knit apparel Brandix Apparel India 3 Yoga pants SL

Ancilliary ITL Tags & labels S. Africa

Knit fabric Ocean India Cotton Fabric SL

Accessories, trims Pioneer Elastic India Elastic China

Accessories, trims Prime Elastics Elastic India

Knit apparel Quantum Clothing Ladies innerwear UK, Japan

Ancilliary Ribest (Yama) ribbons Bows and ribbons China

Accessories, trims S&S industries Bra underwires USA

Ancilliary Screenline printing Printing services SL

Knit apparel Seeds Intimate Apparel Bras China, SL, USA

Accessories, trims Shore to Shore Tags & Labels SL, USA

Accessories, trimsVardhaman Yarn &

ThreadsDyeing of sewing threads India

Ancillary Visipak Packing material India

BIAC: Asia's most competitive manufacturing destination

4

Most cost competitive

Large, efficient labor pool

Plug-n-Play infra with

aggressive start-up

Integrated cluster; world-

class lead times

The 5 Star

BIAC Advantage

4

1

2

3

5Proven results

Leverage India advantage in a hassle-free environment

Cost: BIAC is the most cost competitive among Asian

peers

350

230

175

200

160

110

0 100 200 300 400

B’desh

(Dhaka)

BIAC

India

(Tirupur)

Vietnam

China

(Shenzhou)

Cambodia

US$ / month

BIAC labour costs among lowest across

Asia

70%

55%

50%

65%

50%

55%

Productivity

Lower fabric

cost

• Lower fabric costs due to availability

of local raw material (e.g., cotton)

Import duty

advantage• FTA with Japan

Fiscal

concessions

• Duty-free, license-free import of raw

materials and machinery (new & used)

• Interest subsidy on term loans up to

12.5%.

• Power Subsidy at the rate of INR 1/- to

INR 1.5/- for a period of 5 years.

• Capital subsidy at the rate of 20% of

fixed Assets

• Exemption from all local tax –GST, etc.

BIAC advantaged on other factor costs as well

Lower initial investment due to common infra. & double-shift operation

Labor: High-quality labor in abundant supply

6

Highly trainable and superior quality

90

24

65

4

20

75

60

8

90

50

60

5

65

55

0

20

40

60

80

100

%, no. of hours

No. of

hours

60

Absenteeism

(%)

Annual

Attrition (%)

Efficiency

(%)

45

Vietnam

Bangladesh

India (Tirupur)

BIAC

Abundant labor supply: ~260K women

0

100

200

300

Labor pool size (000s)

264

< 50KM

118

50 - 100KM

146

Target labor profile

• Gender: Women

• Education: Matriculation

• Age: 18 – 35

• Typically first employment

– require no unlearning

• No competing industries

Integrated cluster: Near 100% self-sufficiency in knits

Knitting Sewing and PackingYarn

Thread Elastics Lace

Printing Packaging

Labels

Logistics

Knit

garmentsOutside

cluster(planned to

shift within

park)

Present in park

Planned in park

Inside BIAC Park: Vertically Integrated Cluster

Fabric

Dyeing

Apparel

Dyeing

50 km from Vizag Port; Full connectivity to

major US, EU and Asian ports

7

Example: BIAC cluster reduces lead time, enabling

order fulfillment in 2 weeks

PO raised

for supplies

Order placed

for 150K units

Day 1 Day 4

PO fulfilled in 3 days

Day 12 Day 13 Day 15

Production

commences

1

2

3

46 Air freighted

150K units

manufactured5 In stores7

SUPPLIER

PACKAGE

Vertically integrated supply chain

FABRIC

LA

CE

BAI receives materials within

3 days from suppliers

8

BIAC enables aggressive start-up time

Submit the project report

On the spot approval and

issuance of LOP

Construction

Sub-lease agreement signing

with BIAC

Obtain post construction

approvals

Incorporate the companyIncome tax registration

Bank account opening

Office of Development Commissioner

Unit approval committee meeting

Move to permanent facility

1-2

months

1-1.5

months

6-9

months

Brandix Facilitation for Set up

Move to permanent facility in

12 months

9

Aggressive start-up: BIAC supports

operating units throughout their ramp-up journey

Pre-production

Production

in "permanent''

building

Production in rented

facility

Set-up own factory

Obtain licenses• Fast track approvals &

incorporation (60 days)

• Shell cos. set up for advance

approvals

HR support• Hire first set of employees

• Hire & train HR team

• Help with training design

• Coaching on labour mgmt

Interim facility• Ready to use, 33,000 sq.ft.

buildings till permanent

facility ready

Project Mgmt Services• Support with contractor

services, quality and on-time

delivery of buildings, govt.

approvals

Plug-N-Play Infrastructure• Fully functional ETP, WTP and

power facilities

• Adequate spare capacity

BIAC

support

Strong operational team with 5-star service levels• Highly experienced customer – facing teams; high standard of compliance

• Best-in-class urban living infrastructure; 200 acres for future social infrastructure needs

• 24-hour resolution of operational issues

• Committed to add any service to help you succeed

A

B

EC

D

F

10

Ramp-up: BIAC has world-class Plug-n-Play infra –

sufficient for 1000-acre park

Pay-per-use structure reduces initial investment and

business risk

• Capacity 60M; installed 20M L /day

• US $6M invested

• Adequate supply from East Godavari river

• Capacity 56M; installed 22M L / day

• US $15M invested

• Marine discharge; standards above govt. spec.

• No pre-treatment required at plant

Wate

rP

ow

er

ET

P

11

• 200MW capacity

• Connected to national grid

5-star service: BIAC is committed to providing a world-

class experience

Committed to 5-star service levelsBest-in-class urban living infrastructure

• End-to-end services to ensure tenant

success (e.g., approvals, HR, project mgt)

• High standards of compliance

• 55 member strong organization to

ensure strong support to tenants

• Committed to add any service that will

help you succeed (e.g., schools, clinics)

– Chinese speaking staff, culture

consultant

– Chinese cooks, cuisine in hostels

1

2

3

4So

cia

l in

fra

str

uctu

re

• Residential

– Hostels, villas

• Recreational

– Swimming Pool

– Cafeteria

– Gymnasium, sports facilities

– Community hall

12

BIAC: World class facilities in the park today

13

Thank you

14

Most cost competitive

Large, efficient

labor pool

Plug-n-Play infra with

aggressive start-upIntegrated cluster;

world-class lead times

The 5 Star

BIAC Advantage

Leverage India advantage in a hassle-free

environment

4

1

2

3

5Proven results

Contact

Saravanan C

+91 9000661355

saravananC@brandix.com

www.brandixapparelcity.com