Setting up a

Banana Fibre Extraction

and Textiles Production
Unit

Agro and Food

Processing
Government of Gujarat
 Contents
Project Concept 3
Market Potential 4
Growth Drivers 6
Gujarat – Competitive Advantage 9
Project Information 12
- Project Location
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Key Considerations
Project Financials 17
Approvals & Incentives 18
Key Department Contacts 20
 Project Concept
The concept
The project envisages setting up of Banana Fibre Extraction and Textiles Production
Unit based on the raw material strength of Gujarat. The manufacturing unit can focus on
production, processing, marketing, exports, etc. India is one of the largest producer of
Banana fruits, but the stems are not being used properly. In some eastern states, the
Banana stem vegetables are being prepared, but the volume of consumption is very low
as compared to Banana stem produced nationally.

What is Banana Fibre and its extraction process?

► Banana fiber is ecofriendly fiber like jute fiber. The complete process involves mechanical
as well as automated mechanical extraction techniques-
► Initially the Banana plant sections were cut from the main stem of the plant
and then rolled lightly to remove the excess moisture and impurities.
► A machine consisting of two horizontal beams is used for extraction process
to avoid fiber breaking.
► These fibers are then labelled and made ready for lamination process.
► After extraction of fiber, weaving is done in the looms as per normal process like any
other material
Textile production
process

Raw material Garment/ apparel

Spinning Knitting Processing
sourcing production
Banana Fibre extraction
process
Stem Removing
Mechanical Drying and
section moisture and Weaving
extraction Lamination
preparation impurities

Output

Final
Fibre Processed Garment
Yarn Fabric
fabric / Apparel

► High quality security paper, ► Clothes and sarees

currency production ► Trinket boxes and Gift Bags
► Wet drilling cables and ship-towing ► Domestic and industrial rags
ropes. ► Footwear

3
 Market Potential
Indian textile market is expected to grow at a higher rate than the global textile market,
boosting fabric demand and hence, presenting an attractive investment opportunity.

Global textiles market size (US$ Bn)

1,300 Overall
Other
1,000 41% Textiles
42%
773
45%

55% 58% 59%

Apparel

2013 2018 2023

Source: EMIS, UN Comtrade, Technopak

► India’s share in the market increased from 12.7% in 2013 to 14.9% in 2018 and to
17.9% in 2023
Indian textiles market size
(US$ Bn)
233

95 Other
149 Textiles
60
98
40
89
138 Apparel
58

2013 2018 2023

Source: EMIS, UN Comtrade, Technopak

The Indian textiles market is expected to grow at a higher rate than the global market
primarily driven by rising per capita income, favorable demographics and a shift in preference
towards branded products

4
Market Potential
Banana production in Gujarat has been increasing at a CAGR of 6.6% y-o-y
basis

Banana Production in India (Th M ton)

3,978 4,047
4,523 Gujarat

29,779 28,455 26,509 India

2020 2022
Source: Ministry of agriculture, Govt. of India

Banana Fiber can also be used to make blended cotton, production of

blended cotton in 2022 was around 15.8% of total fabric production in
India

Indian domestic textiles market – by segments

(US$ Bn)

28 Technical
89 8 textiles
19.5 Home
58
5 textiles
13 102
4 Apparel
65
41

2013 2018 2023

Source: EMIS, UN Comtrade, Technopak

► Domestically, apparel and home textiles (key demand sectors for cotton-based fabrics) are
expected to witness strong growth rates during 2018-2023.

5
 Growth Drivers

1 2 3 4
Fuelling demand
Frilling demand
for eco-friendly
Growing affinity
towards
ecofriendly fabric
Provisions
under the multi-
The raw
materials
fiber agreement involved are
clothing in over synthetic in the WTO
mostly waste
developed fabric in hot and regime, to
humid, tropical boost the use of products and
countries like
and sub-tropical natural fibres in hence gives
Europe, USA and
climates, thereby global textile cost competitive
Canada and rise boosting the industries for advantage
in per capita demand for various fueling growth of
requirement of Banana fibre. applications. this product
textile/ garments

5 6
Indian textile
industry has grown
Increasing demand
of blended cotton,
7
In 2023, ranked #1
in Banana
at a much higher share of blended production. Total
rate than global cotton was 19.43% 26.3 % of banana
textile industry, of the total fabric comes from India
reason for the same produced in 2022
is growing domestic
demand and
increasing exports.

6
Growth Drivers
Sufficient raw material and support availability

Cotton production in Gujarat ► 17.6% of the banana produced in

India comes from Gujarat.
(‘000 MT)
► Anand, Surat, Baroda, Bharuch,
CAGR: Narmada and Kheda are the main
6.6% banana producing districts.
► In India, Gujarat is having productivity of
58.9 t/ha, which is highest in the
3,978.0 4,047.0 4,523.0 country.
► Gujarat has well developed cotton
textile industry hence this will find
ready market for blending.
► Presence of textile research institutes
FY20 FY21 FY22 like ATIRA, Ahmedabad.
► Availability of Technical manpower for
fibre processing and textile industry.
13.6% 14.2% 17.6%

As a % of total
production in India

Source: Ministry of Agriculture, Govt. of India

► Globally, there’s a significant demand for banana fibre in countries like the United States,
Malaysia, Korea, the European Union, and the Philippines. It’s widely used as a blending material
in the textile sector. Even Japan’s currency, the Yen, is made from banana fibre.

► In India, banana fibre production provides employment opportunities to thousands of poor

people. It’s used in making apparel, paper, footwear, handbags, and home furnishings.

► It’s estimated that annually 30 Mn tons of biomass is produced through banana cultivation in
India, from which there is scope to produce 1.5 Mn tons of banana fibre across the country as a
by-product. So, there’s a huge potential for growth in this sector

Gujarat government is taking various initiatives to boost the textile industry

7
 Growth Drivers

Large number of textile hubs in Gujarat

Textile hubs in Gujarat ► Gujarat has a very established textile

sector with more than 1,500 medium
Kutch and large textile units and 18 textile-
related product clusters.
► Large number of textile units are
attributable to high availability of raw
materials, with Gujarat being is the
Surendranagar, largest producer of cotton in the
Manavadar and country (production of ~12 Mn ales in
Gondal FY21) and among the major producers
of Banana.
Saurashtra ► Going forward, the state plans to
significantly increase its textile
production capacity from the current
Ahmedabad level of ~50,000 weaving looms.

High availability of skilled manpower for the textile sector

► Gujarat has a very established textile

sector with more than 1,500 medium
and large textile units and 18 textile-
related product clusters.
► Large number of textile units are
attributable to high availability of raw
materials, with Gujarat being is the
largest producer of cotton in the
country (production of ~12 Mn ales in
FY14) and among the major producers
of Banana.
► Going forward, the state plans to
significantly increase its textile
production capacity from the current
level of ~50,000 weaving looms.

8
Gujarat - Competitive
Advantage
Infrastructure & connectivity

5,300 km
Longest coastline
Railway
1,600 km
network
48 seaports

19 Airports 75,000+ km of road

(including network
2 intnl. airports) 7,873 km of national
Upcoming airport at highways
Dholera SIR

Statewide water
network
Power surplus State
62,778 km Narmada
48 GW total capacity
Canal
44% from renewables
120.000 km
distribution

1st statewide
Ahmedabad-Mumbai
extensive
semi-highspeed rail
piped natural gas
Bullet train
grid - 3,370 km
(upcoming)
network

Delhi-Mumbai 225 GIDC

Industrial corridor - Industrial estates
DMIC covering 23/33 with
districts Plug & play facility

1st Platinum rated

1st Global
Green industrial city
Business District
- Dholera Semicon
– GIFT City
City

9
Gujarat - Competitive
Advantage
Gujarat overview

► 9% of India’s GDP: GSDP at ► 30% share in India’s total

current price ~US$ 269 Bn 6% of India’s exports
► 35% share of manufacturing geographical area ► 40% cargo of the entire country
sector in State’s GDP And 5% of India’s is handled by Gujarat Ports
► 18% of India’s industrial population ► Huge base of MSMEs
output (~830,000)

Gujarat has strong presence of industries such as Chemicals & Petrochem,

Textiles, Pharmaceuticals, Automobiles, Gems & Jewellery, Ceramics, etc.

Macroeconomic trend

Population GSDP at Constant Price & Growth Rate

70 200 25.0%
68
Population (Mns)

20.0%
GSDP (US$ Bn)

150

Growth Rate
66
15.0%
64
62 100 10.0%
60 5.0%
58 50
127
125
133
139
146
167
173
180
168
187
0.0%
60

61

62

63

63

64

65

66

67

68

69

56
54 0 -5.0%

Year GSDP at Constant Price (USD)

Growth Rate (%)

Per Capita Income Industrial Production Data

400 3171 4000 Gujarat enjoys the status of industrially
2586 2807 2868 2880
Value (rs Thousands)

Value (US$)

300 3000 developed state of India with its 18.14% share to

200
250
2000 Country’s industrial output, the largest among
100 197 212 213 1000 the states of India in the year 2019-20. The Net
177
0 0 Value Added (NVA) has increased from
rs8,944.8 Bn in 2010-11 to rs1,902.57 Bn in
2019-20. As per Annual Survey of Industries,
the number of factories has increased from
Year 26,842 in the year 2018-19 to 28,479 in the
year 2019-20, showing a growth of 6.10% over
Value (INR Thousands) Value (USD) the previous year.

Source: CEIC; https://gujecostat.gujarat.gov.in/

10
Gujarat - Competitive
Advantage
Key advantages

Ease of doing business

Ranked among the top achievers in ‘Ease of Doing Business’ ranking

2020

1st Rank in Logistics Performance Index (LEADS Index) in 2018, 2019,

2021 & 2022

1st Rank in NITI Aayog’s Export Preparedness Index of states – 2020 &
2021

1st Rank in Good Governance Index (GGI) in 2021

Top performer by labour force participation rate and minimum man-days

lost due to labour unrest

National Start-Up Rankings in 2021 (Start-Up Megastars), 2019 and

2018

Talent pool
Gujarat has emerged as one of the top states in India with excellent infrastructure for
technical education. The state currently has 350+ engineering colleges, 41 polytechnics and
770+ Industrial Training Institutes (ITI) inculcating quality education. The government
through its Gujarat Skill Development Mission is also providing training courses to the youth
and making them industry ready.

11 116 33,000+ 113 41,000+

Institutes of Graduate & Trained diploma courses Trained Diploma
National
Importance
60 technical
professionals
professionals
annually
Post Graduate
annually
Colleges

11
Project information
Location

► Gujarat is one among the largest banana producing states in India

► Raw material can be easily sourced from the main banana producing districts in Gujarat —
Anand, Surat, Vadodara, Bharuch, Narmada and Kheda

Distance from Surat

Location (in Kms.)
Bharuch 58
Narmada 134
Anand 201
Kheda 234

Considering the project requirement of raw materials, the suggested locations are
Bharuch, Surat, Narmada, Kheda, and Anand. This would also help in reducing the cost of
production to a certain extent. As an illustration some suggested sites in Surat has been
listed below
Gujarat Eco-Textile Park, at Palasana, Surat is India’s first eco-textile park with
specific focus on environmental issues. It is on the top of all the textiles park in Surat, with the
production value of fabrics, shirting, sarees, denim synthetic pegged at INR1,396 crore per annum.

1 ► The Park provides excellent infrastructure and facilities to enable the industry in reducing the
input costs and meeting the regulatory and trade related compliances with respect to quality ,
environment and social standards. This park is supported under Scheme of Integrated Textile
Park by Ministry of Textiles–Government of India under S.I.T.P scheme. It is fully equipped with
:
► Common solid waste treatment and management
► Centres of excellence
► Hospital, Bank
► Research facility
► Waste to energy incinerator with full recovery of energy
► Rain water harvesting and captive power plant for power generation based on natural
gas

35 Kms from Surat Railway Station, 6 Kms. From NH8, Nearest Airport – Surat at a
distance of 50 Kms

12
Project information

Kejriwal Integrated Textile Park, at Palasana, Surat is focused more on man-

2 made fibres.The park would have facilities for texturizing, twisting, weaving and embroidery etc. It is
one the modern textiles park in Surat, with the production value of fabrics, shirting, sarees, denim
synthetic.
► Centre of excellence including training center
► Design studio
► Testing laboratory
► Packaging facility and warehouse
35 Kms from Surat Railway Station, 6 Kms. From NH8, Nearest Airport – Surat at a
distance of 50 Kms

Location plan Location plan

RJD Integrated Textile Park Ltd., at Hajira, Surat is an ideal park spread on 55

3 acres for a non-polluting textile industry, Weaving, Spinning, Textile rising, Yarn preparatory,
Embroidery, Technical Textile, Garmenting, Knitting etc.

13 Kms from Surat Railway Station, 3 Kms. From NH8,

Nearest Airport – Surat at a distance of 12 Kms

13
Project Information
Logistics & Connectivity

5,327+ km
Longest Coastline
Railway
1,600 Km
network
42 Seaports

1,90,897+ km of road
9 Airports (Including
network
4 Intnl. Airports)
7,873 km of national
3 New Upcoming
highways
Airstrips

1st In Terms Of Statewide water

Installed Power network
Capacity 9,490 Villages and 173
42 GW Total Capacity Towns Covered
2.2 KW Of Per Capita 1,20,769 km
Power Consumption distribution

1st state wide extensive Ahmedabad-Mumbai

piped natural gas grid - semi-highspeed rail
3,370 km network Bullet train (upcoming)

Delhi-Mumbai
239 GIDC
Industrial corridor -
Industrial estates with
DMIC covering 23/33
Plug & play facility
districts

14
Project Information
Manpower requirement
Activity Persons required
Fiber extraction 20
Cleaning and Grading 10
Spinning yarn 15
Weaving and
20 A total manpower
processing
requirement of ~ 255
Maintenance 5 people will be required to
Others 15 run the facility 24X7
Total 85

Global leaders in banana fiber extraction

Philippines Banana fiber is already used successfully in Philippines

since decades and hence it is also known popularly as
“Manila Hemp”. The other name of this fiber is “Abaca”,
Japan it belongs to Musa sapientum species.

India’s major textile players

15
 Project Information

The estimates are for a medium scale production unit, producing 30 MTPD (Metric Tons per Day) or
9000 MTPA fiber. This capacity is suggested based on possible availability of raw- material and
optimum size of project investment.

Banana fibre extraction Unit

Supplier (Model) Quantity Supplier
Cutting and slitting equipments 5 Rashtriya Engineering Works, Delhi
Roll crusher for fiber separation 3 Rashtriya Engineering Works, Delhi
Open vats 6 Rashtriya Engineering Works, Delhi
Hot air drying chambers 2 Ashitex Mech,TamilNadu
Weighing scale/balance 4 Omega electronic scale co Ltd.,
Mumbai
Hot air generator 1 Aerotherm India P. Ltd. Ahmedabad
HT/LT Electrification and 60 KVA DG set 1 Kirloskar electricals Ltd., Mumbai
Source: Andhra Pradesh Agro-Industries Dev. Corporation, Hyderabad
Textile production unit (mainly spinning unit)
Approx. Cost Approx.
Machine Supplier (Model) Quantity per unit Total Cost
(INR crore) (INR crore)
Autoconer Schlafhorst 10 2.37 23.7
Blow room Line Truetzschler 1 0.9 0.9
Carding Truetzschler (TC 5-3 with 6 0.3 1.8
KHC)
Combers LMW (LK64) 7 0.3 2.1
Finisher Draw frame LMW (LrsB851) 4 0.19 0.76
Speed Frame LMW (LF4200A) 4 0.55 2.2
Ring Frame LMW (LR9AX) 15 0.7 10.5

Potential collaborations opportunities

► ATIRA (Textiles Research Institute), Gujarat (Technology)
► National Research Center for Banana Tiruchirappalli, Tamil Nadu (Machinery/ Process)
► Indian Institute of Horticultural Research, Bangalore, Karnataka (Technology)
► Directorate of Horticulture, Pune, Maharashtra (Technology)
► Tiruchirappalli Regional Engineering College - Science & Technology Entrepreneurs Park (TREC- STEP)
(Innovative Machinery)
Key considerations
The proposed project will have project timeline of 4 to 5 months in obtaining necessary
permissions and approvals from concerned authorities and the project can be implemented in a
period of 10-12 months.

16
Project Financials
Estimated project cost
Project cost (fiber extraction)*
Project components & specifications Cost (INR crore)
Land (Area:4,750 Sq m) 0.95
Plant building cost (blow room, yarn godown, cotton godown, etc.) 2.39
Built-up area: 1,500 sq m
Machinery cost 10.77
Utility and other equipment 1
(Electricals, piping, water supply system, etc.)
Miscellaneous fixed assets 0.44
(Furniture and fixtures, office equipment, etc.)
Contingencies 2
Preliminary and pre-operative expenses 1.31
(Company formation, interest during construction, etc.)
Margin money for working capital 3.86
Total project cost (a) 22.72
Project cost (textile production)
Project components & specifications Cost (₹ crore)
Land (Area: 6.0 acres – 24,281 square 4.00
meters) Rate: (₹2,000 at Surat)
Building cost (Average rate: ₹ 4,500 per sq 4.00
m) Built-up area: 9,000 sq m
Machinery cost (including erection and commissioning for a 18 Mn 30.00
meters per annum)
Other cost (including other equipment, fixed assets, contingencies and 34.50
working capital requirements)
Total project cost (b) 92.50
The total project cost of Banana fibre extraction and textile production facility in Surat,
Gujarat, is approximately INR148.61 crores (a+b).

Breakeven time- 2 Years 8 Months

17
 Approvals and incentives
Approvals

Industrial Entrepreneurship From DIC (District Industries Centre) for setting up

Memorandum(IEM) industry other than SME

From Ministry of Environment and Forest (MOEF)

Environmental Clearance (EC)
for environmental clearance

Other approvals and Approval from textile ministry, Govt. of India

permissions Approvals for electricity and water supply

Incentives

Under the Technology Up gradation Fund Scheme (TUFS), the GoI is offering 5% credit linked
interest subsidy on purchase of textile machinery.
► In 2016, the government also approved an Amended Technology Up-gradation Funds
Scheme (ATUFS), where the GoI has made a fresh allocation of INR51.5 Bn as one-time
capital subsidy for new investment apart from allocated budget of INR33.8 Bn for limited
liability.
Through the ATUFS, the GoI aims to attract an investment of INR1,000 Bn by 2018.

18
 Approvals and Incentives
Atma Nirbhar Gujarat Schemes 2022

Capital Investment Subsidy:

➢ Eligible micro enterprises shall be given capital investment subsidy ranging
between ₹ 10 to ₹ 35 Lakhs.
Interest Subsidy:
➢ Interest subsidy ranging from 5 to 7% in case of MSMEs
➢ Large and thrust sectors interest subsidy @ 7% with an upper cap ranging
between 1 to 1.2 % of the EFCI per annum for a period of 5 to 10 years
➢ For Mega industrial units Interest subsidy @ 7% subject to maximum of 1.2%
of EFCI per annum for 10 years.
Net SGST reimbursement:
➢ For MSME in the range of 80 to 100% up to 5 to 7.5% of the EFCI per annum
for 10 years.
➢ Large and thrust sectors in the range of 80 to 100% up to 5.5 to 8.0% of
the EFCI per annum for 10 years.
➢ Mega Industrial Units @ 100% subject to maximum 0.9% of EFCI per annum
for 20 years (From the date of commencement of Commercial production).
➢ Mega Industrial Units @ 100% reimbursement of input SGST on capital
goods.
Agri and Food Processing has been identified as thrust sector in this scheme.

19
Key Department Contacts
Relevant departments and useful links

Ministry of Food Processing Industries Agricultural and Processed Food Products

https://foodprocessingindia.gov.in/state/guja Export Development Authority
rat https://apeda.gov.in/apedawebsite/about_ap
eda/Gujarat.htm

Food, Civil Supplies and Consumer Affairs Agriculture, Farmers Welfare and
Department, Government of Gujarat Co-operation Department,
https://fcsca.gujarat.gov.in/index.htm Government of Gujarat
https://agri.gujarat.gov.in/index.htm

Gujarat Agro Industries Corporation GIDC

https://gaic.gujarat.gov.in/agro-industrial- https://gidc.gujarat.gov.in/
policy.htm

Office of Industries Commissioner Investor Facilitation Portal

https://ic.gujarat.gov.in/ https://ifp.gujarat.gov.in/DIGIGOV/

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess
a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before
taking a final investment decision.

20
 Gujarat Agro Industries Corporation Limited
Gujarat State Civil Supplies Corporation Ltd. Building, Ground Floor, Sector 10-A,
Gandhinagar.
_________________________
Phone / Fax : 079-23240208
E-mail: md.gaicl.gmail.com
Website: https://gaic.gujarat.gov.in/index.htm

Block No.18, 2nd Floor, Udyog Bhawan

GH-4, Sector 11, Gandhinagar - 382010
Gujarat, INDIA
+91-79-23256009, 23250492/93
+91-79-23250490
indextb@indextb.com
www.indextb.com