Lahore Garment City Project

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1 Lahore Garment City Project Lahore Garment City Company (Incorporated on 16 th September 2004)

2 Ministry of Textile Industry To enable the value-added added textile sector to meet global challenges arising out of end of ATC, the Government of Pakistan has established the Ministry of Textile Industry to, inter alia, implement the following major infrastructure development projects: Textile Cities Garment Cities

3 The Concept SLICING THE VERTICAL PRODUCTION CHAIN TO CREATE HORIZONTAL SPACES FOR SPECIALIZED PRODUCTION CONVERSION OF FABRIC AND ACCESSORIES INTO GARMENTS CLUSTER OF STITCHING UNITS WITH COMPLETE ANCILLARY SUPPORT AND SERVICES A MODERN PHYSICAL AND INSTITUTIONAL INFRASTRUCTURE OF PUBLIC-PRIVATE PRIVATE PARTNERSHIP

4 Slicing the value chain Garments Accessories Fabric Yarn

5 High lights Concept of Common Facilities for Garment Clusters ISO 9000-friendly pre-fabricated units Modular sheds of machines each to be rented out on an annual basis to foreign and local manufacturers Buying houses and marketing consultants to attract Buyer-driven FDI for export sourcing from the LGC Garment Stitching Institute In-house Testing Laboratory Common Garment Washing Sheds Common Water Treatment Plant Container yard, buying houses offices, customs office, fire brigade, cafeteria, public rest rooms, garbage collection and janitorial services

6 Institutional infrastructure An Engineering and Architectural consultants firm would implement the Garment City project in Lahore - The LGCC would outsource Stitching Institute, Testing Lab, Water treatment plant services and other maintenance services The Board of the LGC Company will supervise, monitor and be responsible for the entire project.

7 LGCC Lahore Garment City Company was incorporated on 16 th September 2004 Board of Directors: - Mr. Avais Mazhar,, Angora Textiles, Chairman - Mr. Azher Iqbal,, Leisure Textiles - Mr. Shahzada Dawood, Lawrencepur - Mr. M.I. Khurram,, Comfort Knitwear - Mr. Mian Ehsan,, U.S Apparel - Mr. Shahzad Azam, Azam Knits 5 ex-officio members, from Commerce, Textiles, Customs, SMEDA and Punjab Govt. Secretary Industries

8

9 Action Plan 19.4 acres of land at Sunder was approved by the Board of Directors, and purchased at a cost of Rs million. Allocation/transfer of Funds from EDF Rs. 103 million was sanctioned on 26 th April 05 We have hired an office and appointed a CAO, a Manager and a required staff. E&A consultants presentations took place on 10 th July 05, after which the Board is considering different construction options Final presentation with costing will be made to EDF Board thereafter for allocation and sanction of funds Construction of model units and admin block will be completed by December 2006.

10 Specifications 16 manufacturing units would be constructed according to international social compliance standards as follows: 8 units on one acre each, measuring 30,000 square feet, with 5 floors totaling maximum covered area of 150,000 sq. ft. 4 units on ½ acre each, measuring 15,000 sq. ft. with 5 floors, totaling covered area of 75,000 sq. ft. 4 units on ¼ acre each, measuring 7,500 sq. ft. with 5 floors, totaling covered area of 37,500 sq. ft. Manufacturing units will include space for boilers, effluent discharge, garment washing, parking, etc Admin. Block on 2 acres, with offices, Training Centre, Testing Lab, Auditorium, Cafeteria, Dispensary, etc

11 SITE PLAN

12 SITE PLAN

13 Costing estimates Cost of Land Units construction Buildings equip Water Treatment Grid sub station Establishment costs: (Office space, utilities, salaries, etc) x 3 years (Rs.) million million million 4.00 million million million Total million

14 Tentative working of income Each Manufacturing Unit will be given on rent on an annual basis. Manufacturers can rent more than one floor, and more than one building. We expect the Lahore Garment City to generate Rs. 45 million through rent every year at a tentative rate of Rs. 15 per sq ft. per month ( sq. ft minus Admin Block) This can be used to expand the project as per clients requirements

15 OTHER PROJECTS KARACHI GARMENT CITY COMPANY IS IN THE PROCESS OF ACQUIRING 100 ACRES IN TEXTILE CITY KARACHI, TO BE USED EXCLUSIVELY FOR MANUFACTURING OF GARMENTS FAISALABAD GARMENT CITY COMPANY IS BEING SET UP ON 36 ACRES OF LAND IN VALUE-ADDITION ADDITION CITY IN FAISALABAD EXCLUSIVELY FOR GARMENTS

Location: Acres

Location: Acres 1 FAISALABAD GARMENT CITY COMPANY PROJECT:FAISALABAD GARMENT CITY SPONSORING AUTHORITY: MINISTRY OF TEXTILE INDUSTRY (Govt. of Pakistan) 2 K M Sahianwala S hi l -Khurrianwala Kh i l Road, R d Faisalabad.

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