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Textiles Sector India
January 2014
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Table of Contents
I. Sector Overview
1. Sector Highlights
2. Main Indicators
3. Production
4. Production and Value Added
5. Textile Machinery
6. Bank Financing
7. Foreign Direct Investments
8. Wholesale and Consumer Prices
9. Exchange Rates
10. TextilesTrade
11. Textile Trade (cont’d)
12. Textile Sector Exports
13. Wages
14. Employment
15. Government Policy
16. Government Policy (cont’d)
II. Fibres
1. Cotton Production
2. Cotton Supply and Demand
3. Cotton Prices
4. Silk
5. Wool
6. Wool Imports
7. Jute
8. Jute (cont’d)
9. Jute Projections
10. Man-made Fibres
11. Fibres Production Forecast
12. Mills
13. Mills Closure
III. Yarn
1. Man-made Filament Yarn
2. Spun Yarn
3. Spun Yarn (cont’d)
4. Yarn Production Forecast
5. Top Spun Yarn Manufacturing Units
IV. Fabrics
1. Fabrics Production
2. Fabrics (cont’d)
3. Apparel Trade
V. Main Players
1. Cotton Corporation of India
2. Cotton Corporation of India (cont’d)
3. Bombay Rayon Fashion Ltd.
4. Alok Industries Limited
5. Trident Group
6. Trident - Yarn
7. Trident – Home Textiles
8. Shri Lakshmi Cotsyn
9. Shri Lakshmi Cotsyn (cont’d)
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I. Sector Overview
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means Apr 1, 2013 – Mar 31, 2014. In Indian documents, FY (fiscal) 2014 is also labeled FY13-14.
The remaining nine months of calendar 2014, i.e. Apr-Dec, belong to fiscal year 2015.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as FY 2013. This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source.
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Sector Highlights
India is the second largest producer of textiles and garments in the world after China. The country is also the second largest cotton producer and
global leader in jute production. In terms of exports, it ranks amongst the top five global players, constantly expanding its share in world trade. With
traditionally positive trade balance, the textiles sector accounts for about 10% of country's total exports and contributes around 4% to Indian GDP
and 14% to its industrial production.
Overview
Prospects
Risks
Segmentation
India is one of the few countries in the world that has developed at all levels of the textile value-chain, from natural and synthetic fibres through yarn
and fabrics up to finished goods, thus having a quite diversified and competitive position on the global market.
On the other hand, the favourable demography (increasing share of working women, urban population and young people) along with rising income
levels are expected to act as a key growth factor for the Indian textile and apparel industry. The strongest competitive feature of the industry on the
international markets still lies in the cheap cost of the products.
Despite the stable growth of the sector in the past decade, there are several issues that could seriously affect its future prospects. The southern
regions of the country are facing unstable power supply, which increases production costs. The high domestic lending rates make financing in the
sector more difficult. Another risk for the sector is the fact that it is a labour intensive business and therefore dependent on appropriate work force.
The exposure of sector players to foreign currency and price volatility is also substantial.
The unorganized and decentralized market structure represents another weakness of the textile sector, as organized players represent only 5% of
the total market players. Small enterprises are not so resistant to external economic shocks and many firms were forced to consolidate and posted
losses as a result of the slowdown in their main export markets – the United States and the European Union. Moreover, the small scale of the
companies restricts their investment abilities and most of the manufacturing technology is outdated. Most of the raw materials are grown by farmers
who are later dependent on the government procurement policy and have little bargaining power in trading with private companies.
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Source:
Main Sector Indicators
Textile sector main indicators
CEIC, UN COMTRADE; *Trade and FDI data for calendar years; Trade data based on HS, incl. HS50-HS62
2007 2008 2009 2010 2011 2012
Raw cotton production(mn kg) 5,215 4,929 5,186 5,760 6,004 5,679
Raw silk production (mn kg) 18.3 18.4 19.7 20.4 23.1 23.7
Raw wool production (mn kg) 43.9 42.8 43.1 43.0 44.4 46.1
Manmade fibre production (mn kg) 1,244 1,066 1,268 1,285 1,234 1,263
Yarn production (mn kg) 4,003 3,912 4,193 4,713 4,373 3,155
Fabrics production (mn sq m) 56,025 54,198 59,521 61,761 59,605 61,965
Textiles consumption (mn kg) 6,318 6,140 6,466 6,939 6,374 n/a
Cloth consumption (mn sq m) 802 1,144 1,653 1,754 1,883 n/a
FDI (USD mn) 100 204 199 84 148 169
Sector export, USD bn 21.0 20.3 19.6 24.2 29.5 28.7
Sector export, % total 14.4 11.1 11.1 11.0 9.8 9.9
Sector import, USD bn 3.0 3.4 3.0 3.6 4.6 4.8
Sector import, % total 1.4 1.1 1.1 1.0 1.0 1.0
GDP current prices (INR tr) 49.9 56.3 64.8 78.0 89.7 100.2
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Comments
Source:
Production
After unfavourable development in 2011, the textile sector performance improved in 2012. The textiles index increased from 134 to 142, while
the apparel index jumped by more than 10pps to 144 in 2012, reaching the highest level since 2007.
In FY 2014, apparel production witnessed several ups and downs – starting the year at 241, it slumped to 131 in November. On the other
hand, the dynamics in textiles production have been more moderate - the index started from 142 in April 2013 and after pick-up in the
summer months stood at 143 in November 2013.
Industrial Production Index, annual dynamics (2004=100) IPI, monthly dynamics
CEIC
125
120
127
136 134
142
150
135 137
142
130
144
150
154
161
176 181
183
142
145 153
166 170
172
2007 2008 2009 2010 2011 2012
Textiles Apparel
Manufacturing Total index
142 144 148 150 156 148 146
143
241
154 162
171
159
185
133 131
176 173 175
183
175 176 179
170 167 166 165
171 165 166 169
162
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13
Textiles Apparel
Manufacturing Total index
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Comments
Source:
Production and Investment
Despite the recent development, the Indian textiles industry remains a low value-added, labour-intensive production. The future development of the sector
will depend on investments in machinery upgrade and human resources development.
Textile sector output and value added (INR bn) Textile sector capital (INR bn)
CEIC
1,717.0 1,977.1
2,719.7 2,947.5
198.2 263.3 379.6 310.9
2008 2009 2010 2011
Total Output Net Value Added
861.
0
974.
6
1,08
5.7
1,17
8.8
1,05
8.2
1,24
9.0
1,34
3.8
1,51
9.5
1,14
8.9
1,34
2.3
1,65
9.1
1,72
4.5
2008 2009 2010 2011
Fixed Capital Productive Capital Invested Capital
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Source:
Textile Machinery
Capacity, Production and Utilisation (INR bn)
Comments
Segment-wise production of textile machinery (INR bn)
Ministry of Textiles
Category Installed
capacity 2006 2007 2008 2009 2010
Ginning and
processing 1.7 1.1 1.2 0.8 0.7 1.1
Spinning and allied
machines 43.9 33.2 35.5 23.4 20.4 33.9
Synthetic fibre/yarn
machines 8.9 5.8 6.3 4.1 8.3 9.0
Weaving and allied
machines 7.0 5.8 6.2 4.1 5.0 6.0
Processing
machines 8.9 5.9 6.4 4.2 4.6 7.0
Hosiery machines 0.7 0.5 0.5 0.3 0.4 0.5
Textile machine
parts 2.2 2.4 1.2 0.8 0.3 0.5
Textile testing
equipment 3.2 1.1 2.5 1.7 1.7 2.0
Multiple segments 1.4 0.5 0.5 0.3 0.3 0.4
Others 2.6 1.3 1.3 0.9 0.9 1.1
Total 80.5 57.5 61.6 40.6 42.5 61.5
%Increase/
Decrease 31.0% 7.0% -34.0% 4.0% 45.0%
Year Installed capacity Production Capacity Utilisation
2005 70.0 44.0 63%
2006 80.5 57.5 71%
2007 80.5 61.6 76%
2008 80.5 40.6 50%
2009 80.5 42.5 53%
2010 90.0 61.5 68%
The domestic textile machinery industry covers on average less than
50% of the domestic demand.
During the 11th Five year plan, the annual machine production fell short
of the set targets.
The textile machinery industry is expected to grow at a compound rate
of 17% during the Twelfth Five Year Plan.
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Source:
Bank Financing
Textiles sector credit stock as at end-Mar of the respective year
Outstanding credit as at end-Mar of the respective year (INR bn)
Textiles sector share in total industrial credit
RBI
964.0 1,027.0
1,213.8 1,461.0
1,594.2
1,835.4 1,893.0
6.5%
18.2%
20.4%
9.1%
15.1% 13.1%
2007 2008 2009 2010 2011 2012 Nov'13
Textiles credit, INR bn Annual change
11.2%
9.7% 9.3% 9.1% 8.2% 8.2% 8.0%
2007 2008 2009 2010 2011 2012 Nov'13
477.5 513.1
612.3
774.4 839.0
925.0 926.0
10.8 14.7 13.8 14.6 14.0 22.0 20.0 52.9 64.0
116.7 152.6 159.2 189.1 204.0
422.9 435.2 471.0
519.4 582.1
699.4 743.0
2007 2008 2009 2010 2011 2012 Nov'13
Cotton Textiles Jute Textiles Man-Made Textiles Other Textiles
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Source:
Foreign Direct Investments
FDI in Textiles (incl. Dyed, Printed) * Sectoral distribution of equity FDI (USD, 2000-Oct2013)
CEIC; Ministry of Commerce and Industry of India, Department of Industry Policy and Promotion *calendar years
Services 18.8%
Construction 11.1%
Telecommunications 6.3%
Campututer software 5.9%
Pharmaceuticals 5.5%
Textiles 0.6%
Others 51.8% 203.9
198.5
83.8
148.4
168.6
88.5
0.6%
0.7%
0.4%
0.5%
0.7%
0.5%
2008 2009 2010 2011 2012 Sep'13
FDI in textile sector, USD mn Textile sector in total FDI
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Source:
Wholesale and Consumer Prices
Wholesale Price Index (2004=100)
Consumer Price Index (2010=100)
CEIC
100
120
140
160
180
200
Dec
-10
Jan-
11
Feb
-11
Mar
-11
Apr
-11
May
-11
Jun-
11
Jul-1
1
Aug
-11
Sep
-11
Oct
-11
Nov
-11
Dec
-11
Jan-
12
Feb
-12
Mar
-12
Apr
-12
May
-12
Jun-
12
Jul-1
2
Aug
-12
Sep
-12
Oct
-12
Nov
-12
Dec
-12
Jan-
13
Feb
-13
Mar
-13
Apr
-13
May
-13
Jun-
13
Jul-1
3
Aug
-13
Sep
-13
Oct
-13
Nov
-13
Dec
-13
Total Textiles Cotton Manmade fibre Manmade fabric Woolen Jute Hemp and Mesta Others WPI
100
110
120
130
140
150
Jan-
11
Feb
-11
Mar
-11
Apr
-11
May
-11
Jun-
11
Jul-1
1
Aug
-11
Sep
-11
Oct
-11
Nov
-11
Dec
-11
Jan-
12
Feb
-12
Mar
-12
Apr
-12
May
-12
Jun-
12
Jul-1
2
Aug
-12
Sep
-12
Oct
-12
Nov
-12
Dec
-12
Jan-
13
Feb
-13
Mar
-13
Apr
-13
May
-13
Jun-
13
Jul-1
3
Aug
-13
Sep
-13
Oct
-13
Nov
-13
Dec
-13
Clothing, Bedding and Footwear Total CPI
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Source:
Comments
Exchange Rates
China's yuan currency appreciated against the U.S. dollar by about 3.9% in the current fiscal year (April 2013 - December 2013), as compared to the Indian
rupee, which depreciated by 12.8% thus boosting the competitiveness of Indian textile exports.
In the same period, the Bangladeshi taka depreciated by 4.8% against the U.S. dollar. Bangladesh is among the Asian countries with a fast growing share
in the global textile trade.
ER dynamics, yoy change %
X-Rates, Bangladesh Bank
-40
-35
-30
-25
-20
-15
-10
-5
0
5
10
Dec
-11
Jan-
12
Feb
-12
Mar
-12
Apr
-12
May
-12
Jun-
12
Jul-1
2
Aug
-12
Sep
-12
Oct
-12
Nov
-12
Dec
-12
Jan-
13
Feb
-13
Mar
-13
Apr
-13
May
-13
Jun-
13
Jul-1
3
Aug
-13
Sep
-13
Oct
-13
Nov
-13
Dec
-13
USD/CNY USD/INR USD/BDT
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Comments
Source:
Textile Trade
India has a stable position among the leading global textiles exporters as its share has grown from 3.3% in 2005 to 4.2% in the calendar 2012. This growth
rate, however, is substantially below the expansion of China in the field. As global textiles trade almost doubled in the 2003-2012 period, China's share
rose from 17% to 33%. Nevertheless, China's exports are expected to decelerate due to rising per capita income, huge domestic consumption and the
stronger currency.
Among the EU countries, only Germany and Italy rank higher than India, but the latter has been losing share over the past few years.
Global textiles exports shares (USD) India and China in global textiles exports
UN COMTRADE, Emerging Markets Insight calculations
China (222bn) 32.5%
EU 28 (169bn) 24.7%
India (28.7bn) 4.2%
USA (24.5bn) 3.6%
Turkey (24bn) 3.5%
Bangladesh (23.4bn) 3.4%
Others (198.8bn)
27.5%
2.9 2.9 3.3 3.4 3.4 3.5 3.8 4.1 4.2 4.2
17.1 18.4
21.0
24.6 26.6
27.6 27.9
30.2 31.0 32.5
118
133
141
155
172 180
154
178
209
206
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012India export share China export share
World export index, 2001=100
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Source:
Textile Trade (cont'd)
Textiles in India's external trade Textiles exports by main product groups, USD bn
UN COMTRADE, Emerging Markets Insight calculations ; Trade data for HS 50-62, calendar years
14.4
16.4
17.9
19.3 18.9
23.5
28.8 27.9
17.0%
15.8%
14.4%
11.1% 11.1% 11.0%
9.8% 9.9%
1.9% 1.5% 1.4%
1.1% 1.1% 1.0% 1.0% 1.0%
2005 2006 2007 2008 2009 2010 2011 2012
Net exports, USD bn Textiles in total exports, %
Textiles in total imports, %
4.9
3.5
7.2 8.
1 8.7
3.0
3.0 3.
8 4.9
4.3
10.3
11.3
10.6
13.7
12.9
2.1
1.8 2.
6
2.8
2.8
20.3 19.6
24.2
29.5 28.7
2007 2008 2009 2010 2011
Cotton, silk, wool Man made filaments and fibres
Apparel Others
Total
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Source:
Comments
Textile Sector Exports
India's export of textiles traditionally exceeds the targets set in the state annual plans.
The slight underachievement in 2012 was mainly due to the economic crisis in the European Union that resulted in lower demand and restricted exports to
the region.
Textile exports (USD mn)
Bombay Rayon annual report based on DGCI&S data
Product 2010 -2011 2011- 2012 2012- 2013
Targets Achievement* Targets Achievement* Targets Achievement
Ready made garment 12,000 11,026 14,000 13,073 18,000 12,391
Textile (excl. cotton) 5,000 5,792 7,000 6,808 9,000 7,517
Man-made textiles 3,700 4,705 5,500 5,631 6,100 5,043
Handloom 300 346 500 554 400 518
Woollen textiles 630 442 700 508 750 418
Silk textiles 730 632 800 473 500 406
Handicrafts 2,200 2,301 2,700 2,706 3,300 3,305
Jute 275 460 350 457 500 387
Carpet 650 1,037 800 846 1,050 986
Total 25,485 26,471 32,350 31,056 39,600 30,971
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Source:
Wages
Labour cost per manday worker (INR)
Region–wise monthly earnings at cotton textile mills (INR)
Labour cost comparison (USD per hour)
CEIC, IBEF report
4,500
5,500
6,500
7,500
8,500
9,500
Jan-
11
Mar
-11
May
-11
Jul-1
1
Sep
-11
Nov
-11
Jan-
12
Mar
-12
May
-12
Jul-1
2
Sep
-12
Nov
-12
Jan-
13
Mar
-13
May
-13
Jul-1
3
Ahmedabad Bangalore Coimbatore & Chennai Indore Kanpur Mumbai West Bengal
2008 2009
Spinning, Weaving and Finishing of
Textile Fibres 262.6 291.5
Wearing Apparel, except Fur Apparel 290.2 291.0
Knitted and Crocheted Apparel 230.0 254.8
Other Textiles 265.9 294.5 0.3
0.6
0.7
5.7
6.2
15.1
Pakistan
India
CoastalChina
SouthKorea
Hong Kong
USA
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Source:
Employment
Employment in textiles and allied sectors, mn person
Textiles Commissioner Office, * forecast in the 12th Five Year Plan (2012-2017)
March 2011 End of 12th Plan (2016) * Planned increase in 12th plan
I. Textile sector 45.2 52.0 6.79
1 Cotton/Man-made Fibre/Yarn Textile/Mill Sector 1.4 1.6 0.21
2 Man-made Fibre/Filament Yarn Industry 0.2 0.3 0.04
3 Decentralised Powerlooms Sector 5.1 5.8 0.76
4 Handloom Sector 7.0 8.1 1.05
5 Knitting Sector 0.5 0.5 0.07
6 Processing Sector 0.4 0.5 0.07
7 Woollen Sector 3.2 3.7 0.48
8 Ready Made Garment Sector (including Knitwear Sector) 11.2 12.9 1.68
9 Sericulture 7.7 8.9 1.16
10 Handicraft Sector 8.0 9.2 1.2
11 Jute Industry 0.5 0.5 0.07
II. Allied Sector 60.2 69.2 9.04
1 Cotton (Agriculture, Ginning, Trade) 40.3 46.4 6.05
2 Sheep rearing 2.8 3.2 0.42
3 Jute Agriculture 17.0 19.6 2.55
4 Textile machinery industry & accessories 0.1 0.1 0.0
III. Total 105 121 15.81
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Source:
Government Policy
TUFS
The government's incentive schemes for export and investment promotion have been the key drivers of the sector growth.
The Technology Upgradation Fund Scheme (TUFS) was introduced in 1999 for a five-year period and was extended several times.
Its main objective is to support the technology upgrade in the textile manufacturing sector. Under the scheme, producers are offered
5% (4% for spinning machinery) reimbursement of interest charged by financial institutions or protection of up to 5% per annum (4% in
respect of spinning machinery) against exchange rate fluctuation on foreign currency loans. Companies could also use a 5% interest
reimbursement and 10% capital subsidy for introduction of specified finishing machinery, garment machinery or technical textiles
machinery.
As of the start of 2014, the Textiles Commissioner Office has approved 3,965 applications with total project cost of INR 376.25bn and
subsidy requirement under the restructured TUFS (effective since April 2011) of INR 202.31bn.
According to the Working Group on Textile and Jute Industry, during the 12th Five year period, a total of INR 355.7bn will be disbursed
under the TUFS for projects worth INR 1,445.9bn.
SITP
ISDS
TMTT
Scheme for Integrated Textile Parks (SITP) provides funding assistance for setting up world-class textile manufacturing facilities to
meet international environmental and social standards. Up to 40% of the financing could be covered by the government and technical
advisory could be extended. Under the scheme, the central government is responsible for the balance funding as well as for providing
support in the form of land acquisition and infrastructure development.
Integrated Skill Development Scheme (ISDS) is designed to provide the sector with appropriate workforce. The scheme, which
provides training for candidates according to industry requirements, covers all the sub-sectors of the textile sector - textile and apparel,
handlooms as well as jute and sericulture.
The Technology Mission of Technical Textiles (TMTT) extends support for the development of the technical textiles segment.
Specifically, it addresses infrastructure improvement in terms of testing facilities, market development support, skilled manpower, R&D
and setting up of specifications and standards for technical textiles, among others. The program supports other activities like business
start-ups, workshops, social compliances, market development for institutional and export business and promoting contract research
and development through institutes of technology and textile institutes.
Ministry of Textiles
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Source:
Government Policy (cont'd)
Cotton
trade
For several years cotton exports in India was conducted via a quota allocation basis, effective for both public and private entities. That
however weighted on companies in times of restricted domestic demand and instead of trading the extra volume firms were pushed to
keep large carryover stock. In mid-2011, the government placed cotton exports under Open General Licensing i.e. it could be exported
freely but this resulted in huge exports and increase in domestic demand. The gap had to be covered by imports, which pushed prices
up. In order to ensure availability of cotton to the domestic textile mills, the government of India banned cotton exports from the country
in March 2012. Later, the restriction was lifted again and currently exports are done under OGL with requirement for prior registration
with the Directorate General of Foreign Trade at the Ministry of Commerce and Industry.
There is no quota imposed on cotton imports, but the import duty stands at 14%.
Minimum
Support Price
To support local farmers, each year the government of India determines the Minimum Support Price (MSP) of cotton. These are the
rates at which the government procures cotton. The purchases are made in procurement centres across different regions of the
country.
In the 2012-2013 season, the government raised the MSP for the medium staple group by 29% to INR 3,600 per quintal. Similarly, the
MSP for long staple cotton was raised to INR 3,900 per quintal from INR 3,300.
In the 2013-2014 season, the government set the medium staple length price at INR 3,700 and the long staple length at INR 4,000 per
quintal.
Wool
The institution responsible for the wool sector development in India is the Central Wool Development Board (CWDB). The Indian
government has allocated INR 130.4mn for the implementation of CWDB's 2011-2012 annual plan. The main policy targets are the
improvement of wool fibre (through so-called sheep " health care", "breeding improvement" and better marketing of wool
manufacturing) as well as human resources development.
A major problem in Indian wool manufacturing is the outdated technical equipment in the unorganized sector, which results in low
productivity and also affects the health of workers.
Business Standard; Ministry of Textiles Annual Report
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II. Fibres
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means Apr 1, 2013 – Mar 31, 2014. In Indian documents, FY (fiscal) 2014 is also labeled FY13-14.
The remaining nine months of calendar 2014, i.e. Apr-Dec, belong to fiscal year 2015.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as FY 2013. This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source.
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Highlights
Source:
Cotton Production
Area and cotton yield
Staple-wise Cotton Production (thou bales of 170kg)
Cotton is the leading crop in India's textile sector,
accounting for more than half of the fibre consumption. Its
production, however, is largely dependent on weather
conditions with nearly 65% of the cultivation area being
rain-fed.
The 2012-2013 cotton season started with delayed sowing
in northern India due to late harvesting, while switching to
other competing crops led to lower acreage by about 6%.
The delayed monsoon across the cotton belt and the
southern states also resulted in lower acreage. The
hectares were down by 3-12% y-o-y in all states except for
Andhra Pradesh, where the acreage rose by more than
20% to 2.3mn hectares. Overall the sown area decreased
by some 10% in 2012.
The lower acreage resulted in reduced production and
import of cotton.
At the same time, a sharp rise in cotton imports from China
contributed to a price increase.
Cotton Advisory Board
Staple Group 2007-08 2008-09 2009-10 2010-11 2011-12
Short (below 20mm) 400 350 400 400 400
Medium 6,100 6,000 5,800 7,100 7,200
Long (27.5 to 32.0 mm) 23,700 22,200 23,800 25,900 27,200
Extra Long staple (32.5
mm & above) 500 450 450 500 500
Total 30,700 29,000 30,500 33,900 35,300
9.4 9.4 10.3
11.1 12.2
11.6 554
524
503
517
493 489
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
Area, mn hectares Yields, kg per hectare
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Copyright © 2014 EMIS, all rights reserved.
Source:
Comments
Cotton Supply and Demand
According to the state-run Cotton Advisory Board, cotton production in the country will reach 37.5mn bales and consumption will stand at 29.7mn bales in
2013-2014, resulting in an exportable surplus of 9.0mn bales.
Cotton supply and demand (mn bales of 170 kg)
Cotton Advisory Board, Cotton year: October-September
Product 2007-2008 2008-2009 2009-2010 2010-2011 20011-2012 20012-2013P 2013-2014P
Opening stock 4.8 3.6 7.2 4.1 4.6 4.0 3.5
Crop size 30.7 29.0 30.5 33.9 36.7 36.5 37.5
Imports 0.6 1.0 0.6 0.2 0.8 1.5 1.7
Supply 36.1 33.6 38.3 38.2 42.0 42.0 42.7
Mill consumption 19.6 19.0 21.9 22.2 22.4 25.0 25.8
Small Mill consumption 2.2 2.0 2.3 2.4 2.2 2.3 2.4
Non-Mill consumption 1.9 1.9 1.7 1.3 0.5 1.0 1.5
Total consumption 23.7 22.9 25.9 26.0 25.1 28.3 29.7
Export 8.9 3.5 8.3 7.7 13.0 10.1 9.0
Total Demand 32.5 26.4 34.2 33.6 38.0 38.5 38.7
Carry forward 3.6 7.2 4.1 4.6 4.0 3.5 4.0
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Source:
Cotton Prices
International prices - Monthly average outlook A Index (US Cents per lb.)
Prices of main raw cotton varieties (INR/kg)
Domestic prices raw cotton (INR/kg)
Comments
Cotton Corporation of India, CEIC
With the increased global uncertainty and the euro zone debt crisis in
the past several years, most commodity prices dropped with cotton
being no exception.
However, the substantial accumulation of reserves by China boosted
prices on the international market in 2012.
The local market has also showed signs of moderate price growth.
70
90
110
130
150
Jan-
12
Feb
-12
Mar
-12
Apr
-12
May
-12
Jun-
12
Jul-1
2
Aug
-12
Sep
-12
Oct
-12
Nov
-12
Dec
-12
Jan-
13
Feb
-13
Mar
-13
Apr
-13
May
-13
Jun-
13
Jul-1
3
Aug
-13
Sep
-13
Oct
-13
Nov
-13
Dec
-13
Bengal Deshi Medium Long Extra Long
70
110
150
190
230
Aug
Sep Oct
Nov
Dec Jan
Feb
Mar
Apr
May Jun
Jul
Cotton Season 2010-2011 Cotton Season 2011-2012
Cotton Season 2012-2013 Cotton Season 2013-2014
80
110
140
170
Aug
Sep Oct
Nov
Dec Jan
Feb
Mar
Apr
May Jun
Jul
Cotton Season 2010-2011 Cotton Season 2011-2012
Cotton Season 2012-2013 Cotton Season 2013-2014
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Source:
Silk
Silk production, export and import (mn kg)
Silk production by type, 2012
Comments
CEIC;
India is the second largest producer of silk in the world,
accounting for 18% of the global production.
All four silk types are produced in India, with key
production regions being Karnataka, Andhra Pradesh,
West Bengal, Tamil Nadu and Assam.
In 2012, the total production of raw silk stood at 23.7mn
kg (mulberry and non-mulberry), up by 2.7% compared to
2011, with a compound annual growth rate (GAGR) of
5.3% in the 2007-2012 period.
Traditionally, India imports a certain amount of silk. Silk
imports rose from 8.1mn kg in 2007 to above 11mn kg in
2012, maintaining the country's import dependence in
spite of the higher domestic production.
China is the major supplier of raw silk to India with a share
of over 95%, followed by Brazil.
18.3
18.4
19.7
20.4
23.1
23.7
0.9
0.4
1.8
1.7
1.9
8.1
8.5
7.5
9.4
11.2
2007
2008
2009
2010
2011
2012
Import Export Production
Mulberry 79.0% Eri 13.2%
Tassar 7.3%
Muga 0.5%
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Comments
Source:
Wool
The wool industry in India is small in size and concentrated predominantly in the northern states. It consists of both organised players (composite mills,
combing units, knit wear and woven garment units, machine made carpet manufacturing units, spinning units) and decentralised ones (hosiery and knitting
units, powerlooms, hand-made carpets units and independent dyeing and processing houses).
The top wool producing states are Rajasthan, Karnataka, Jammu, Kashmir, Andhra Pradesh and Gujarat.
Raw wool consumption is estimated to grow from 114mn kg in 2008 to 208mn kg in 2016 and 260.6mn kg in 2019. Domestic production will cover about
44mn kg of the demand, suggesting substantial importance of wool imports in the future.
Wool production, export and import (mn kg) Woolen production (mn kg)
CEIC, Central Wool Development Board, P - preliminary
43.9
42.8
43.1
43.0
44.4
46.1
4.3
4.9
6.4
7.6
7.9
96.2
68.3
70.5
98.0
78.1
2007
2008
2009
2010
2011
2012 P
Import Export Production
63.0
31.0 39.0
89.0
44.0
25.0 34.0
22.0
10.0 0.5
Wor
sted
yar
n
Woo
len
yarn
Woo
l top
s
Fab
rics
Sho
ddy
yarn
Bla
nket
s
Sho
ddy
fabr
ics
Kni
tted
good
s
Han
dmad
e ca
rpet
s
Mac
hine
mad
e ca
rpet
s
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Source:
Wool Imports
Comments
Wool and cotton rags import (mn kg)
Raw wool import (mn kg)
Wool imports by country in quantity terms, 2012
Central Wool Development Board
India's raw wool production does not cover the needs of the local
woolen industry.
Moreover, most of the produced wool is of coarse quality and is used
mainly in the carpet hand-made industry. With domestic production
insufficient to meet the demand for fine-quality wool, the local
organized mills and hosiery sector production still depends almost
entirely on imports. The imports are conducted under the open
general licence (OGL).
The country traditionally imports raw wool as well as woolen rags.
91.8
85.3
82.7
95.5
140.5
186.4
112.9
2007
2008
2009
2010
2011
2012
Nov'13
93.1
65.7
68.3
94.8
76.3
77.2
60.8
2007
2008
2009
2010
2011
2012
Nov'13
18.1%
12.6%
6.8%
5.4%
3.9%
Australia
Pakistan
New Zealand
Syria
Italy
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Comments
Source:
Jute
India is the largest producer of jute and jute goods in the world. Jute cultivation is best developed in the region of the Ganges river. The jute producing
states in India are West Bengal, Bihar, Assam, Orissa and Uttar Pradesh. According to the Ministry of Textiles, jute production creates direct employment
for some 370,000 people, with another 4mn employed indirectly. Under the Jute Packaging Material Act of 1987, jute is used as the main packaging
material in the country, which makes India the largest consumer of jute in the world. The potential for India's raw jute exports is limited due to significant
exports by Bangladesh, the world's largest jute growing country.
Raw jute production and import (mn bales of 180 kg) Jute consumption and export
Ministry of Textiles
8.2
9.0
10.0
10.3
9.3
9.5
0.2
0.3
0.8
0.9
0.9
0.9
2008
2009
2010
2011
2012
2013
Import Production
8.9
7.7
8.7
9.2
9.4
9.5
0.9
1.0
1.0
1.0
1.0
1.0
0.2
0.1
2008
2009
2010
2011
2012
2013
Export Domestic/industria consumption Mill consumption
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Comments
Source:
Jute Goods
India is the leading producer of jute goods in the world, accounting for about 70% of the global production. Approximately 90% of the manufactured jute
goods are sold on the domestic market.
In terms of exports, most of the demand is for sacking goods and hessian. In value terms, exports of jute goods increased by more than 85% in the 2009-
2012 period, rising from INR 8.6bn to INR 15.89bn.
Jute goods production (mn kg) Jute goods consumption
Ministry of Textiles, Report on Jute Sector;
350 298 207 244 240 220
99
1,143 1,071
922
1,077 1,165 1,219
644
6.0
4.1
2.4
4.7 4.0 2.1
1.8
277
260
193
240 174 151
81
0
300
600
900
1,200
1,500
1,800
2007 2008 2009 2010 2011 2012 Apr-Sep'13
Others
Carpetbackingcloth
Sacking
Hessian183 182 184 167
880 1,034 1,080 1,119
1.2
0.9 0.1 0.0
142
133 118 115
0
200
400
600
800
1,000
1,200
1,400
1,600
2009 2010 2011 2012
Others
Carpetbackingcloth
Sacking
Hessian
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Comments
Source:
Jute Projections
According to the government forecasts in the 12th Five Year Plan, the yield per hectare of jute will increase in the coming years, leading to a 20% higher
production at the end of the program period. At the same time, crop availability will be higher than domestic market requirements.
Cultivation Area, Productivity and Production Estimations Raw Jute Requirement and Availability Projections (mn bales)
Working Group for the Textiles and Jute Industry for the 12th Five Year Plan
Area Yield Production Production
(thou
hectares) (thou kg) (mn bales) (thou kg)
2013-14 820 2.4 11 19.8
2014-15 810 2.6 11.7 21.1
2015-16 780 2.8 12.2 22.0
2016-17 750 3.0 12.6 22.7
(July-June) Requirement Availability
2013-14 10.6 12.1
2014-15 10.9 12.9
2015-16 11.3 13.5
2016-17 11.8 14.0
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Source:
Man-made Fibres
Production (mn kg)
Staple-wise man-made fibre consumption (mn kg)
Staple-wise man-made fibre production (mn kg)
Man-made staple fibre export (USD mn, calendar years)
CEIC, UN COMTRADE
1,295
1,396
1,215
1,622
2,246
1,997
2007
2008
2009
2010
2011
2012
1,065.8
1,268.1 1,284.7 1,234.2 1,263.4
877.5
2008 2009 2010 2011 2012 Apr-Nov'13
750
872
896
830
848
568
80
90
79
78
74
66
3
3
4
4
4
2
233
302
305
323
337
241
2008
2009
2010
2011
2012
Apr-Nov'12
Viscose Staple Polypropylene Staple Acryl Staple Polyester Staple
250 221 268 263 246
739
653 726 756
704
95 89 96 69 86
3 3 3 3 4
2007 2008 2009 2010 2011Viscose Staple Polyester StapleAcrylic Staple Polypropylene Staple
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Source:
Comments
Fibres Production Forecast
India's government forecast reflects the market trend from the past few years. Although cotton remains the leading textile segment in the country, the role of
manmade fibres is constantly increasing The bigger share of synthetic fibres comes on the back of highly volatile cotton prices and rising fibre demand both
on the local market and internationally.
Production of fibres failed to reach the state targets at the end of the 11th Five Year Plan as well as in 2012.
Fibres production forecast (as in the 12th Five Year plan) and actual numbers in mn kg
Working Group for the Textiles and Jute Industry for the 12th Five Year Plan – forecast, Cotton Advisory Board- actual data
Type Eleventh Plan
Assumed growth in
12th period
Twelfth Plan projections
2011-12 actual 2012-2013 target 2012-2013
actual 2013-14 2014-15 2015-16 2016-17
Raw Cotton 6,001 6 6,091 5,679 6,456 6,844 7,254 7,689
Cotton (mn bales) 35 6 36 37 38 40 43 45
Manmade Fibres 1,234 8 1,640 1,236 1,765 1,898 2,042 2,197
Total - 6 7,732 6,915 8,221 8,743 9,296 9,886
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Source:
Mills
Cotton and man-made fibre mills (excl. Small Scale)
Cotton and manmade fibre Small Scale Mills
Installed Capacity in Non – Small Scale
Installed Capacity and Employment in Small Scale Industries
Textile Commissioner Office
1,653 1,673 1,757 1,761 1,771 1,748
177 180
183 196 198 197
1,200
1,600
2,000
2008 2009 2010 2011 2012 Dec'13
Composite
Spinning
1,219 1,247
1,260
1,400
1,336 1,347
1,311
2007 2008 2009 2010 2011 Jan'12 Dec'13
Year Spindles (mn) Rotors (thou) Workers (thou)
2007 4.6 179.4 49.4
2008 4.7 185.2 51.0
2009 4.8 192.4 51.2
2010 5.2 237.2 56.3
2011 5.0 249.0 54.5
Jan’12 5.0 250.0 53.9
Dec'13 5.0 260.5 53.7
Year Spindles (mn) Rotors (thou) Looms (thou)
2007 35.0 461 56
2008 37.0 485 57
2009 37.7 494 57
2010 42.7 518 52
2011 43.3 523 52
2012 44.2 546 52
Dec'13 44.3 551 51
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Comments
Source:
Mills Closure
The 530 textile mills that closed in India as of November 2013 had a total installed capacity of 9.66mn spindles, 124,000 rotors, 36,000 looms and
employed 279,000 workers.
A total of 38 of the closed mills are under liquidation.
Cotton and man-made fibre mills closed Reasons for closure (as of Nov 2013)
Textile Commissioner Office
-18.59% 6.30% 6.91%
27.48% 1.27% 3.58%
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011 2012 Oct'13 Nov'13
Spinning Composite Total, yoy change %
Financial difficulties
69.3%
Lock out 2.5%
Other reason 19.6%
Strike/ Labour dispute 8.7%
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III. Yarn
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means Apr 1, 2013 – Mar 31, 2014. In Indian documents, FY (fiscal) 2014 is also labeled FY13-14.
The remaining nine months of calendar 2014, i.e. Apr-Dec, belong to fiscal year 2015.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as FY 2013. This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source.
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Copyright © 2014 EMIS, all rights reserved.
Source:
Man-made Filament Yarn
Man-made filaments production (mn kg)
Man-made filaments export (USD mn, calendar years)
Man-made filaments consumption (mn kg)
Comments
CEIC, UN COMTRADE
Man-made filament exports expanded at a CAGR of 21% in the 2007-
2011 period, but then declined by almost 15% in 2012.
1,42
0
1,33
0
1,43
4
1,46
2
1,38
0
1,28
8
51
42
43
41
42
43
28
28
30
33
28
23
11
15
15
13
13
17
1,509 1,416
1,522 1,550 1,463
1,371
2007 2008 2009 2010 2011 2012
Polyester filament Viscose filament
Nylon filament Polypropylene filament
1,281 1,342 1,327
1,221 1,106
42
45
49
49
45
29
31
29
30
32
12
16
13
15
14
2007 2008 2009 2010 2011
Polyester filament Viscose filament Nylon filament Polypropylene filament
1,234
1,588
1,783
2,184
2,645
2,261
2007
2008
2009
2010
2011
2012
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Source:
Spun Yarn
Comments
Cotton yarn production structure, 2011
Yarn production, mn kg
Blended and non-cotton yarn production structure, 2011
CEIC
• More than 95% of the cotton yarn in India is manufactured in private
mills.
• The role of the public sector companies in the blended and non-
cotton yarn production is stronger. Nevertheless, the share of the
latter is relatively small and is slowly decreasing and accounted for
only 0.8% of the production in 2011.
2,896 3,079 3,490
3,126 3,583
2,574
361 407
426 457
457
329
655 707
796 789
828
584
2008 2009 2010 2011 2012 Apr-Nov2013
Blended
Non-cotton
Cotton
Private mills 95.9%
Public mills 0.5%
Co-operatives 3.6%
Private mills 96.5%
Public mills 2.7%
Co-operatives 0.7%
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Source:
Spun Yarn (cont'd)
State-wise Yarn Production, mn kg
State-wise Yarn Production, 2011
CEIC
1,601 1,511 1,595 1,818
1,487
490 545 590 651 656
369 342 367 395 368 214 190 197 296 198
1,330 1,324 1,444 1,553 1,665
4,003 3,912 4,193
4,713 4,373
2007 2008 2009 2010 2011
Tamil Nadu Punjab Maharashtra Gujarat Others Total
Andhra Pradesh
9.4% Gujarat 5.8%
Haraya 5.7%
Madhya Pradesh
7.6%
Maharashtra 9.4%
Punjab 17.6%
Tamil Nadu 44.5%
Cotton
Himachal Pradesh
5.8% Madhya Pradesh
7.3%
Maharshtra 11.3%
Punjab 21.7%
Rajasthan 23.3%
Tamil Nadu 30.7%
Non-cotton
Andhra Pradesh
5.8% Himachal Pradesh
6.6%
Madhya Pradesh
9.3%
Maharshtra 10.7%
Punjab 15.2%
Rajasthan 27.3%
Tamil Nadu 25.1%
Blended
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Source:
Yarn Production Projections in 12th Five Year Plan
Filament Yarn Production (mn kg) Spun Yarn Production (mn kg)
Working Group for the Textiles and Jute Industry for the 12th Five Year Plan – forecast, CEIC- actual data
Type Eleventh
Plan Assumed
growth in
12th
period
Twelfth Plan projections
2011-12
actual
2012-
2013
target
2012-
2013
actual
2013-14 2014-15 2015-16 2016-17
Viscose 42 9 49 43 54 59 64 70
Nylon 28 10 33 23 36 40 44 48
Polyester 1,380 11 2,326 1,288 2,576 2,853 3,160 3,501
Polypropyl
ene 13 6 20 17 21 22 24 25
Total 1,463 11 2,428 1,371 2,688 2,974 3,292 3,643
Type Eleventh
Plan Assumed
growth in
12th
period
Twelfth Plan projections
2011-12
actual
2012-
2013
target
2012-
2013
actual
2013-14 2014-15 2015-16 2016-17
Cotton 3,121 8 3,904 3,583 4,217 4,554 4,918 5,312
Blended 779 8 889 828 960 1,037 1,120 1,210
Non-cotton 459 8 499 457 539 582 629 679
Total spun
yarn 4,359 8 5,292 4,868 5,716 6,173 6,667 7,201
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Source:
Top Spun Yarn Manufacturing Units
Top Ten Spun Yarn Manufacturing Units, based on 2011-2012 production
Ministry of Textiles, Textile Commissioner Office
Cotton Producing mills Blended Producing mills Non Cotton Producing mills
1 Alok Industries Limited 1 Chenab Textile Mills S.G. Unit 1 Chenab Textile Mills S.G. Unit
2 Abhishek Industries Limited 2 Sangam Spinners 2 Rajasthan Spg & Wvg. Mills Limited
3 S.T. Cottex Exports Pvt .Ltd (L/O Shreyans Spinning
Mills) 3 Rajasthan Spg & Wvg. Mills Limited 3 Suryalakshmi Cotton Mills Limited (Amanagallu)
4 Aarti International Limited (Textiles Division) 4 Banswara Syntex Limited 4 Rajasthan Spg & Wvg. Mills Ltd (Heg Ltd.)
5 Pratibha Syntex Pvt.Limited 5 Rajasthan Spg & Wvg. Mills Ltd. 5 Vardhman Spg & Gen. Mills Unit-I
6 Nitin Spinners Limited 6 Pee Vee Textiles Ltd. 6 Suryalata Spinning Mills Limited B - Unit
7 Nahar Fibres Limited (Prop. Nahar Spg. Mills Ltd.) 7 Kanchan India Ltd (Spinning Division) 7 Ankur Udyog Limited
8 Trident Ltd. 8 Vardhman Yarns 8 Reliance Chemotex Industries Limited
9 Vardhan Fabrics (Unit of Vardhan Textiles) 9 Rajasthan Textile Mills 9 Madura Coats Pvt. Ltd.
10 Ginni Filaments Limited 10 Spentex Industries Ltd (Indo Rama Textiles Ltd) 10 Shiwalya Spinning & Weaving Mills (P) Ltd.
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IV. Fabrics
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means Apr 1, 2013 – Mar 31, 2014. In Indian documents, FY (fiscal) 2014 is also labeled FY13-14.
The remaining nine months of calendar 2014, i.e. Apr-Dec, belong to fiscal year 2015.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as FY 2013. This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source.
- 41 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Fabrics
Cloth Production, bn sq meter Fabrics production by sector, bn sq meter
CEIC, Textile Commissioner Office
26.9
28.9
31.7
30.6
33.9
6.8
7.8
8.3
8.5
9.3
20.5
22.8
21.8
20.6
18.8
2008
2009
2010
2011
2012
Blended Non-Cotton (incl Wool, Silk and Khadi) Cotton
1.8 2.0 2.2 2.3 2.4 1.4
6.7 6.8 6.9 6.9 7.0
4.1
33.6 37.0 38.0 37.4 38.0
22.4
12.1
13.7 14.6
12.9 14.5
8.3
0
10
20
30
40
50
60
70
2008 2009 2010 2011 2012 Apr-Oct2013
Hosierysector
Powerloom sector
Handloomsector
Mills
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Source:
Fabrics (cont’d)
Comments
Per capita availability of cloth, sq meter
Cloth consumption, mn sq meter
Fabrics production projections bn sq meter
CEIC, Textile Commissioner Office, Working Group for the Textiles and Jute Industry for the 12th Five Year Plan
Most of the fabrics are produced in the decentralized sector (incl.
handlooms, powerlooms, hosiery), while less than 4% of the cloths in
India are manufactured in mills.
In terms of consumption, the majority of cloths are used for
production of garments. Among the three types of fabrics, the shares
are as follows: cotton – 76%, non-cotton – 97%, blended cloth –93%. 590
859
1,213 1,269 1,396
15
20
43 52
47
197
265
397 433
440
0
400
800
1,200
1,600
2,000
2007 2008 2009 2010 2011
Blended
Non-Cotton
Cotton
41.9
39.0
43.1
44.0
2007 2008 2009 2010
Type Eleventh
Plan Assumed
growth in
12th period
Twelfth Plan projections
2011-2012
actual
2012-
2013
target
2012-
2013
actual
2013-14 2014-15 2015-16 2016-17
Cotton 30.6 12.0 36.7 33.9 41.1 46.0 51.6 57.7
Blended 8.5 11.5 9.5 9.3 10.6 11.8 13.2 14.7
Non-cotton 20.5 11.0 25.2 18.8 28.0 31.1 34.5 38.3
Khadi, wool
and silk 0.0 4.5 0.9 0.8 0.9 1.0 1.0 1.1
Total 59.5 11.5 72.4 62.8 80.7 89.9 100.3 111.8
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Comments
Source:
Apparel Trade
Apparel exports to the European Union and the United States accounted for almost 78% of India's total apparel exports in 2011.
The undeveloped trade relations with countries like South Africa, Japan, South Korea and Australia and developing countries in Latin America, hold
significant potential for Indian apparel exports.
Export of apparel and clothing (USD mn, calendar years) Import of apparel and clothing (USD mn, calendar years)
UN COMTRADE
5,076
5,438
5,244
5,884
6,125
6,038
7,937
7,430
3,125
3,577
4,129
4,381
5,187
4,566
5,807
5,466
2005
2006
2007
2008
2009
2010
2011
2012
Knitted or crocheted Other
33
48
67
87
67
101
166
197
15
22
33
50
45
75
119
115
2005
2006
2007
2008
2009
2010
2011
2012
Knitted or crocheted Other
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V. Main Players
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means Apr 1, 2013 – Mar 31, 2014. In Indian documents, FY (fiscal) 2014 is also labeled FY13-14.
The remaining nine months of calendar 2014, i.e. Apr-Dec, belong to fiscal year 2015.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as FY 2013. This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source.
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Highlights
Source:
Cotton Corporation of India
Income and profit (INR bn)
Other indicators (INR mn)
Founded in 1970, the Cotton Corporation of India (CCI) is a state enterprise, controlled by the ministry of textiles. CCI is the largest cotton trading company in India.
The main purpose of the CCI is to support cotton prices without any quantitative limit when market prices of seed cotton reach support price levels set by the government. Cotton purchases are made at CCI’s own risk. The Corporation also buys cotton to meet export commitments. When the prices are above the MPS level CCI can undertake commercial operations at its own cost.
CCI buys cotton through open auctions. In 2012 an e-sales platform was introduced to ensure sale in favour of the highest bidder and reasonable profits from the purchase operations. The cotton is later sold to the mills ensuring that the growing demand for textile production is met.
The drop in cotton prices in 2012-2013 resulted in massive minimum support price (MSP) operation and purchase of over 2.29mn bales in the southern parts of the country. In the northern regions CCI purchased 48,000 bales in commercial operations.
In 2012-2013 domestic sales stood at 372,000 bales, with no exports.
Company data
16.4
49.8
84.0
27.5 18.0 20.3
0.2 0.7 0.1
0.0
-18.0
0.3
2007 2008 2009 2010 2011 2012
Total Income Net profit
2008 2009 2010 2011 2012
Equity capital 25.0 25.0 25.0 25.0 25.0
Reserves 328.3 330.6 329.7 149.8 174.9
Assets 7 915.7 2 102.6 2 410.7 416.9 4 524.4
Inventories 8 388.3 9 386.4 1 571.2 218.1 4 089.3
EPS 267.1 32.7 -3.8 -719.6 130.8
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Source:
Cotton Corporation of India (cont’d)
Purchases and sales (thou bales of 170kg) Segment-wise sales performance (thou bales)
Company data
2006 2007 2008 2009 2010
Purchases 1 481 986 8 881 824 1 318
Commercial 271 761 20 171 1 317
Support 1 210 225 8 861 653 1
Sales 1 552 1 409 2 108 7 536 1 285
Domestic 1 246 1 271 1 955 7 487 1 268
Commercial 177 398 373 39 706
Support 1 069 873 1 582 7 448 562
Export 306 138 153 49 17
Commercial 30 29 127 0 5
Support 276 109 26 49 12
2008 2009 2010 2011 2012
NTC 78 105 115 85 54
STC/Cooperatives 58 82 59 17 30
Private 18 7 300 1 094 700 288
Total 19 7 487 1 267 802 372
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Highlights
Source:
Bombay Rayon Fashion Ltd.
Financial Performance
Other indicators (INR bn)
Bombay Rayon Fashion Ltd (BRFL) was established
in 1986. It is a vertically integrated textile company,
which manufactures fibres, fabrics and apparel.
The company has manufacturing facilities located in
the states of Maharashtra, Karnatka, Tamilnadu and
Kerla. BRFL also owns a sampling unit in Mumbai.
As at 31 March 2013, BRFL’s manufacturing capacity
is 235mn meters of fabric and 88.8mn garment
pieces.
In the company’s domestic sales, top performers are
fabrics with a 93% share, followed by yarn with 3.6%.
Most of BRFL’s export is garments (88%) and fabrics
(11%).
The number of company employees as at 31 March
2012 was 24,104.
The company has six subsidiaries – three in India, and
one in each the United Kingdom, the Netherlands and
Italy.
BRFL’s shares are listed on the Bombay Stock
Exchange (BSE) and the National Stock Exchange
(NSE).
Company standalone data
13.5
16.3
22.8
27.5
32.1
1.5
1.8 2.3 2.
1
1.9
22.6% 18.5%
28.9%
-8.9% -8.6%
2008 2009 2010 2011 2012Total Income Net Profit Profit, yoy change
Product 2007 2008 2009 2010 2011 2012
Equity
Share
Capital
(INR mn)
0.63 0.69 1.12 1.28 1.35 1.35
EPS 19.23 21.89 18.90 19.06 15.50 14.02
Export
sales 4.21 8.74 10.04 11.11 13.23 12.27
Domestic
sales 5.05 4.69 6.11 11.44 14.14 19.72
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Highlights
Source:
Alok Industries Limited
Sales and profit (INR bn)
Other performance indicators
Alok Industries Limited was established in 1986 as
polyester texturizing company. Later Alok expanded
into weaving, knitting, processing, home textile and
garments manufacturing, as well as, cotton spinning.
The retail operations of the firm are supported by a
wholly-owned subsidiary Alok H&A Limited, on the
domestic market, and the associated concern Grabal
Alok Ltd. in the UK.
Alok has more than 29,000 employees and is active in
more than 90 countries.
Exports account for about 26% of company’s sales, of
them 36% are in the USA, 29% - in other Asian
countries, 18% - in South Africa and 14% in Europe.
As at March 2013 company’s production capacity
stood at 150mn metres of sheeting fabric, 13,400
tonnes of terry towel, 186mn metres of apparel
fabrics, 25,000 tonnes of knitted fabrics, 22mn pieces
of garments and 240,000 tonnes of polyester textured
yarn per annum.
Alok is listed on the two biggest bourses in India –
Bombay Stock Exchange and National Stock
Exchange.
Company data
29.8
43.1
63.9
89.0
199.
2
8.2
12.7
18.8
26.2
54.9
1.9
2.5
4.0
3.8 9.2
2008 2009 2010 2011 2012
Net sales Operating profit (rhs) Net Profit (rhs)
2008 2009 2010 2011 2012
Export sales 10.4 10.5 15.6 22.2 30.3
Domestic sales 11.3 19.2 27.5 41.7 58.7
Total assets 91.6 121.8 142.7 182.4 247.3
Net Fixed Assets 59.8 71.5 83.3 94.7 97.4
Equity Share Capital 2.0 7.9 7.9 8.3 13.8
EPS 9.6 4.6 5.1 4.7 9.4
EBITDA margin, % 27.6 29.5 29.4 29.5 27.54
Debt Equity Ratio 3.56 2.62 2.75 3.14 2.99
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Highlights
Source:
Trident Group
Profit (INR bn)
Other performance indicators
Trident Group operates in several sectors, including
textiles, yarn, paper, energy and chemicals.
The company is one of the largest yarn spinners in
India as well as among the top 5 home textiles
manufacturers in the world and one of the largest
exporters of terry towels from India.
The yarn segment accounts for about 46% of the
company’s revenue, while terry towel provides 34% of
the total.
Trident has three domestic campuses with a total of
eight yarn units and three home textile units.
The company has customers in over 75 countries
around the globe, exporting towels to all of these
countries and yarn to 19 of them.
Trident shares are listed on the National Stock
Exchange (NSE).
Company data
15.5 19.7
28.3 31.0
36.8
2.6 3.6 4.1 3.2 5.8
-0.5
0.6 0.7
-0.4
0.5
2008 2009 2010 2011 2012
Gross Turnover Gross profit Net profit
2008 2009 2010 2011 2012
Gross profit
margin,% 19 20 16 12 17
Export sales/net
sales 49 47 48 53 48
Debt-equity ratio 3.49 3.40 3.61 3.51 3.17
EPS -2.64 2.54 3.02 -1.59 1.60
Turnover per share 69.56 88.83 126.87 112.32 119.63
Fixed Assets
(INR bn) 21.03 23.39 25.83 33.32 34.06
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Source:
Trident - Yarn
Production (thou tonnes)
Sales mix
Revenue and profit (INR bn)
Comments
Company data
As of March 2013, Trident had about 366,000 spindles and
3,600 rotors. The company’s capacity was 6,825 tonnes of yarn
processed per annum and 8,400 tonnes of cotton and blended
yarns per month.
The company is currently operating at peak capacity utilisation
rates.
Trident plans to expand its unit in Budni, Madhya Pradesh by
adding about 38,800 tonnes per annum of cotton yarn to its
capacity by September 2015.
90% 83%
73% 74% 73% 67%
10% 17%
27% 26% 27% 33%
FY9 FY10 FY11 FY12 FY13 H1 FY14
Domestic Export
28 35
44 40
65
33
12 13 17
20 20
9
FY9 FY10 FY11 FY12 FY13 H1 FY14
Production Captive
4.6 6.2
11.3 11.7
16.8
9.6
0.1 0.4 1.3
-0.1
1.3 1.5
FY9 FY10 FY11 FY12 FY13 H1 FY14
Revenue EBIT
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Source:
Trident – Home Textiles
Production (thou tonnes)
Sales mix
Revenue and profit (INR bn)
Comments
Company data
As of March 2013, Trident had 388 looms.
The company produced 43,200 tonnes of towels per year or
14.5mn pieces per month.
28 29 32 31 31
14
28 30
32 30 31
14
FY9 FY10 FY11 FY12 FY13 H1 FY14
Production Sales
7.6 8.5
11.1
1.7
12.7
6.8
-0.1
1.5 0.9 1.3 1.2 0.8
FY9 FY10 FY11 FY12 FY13 H1 FY14
Revenue EBIT
92% 92% 91% 84% 85% 87%
8% 8% 9% 16% 15% 13%
FY9 FY10 FY11 FY12 FY13 H1 FY14
Domestic Export
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Highlights
Source:
Shri Lakshmi Cotsyn
Financial Results (INR bn)
Investment plans
Established in 1988, Shri Lakshmi Cotsyn Ltd operates in two diverse industries – textiles and defence solutions. The core competence is in the home textiles production, but the company also has a leading market position in the manufacturing and supply of technical and safety textiles and fabricated items for the defence sector.
The production process is conducted in eight manufacturing facilities in Malwan, Aung, Abhaypur, Rewari Bujurg, Rhasupur, Noida (Uttar Pradesh), Roorkee (Uttarakhand) and Sonepat (Haryana).
In 2011, the company expanded its backward integration, installing 35,000 spindles and 5,000 rotors. The expansion investment for different products amounted to over INR 14bn in 2008-2012.
Despite the capacity expansion, Shri Lakshmi assesses the 2012-2013 year as tough, due to non-release of TUF subsidy (INR 1.65bn) and unanticipated delay in the release of project funding. As a result, the liquidity position of the company suffered and a restructuring of its debt under the Corporate Debt Restructuring mechanism was requested.
Shri Lakshmi’s shares could be traded at the Bombay Stock exchange (BSE), the National Stock Exchange (NSE) and U.P. Stock Exchange.
Company data
1.7 2.1 2.7
4.5
0.9 0.6 0.9 1.0 1.1
-4.2
2008 2009 2010 2011 2012
EBITDA Net Profit
Shri Lakshmi has set up a spinning project at Malwan, Gujarat and
started commercial operations, however to make the plant fully
operational it requires additional investment of INR 120mn.
The company is currently buying yarn which is the raw material for
textile from the open market. The market price for the yarn is very
volatile and it affects negatively the company’s margin. As the new
plant will act as a backward integration for Shri Lakshmi, it will help
save around INR 240mn per annum, which will add to the company’s
EBIDTA margin.
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Source:
Shri Lakshmi Cotsyn (cont’d)
Sales (INR bn)
Revenue structure (%)
Production
Company data
2011 2012
Suiting/Shirting mn metres 26.4 32.8
Technical Textiles mn metres 0.0 0.0
Technical textiles fabric mn metres 13.0 10.4
Fusible interlining fabric mn metres 17.6 17.0
NBC fabric mn metres 1.2 1.5
Black out fabric mn metres 10.0 1.4
IRR/MSCN fabric mn metres - 3.2
Others mn metres 11.8 -
Quilt Fabric mn metres 0.4 0.2
Embroydery Fabrics mn metres 0.3 0.3
Terry Towel mn tonnes 13.7 15.7
Sheeting mn metres 26.5 15.5
Denim mn metres 34.1 32.0
Garments mn 0.3 0.7
Quilts/Comforters mn 0.1 0.0
18.6
%
17.5
%
20.3
%
10.3
%
10.6
%
5.0%
3.7%
0.9%
13.2
% 22
.7%
15.9
%
14.8
%
12.1
%
9.5%
9.2%
3.0%
1.5%
11.3
%
Tec
hnic
al te
xtile
fabr
ic Den
im
Ter
ry to
wel
Shi
rtin
g
Hom
e fu
rnis
hing
Fus
ible
inte
rling
Bot
tom
wei
ght
Gar
men
ts
Oth
ers
2011 2012
0.9 0.9 1.0 2.3 2.0 2.8
9.3 11.6
15.4 18.0
24.0
19.2
2007 2008 2009 2010 2011 2012
Export sales Net sales
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Contact:
Corporate Headquarters
Nestor House
Playhouse Yard
London EC4V 5EX
UK
Voice: +44 207 779 8471
Fax: +44 207 779 8224
Americas Headquarters
225 Park Avenue South
New York, New York 10003
US
Voice: +1 212 610 2900
Fax: +1 212 610 2950
Asia Headquarters
Eucharistic Congress Bldg. No.
III
4th Floor, 5 Convent Street
Mumbai 400 001
India
Voice: +91 22 22881123
Fax: +91 22 22881137
Disclaimer:
The material is based on sources which we believe are reliable, but no warranty, either expressed or implied, is provided in relation to the accuracy or completeness
of the information. The views expressed are our best judgment as of the date of issue and are subject to change without notice. EMIS and Euromoney Institutional
Investor PLC take no responsibility for decisions made on the basis of these opinions.
Any redistribution of this information is strictly prohibited. Copyright © 2014 EMIS, all rights reserved. A Euromoney Institutional Investor company.
About EMIS Insight
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and profiles of the leading sector companies provided by locally-based analysts.
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