indian textile & apparel industry brightest future ever

8/7/2019 Indian Textile & Apparel Industry Brightest Future Ever

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BrightestFutureEver

ArvindSinghal3rd September2010


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Contents

1. Changingfaceofglobaltrade

2. OpportunitiesforIndia

3. MilestoneyearsofIndiantextilehistory

4. Acallforthenextdisruption


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3

Chan in FaceOfGlobalTrade


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OverTheYears,ProductionHasConverged

Production

Hubs

US,Canada Europe

China

ASEANCAFTA/CBI

SouthAsia

Source:TechnopakAnalysisConsumption

Centres


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..LeadingToIncreaseInGlobalTextile&Apparel

800

1000GlobalTextile&ApparelTrade(USDBn)

500

650530586 612

510

350198

309 346 362 310

157

2000 2006 2007 2008 2009 2015 2020

Textiles Apparel Total

Source:WTO,UNComtrade &Technopak Analysis


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AndResultingInContinuingShiftOfExport

.

Western/DevelopedCountries AsianCountries

Country

in2000

(US$mn)

CAGR

since2000Country

in2000

(US$mn)

CAGR

since2000

Korea

Republic5027 12% Vietnam 1821 22%

Cambodia 970 18%

Republic2555 10%

USA 8629 8%

China 36071 16%

Bangladesh 5067 10%

Mexico 8631 7%

Canada 328 6%

India 5960 8%

Pakistan 2144 8%


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AsWellAsForRawMaterials..

Countries Countries

2.2 21%

3.4 79%

Growth

1.8India 30.7 242%

2.6

2.7.

China

Italy

9.0

.

2.6 1.7

2.2Germany

14%

37% 5.3 4.7

. 6.9

11%

2000 2009 2000 2009

Source:UNComtrade


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RisingMarketOpportunityForDevelopingCountries

Mostdevelopedcountries willseecontinueddeclineof

theirtextileandapparelindustryandcreatefresh

opportunityofuptoUS$140Billionforexportsfor

Inaddition,anopportunityofapproxUS$360370Billion

likelytobecreatedduetoriseindemand

Henceana t ona mar etopportun tyo ~US 500B on

likely

to

be

created

by

2020


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ChinasExportsMayBeConstrainedInFutureCreating

OpportunitiesForOthers

800

US$

350

Billion C naw rema n

thebiggest

exporterbutwith

236292

rising

costs

and

risingdomestic

demand,itma Chinawilladd

135260

450157 cedesomeexport

opportunity

toitsdomestic

apparel

2009 2015(E) 2020(E)

Domestic Ex orts Total

2020


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HenceOpportunityForIndiaToReachUS$80

Growingworldtrade1990 2020

US$billion 1990 2000 2005 2008 2009 2015 2020

WorldGDP 23,000 32,000 45,400 61,000 57,000 82,000 111,027

WorldTrade 4,338 7,902 12,752 19,344 15,341 24,600 33,308

,

ChinaT&AExports 16 52 104 175 157 236 350

IndiaT&AExports 4.6 11.4 15 21 23 45 80

IndiasShareInGlobal

T&A Trade 2.1% 3.2% 3.1% 3.4% 4.5% 5.6% 8.0%

PotentialForIndiaToAlmostDouble

GlobalExportShare..


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Further,GoingForward.IndianEconomyHasA

IndianEconomyIsExpectedToTouch

GDP$

Trillion

2000 2010 2020Inthelast10yearsIndia

hasadded$930billionto

.

USA 10.8 15.7 18.0

China 1.3 5.6 13.2

almostdoubleofthat

(about$1700Billion) in. . .

Germany 2.1 3.6 4.3

France 1.5 2.9 3.3

enex years

The Indian econom in

UK 1.6 2.4 2.8

Italy 1.2 2.3 2.5

2020ispoisedtobecome

bigger

than

the

current

size

Brazil 0.7 1.9 3.1

India 0.5 1.4 3.1

,

orItaly

. . .


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TextileAndApparelIndustryWillGrowSubstantiallyToo

Indias US$70Billion TextileandApparelindustryhasthepotentialtogrow@

220

toreac on y

80

134US$Billion

45

70 78

30 47 52

891623

2005 2009 2010(E) 2015(E) 2020(E)

Domestic Exports Total(US$Bn)

*Allnumbersareroundedoff


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MilestoneYearsInIndianTextileIndustry

ExceptionalentrepreneurswhoputIndiaontheglobaltextilemap

1869

r ams e ata: tarte s rstventure yacqu r nga an rupto

millinChinchpopkliconverteditintoacottonmillandrenameditto

Alexandra

Mill

19001960s ShriGDBirla,LalaShriram(DCM),ShriMafatlalGaganbhai(Mafatlal), ShriPiramalChaturbhuj(Morarjee),Singhanias(JK/Raymond),Wadia BombayDyeing,others

1970s

1980s

ShriDhirubhaiAmbani(RelianceIndustries)

ShriS.POswal (Vardhman),others

1990S

Shri

Sanjay

Lalbhai

(Arvind),

others

2000s Jiwarajkafamily,otherse.g.SKNL,BRFL,Welspun,Abhishek each

alreadyorpoisedtosoonbecomeabillionUS$integratedtextile


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14

TheNextDisru tion


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BeyondFactorDrivenIndustry

(Before 2005)

FACTOR DRIVEN

(2005- 2015)

EFFICIENCY DRIVEN

(2015 onw ards)

INNOVATION DRIVEN

Raw Mater ial Avai labi l i ty

Labor avai labi l i ty

Vert ical / Virt ual Integrat i on

Manufactur ing excellence

Product

Design / Brand

Government pol icy inf luenced

Diversi ty in pr oduct m ix Business Processes


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CreateNewMegaClusters

DevelopingtheNext Amritsars &Ahmedabads &

AmbalaLudhiana

Mundraan pa

Ahmedabad

Surat

Madurai

Mangalore Bengaluru

M soreKarur

CoimbatoreTirupur


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ReInventTheEntireIndustry

divest)

Attractthebestmanagementandoperationaltalent

Rebrandtheentireindustry/companies/products


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ThoughtLeadership.

CII,FICCI,PrimeMinistersIndustryLeadersCouncil

platformssuchasWEF,IndiaTodayConclave,HT

.

partnerofdesire

18


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Conclusion

alreadyavailabletoprovideinspirationtomany

,

theIndianTextileandApparelindustry


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20

an you

indian textile & apparel industry brightest future ever

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