textile industry (1)

7/31/2019 Textile Industry (1)

1/21

INDIAN TEXTILE INDUSTRY


2/21

Introduction

Textile industry in India is widely comprehensive, integrating

whole range of raw material to finished product that includes

fiber manufacturing, spinning, knitting and weaving, and

garment manufacture.

contributes nearly 14 percent to the total industrial

production

claimed to be the biggest revenue earners in terms of foreign

exchange among all other industrial sectors in India

provides direct employment to around 35 million people


3/21

Cont.

Industry provides almost every single aspect i.e. rawmaterials, fabric production, apparel production and made

ups production.

In recent years, the readymade garment segment has seen

vertical growth. Accounting nearly 20000 crores and growing at a rate of 20%

The largest segment for the readymade garment segment

includes the age-group of 16-35

Branded readymade garments account over 21 percent ofthe readymade garment industry.

comparing to the international readymade garment market

of nearly 183mn USD, the Indian readymade garment

market is still in a budding phase.


4/21

Cut throat competition

Siyaram's is venturing into readymade garment to grip thecontinuously changing fashion trends.

The leader in the suiting segment, S. Kumars Nationwide Limited(SKNL) is the newest to join the rat race

The growing strategy major players adapted is Acquisition:Raymond's acquired ColorpIus, Indian Rayon acquired garmentsdivision Madura Garments, Bombay Dyeing also gets hold ofProline.

foreign collaborations:Banswara Syntex shake hands with French

readymade apparels major Carreman Many brands, such as Blackberrys, Freelook, Biba, Essence,

Moustache, Natalia, Shapes, Ruff Kids, Koutons,etc. are performingwell in cut throat competition in the ready made garment.


5/21

Divided into several segments

Cotton textiles Silk textiles Woollen textiles

Readymade garmentsHand-crafted textilesJute and coir


6/21

PESTEL ANALYSIS


7/21

Government is implementing schemes

like Technology Up gradation Fund

Scheme (TUFS),

Scheme for Integrated Textiles Park

(SITP), Mill Gate Price Scheme (MGPS)

and Technology Mission schemes,

namely Technology Mission on Cotton(TMC) and Jute Technology Mission (JTM)

to facilitate Indian textiles industry to

grow at the rate of 16%.

26 Textile Parks were sanctioned

involving a total project cost of Rs 2,428

crore out of which the share of the

Government would be Rs 866 crore

POLITICAL


8/21

Estimated to be around US$ 52 billion,

projected to be around US$ 115 billion by theyear 2012.

The textile sector accounts about 30% in the

total export.

Textile exports are targeted to reach $50 billion

by 2010, $25 billion of which will go to the us.

At present Indian economy is growing at the

rate of about 9.2% but India's textile and clothing

industry contributes about 17 % to total exports.

Article Source: http://EzineArticles.com/373841,http://www.indiantextilejournal.com/articles/FAdetails.asp?id=1545

ECONOMICAL
http://ezinearticles.com/373841http://www.indiantextilejournal.com/articles/FAdetails.asp?id=1545http://www.indiantextilejournal.com/articles/FAdetails.asp?id=1545http://ezinearticles.com/373841


9/21

The Indian market for branded

products such as jeans,trousers, shirts, and other

consumer goods is estimated

at no larger than 40 million

consumers.INCOME: Consumers in India

spend approximately 9 % of

their disposable income on

clothing and footwear and 47%

on food, alcohol and tobacco ,

compared with 5% for clothing

and shoes and 36% on food,

alcohol and tobacco in the

United States.

Social


10/21

INCOME DISTRIBUTION: Clothing expenditure

tend to be higher for households with higherincomes

AGE: The largest segment for the readymade

garment segment includes the age-group of 16-35that is very brand conscious and gives priority to

high quality. Branded readymade garments

account over 21 percent of the readymade

garment industry.

LIFESTYLE CHANGES

.

Social coNT.


11/21

TECHNOLOGICAL

New innovations in clothing

production, manufacture anddesign came during the

Industrial Revolution

New machines such as

spinning wheels and

handlooms.

French technology to help

Indian textile.


12/21

Environmental Characterised by the high consumption

of resources like water, fuel and a

variety of chemicals in a long processsequence that generates a significant

amount of waste.

Textile processing generates many

waste streams, including liquid, gaseous

and solid wastes, some of which may be

hazardous

Other environmental issues of equalimportance are Air emission, notably

Volatile Organic Compounds (VOC)s and

excessive noise or odour as well as

workspace safety.


13/21

LEGAL

Incentives for Indias Textiles Industry

Branded garment firms can get the benefit of CENVAT( Central & Value

added tax)

Small-scale companies with a turn-over of less than 1.5 crore will not

be liable to pay excise duty which is 10% as per the existing budget

Done to lower the tax burden and encourage small scale garment firm

Schemes like TUFS & SITP have been implemented by the government

to provide extra impetus to the sector.

TUFS( Technology Upgradation Fund Scheme) SITP ( Scheme for

Integrated Textile Park)


14/21


15/21

India has rich resources of raw materials of textile

industry. It is one of the largest producers of cotton in

the world and is also rich in resources of fibres like

polyester, silk, viscose etc.

Readymade garments (RMG) is the largest export segm

ent, accounting for a

considerable 45% of total textile exports.The country has the highest loom capacity, includin

g handlooms, with a share of

61% in world loomage. Cotton dominant fibre;

polyester/ cotton blended yarn and fabrics catching up

Cotton - available abundantly in the country (80%

of market is for cotton garments).

India accounts for about 14per cent of the worlds

production of textile fibres and yarns

STreNgThS coNT.


16/21

Largest organized sector industry in India - has a 20% weight

age in Index of Industrial Production

Second largest employer - > 20 million people.

Large domestic market- population 1.22 billion

The country has a huge advantage due to lower wage rates.

Because of low labor rates the manufacturing cost in textile

automatically comes down to very reasonable rates.

Labour cost in India is very cheap; Per hour rates :India : US $0.72; Hong Kong - US$ 3.05, Japan - US$ 13.96, Singapore -

US$ 2.83

STRENGTH CONT. STreNgThS coNT


17/21

Industry still plagued with some historical regulations such

as knitted garments still remaining as a SSI domain.

Extremely fragmented industry. The reservation of

production for very small companies that was imposed with

the intention to help out small scale companies across the

country. Smaller companies do not have the fiscal resources

to enhance technology or invest in the high-end engineering

of processes. Hence they lose in productivity.

Industry is highly dependent on Cotton.

Indian infrastructure is mainly attuned to for cotton casuals

that cater to a very small percentage of the international

market.Labor force giving low productivity as compared to other

competing countries.

Fluctuation in cotton prices (a commodity product) has

affected cost structures.

Weakness


18/21

Technology obsolescence despite measures such as

TUFS.

Unavailability of skilled labor- This industry would

require, about 70,000 supervisors and 1.05mn

operators in the textile sector and at least 112,000

supervisors and 2.8mn operators in the apparelsector.

Labor Laws of India unfavorable for the trade.

WeakNeSS coNT


19/21

Increased demand for luxury brands from growing middle class

consumers

Research and new product development can help companies to move

across their value chain

Increased use of CAD to develop designing capabilities

Potential to attain export of $ 34 billion by 2012

Article Source: http://EzineArticles.com/373841

Opportunities


20/21

THREATS

Heightened competition in the domestic

market

Rising input cost

Cheaper imports

Chinese aggression over the

international market


21/21

THANK U !!!!

textile industry (1)

Documents