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Indian Textile Industry

Mukesh Chaudhary(46)
Vardhy Tandel(89)
Vijay Makvana
Apurv katariya(57)
 industry is worth over US$ 4395 billion .
 Global trade in this industry is now at US$ 350
 Among the countries, Japan, Australia and New
Zealand are the significant consumers of
Indian textiles.
 India ranks second with 8 percent of the total.

 High production of wool, cotton and silk over

the world has boosted the industry in recent
 The term 'Textile' is a Latin word originating from the
word 'texere' which means 'to weave'
 The history of textile is almost as old as that of human
 In India the culture of silk was introduced in 400AD .
 modern textile industry took birth in India in the early
nineteenth century
 The first cotton textile mill of Bombay was established in
 during the year 1900 the cotton textile industry was in
bad state
 After independence, the cotton textile industry made
rapid strides under the Plans
Five years outlook
400.0 8.5



24.3 6.5

USD Billion

7.8 4.5

3.5 3.5


222.0 304.2
100.0 1.5
2005 P 2010 P

Total retail industtry Organised Penetration

SWOT Analysis
 Strengths:
 Indian Textile Industry is an Independent & Self-
Reliant industry.
 Abundant Raw Material availability that helps industry to
control costs and reduces the lead-time across the
 Availability of Low Cost and Skilled Manpower provides
competitive advantage to industry.
 Availability of large varieties of cotton fiber and has a
fast growing synthetic fiber industry.
 India has great advantage in Spinning Sector and has a
presence in all process of operation and value chain.
SWOT Analysis
 Weaknesses:
 Indian Textile Industry is highly Fragmented Industry.
 Industry is highly dependent on Cotton.
 Lower Productivity in various segments.
 There is Declining in Mill Segment.
 Lack of Technological Development that affect the productivity
and other activities in whole value chain.
 Infrastructural Bottlenecks and Efficiency such as, Transaction
Time at Ports and transportation Time.
 Unfavorable labor Laws.
 Lack of Trade Membership, which restrict to tap other
potential market.
 Lacking to generate Economies of Scale.
 Higher Indirect Taxes, Power and Interest Rates.
SWOT Analysis
 Opportunities:
 Growth rate of Domestic Textile Industry is 6-8% per
 Large, Potential Domestic and International Market.
 Product development and Diversification to cater global
 Elimination of Quota Restriction leads to greater Market
 Market is gradually shifting towards Branded
Readymade Garment.
 Increased Disposable Income and Purchasing Power of
Indian Customer opens New Market Development.
 Emerging Retail Industry and Malls provide huge
opportunities for the Apparel, Handicraft and other
segments of the industry.
 Greater Investment and FDI opportunities are available.
SWOT Analysis
 Threats:
 Competition from other developing countries, especially
 Continuous Quality Improvement is need of the hour as
there are different demand patterns all over the world.
 Elimination of Quota system will lead to fluctuations in
Export Demand.
 Threat for Traditional Market for Powerloom and
Handloom Products and forcing them for product
 Geographical Disadvantages.
 International labor and Environmental Laws.
 To balance the demand and supply.
 To make balance between price and quality.
The shape of the textile industry
in India
 Large Industry – 3% of GDP, 27%
of Forex earnings, 21% of total
 Very large unorganised sector –
about 76% of total fabrics
 Market is very diverse, does not
lend itself to comparative studies
in terms of market share etc.
The global scenario
 The end of the MFA arrangement
 Competitiveness of Indian industry
• Low level of modernization
• Fragmented nature – low capacities
• Infrastructure, Labour laws
 Exports have risen by 10% but at the
same time China’s exports have risen
by more than 20%, even countries like
Pakistan and Bangladesh have done
The light at the end of the tunnel
 China muzzled
 Viable option for those looking to
spread out risk
 Indian govt waking up
 Domestic market projected to grow
as well
Major players
 Arvind Mills

 Arvind Mills is one of the fully vertically

integrated players in India.
 It has large capacities in denim, shirting
and knitted garments.
 Adding value by manufacturing denim

 Its sales are around US$ 300 millions

with little less than 9% profitability
 Raymonds has the large integrated
business model, across the value
chain from yarn to retail.

 It already supplies to some US

 it second largest denim player in
 Its annual sales are around US$
300 millions with little less than 7
Vardhaman Spinning
 Vardhman has capacities in spinning,
weaving and processing.
 It is planning to double its fabric
processing capacity to 50 million
 It is an approved supplier to global
retailers like GaP, Target and Tommy
 Its sales are little over US$ 120 millions
with 6.5% profitability.
Welspun India
 Welspun is among the top five
manufacturers of terry towels in the
 It sells its products in 24 countries

 It is supplier to retailers such as Wal-

Mart, J C Penny, and Shopko.

 Its revenues are little over US$ 100

millions with little less than
 A huge window of opportunity has opened up
for the Indian textile industry .
 Various players need to get act together.
 Government is playing the role of facilitator by
taking various majors.
 It’s now for players to make investments in
the capacities and making them integrated
 The industry enjoys significant strength and
advantages, such as availability of raw
materials, labour, domestic market and
supportive government policies.
Thank you