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Indian Textile Industry

By,
Virji
Uplana(94)
Mukesh Chaudhary(46)
Vardhy Tandel(89)
Vijay Makvana
Apurv katariya(57)
Introduction
 industry is worth over US$ 4395 billion .
 Global trade in this industry is now at US$ 350
billion.
 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
years.
History
 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
civilization.
 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
1854
 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

8.0

7.5

24.3 6.5
300.0

5.5
USD Billion

Percent
7.8 4.5

200.0
3.5 3.5

2.5

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
operation.
 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
annum.
 Large, Potential Domestic and International Market.
 Product development and Diversification to cater global
needs.
 Elimination of Quota Restriction leads to greater Market
Development.
 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
China.
 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
diversification.
 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
employment
 Very large unorganised sector –
about 76% of total fabrics
production
 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
better
Cont…
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
apparel.

 Its sales are around US$ 300 millions


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

 It already supplies to some US


retailers.
 it second largest denim player in
India.
 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
meters.
 It is an approved supplier to global
retailers like GaP, Target and Tommy
Hilfiger.
 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
world
 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
Conclusion
 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
building
the capacities and making them integrated
manufacturers.
 The industry enjoys significant strength and
advantages, such as availability of raw
materials, labour, domestic market and
supportive government policies.
Thank you