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SUBMITTED TO: MS. GARIMA TOMAR
SUBMITTED BY: FATEH KHAN A1802009423
PADMINI CHETIA A1802009413 AMRIT MISHRA ANKIT MOUR A1802009398 A180200961
11. INDUSTRY OVERVIEW 2.N0. MAJOR EXPORT DESTINATIONS 5. . PAGE NO.. . 1. 13. PROVISIONS IN INDIA S FTP 8. 5. MAJOR COMPETITORS IN WORLD 7. 8. . 10. . QUALITY STANDARDS 9. . . 14. 3. EXPORT TRENDS 6. PRODUCTION CENTRES 3. 9. DOMESTIC INDUSTRY 4. PROBLEMS FACED BY EXPORTERS .2 INDEX S. 15.
Most of the garment manufacturers in the country are in the Small and Medium scale industry. Changes in the policies to open up Indian economy to the outside world. The country is booming with fashion and lifestyle.3 1. The Indian apparel or Indian garment industry is pegged at more than 90. Its Apparel industry is likely to achieve an export target of US$ 25 billion by 2010-11. is the second most preferred country after China for textile and apparel sourcing. . Some of the major factors for the rise in India are : y y y y Vast sources of raw materials. Entrepreneurship and design skills of the Indian trader. with the organized retail trade growing at a rate of 30% per annum.000 crores with nearly 13% growth per annum. Low labor costs. APPAREL INDUSTRY (Overview) India is the second largest manufacturer of garments after China. India has an advantage in producing garments & it produces and exports garments at economical prices due to the cheap labor rates. India is known for its high quality garments for men. The men's garment or clothing segment constitutes nearly 45 % of the total apparel market and growing at a constant rate each year. Also technological advancement & use of sophisticated machinery has enabled the manufacturers to achieve better quality and make well designed garments. which is the global leader in garment production. The share of organized branded segmet is fast increasing in the Indian apparel market.
men¶s wedding ware and intimate apparel 3 major channels of sales are ±Brick and Mortar ±Catalog ±Internet . revenue. clothing for women.4 India's natural leverages that the industry uses to its full advantage y y y y India the largest producer of jute the second largest producer of cotton the third largest producer of raw cotton the fourth largest producer of synthetic fiber Globally Apparel Industry is one of the most important sectors of the economy in terms of investment. and Trade and employment generation all over the world Some of the important segments of the apparel industry include kids clothing. bridal ware. men¶s clothing.
PRODUCTION CENTRES The major production hubs exclusively for exports are:±Delhi ±Mumbai ±Tirupur ±Bangalore ±Chennai .5 2.
Polo . etc. Drop Needle. . Pointelle RIB. Every year. Polar Fleece. In spite of being severely handicapped by poor infrastructure. Tirupur has a unique significant presence at the lower end of the international knitwear and hosiery market.000 crores. There are more than 2500 apparel manufacturing units and 750 dyeing units in the city. Tirupur also has 300 printing units. Tirupur's hosiery factories are profitable successes and are considered as small jewels in India's economy.6 Some of the major production centers of knitting yarns and garments in India are as follows: y y y Tirupur Ludhiana Himachal Pradesh Tirupur Tirupur located 55 km to the east of Coimbatore city in Tamil Nadu is known as the hosiery capital of India. Fleece. Banyans.Shirts. Tirupur is one of the largest source of Foreign Exchange for the country because of its exports. RIB. Interlock. millions of pieces of underwear come out of Tirupur. Market of Tirupur is around Rs 8500 crores and local market is about 1500 crores according to a recent report. Pointelle Jersey. It accounts for 90% of India's cotton knitwear export which is worth an estimated Rs 4. This city is famous for the export of all Knit wears like T-Shirts. Sweat Shirts. Pique Jersey. 100 embroidery units and 200 other units like compacting. The hosiery and knitwear business in this city has long been held out as a model for the export-led growth path. raising and calendaring units. Local market of Tirupur is around 800 crore Indian rupees. Pajamas & Night Dresses on various fabrics like Single Jersey.
Baddi and Nalagarh are two important towns in the state. Ludhiana in the State of Punjab is a big center for knitwear production. besides manufacturers of knitting machines. Himachal Pradesh is exempted from paying income tax and central excise duties for 10 years and there are concessions in sales tax. Ludhiana makes an hosiery turn over of approximately US$ 40 million annually with exports equivalent to 30 percent of its production. The countries to which exports are mainly are Europe. knitting needles. There are various small scale knitting mills in Himachal Pradesh. . Himachal Pradesh Himachal Pradesh has a long tradition of hand knitting. About one third of the population of the city is engaged in the knitwear business. Ludhiana started its first hosiery unit in the beginning of 20th century and today the city boasts of housing more than 6000 small to medium size knitwear factories. labels and packaging materials. about 120 yarn and fabric dyeing factories. about 150 small to medium size worsted and some woolen yarn factories. directly and indirectly. USA and Middle East countries.7 Ludhiana It is also known as the "Manchester of India". stitching machines. 10 big hosiery yarns mills.
Domestic Industry The Indian Domestic apparel market is pegged at between Rs 120-150 million Major players in Indian garment market ±Pantaloon ±Shoppers Stop ±TATA ±Globus stores ±Arvind Brands ±Madura Garments ±Wills Lifestyle .8 3.
. This further need to be read in the context of level of demand for garments in all important export destinations.13 billion during 2008-09. MAJOR EXPORT DESTINATIONS The provisional figures released by AEPC showed that India exported garments worth $10.9 4.6% growth over last year. registering 4. The full year performance saw both small surges and slides. which essentially decides how competitive we are in the world garment market.39.46. up 19.68 billion.628 crore for 2008-09. The export figures in terms of Indian Rupee showed better performance.55% from Rs. as compared $9.002 crore for 2007-08. inasmuch as our exports work out to Rs. The US and the EU together account for more than 80% of Indian garment export The UAE and Saudi Arabia are the other major export destinations. depending upon primarily the value of Indian Rupee as compared to US Dollar. have gone down.
registering 4.7bn 2008-2009:USD 10.39.13bn 2009-2010:USD 10. Exports from India for last 3 years 2007-2008:USD 9. up 19.55% from Rs.46.002 crore for 2007-08.2 2007-08 2008-09 2009-2010 Export Trends .13 billion during 2008-09.68 billion.2 10 9. inasmuch as our exports work out to Rs.6 9.10 5.4 10.6 10.628 crore for 2008-09. as compared $9.64bn India exported garments worth $10. Export Trends 10.6% growth over last year.4 9.8 10.8 9. The export figures in terms of Indian Rupee showed better performance.
ISO) y y y . Major Competitors in the global Market The factors which are very much concerned for considering competition in the apparel industry are : y y y Price wars between rivals Offering heavy discounts or clearance sale by the direct competitors'. Offering best customer services by the competitors (availability of new/ up-todate fashionable products) Changing fashion trends. designs. style detailing and patterns Introducing new fabrics. unbeatable prices and accessories Obtaining certifications by the factories for obtaining orders (Oekotex.11 6.
Provisions in India¶s FTP . 7.12 The major competitors are : China Bangladesh Vietnam Turkey Mexico European Union.
2010 to march. 2011 for exports to 27 EU countries ±Market focus scheme introduced for the market diversification is continued Support for Technological up-gradation ±Zero duty EPCG scheme ±Additional Towns of Export Excellence (TEEs) announced in which Bhiwandi (Maharashtra) has been named for Textile Procedural simplification and Reduction of Transaction Cost ±Flexibility to get a high value EPCG authorization by filing their EPCG application on Annual basis ±a single customs notification for the two variants of Advance Authorization scheme namely advance authorization for physical exports & deemed exports shall be issued Other ±Duty free import of specified trimmings.13 Higher Support for Market and Product Diversification ±256 new products added under FPS ±300 products from the RMG sector incentivized under MLFPS for further 6 months from October. embellishment etc shall be available @ 3 per cent on exports of polyester made-ups in line with the facility available to sectors like Textiles & Leather ±Readymade Garment sector granted enhanced support under MLFPS 8. Quality Standards .
pre-sales and posts sales service. delivery. trader or exporter Major things to pay special attention for quality of apparel export ±Sewing defects ±Color effects ±Sizing defects ±Garment defects Quality Parameter ±Performance ±Reliability ±Durability ±Visual & Perceived Quality International Quality programs: ISO 9000 . pricing.14 For the textile and apparel industry. etc are essential for any garment manufacturer. product quality is calculated in terms of : ±Quality and standard of fibers ±Yarns ±Fabric construction ±Color fastness ±Designs ±Final finished garments Quality control in terms of garment manufacturing.
Vietnam & Bangladesh Fluctuations in the Exchange rates (Rupee appreciation is disadvantageous to exporter) . Problems/ Challenges faced by Exporters India¶s focus is on High value clothing for which the demand has significantly decreased after recession Competition from countries like Bangladesh and Vietnam who provide apparel at very low margins Change in Buyer preferences.15 9. they have moved towards low cost retailers Productivity in Indian garment factories is only 50% of the global standards Disadvantage on the duty drawback front in comparison to China.
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