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MAHARISHI MARKANDESHWAR UNIVERSITY

MAHARISHI MARKADESHWAR INSTITUTE OF MANAGEMENT
MULLANA, (AMBALA)


Report on Summer Training
Study of Cotton Yarn Consumption in International Knitting Industries
Submitted to Maharishi Markandeshwar Institute of Management


In Partial Fulfillment of the Requirements for the Award of Degree of
Master of Business Administration
Submitted By:
Abhishek Goel
1208202


DEPARTMENT OF MANAGEMENT
MAHARISHI MARKANDESHWAR UNIVERSITY
MULLANA, (AMBALA)



Contents
SR. NO. TOPIC PAGE NO.
1 Declaration 2
2 Certificate 3
3 Acknowledgement 4
4 Executive summary 5
5 Introduction 6
6 Review of literature 7
7 Research Methodology 8
8 Data Analysis and Interpretation 9
9 Finding and Conclusion 0
10 Suggestions and recommendation
11 Bibliography 6
12 Questionnaire 5
13 References 5




DECLARATION

I Abhishek goel hereby declare that the work which is being presented in the project ,entitled
study of cotton yarn consumption in international woven industry in the partial fulfillment of the
requirement for the award of the degree master of business administration (MBA)in the session
2011-2013, is an authentic record of my own work .

The matter embodied in this project has not been submitted by me for the award of any other
degree.


Date: - 11
th
august, 2012 Abhishek goel














ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I would
like to extend my sincere thanks to all of them.

I am highly Indebted to Mr. Dharamveer Narwal, Faculty of Maharishi
Markandeshwar Institute of Management of Business, Maharishi Markandeshwar
University for their guidance and constant supervision as well as for providing
necessary information regarding the project & also for their support in completing
the project.
I would like to express my gratitude towards member of Organization Mr. Anil
Kumar (Export Manager) NAHAR INDUSTRIAL ENTERPRISES LIMITED
(LUDHIANA), for their kind co- operation and encouragement which help me in
completion of this project.

My Thanks and appreciations also go to my friends in developing the project and
people who have willingly helped me out with their abilities.

(Abhishek Goel)






I NTRODUCTI ON
TOPI C: - STUDY OF COTTON YARN CONSUMPTI ON I N
I NTERNATI ONAL KNI TTI NG I NDUSTRI ES
I NTRODUCTI ON TO THE YARN

Yarn is a long continuous length of interlocked fibers, suitable for use in the production of
textiles, sewing, knitting, weaving, embroidery & ropemaking. Thread is a type of yarn intended
for sewing by hand or machine. Modern manufactured sewing threads may be finished with wax
or other lubricants to withstand the stresses involved in sewing.
Embroidery threads are yarn specifically designed for hand or machine embroidery.
The word yarn comes from Middle English from old English gearn; akin to Old High German.
Yarn can be made from any number of natural or synthetic fibers.
The most common plant fiber is cotton, which is typically spun into fine yarn for mechanical
weaving or knitting into cloth. The most commonly used animal fiber is wool harvested from
sheep. For hand knitting and hobby knitting, thick wool yarns are frequently used.
Yarn quantities are usually measured by weight in ounces or grams. In the United States,
Canada and Europe, balls of yarn for handcrafts are sold by weight. Common sizes include 25g,
50g, and 100g skeins. Some companies also primarily measure in ounces with common sizes
being three-ounce, four-ounce, six-ounce, and eight-ounce skeins. These measurements are taken
at a standard temperature and humidity, because yarn can absorb moisture from the air. The
actual length of the yarn contained in a ball or skein can vary due to the inherent heaviness of the
fiber and the thickness of the strand; for instance, a 50 g skein of lace weight mohair may contain
several hundred metres, while a 50g skein of bulky wool may contain only 60 metres.








YARN CAN BE MADE FROM ANY NUMBER OF NATURAL OR
SYNTHETIC FIBERS..
Natural fibers


Cotton being spun
The most common plant fiber is cotton, which is typically spun into fine yarn for mechanical
weaving or knitting into cloth. The most commonly used animal fiber is wool harvested from
sheep. For hand knitting and hobby knitting, thick wool yarns are frequently used.
Other animal fibers used include alpaca, angora, mohair, llama, cashmere, and silk. More rarely,
yarn may be spun from camel, yak, possum, qiviut, cat, dog, wolf, rabbit, or buffalo hair, and
even turkey or ostrich feathers. Natural fibers such as these have the advantage of being slightly
elastic and very breathable, while trapping a great deal of air, making for a fairly warm fabric.
Other natural fibers that can be used for yarn include linen and cotton. These tend to be much
less elastic, and retain less warmth than the animal-hair yarns, though they can be stronger in
some cases. The finished product will also look rather different from the woolen yarns. Other
plant fibers which can be spun include bamboo, hemp, and corn and soy fiber.



FACTORS AFFECTI NG THE COMPETI TON I N THE GLOBALLY YARN
MARKET RELATE TO YARN PRODUCTI ON AND CONSUMPTI ON
Since the global yarn market has become competitive domestic consolidation and
regional adjustments are anticipated. It s possible, from historical data, to examine the different
factor that affect yarn production and consumption.
In a quota-free world, it is anticipated that relatively low-price import textile
product will reduce the demand for domestic yarn. As for the changes currently take place in
textile industry, the elimination of quota resulted in a flooding of Chinese report last year. This
year, additional adjustments will required to deal with new2006-2008 Chinese quota, a possible
upward revaluation of the undervalued Chinese Yuan and all the new product distribution-retail
channels that are being develop and refined. Many strategies evolved to stay competitive in yarn
market during the year2006. James W. Chesnutt, CEO, National Spinning Co. inc., New York
City and Chairman, National Council of Textile Organization (NCTO), Washington asserts that
if U.S. textile industry is going to be successful, it is must go through congress, one of the most
successful legislations passed by congress in recently year is to put 34 categories of textiles and
apparel products from china under safeguards.
Some of the United States spinner has provided an outlook for spinning
industry in 2006 and beyond.

GLOBAL COMPETI TON I N YARN PRODUCTI ON
World yarn production
The growth rate in cotton yarn production dramatically increased 25.9% from 1995 to
2000 and still increased but at a lower rate (13.3%) in the last five year (2000-2005). World
production of cotton yarn is moving towards certain global region, especially the Asian region.
During 1995-2000 the growth rate of Asia and Oceania increased 20.1% with a more significant
increase of 35.2% during 2000-2005.





WORLD PRODUCTION OF COTTON YARN BY REGION (000 METRIC TONS)



Growth
Rate
Growth
Rate Share of World
1995 2000 2005 1995-2000 2000-2005 2004
Region % Change % Change % Change
North America 2,250.60 2,387.00 1,450.90 6.10 39.20 6.40
Central America 13.6 21.3 15.6 56.6 26.8 0.1
South America 903.8 986.3 920 9.1 6.7 4
America 3,168.00 3,394.60 2,386.40 7.20 29.70 10.50
Africa 563 421.8 398.3 25.1 5.6 1.8
Europe 1,616.10 1,576.20 1309.6 2.5 16.9 5.8
Asia & Oceania 10,561.90 12,680.10 17,149.80 20.10 35.20 75.40
Europe ,other
(Turkey) 369.20 1,040.00 1,106 181.7 6.4 4.9

World 16,718.90 19,493.50 22,741.90 16.60 16.70 100.00

Selected Country
%sShare or Asia n
Oceania
China (Mainland) 5,422.50 6,575.70 10,976.60 21.30 66.90 64.00
India 1,834.00 2,290.00 2,147.20 24.90 6.20 12.50
Pakistan 1,210.50 1,707 2,106.20 41.00 23.40 12.30
% Share of Americas
United State 2,012.40 1,906.20 1,052.20 5.30 44.80 44.10







In 2005, Asia & Oceania region accounted for the biggest production of cotton yarn with
a share of 75%, followed by North America (6%), South America (4%), and Europe (6%) (other
including turkey, 6%), Africa (2%), other country (2%). Within the region, the highest share of
the production yarn cotton still belonged by china. This accounted for 64% of total cotton yarn
produce in Asia & Oceania. Besides china, other Country that plays a major role within this
region includes India and Pakistan, which when combined with china accounted for 88.8% of
cotton yarn production in Asia & Oceania region.







AFRICA 2% SOUTH 4%
NORTH 6%
ASIA 75%
EUROPE, (OTHER
TURKEY)5%
OTHER
COUNTRIES 2%
EUROPE 6%
Africa
South America
North America
Asia
Europe, (Other Turkey)
Other Countries
Europe

PRODUCTI ON OF COTTON YARN BY REGI ON
During the last five year U.S. cotton yarn production declined 44.8% to 1.1million metric
ton in 2005, although U.S. cotton yarn production was ranked the fourth in cotton production
worldwide. Increases in cotton yarn production were registered in china and Pakistan.
Production of cotton yarn will continue to concentrate in china, a country that accounted
for 28% for world cotton yarn production in 1990, 34% in 2000, and 45% in 2003, and it‘s
projected to account for 49% of world cotton yarn production in 2006.

I MPORT AND EXPORT OF YARN
For the U.S. yarn market, it is interesting to address the yarn trade balance, which
represents the U.S. position in the yarn market. The U.S. had positive yarn trade balance with
Caribbean basis initiative countries of 560 million dollars in 2004. It appear that the CBI region
will maintain a positive position for the future, according to the recent preferential trade
agreement, including CAFTA-DR. most of the import of textile and apparel from Central
America and the Dominican republic have already gained access to the U.S. market under the
Caribbean Basin Trade Partnership Act.

TYPES OF YARN
1. Open Ended Yarn(100% Cotton) Ranges:-NE05-NE20
2. Ring Spun Yarn(100%Cotton,100% Polyester Cotton) Ranges:-NE05-NE20
3. Ring Spun Core Spun Yarn(Poly Cotton, Lycra) Ranges:-NE10-NE60
4. Airjet Vortex(100% Polyester, 100%Viscose, Polyester Viscose Blend) Ranges:-
NE16-NE60
5. Eli Twist Ranges:- NE8/1-NE60/1
6. Ring Spun Slub Yarn(Fancy Yarn) Ranges:-NE6/1-NE60/1
7. TFO Ranges:- NE16/2-NE120/2
8. Dyed(100% Cotton) Ranges:- NE6/1-NE120/1
9. Poly Cotton or Poly Viscose Ranges:-NE16/1-NE60/1






KNI TTI NG
Knitting is a method by which thread or yarn is turned into cloth or other fine crafts.
Knitted fabric consists of consecutive rows of loops, called stitches. As each row progresses, a
new loop is pulled through an existing loop. The active stitches are held on a needle until another
loop can be passed through them. This process eventually results in a final product, often a
garment.
Knitting may be done by hand or by machine. There exist numerous styles and methods of hand
knitting.
Different yarns and knitting needles may be used to achieve different end products by giving the
final piece a different colour, texture, weight, and/or integrity. Using needles of varying shape
and thickness as well as different varieties of yarn can also change the effect.
There are two major varieties of knitting: weft knitting and warp knitting. In the more common
weft knitting, the Wales are perpendicular to the course of the yarn. In warp knitting, the wales
and courses run roughly parallel. In weft knitting, the entire fabric may be produced from a
single yarn, by adding stitches to each wale in turn, moving across the fabric as in a raster scan.
By contrast, in warp knitting, one yarn is required for every wale. Since a typical piece of knitted
fabric may have hundreds of Wales, warp knitting is typically done by machine, whereas weft
knitting is done by both hand and machine. Warp-knitted fabrics such as tricot and Milanese are
resistant to runs, and are commonly used in lingerie.
Weft-knit fabrics may also be knit with multiple yarns, usually to produce interesting color
patterns. The two most common approaches are intarsia and stranded color work. In intarsia, the
yarns are used in well-segregated regions, e.g., a red apple on a field of green; in that case, the
yarns are kept on separate spools and only one is knitted at any time. In the more complex
stranded approach, two or more yarns alternate repeatedly within one row and all the yarns must
be carried along the row, as seen in Fair Isle sweaters. Double knitting can produce two separate
knitted fabrics simultaneously, e.g., two socks; however, the two fabrics are usually integrated
into one, giving it great warmth and excellent drape.







INTRODUCTION TO THE INDUSTRY (TEXTILE INDUSTRY)

1. Background
Indian textile industry is one of the leading textile industries in the world. Though was
predominantly unorganized industry even a few years back, but the scenario changing after the
economic liberalization of Indian economic in 1991. The opening up of economic gave the much
needed thrust to the Indian textile industry, which has now successfully become one of the
largest in the world.
Indian textile industry largely depends upon the textile manufacturers and export. It also plays a
major role in the economy of country. India earns about 27% of its total foreign exchange
through textile exports. Further, the textile industry of India also contributes nearly 14% of the
industrial production of the country. It also contributes around 3% to the GDP of the country.
Indian textile industry is also the largest in the country in terms of employment generation. It not
only generates jobs in its own industry, but also opens up scope for the other ancillary sectors.
Indian textile industry currently generates employment for more than 35million people.
Indian textile industry can be divided into several segments, some of which can be listed as
below:
 Cotton Textiles
 Silk Textiles
 Woolen Textiles
 Readymade Garments
 Hand craft Textiles
 Jute & Coir








2. Current Scenario
The Indian textile industry contributes about 14 percent to industrial production, 4percent to the
country‘s Gross Domestic Products (GDP) & 17percent to the export earnings.
The industry provides direct employment to over 35 million people and the second largest
provider of employment after agriculture.
Fabrics production rose to 60,966 million sq meters in FY2011 from 52,665 million sq meters in
FY2007.
Production of raw cotton grew to 32.5 million bales in FY11 from 25 million bales in FY07,
while production of manmade fibre rose to 1,281 million kgs in FY11 from 1139 million kgs in
FY07. Production of yarn grew to 6,233 million kgs in FY11 from 5,183 million kgs in FY07.
India has the potential to increase its textile and apparel share in the world trade from the current
level of 4.5% to 8% and reach US$ 80 billion by 2020.
Export of textile grew to USD26.8 billion in FY2010 from USD 17.6 billion in FY06. India‘s
textiles trade in dominated by export with a CAGR of 6.3% during the same period.

















45%
25%
18%
4%
18%
2% 2%
readymade garments
cotton textiles
man-made textiles
handicrafts
silk $ handloom
wool & woolen textiles
others

GOVERNMENT INITIATIVES AND REGULATORY FRAMEWORK
3. The government of India has promoted a number of export promotion policies for the
textile sector in the union budget 2011-12 and the foreign trade policy 2009-14. This
also includes the various incentives under focus market scheme and focus product
scheme; broad basing the coverage of market linked focus products scheme of textile
product and extensions of market linked focus products scheme etc. to increase the
Indian share of a global trade of textile and clothing. The various schemes and
promotions by the government of India are as follow-
It has allowed 100% foreign direct investment (FDI) in textiles under the automatic route.
Welfare Schemes: the government has offered health insurance coverage and life
insurance coverage to161.10 million weavers and ancillary workers under the handloom
weavers‘ comprehensive welfare scheme, while 733,000 artisans were provided health
coverage under the Rajiv Gandhi Shilpi Swasthya Bima Yojna.
E-Marketing: The Central Cottage of Industries Corporation of India (CCIC) and the
Handicraft and Handloom Export Corporation of India (HHEC) have developed a number of
E-marketing platforms to simplify marketing issues. Also, a number of marketing initiatives
have been taken up to promote niche handloom and handicraft product with the help of 600
events of all over the country.
Skill Development: As per the 12
th
five year plan, the integrated skill development
scheme aims to train over 2,675,000 within the next five years. This scheme would cover all
sub sectors of the textile sector such as textiles and apparels, handicraft and handlooms; jute.
Credit Linkages: As per the Credit Guarantee program over 25,000 artisan credit card
have been supplied to artisan, and 16.50 million additional application for issuing up credit
card have bhi forwarded to bank for further consideration with regards to the credit linkages
scheme.






4. INVESTNMENT AND OPPORTUNITIES
Investment
The industry attracted FDI worth US$934.4 million between April 2000 and January 2011. FDI
in the textile industry stood at USD 129 million in FY11.
NSL textiles have set up a textile processing facility at chandolu near Guntur, Andhra Pradesh
with an investment of US$64.23 million.
TT limited are integrated textile and knitting manufacturing and exporter, plan to invest
US$33.46 million to enhance its yarn making capacity of retail venture.

Opportunities
The potential size of the Indian textile industry is expected to reach US$220 billion by 2020.

Private Sector Participated In Silk Production
The central silk board has set a target of 26,000 tonnes of raw silk production by 2011-12. It has
also proposed to enlarge the area under mulberry silkworm food plants 0.25 million hectares,
which is expected to produce an additional 6,400MT of mulberry raw silk and increase
employment. To achieve this target, alliances with the private sector, especially major agro based
industries in both pre cocoon and post cocoon segments, is being encouraged.

Technical Textiles
The textiles industry complements the growth of several industries and institutions such as the
defense forces, railways and government hospitals, which are the key institutional buyer of
technical textile. The market is likely to grow to USD31 billion by 2020, implying a CAGR OF
10%. The industry includes the production of flexible packaging material of industrial,
agricultural and consumer goods. Among the other segments, protech, oekotech, sportech and
geotech have significant growth potential. India‘s technical industry is mainly dominated by
unorganized players. However, it is an emerging area of investment with good growth
opportunities.


Retail Sector
With consumerism and disposable income on the incline, the retail sector has witnessed rapid
growth in the past decade. Several international retailers are also focusing on India due to be
emergence as a potential sourcing destination.

Centers of Excellences (CoE) for Research and Technical Training
The government of India has proposed the establishment of several CoE for training the
workforce in the textile sector. Four CoEs have been identified for four thrust segments of
technical textiles- geotech, meditech, protech & agrotech. These CoEs with national and
international accreditation are aimed at creating facilities for testing and evaluation and
developing resource centre and facilities for training.















INTRODUCTION TO THE COMPANY

Nahar Industrial Enterprises Ltd.

The Company's mantra "World is our markets" is truly reflected in its operations.
Nahar Industrial Enterprises Limited (NIEL) was incorporated on 27th September, 1983 as Oswal
Fats & Oils Ltd. Nahar Industrial Enterprises Limited (NIEL) is a vertically-integrated textile
manufacturer, with operations ranging from spinning, weaving & processing and also having sugar
unit with 2500 TCD per day. NIEL's strategic objective is to capitalize on the growth opportunities
that it believes are available in the domestic and global textile industry. At the same time the
company recognizes the competitive nature of the industry, especially with pressure from Asia,
and that to maintain growth it must continue to improve production process and reduce costs.
The Company is having adequate internal control systems and procedures which commensurate
with the size of the Company. The Company is having internal audit department which ensures
that the internal control systems are properly followed by all concerned departments of the
Company.

1983 Incorporated as Oswal Fats & Oils Limited.
1994 Name changed as Nahar Industrial Enterprises Limited.
1997 Merged Nahar Fabrics Limited (manufacturer of greige fabric).
2002 Merged Oswal Cotton Mills Limited (manufacturer of Processed fabrics and finished
garments).
2004 Launched apparel brand ―Cotton County.‖
2005 Merged Nahar International Limited (manufacturer of yarn) & Nahar sugar & Allied
Industries Limited (manufacturer of sugar & steel)
2006 Created Nahar Retail Limited , a wholly owned subsidiary of Nahar Industrial
Enterprises Limited
2008 Nahar Retail Limited ceased to be a wholly owned subsidiary of Nahar Industrial
Enterprises Limited




VISION: - success is the ongoing journey not destination.

MISSION: - stepping ahead into rearm of new challenges.




FACILITIES
Facilities NIEL is a vertically-integrated textile manufacturer, with operations ranging from
spinning, weaving and processing. The Company's manufacturing facilities are spread at four
different locations with latest world class technology.
 2,01,408 spindles and 6680 rotors to produce 65000 Tonnes per annum different counts
of yarn
 Weaving capacity with 453 looms
 Modern processing plant with capacity of 58.4 Mn. Meters per annum
 Modern Yarn dyeing plant with a capacity of 3805 Tonnes per annum
 Captive Power co-generation capacity of 33 MW
 2500 Tonnes of cane crushed per day (TCD) Sugar Mill
Key Strength
 Established and vertically integrated player in the Cotton Yarn and Fabric Business
 Part of the largest textile group in the country, track record in textile business and
established market presence
 Modern processing and finishing plants with latest technology and world class machines
 Captive power from multi fuel turbines and DG sets1
 High quality and breadth of products.
 Strong track record of implementing various expansion projects in the past
 Economies in purchasing cotton, given the centralization of buying operations at the
group level and the Company‘s proximity to a major agricultural belt of the Country
 Expansion over the previous years through borrowing under Technology Up gradation
Fund (TUF) scheme
 Strong management team
 Investment grade rating by Moody‘s affiliate ICRA: Rated ‗LBBB+‗ for its long term
loan and cash credit facilities

Certifications
 ISO-9001 For Quality Management System
 IS0-14001 – For Environmental Management System
 SA-8000 – For Social Accountability
 GOTS CERTIFICATE – For Organic Fabrics
 FLO CERTIFICATION – For Fair Trade Fabrics
 OEKO TEX CERTIFICATION – For International Norms for Harmful Substances
 BCI(Better Cotton Initiative)

Fabric Products
 Products – Piece Dyed, Yarn Dyed and Prints
 Blends- 100% Cotton & Cotton Blends (Poly-cotton, Cotton-Stretch & Cotton-Tencil
etc.)
 Specialty Fabrics – 100 % Organic and Fair Trade Fabric
 Woven Vibrancy:- Twills, Dobby Structure, Broken Twills, Rip stop, Ottoman,
Chinos, Satins, Tussors, Bedford Cord, Cavallery Twill, Canvas, Gabardine.
 End Use:- Garments Fashion, Uniform and Work Wear (Tops, Bottom & Outerwear)
 GSM :- 100 gms to 330 gms
 Yarns Used: - Single & Double Count with different counts (7‘s and
100‘s) technologies such as open end, Ring spun, Combed, Compact, Multi count &
Slubs etc with Special Cotton Fibres i.e. PIMA and GIZA Cotton Etc

Performance Fabrics
 High Density Constructions
 AIRO Finish
 Bio Polish
 Water Repellent
 Nano Care
 Soil Release
 Micro Sanding
 Anti Bacteria
 Frost Free
 Wrinkle Free
 Stain Guard
 Teflon







Management
The Board of Directors of the Company comprises experienced industrialists businessmen,
financial experts and professionals. The Board has the support of Technocrats, qualified
Engineers, Chartered Accountants, Business Management experts and other experienced
personnel, employed by the company to look after production, marketing and finance etc.,
separately for their different units. Mr. J.L. Oswal is the Chairman of the company, who has long
and varied business experience and is also associated with various other companies. The day to
day affairs are looked after by Mr. Kamal Oswal Vice Chairman-cum-Managing Director, who
has a vast experience in business.
Clientele
International Brands
 GAP
 Banana Republic
 Target
 Lee
 Armani Exchange
 A&F
 American Eagle
 Decathlon
 MEXX
 Diesel
 Timberland
 Marks & Spencer
 Aigle
 Columbia Sportswear
 Oshkosh
 Tom tailor
 Espirit
 CWF
 Next
 Calvin Klein
 Nautica
 Ann Taylor


REVIEW OF LITERATURE
BACKGROUND INFORMATION
The textile industry plays a pivotal role in the Indian economy. The country is rich in
natural resources such as cotton, jute and silk. The textile industry is the second largest
employer, after agriculture, with a total workforce of around 35 million. India is next only to
China among the world's largest producers of textiles and garments. The industry is the largest
foreign exchange earner, as the import content is insignificant compared with those of other
major export products. Its contribution in exports is nearly 20 per cent. How many of us know
that 85 per cent of the handlooms in the world are produced in India? The number of handlooms
in the country is four million. The activities in textiles range from the production of natural raw
materials such as cotton, jute, silk and wool to the manufacture of quality products such as
cellulose fiber, synthetic filament and spun yarn. This is, perhaps, the only industry that is self-
reliant and complete in value addition — from raw materials to the highest value-added products.
The textile industry occupies a unique place in our country. One of the earliest to come into
existence in India, it accounts for 14% of the total Industrial production, contributes to nearly
30% of the total exports and is the second largest employment generator after agriculture. Textile
Industry is providing one of the most basic needs of people and the holds importance;
maintaining sustained growth for improving quality of life. It has a unique position as a self-
reliant industry, from the production of raw materials to the delivery of finished products, with
substantial value-addition at each stage of processing; it is a major contribution to the country's
economy. Its vast potential for creation of employment opportunities in the agricultural,
industrial, organized and decentralized sectors & rural and urban areas, particularly for women
and the disadvantaged is noteworthy.
Against all these merits, an expert‘s lament goes: "It is difficult to find such a large-scale
industry in the country that is so disorganized as the Indian textile industry". The industry is
often plagued by obsolescence, unhealthy regulations and problems of labour. This emphasizes
the need for strengthening the management mechanism in the industry, to face the emerging
international challenges. Common sense administration has its in-built constraints in a world
where scientific management decides the destiny of industries in the modern global scenario.
The textile industry in India will face intensified competition in both their export and domestic
markets. However, the migration of textile capacity will be influenced by objective competitive
factors and will be hampered by the presence of distorting domestic measures and weak domestic
infrastructure in several developing and least developed countries.




The challenges from global competition demand a scientific approach from properly trained
management professionals who have specialized in this sector. Sickness and inter-sector
contradictions that are a bane of the industry have to be solved through a wise approach and
well-calibrated steps, to ensure healthy growth. Managers who are trained in traditional
management disciplines will take a long time to get them familiarized with the special problems
of the textile scene.

Background

The textiles and clothing industry has been neglected in terms of supply chain
management research. No international comparative research of textile and clothing supply
chains has occurred, even though this is essential to identify effective practices that will
maximize value, and effective approaches to innovation. Such a proposal is contained in the
National Strategy for Textiles and Clothing (1997) but has not been conducted. For various
reasons, which can be summarized as essentially new entrants and electronic forms of trading,
value chains in textile and apparel are being re-configured. Traditionally textiles and clothing
have been treated as separate supply chains, whereas by combining them into an integrated
supply chain will, in itself, reduce cost and improve Quick Response.
The textiles and clothing industry has particular market characteristics, such as short product
lifecycles, high volatility, low predictability, and a high level of impulse purchase. The industry
has recently undergone a great deal of change, with a move towards global sourcing and high
levels of price competition. In order to compete in a changing market, manufacturers,
distributors, and retailers have to innovate by managing the supply chain more efficiency. New
types of competitors are entering the textile and apparel arena, such as electronics and
communication companies to exploit the opportunities for high performance textiles like
wearable‘s, and food retailers are altering their product mix into general merchandise and fashion
retailing. These new entrants are leading to a re-configuration of existing supply chains. High
street retailers have to become more agile in order to compete. Electronic forms of trading are
also affecting the value chain in this, and other sectors. In the US, studies have been undertaken
on quick response initiatives in response to overseas competition. A focus on speed and quality
cannot guarantee sustainable competitive advantage across all sectors of the industry.
Additionally innovation is needed to redesign domestic production within the global textile
industry. It was found that uniqueness and differentiation are likely to be successful competitive
strategies in an industry where the continuous pursuit of efficiency has reached saturation point.
Unfortunately research in the UK is small scale and fragmented and has not addressed the central
concern of responding to large scale imports from low labour rate sources of production.




The textile industry in the UK and comparable high cost economies has been in long –term
decline for many years now. The total production of textiles and clothing in the UK fell by 30%
from the first quarter of 1997 to the second quarter of 2001 while the import of garments rose by
104.5% between 1993 and 2001. Consequently the collapse in production cannot be justified by
deficient demand. Instead this downfall is caused by an increase in worldwide competition
caused by globalization of supply and demand. The rapid development of information
technology and communications has reduced the distances between nations and improved the
time from order to delivery. There has been an increase in the intensify of world trade that has
resulted in well-established textile businesses transferring their technology and knowledge into
less developed countries and utilizing their abundant access to cheap labour. The average
production cost per minute in the UK is about £0.20 compared to only £0.10 in newly
industrialized countries and £0.07 in low wage countries. However, despite price pressure and
extremely labour intense processes, the introduction of a national minimum wage has not been
recognized as having a direct negative impact on the UK clothing sector but has alternatively
harmed the confidence of its entrepreneurs. In order to survive UK manufacturers need to find
competitive advantage from their offering based on their added value service performance
combined with high quality product manufacture. The need to provide agile service performance
based on product availability in the retailer stores, particularly at the beginning and end of a
product life cycle is central to the competitive response provided by UK manufacturers.


The Textile Product Life Cycle

The close proximity of the UK manufacturers to their retailer customers is an advantage
that can be exploited through excellent service delivery. It is demonstrated as a company‘s
ability to create value for its consumers without exceeding the cost of providing it. However the
offering will vary dependent on the targeted market segment and matching the demands of the
product life cycle to the capabilities of the UK manufacturer is crucial to achieving this
objective.
From the idea generation stage of a product design through product launch to growth and demise,
a product will follow a typical life cycle. For each stage in the product life cycle








Features
Introduction Growth Maturity Decline
Demand Low Rising Steady Falling
Product Design Changing Some Change Standard Adjustments
Process Small Scale Larger Scale
Mass
Production
Adjustments
Selling Price High Fairly High Lower Low
Total Revenue Low Rising Peaks Falls
Unit Costs High Falling Lower Variable
Profit Low Rising Peaks Falls
Number of
Competitors
Few Rising Stable Falling
Focus on
Operations
Flexibility,
Reliability
Scheduling,
Capacity
Cost Reduction,
Productivity
Cost Control,
New Products

Cost Implications

However the sourcing decision does not merely depend on the cost of manufacturing and
shipping. Additional cost implications of lead-time, inventory, supplier performance, and
customer service level are also to be considered. These parameters are further reflected in the
inflexibility costs of using suppliers that are inflexible and unresponsive to changes in demand
(before, during and after a product selling season) that lead to a disproportionate level of demand
amplification across a longer supply network and a number of considerable cost implications. In
other words retailers those are unable to respond to sudden market changes will experience vast
losses in terms of final markdowns and missed sales opportunities.
Moreover being slow to market may result in unsatisfied customers that may lead to reduced
sales and obsolescence stock. For textile and clothing manufacturers to survive in high cost
economies focus has to be directed to those parts of the market where cost is not the main driver
and supply is determined by service operation performance.




Efficiency and Effectiveness

In satisfying the need for effective service performance the manufacturer must ensure that
the correct customer order quantity is produced and supplied to the required quality and at the
agreed delivery date through the supply chain. By paying attention to all sources of waste for
both innovative and functional products the enterprise will work towards meeting or exceeding
the customer‘s expectations. However, the objective of efficiency of the manufacturing facility is
derived from a production orientation of an enterprise where its core focus is geared to internal
production performance measures of manufacturing product at a rate greater than the norm. The
completion of specific customer‘s requirements for order quantity is of a secondary importance.
The objective of effectiveness however is derived from a customer oriented manufacturing
enterprise where the prime objective is to service the customer order requirements explicitly.
This potential conflict of interest from satisfying the operating unit‘s demands and the
customer‘s expectations needs to be reconciled by the short term shop floor planning and control
system.
New Market Requirements

However, at the same time as globalization has intensified the price competition on the
marketplace it has also brought with it new market opportunities for domestic manufacturers in
the UK. The abundant access to new products in the market and the extensive availability of up
to date information have made the consumers more demanding than ever before. Short-
lifecycles, high volatility, low predictability, and high impulse purchasing are the new key words
for the textile supply chain to consider. To fulfill the impulsive desires of the end-consumer high
street fashion retailers are now compelled to continuously update their product ranges and adjust
the number of seasons provided throughout the year. Subsequently the traditional fashion cycle
consisting of merely two seasons; spring/summer and autumn/winter; with a fairly
straightforward forecast based on previous performance no longer is valid. As an example the
Spanish fashion retailer Zara, owned by the Inditex Group has new designs coming in twice a
week to provide their customers with a constant renewal of the store. A more sophisticated
approach to merchandising is required that captures the subtle but vitally important changes in
fashion trends for high street retailers.
The ability to survive in an environment of constant and unpredictable change is often associated
with the agile paradigm. For fashion retailers to provide their customers with appropriate
products and services on the basis of real-time demand an agile approach to the product life cycle
is needed.


Fashion Merchandise
In a recent study conducted it was suggested that depending on the characteristics of the
merchandise to be produced different outsourcing strategies are needed. Certain segments of the
fashion merchandise marketplace are more likely to be produced by home-based domestic
manufacturers. To explain the impact inflexibility costs hold on different categories of fashion
merchandise theses products were divided into three major segments: basic products, seasonal
products, and short-season products.
Basic products
Basic products are sold during the whole year down to a minimal variation in design. The
characteristics of garments such as plain T-shirts, socks, and underwear are with their low
differentiation closely related to commodity products. Moreover these characteristics comply
with the growth and maturity stages of the product lifecycle previously illustrated in Table 1 and
are not suitable product segments for UK manufacturers. Productivity, physical costs reduction,
and high volumes mainly drive the manufacturing of basic products thus their low product
variety makes the customer‘s final purchasing decision based on low cost.













Seasonal Products
Conversely seasonal products and short-season products have shorter shelf lives
than basic products and a greater design variety makes the forecasting process more
complex hence the customer‘s buying decision less sensitive to the actual cost of producing
the garment. As the inflexibility costs tend to increase with the complexity of the forecast
domestic suppliers are proclaimed to be a more advantageous choice for producing these
categories of merchandise. Seasonal products have a shelf life of 12-25 weeks. Jeans has for
example a relatively stable demand even though the cut for the more stylish creations may
vary for each season. Prior to the introduction of a new design the response from the
extensive clientele can be hard to predict hence flexible domestic suppliers that can provide
small batches quickly are favorable. If the design then is proven successful the product will
move into the growth stage followed by the maturity stage and then finally it will continue
into the decline stage where demand is promptly falling. Seasonal products in the initial
phase of the lifecycle are more likely to benefit from a domestic sourcing strategy to fulfill
the attributes required during that stage. Seemingly domestic manufacturers also fall in the
category of suppliers suitable for delivering products during the final stage of the lifecycle
where planned demand has been exceeded by better than expected sales. The overseas
supplier is unable to respond in the timeframe necessary so the alternative is to use the
responsive UK manufacturer to source the additional volumes required.
These products encounter all four stages of the lifecycle previously demonstrated in Table 1
above that require a Mixed Supply sourcing strategy that combine both domestic and foreign
suppliers. Seasonal products are more segmented in the approach UK manufacturers were able to
support demand from launch through to demise. A mixed supply base approach was seen to be
more appropriate with greater advantages as it allows textile manufacturers and retailers to enjoy
both the responsiveness of flexible domestic suppliers and the cost benefits from overseas low
cost suppliers.

Short-Season Products

Short-season products have an extremely short shelf life of 6-10 weeks, or even less.
Arguably these products never reach the maturity phase of the product lifecycle because of the
extremely short time period involved. The supply of the products is more likely to be sourced
from domestic manufacturers particularly given the additional inflexibility costs involved in
overseas manufacturing. However the domestic option was proven favorable for both
merchandise categories as short-season products were more likely to be produced in the region
where they were sold throughout their entire life cycle.






The Agile Supply Chain Approach

Domestic UK textile manufacturing is well placed to service the agile needs of the high
street fashion retailer. They can become an integral part of the fashion retail supply chain that
actively participates in supporting their service delivery requirements. The UK manufacturers
will contribute to the competitive advantage demanded by the retailers to gain and retain
customers for future sales within the network of supply.
However the skill set required by UK manufacturers will, by definition need to be adapted to
include these additional service oriented requirements. The technical competencies gained from
producing quality garments will need to be enhanced to include service operations and supply
chain management skills and knowledge. Upgrading organizations to accommodate long term
strategic agile thinking within their management processes to create responsive and professional
operations will be a challenge for the UK textile manufacturing business community and training
providers alike.


















RESEARCH METHODOLOGY
NATURE OF THE STUDY
Yarn production technique and the structure of the yarn are among the basic elements which
influence the quality of the textile end product. Ring-spinning technology is the most widely
accepted yarn production method; it is capable of spinning nearly all sorts of natural and
synthetic fibre types within a very wide count range. The strength and elongation properties
of ring-spun yarns are sufficient to meet the requirements of mill conditions. Despite the
presence of new yarn production systems that have been introduced to the market with much
higher production speeds, the ring-spinning system still dominates the market, and has also
maintained its position as the ‗reference‘ yarn.
The fashion industry is under a continuous and unplannable obligation to meet (or create) a
diverse array of customer demands, a fact which inevitably finds its reflections in the yarn
industry also. These reflections require the yarn industry to produce diverse, novel and
creative yarns. Consequently, certain techniques have been introduced onto the spinning
market which offer improved quality and/or reduced costs for yarn production by inducing
some sort of modifications on ring-spinning technology. The most accepted of them is the
compact spinning system.
The compact spinning system is a modified ring-spinning process, developed initially for
spinning cotton yarn, which belongs to the short staple fibre subgroup.
The spinning triangle that occurs while the yarn is formed is the reason why many fibres
leave the drafting roving, or become partly spun into the yarn with one end only. This
causes a greater waste of fibres, a lower exploitation of fibre tenacity in yarn, a poorer
appearance and a greater hairiness of the spun yarn. In the compact spinning system, in
contrast to the classical ring-spinning system, the fibres are compacted aerodynamically just
after the drafting. The fibres become more closely aligned and increasingly parallel within
this compacting zone prior to yarn formation. This allows nearly all of the fibres to
contribute to the yarn structure under relatively equal tension. As the twist is given at a
location which is very near to the clamping line of the end rollers, short fibres also
contribute to the yarn structure under controlled tension at this critical location. This
enables yarn production with a reduced level of hairiness.
The compact spinning system enables nearly all of the fibres to be twisted. Thus, the enhanced
incorporation of the fibre characteristics into the yarn structure would allow optimal exploitation
of the raw material with increased yarn strength.





OBJECTIVES OF THE STUDY

 To study the different problems related to cotton textile industry in international
market.

 To study the government role in cotton textile export.

 To analyze the competition faced by Indian cotton textile. Industry in international
market.

 To study the role of export promotion council in promotion exports.















DATA COLLECTION AND SAMPLING DESIGN

For this study data was collected from Primary and secondary sources. Research Methodology
includes
1. Sample Selection
2. Questionnaire
3. Internet
Sample selection: The first step was to select the firm that use knitting cotton yarn in
international market. There is so many companies who manufacture knitting yarn in different
countries
DEARLY APPAREL CO., LTD (THAILAND), HIRA EXPORT CO., LTD (THAILAND),
RECIT LDA (PORTUGAL), REDOFIL (PORTUGAL), EVERGET INDUSTRIAL LTD
(HONG KONG), CASA FASHION TEXTILE (HONG KONG), HAKA TEXTILE
(TURKEY), TEZYAPARLAR TEZ-PA TEKSTIL (TURKEY), BEIJING GBSN TEXTILE
(CHINA), JIANGSU LONGMA TEXTILE GROUP (CHINA), KASSIM TEXTILE
(PAKISTAN), GHAZI FABRICS INTERNATIONAL (PAKISTAN).
Questionnaire: A structured questionnaire was designed to collect the information on carefully
defined parameters and due care was taken to make questionnaire as simple as possible.
Questionnaire includes:
 Close ended questions
 Open ended questions
Questionnaire consists of 14 questions which are designed under the light of the objectives
of the study.
Internet: I have also taken help from the internet as a secondary source of data collection to
know about the status of the knitting yarn. Also other information obtained through internet.




LIMITATIONS

1. The study is limited in less country due to time constraints.

2. The sample size has been restricted to 20 due to constraints of time.

3. The analysis could have been made much more accurate, if the project be done in
other countries also.

4. The respondents were busy or for some other reason, did not show much attention
filing the questionnaire, having the chance of biasness could be possible.

5. To collect valid data a senior authority was needed to fill the questionnaire. Most of
the time they were having important works to do and questionnaire were not filled
properly.














DATA ANALYSIS AND INTERPRETATION

Following recent interventions in companies by the Export Processing Zones Development
Authority (EPZDA), it was noted that many companies are having difficulties in attaining the
required quality and efficiency levels because the qualities of incoming materials are not of the
optimum standard. In addition, the lack of consistencies between batches of the same fabric type
and the subsequent behavior of the fabrics in cutting and making up showed different tendency.
It was therefore thought necessary to assess through a survey the difficulties of the knitting and
dyeing industry in Mauritius.
During the second half of 1993 and the first quarter of 1994, this survey about production and
quality control methods was carried out among a group of knitting companies and dye houses in
Mauritius. In addition, a series of samples of cotton yarn and corresponding grey and dyed and
finished circular knitted fabrics were collected from the same companies. The samples were
tested at the Mauritius Standards Bureau.

Evaluation of the results of the survey was carried out by EPZDA in collaboration with Optimex
Ltd. Cotton Technology International (CTI) was requested to analyze and interpret the yarn and
fabric test data. As it is the case in such projects, a limited number of sample test lots from
incoming batches were tested, which has in a certain way limited the test data available and the
analysis subsequently made. However, the information collected so far is sufficient to feel the
pulse of the industry and identify weaknesses and work out a plan for the future.

This report summarizes the data, and presents some comparisons between the products from the
different companies. It begins with an evaluation of the apparent reliability of the test data, then
proceeds to a consideration of yarn quality, control of knitted fabric quality, and performance of
the finished fabrics.

The test data was found to be fairly reliable and internally self-consistent on the average.
However there were a number of discrepancies, some of which ought to have been spotted and
corrected by the testing house. Some of the discrepancies had an obvious source which was
detected and corrected before proceeding with the analysis.

Nevertheless, the test data are probably reliable enough to provide a rough comparison of the
products between test lots from one company and between companies, which is the objective.




WORLD COTTON PRODUCTION SCENARIO: - MAIN COUNTRIES

MILLION OF 480 IB.BALES 2006/07 2007/08 2008/09 2009/10
China 35.5 37 36.7 32.5
India 21.8 24 22.6 23.5
United States 21.6 19.2 12.8 12.2
Pakistan 9.9 8.9 9 9.9
Brazil 7 7.4 5.5 5.8
Uzbekistan 5.4 5.4 4.6 4
Turkey 3.8 3.1 1.9 1.8
Australia 1.4 0.6 1.5 1.6






COTTON PRODUCTION COUNTRY WISE IN 2011-2012










36%
26%
13%
11%
6%
4%
2%
2%
china
india
united states
pakistan
brazil
uzbekistan
turkey
australia

COTTON CONSUMPTION COUNTRY WISE IN 2011-2012







51%
21%
13%
6%
5%
8%
china india pakistan turkey brazil bangladesh

WORLD COTTON EXPORT SCENARIO: - MAIN COUNTRIES

MILLION OF 480 IB. BALES 2008-09 2009-10 2010-11 2011-12
UNITED STATES 13 13.7 13.3 12.3
INDIA 4.6 7 2.4 6.4
UZBEKISTAN 4.5 4.2 3 3.8
BRAZIL 1.3 2.2 2.7 1.9
AUSTRALIA 2.1 1.2 1.2 1.8







WORLD COTON EXPORT COUNTRY WISE IN 2011-2012








47%
24%
15%
7%
7%
UNITED STATES
INDIA
UZBEKISTAN
BRAZIL
AUSTRALIA

INDIAN SHARE IN AREA UNDER COTTON









25%
75%
INDIA
WORLD

PRODUCTION ZONE
 NORTH
 CENTRAL
 SOUTH

ZONE WISE PRODUCTION IN 2011-2012






63%
23%
14%
NORTH ZONE
SOUTN ZONE
CENTRAL ZONE

COTTON ROLE IN INDIAN ECONOMIC

1. Cotton & other textile account for 1/3 of total exports.

2. Cotton & textiles account for about 32% of foreign exchange earnings.

3. Employment to about 60 million people directly & indirectly.

4. Accounts for 75% of total GDP.





























AREA, PRODUCTION & PRODUCTIVITY OF COTTON IN INDIA.
DURING LAST TEN YEARS

Year
Area In Lakh
Hectares
Production In Lakh Bales Of
170kg
Yield kgs Per
Hectare
2002-03 85.76 140 278
2003-04 87.3 158 308
2004-05 76.67 136 302
2005-06 76.3 179 399
2006-07 87.86 243 470
2007-08 86.77 244 478
2008-09 91.44 280 521
2009-10 94.14 307 554
2010-11 94.06 290 524
2011-12 101.71 292 488







WORLD PRODUCTI ON OF COTTON YARN BY REGI ON (000 METRI C
TONS)


Growth
Rate
Growth
Rate Share of World
1995 2000 2005 1995-2000 2000-2005 2004
Region
%
Change % Change % Change
North America 2,250.60 2,387.00 1,450.90 6.10 39.20 6.40
Central America 13.6 21.3 15.6 56.6 26.8 0.1
South America 903.8 986.3 920 9.1 6.7 4
America 3,168.00 3,394.60 2,386.40 7.20 29.70 10.50
Africa 563 421.8 398.3 25.1 5.6 1.8
Europe 1,616.10 1,576.20 1309.6 2.5 16.9 5.8
Asia & Oceania 10,561.90 12,680.10 17,149.80 20.10 35.20 75.40
Europe ,other
(Turkey) 369.20 1,040.00 1,106 181.7 6.4 4.9

World 16,718.90 19,493.50 22,741.90 16.60 16.70 100.00

Selected Country
%sShare or Asia n
Oceania
China (Mainland) 5,422.50 6,575.70 10,976.60 21.30 66.90 64.00
India 1,834.00 2,290.00 2,147.20 24.90 6.20 12.50
Pakistan 1,210.50 1,707 2,106.20 41.00 23.40 12.30

% Share of
Americas
United State 2,012.40 1,906.20 1,052.20 5.30 44.80 44.10











In 2012, Asia & Oceania region accounted for the biggest production of cotton yarn with
a share of 75%, followed by North America (6%), South America (4%), and Europe (6%) (other
including turkey, 6%), Africa (2%), other country (2%). Within the region, the highest share of
the production yarn cotton still belonged by china. This accounted for 64% of total cotton yarn
produce in Asia & Oceania. Besides china, other Country that plays a major role within this
region includes India and Pakistan, which when combined with china accounted for 88.8% of
cotton yarn production in Asia & Oceania region.







AFRICA 2%
SOUTH 4%
NORTH
6%
ASIA 75%
EUROPE, (OTHER
TURKEY)5%
OTHER
COUNTRIES 2%
EUROPE
6%
Africa
South America
North America
Asia
Europe, (Other Turkey)
Other Countries
Europe

FINDINGS

1. Most of the exports are of garments (63%) in China than after that the exports in
Bangladesh yarn i.e. (20%) and after it comes in fabric and others.

2. Mostly the companies which export their cotton textile production range up to 50%.
Rests are only domestic sales and have are only few report loss which fall in range of
76%-100% exports which are complete export house.

3. 57% of the respondents had related price variations in the raw material as a major
concern for the trade as they are lot of fluctuation in the due to many factors such as
scossordity monsoon etc.

4. Major problem faced by the respondents related to the marketing are competition that
contribute to the tone of 56% as there are small players in the garments
manufacturer.

5. Most of the companies are dissatisfied 40% from the government as government has
withdrawn DEPB incentives, TUFS scheme etc & maximum companies are natural
43% on the government support in helping the export with only 17% satisfaction
level.

6. China has been the arch rivals for India in various sectors & there is no difference in
textile sector.

7. The cost of producing is very cheap because of economics of scale & more over the
cost of wages is higher for the labor but if we compare it with the efficiency of the
labor which is 8times higher in China then India.

8. 50% of the people feel that the product prices are a major hordle in the industry
which might be due to the fact in case of spinning the bigger players have the
capacity to procure cotton at cheaper rates.





9. We should all concentrate on using cotton and allied yarn in knitting industry for
value addition for the economic upliftment on our country rather than selling raw
material like cotton and cotton yarn as it is.

10. Initiate more reform and extend the tuff facility for another five year if it really
wishes Indian knitting and knit garment industry capture a major chunk in the
international market and contribute to the major economic development of the
country.

11. Government should reform its labour policy and make it industrial friendly. This
would further encourage the setting up of new units.

12. Government should reduce the transaction cost from the present 11% to 4% which is
still higher than the international 2%.

13. Government should refund taxes, duties and subsidies on export production in time.

14. Government should strive for a uniform taxation policy for all states. This will help
all round uniform development of all the states of India and add considerably to the
economic growth of India.











SUGGESTIONS

1. Government has to extend validity of promotional schemes to promote textile
exports.

2. Spinning industry should explore new markets for exports.

3. Government should take steps to provide better infrastructure, technology,
innovations & government policies to boost textile industry in new future.

4. Government has to take some steps for the cotton crops and open the new techniques
for farmers for sowing the cotton seeds.

5. Government has to issues the licenses regarding the liberal policies of yarn
consumption in knitting industries.

6. Government has to start the new way of import of new machines for making yarn for
the purpose of time saving and improve the production process of yarn.

7. Framework knitters needed a suitable yarn with uniform thickness and strength. Yarn
from India had the required qualities but London framework knitters found it
difficult to work & eject it.

8. Introducing high-end technologies for textile industries.

9. The government has to open and explore new markets for exports of knitting
industries in international markets of textiles.

10. Develop national market growth strategy of sustainable cotton.









11. Encourage the development and growth of sustainable cotton markets through
improved information gathering and targeting economic policies favoring cotton
from sustainable sources.

12. Develop a national information strategy on cotton sustainability.

13. Build information based on sustainability impacts of Chinese cotton production,
processing and consumption. The information system should track basic science
based-social and environmental indicators across foreign and national cotton
production and textile manufacturing sources.

14. Join forces with the international community in reaching an internationally agreed
upon definition of sustainable cotton production through active participation in the
better cotton initiatives.

15. Design cotton trade policies to encourage cotton production and sourcing from
sustainable supply chains.

16. Require domestic cotton and textile producers to adopt sustainable production
practices in line with internationally recognized sustainability standards.

17. Invest in the development and applications of new cotton technologies and varieties
in order to meet the growing demand of technical and sustainable standards
increasingly being applied in the cotton sector.

18. An intentional strategy for balancing the distribution of cotton and textile production,
and benefits across different regions within china can be designed with their
objective of minimizing social and environmental impact, based on regional
comparative advantages and needs.

19. Promote the comprehensive use of cotton by-products such as stalks and cotton seeds
and waste cotton apparel through the provision of tax incentives for enterprises
reaching specified usage level and investing in by-product utilization technologies.

20. Invest in technological development for sustainable cotton production in
international textile industries.



ANNEXURE
QUESTIONNAIRE: ---
MARKET SCENARIO OF KNITTING COTTON YARN

NAME OF THE FIRM: ______________________________________________________

ADDRESS OF THE FIRM: _____________________________________________

NAME OF RESPONDENT:_____________________________________________

PHONE NUMBER:__________________________________________________________

EMAIL ID: _________________________________________________________________

Q1). HOW LONG HAVE YOU BEEN IN TRADING OF YARN BUSINESS?
a) 1-10 year
b) 10-20 years
c) 20-40 years
d) More than 40 years

Q2). ARE YOU DEALING IN COTTON YARN FOR KNITTING?

IF YES, THEN HOW LONG YOU HAVE BEEN DEALING IN COTTON YARN FOR
KNITTING?
_____________________________________________________________________


Q3). FROM WHICH SUPPLIER YOU PURCHASE COTTON YARN FOR
KNITTING?
Nahar Industrial Enterprises Ltd. Vardhman
Trident SCL
ANY OTHER _____________________________________

Q4). WHAT IS YOURS DAILY CONSUMPTION OF COTTON YARN FOR
KNITTING
a) Less than 1 ton
b) 1-5 tons
c) 5-10 tons
d) More than 10 tons

Q5). PLEASE INDICATE YOUR RESPONSE BY MARKING TICK IN THE CELLS
GIVEN BELOW FOR FOLLOWING STATEMENT IN CONTEXT TO COTTTON
YARN FOR KNITTING?

STATEMENTS

STRONGLY
AGREE

AGREE
NEITHER
AGREE
NOR
DISAGREE

DISAGREE

STRONGLY
DISAGREE
Comparatively
priced

Cotton yarn for
knitting had
good quality

Easily available
Better
Runabilty

Is better than
ring yarn.


Q6).WHAT IS THE SALE TREND OF COTTON YARN FOR KNITTING FROM LAST
3 YEARS?
a) Increased
b) Decreased
c) Constant

Q7.) WHAT DO YOU THINK ABOUT THE FUTURE DEMAND OF COTTON YARN
FOR KNITTING?
____________________________________________________________________

Q8). RATE THE KEY FACTORS ON SCALE OF 1-5 WHICH AFFECTS THE SALE
OF COTTON YARN FOR KNITTING? (5 BEING THE HIGHEST)
a) QUALITY ___________
b) PRICE ___________
c) DELIVERY ___________
d) BRAND NAME ___________

Q9). RANK THE COMPANIES ON FOLLOWING PARAMETERS?
COMPANY QUALITY PRICE DELIVERY SERVICE
NAHAR
INDUSTRIAL

VARDHMAN

ARISUDHANA

RANA
POLYCOT





Q10). WHAT ARE THE PROBLEMS FACED IN PURCHASE OF COTTON YARN FOR
KNITTING?
_____________________________________________________________________

Q11). WHICH IS THE DEALER BENEFIT PROVIDED THE COMPANIES IN
MONEYTARY TERMS?
_____________________________________________________________________

Q12). WHICH ARE THE SUBSTITUTES AVAILABLE IN MARKET OF THE COTTON
YARN FOR KNITTING?
_____________________________________________________________________
_____________________________________________________________________

Q 13). HOW DO YOU RATE THIS IN TERMS OF COMFORT?
a) cotton
b) 100%cotton yarn
c) Blend(poly cot)
d) 100% polyester blend

Q 14). GIVE SOME SUGGESTION TO INCREASE THE SALE OF COTTON YARN
FOR KNITTING?
____________________________________________________________________
_____________________________________________________________________


SIGNATURE______________________



BIBLIOGRAPHY

 www.alibaba.com

 www.fashion2fibres.com

 www.yarn.com

 www.owmnahar.in/nahar_indust.html

 www.Googlescholar.com















REFERENCES
 William oxen ham (2001), “Fascinated yarns- A Revolutionary Development?”
 Yesim Becern, Banu Uygun Nergis, ―Comparison of the Effects of Cotton Yarn
Produced by New, Modified and Conventional Spinning Systems on yarn and knitted
Fabric Performance”.
 Donald E. Brushwood, “Predicting Yarn Processing Performance from the Non
cellulosic Contents of Raw Material”.
 Tex world guide
 Textile industry magazine















CONCLUSION

1. We should all concentrate on using cotton and allied yarn in knitting industry for
value addition for the economic upliftment of own country rather than selling raw
materials like cotton and cotton yarn as it is.

2. Initiate more reform & extend the TUF facility for another five years if it really with
is Indian knitting and knit garments industry capture a major chunk in the
international market and contribute to the major economic development of the
country.

3. Government should reform its labour policy and make it industry friendly. This
would further encourage the setting up of new units.

4. Government should reduce the transactions costs from the parent 11% to 4% which
is still higher than the international 2%.

5. Government should refund taxes, duties and subscribe on export and subsidies on
export production in time.

6. Government should strive for a uniform taxation policy for all states. This will help
all normal uniform development of all the states of India and add considerable to the
economic growth of India.