[Type text]

THE INDIAN INSTITUTE OF PLANNING AND

MANAGEMENT
MUMBAI
IIPM TOWER, PLOT NO E-781, S.V. ROAD, KHAR WEST,
MUMBAI - 400052

THESIS ON
“TEXTILE BUSINESS @SILK CITY”

UNDER THE GUIDANCE OF: MR. MAYANK RATHI

SUBMITTED BY: RAJAT BAHETI
BATCH: FS-2, SESSION: PGP 07-09/SS
REF ID NUMBER: IIPM/SS/07-09/MUM/MKT/041

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ABSTRACT

THE INDIAN TEXTILE AND CLOTHING INDUSTRY

The main objective of this project is to provide an understanding of the prevailing

scenario in the Indian Textiles and Clothing Industry which can aid the prospective
investors in their decision. This report will be incorporated in the Prospectus of a
textile company which is intending to enter the Indian market with an Initial Public
Offer. Since 2005, the erstwhile prevalent quotas which were imposed on various
textile exporting countries have been removed. India's performance in the medium-
term would critically depend on cost and price competitiveness, removal of domestic
constraints and ability to compete with Chinese T&C exports.

India is the one of the largest exporters of cotton made-ups to the US, being second
only to China. It has been performing well in the US market on the whole. China is
the number one player in terms of home textile exports to the EU followed by India
and Pakistan. Here, however, India lags far behind China in terms of exports of
various items such as bed, table, toilet and kitchen linen etc. Even in categories where
India's exports have grown faster than its China and Pakistan, its market share is much
lesser than them. It is evident that India has a lot of scope for improvement and there
is still a vast potential in the EU market to be explored.

Surat textile industry has grown considerably over time. As the information the recent
figure, textile production in Surat has grown by 10% in the last 5 years, there was a
market of embroidery which has grown from a high amount to around Rs 30000
million over the same period. The prospering retail industry is believed to be a light of
hope for the decentralized Indian textile industry that shouldered losses worth crores
of Rupees in the floods in 2006. The textile market in Surat exports its beautifully
ornamented saris to the Middle East countries. The international market demands
more improvisations in the designs of the saris. New trends in the design of Zari
embroidered saris are being introduced to capture the increasing demand of the saris
in the international markets.

In Surat, exporters point out that they are planning to reduce the shift hours from 24 to
15 hours in a day that would bring down the workforce by nearly 70,000 in and

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around the city. The synthetic hub in Surat weaves around 900 crore meters of fabric
worth Rs 15,000 crore per annum. Around 80% of it in the form of sarees and dress
material are supplied to the key markets like Maharashtra, Madhya Pradesh,
Karnataka, Punjab, Tamil Nadu, Cochin, Punjab and Delhi.

On the basis of the field study and analysis, certain hinderances which can be
overcome by certain measusres like setting up an R&D centre and apparel park.
Providing training to labour, effective manpower utilization and RTW development
products.

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TOPIC APPROVAL LETTER

Melissa.Pinto

<elissa.pinto@iipm.edu> Mon, Mar 16, 2009 at 4:30 PM To: sinhashweta46@gmail.com

Reply | Reply to all | Forward | Print | Delete | Show original

Dear Rajat,

I have received your synopsis as well as the confirmation of your external guide you through
the thesis. This letter is a formal approval to the topic proposed by you.

Please go ahead with the thesis. Make it a comprehensive thesis by using empirical data as
the basis of the research.

Your ref. id number is IIPM/SS/07-09/MUM/MKT/041

Furthermore, you are required to send me a total of at least 6 thesis guidance response
sheets at equal intervals before the coalescence of the thesis. Please find below the format
for the response sheet.

Regards,

Melissa

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CERTIFICATE

I Mr.Mayank Rathi hereby certify that Mr.Rajat baheti of The Indian

Institute of Planning and Management, Mumbai has completed the

thesis on “Textile Business @ Silk City”in the academic year
PGP/SS/07-09. The information submitted is true and original to the
best of my knowledge.

Signature of Thesis Guide

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ACKNOWLEDGEMENT
A Project Report is never successfully completed without the guidance from
the appropriate person. So, Now it I the right time to express my sincere gratitude
towards all those, who have helped me to complete the project.

Theoretical knowledge without practical application is incomplete. Therefore, the

exposure to practical world gives a new dimension to whatever has been grasped till
time and it also gives a chance to understand that where the learned knowledge can be
applied.

It is my great privilege and honor to express my heartiest gratitude to the Project

Guide MR who assisted me by guiding me throughout the project. Special thanks to
my friends who were always there when I needed them.

I thank my school, INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

for having given me this opportunity to put to practice, the theoretical
knowledge that I imparted from the program.

Last but not the least I would like to appreciate my parents who have always
motivated me to do my work with utmost dedication.

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Table of Content
Overview of Indian Textile Industry .................................................. 1
Fibre and Yarn Production 6
Home Textile Industry 8
Exports 10
STRUCTURE OF THE INDIAN TEXTILE INDUSTRY 15
SWOT 16
GOVERNMENT INITIATIVES / POLICIES 18
SURAT 26
Overview of the Surat textile industry27
Future of Surat Textile market 30
SWOT ANALYSIS 31
Research Study35
Questionnaire
HINDERANCES FACED BY THE SURAT TEXTILE INDUSTRY:
Suggestions
Conclusion
BIBLOGRAPHY

SYNOPSIS
Response Sheet

Questionnaire

LIST OF TABLES

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TABLE PAGE
TITLE
NUMBER NUMBER

1 Structure Of Indian Textile Industry 3

2 Indian Textile Exports 7

3 Itemwise Exports of Cotton Madeups 9

4 US General Exports 11

5 US Exports of Cotton 12

HOME TEXTILES IMPORTS INTO THE USA FROM

WORLD, CHINA, INDIA AND
6 PAKISTAN 13

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