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November 2010

A Presentation by DeoMac

]   Market Overview Government regulations & policy Business opportunities and Advantage India .

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 Y ]otton dominates the industry  Nearly 56% of yarn produced is made of cotton  ]ountry produces nearly 23 varieties of cotton Abundant  India is the second largest player in the world cotton trade availability of raw material is one of the key Y India¶s position is strong vis-à-vis other countries in most raw advantages of the materials Indian textile industry  Largest producer of jute  Second largest producer of silk  Third largest producer of cotton. accounting for nearly 16% of global production  Third largest producer of cellulosic fibre/yarn  Fifth largest producer of synthetic fibres/yarn  Eleventh largest producer of wool Source: Ministry of Textiles Annual Report. Industry Research .

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           Spinning Weaving Processing & manufacturing ]omposite mills 8% Organised sector 2% À00% = 5. 2004 .83 million units À00% = 2922 mills Y  the 2300 processors in India.000 small scale units Y ÷*  $" % */"*  !%$ $ Y    % $$$   "-**  "   "$ ! /    !* Y 1!  + % + ! $ !$ "+" Source: Compendium of Textile Statistics. only 200 units are integrated with spinning. weaving or knitting units Small Large Powerloom Y Bulk of apparel and home independent independent 31% andloom textile manufacturing units units sector 39% 53% 67% accounted for by 77.

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viscose filament yarn. independent Garments & Production units . wool. nylon filament yarn. polyester filament yarn Source: Industry Research . Garments silk. polyester staple fibre. acrylic staple fibre. hosiery units.handlooms.        ]otton. units attached producers units to mills ]omposite Mills *Includes viscose staple fibre. power processing home textile Spinning mills unit powerlooms. jute Fibres and yarn aw materials Grey abric Processed abric Y Knitting Y Dyeing Y Weaving Y Finishing Man-made ibre/ Petrochemicals ome textiles ilament yarn* Hand processing Weaving/ knitting units.

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  Textile exports À   7% À .

abric & made-ups 51% Silk & woolen textiles. yarn. incl waste †ear 1994-95 Y $%$! $     Y * +$    /   *   -0* * +    * + Source: Ministry of Textiles . abric & made-ups 4% 10% †ear 1999-00 Manmade staple ibres.  13% 55% 5% 25% 9% 52% †ear 2005-06 eadymade garments 34% À À  ]otton yarn. cotton 35% raw.

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&  9  " 4        x x   Y #$ *   !!  x st 9 * x st 9 * +      6" !   months o months o * 0  -0*  "      7  - "*8 $÷"% */  * * orecasts Source: WTO study on gainers and losers post quota abolishment . Y #*+    *  +23 - Share in US textile and Share in EU textile and    !0%.& 45 clothing market clothing market $   !0%4.

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 Y  /  +  Y  ! " " !"$!  + !  Y #$    / / !+  Market size estimates  /  /$   +! "% USD bn Y 1! " " ! $ * !#$  65    " $   - 0* "   $     / Y #   +      !  30 + 2* %$! /* "!  2*    *  $"  "    37 + #$  Exports 12 Y  /  +$    Domestic Y ' 0 !% "! "  25 35 market Y  !* " * $  /  Y ' 0* + ! $  2005 2010* * orecasts Source: Research commissioned by Confederation of Indian Textile Industry .

]   Market Overview Government regulations & policy Business opportunities and Advantage India .

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emphasis on man powerlooms (mainly tiny and small. knitwear and hosiery) deserved rom reservation or SSI Pre 1985 Y Schemes or technology upgradation and Y Importance given to cotton textiles modernisation introduced Y Favourable iscal treatment given to Y Multi ibre approach adopted. drugs & pharmaceuticals. in addition to cotton scale units) as compared to composite Y Taxation structure made simpler mills Y Most segments reserved or small- scale industry (SSI)* Y estrictions on installation o Measures aimed at automatic looms improving competitiveness of industry to face a post quota regime *atest definition: Investment in plant & machinery of INR À0 million for most industries. sports goods and stationery items . made and synthetic ibres. INR 50 million for specified industries like hosiery. hand tools.  Emphasis on increasing scale Post 1985 Emphasis on small scale sector Y Many segments (especially readymade garments.

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     Y Scheme launched in 1999 to provide irms access low interest loans or Technology Upgradation technology upgradation and setting up new units with state-o -art technology Fund Scheme Y Scheme has disbursed IN 91. as well as marketing operations Y ³Scheme for Integrated Textile Parksâ (SITP).02 bn o FDI in the sector approved between 1991 and 2004 Y ]ompanies ree to set up ully-owned sourcing (liaison) o ices. based on public-private partnership model to build world class in rastructure acilities Upgrading Y Product speci ic ³]luster Approachâ targeting development o 100 infrastructure additional clusters in textiles Y Technology Mission on ]otton (TM]). Industry Research . dissemination o technology to armers. improvement o market in rastructure and modernisation o ginning and pressing sector Source: Ministry of Textiles. with approval o the Foreign Investment Promotion foreign investment Board (FIPB) Y ~ USD 1.61 bn till 31st December 2005 Y Upto 100% oreign direct investment allowed in textile and apparel Policy related to manu acturing industry. ocusing on cotton &D.

]   Market Overview Government regulations & policy Business opportunities and Advantage India .

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 ]ost competitiveness South Korea China †arn: USD per kg of yarn Brazil abric: USD per yard of fabric India Open-ended yarn & fabric ing yarn & fabric Textured yarn & fabric †arn Woven fabric Knitted fabric Y #$      // 9/   ! "      $" -   +"$%$+  .

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the major one being National Institute o Fashion Technology (NIFT)  Several leading colleges also o er courses in Textile Engineering . wool. especially key segments removed over last ew years  Fiscal anomalies in terms o excise duty structure removed Y Flexibility in production  ]apabilities across the entire value chain within the country reduces lead time or production and reduces intermediate shipping time  Indian companies have lexibility and skilled manpower to handle small orders with complex designs Y Product development and design capabilities  Several institutes in India or textile development. especially cotton which has seen improved productivity in the country under the ]otton Technology Mission  Wide variety o cotton produced India.cotton. making India capable o catering to various segments o world trade  Indian industry has ability to handle di erent materials .  ?  Y Large raw material base  India has a rich raw material base. silk and jute with equal skill Y Positive developments in the Textile Policy  eservation or small scale sector.

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given India¶s cost competitiveness Y With Indian consumers increasingly getting exposure to Export to India international fashion trends. potential exists for export of lifestyle brands of garments and accessories to India . by nominating Sourcing from India large Indian companies having credibility in terms of capacities and quality Y eadymade garments have maximum opportunity. Y Invest in setting up vertically integrated large scale units Y Invest in setting up retail chains (single brand) Investing in India Y Enter into marketing joint ventures with Indian companies Y Brand licensing to Indian players Y Partner with Indian vendors to import from India.

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?  Y Top 10 buyers in India (Gap. Federated. ]rocodile Manufacturing/ Y VF Arvind Brands . Lacoste franchising Y Master ranchisee .Marks & Spencer.ugo Boss. Tommy il iger. Ecko. Next. Nike. ]arre our and Synergies India) offices account or 35% o total textiles sourced rom India Y ther major companies include El ]orte. J] Buying and liaison Penny. Kellwood. VF ]orporation. Karstadt-Quelle Brand licensing/ Y Brand licensing . The ]hildren¶s Place. Tesco. Mango. &M. Fi th Avenue. Wal-Mart. Li & Fung. Lovable.joint venture between Arvind Brands and VF manufacturing ]orporation to manu acture and sell latter¶s brands in India cum retailing Y Benetton Y Levi Strauss Y eebok Y ]arreman Michel Thierry Source: News articles .

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having turnover o USD 10 million Y Supplies to more than 100 retailers and ashion brands across 39 countries Source: Capitaline. specialty ring colour and stretch denim abric. with turnover o USD 279 million and presence in textiles. signi icant exporter o polycotton blended abrics and made ups Y ne o the largest producers o denim in the world.worsted abrics. readymade garments. sarees. cotton and blended abric. shirtings. apparel Y ne o the largest textile business houses in India. woolen blankets and home urnishings Y ne o the oldest textile companies in the country. engineering goods. Company websites . having turnover o USD 231 million Y Produces suitings. having turnover o USD 33 million and exports to more than 70 countries Y Produces denim abric. towels. retail. synthetic and blended spun yarns. wool and blended abrics. cotton. cotton and synthetic sewing threads Y India¶s largest exporter o readymade garments. cotton and linen shirting abric. personal care and prophylactics Y Textile products . grey and processed abrics.  ?    Y Large industry conglomerate. bed linen and men¶s apparel. having turnover o USD 400 million Y Signi icant presence in acrylic ibre. knitted abric. voiles.

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cement and pulp and paper Source: Capitaline. its products include viscose ilament yarn. IT. garments and textiles Y as the largest composite textile mill in India or producing cotton abric Y aving a turnover o USD 95 million. viscose tyre/ industrial yarn. bathrobes. polyester ilament yarn. company is a major producer o polyester yarns. carbon black Y aving turnover o USD 303 million. other interests include insurance. abrics. buttons and saw pipes Y Belongs to one o the most diversi ied business groups in India (Aditya Birla Group) and has turnover o USD 577 million) Y Key products in textiles include viscose ilament yarn and branded apparel. with annual turnover o USD 32 million Y ther businesses include retailing o home urnishings in India and manu acture o bed linen products or domestic and export market Y Amongst the top 3 terry towel producers in the world.  ?  Y Leading producer o silk yarns and abric (mainly or decorative and bridal use). Company websites . denim. telecom. with annual turnover o USD 132 million Y ther products include cotton yarns.

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