SWOT analysis of “Hosiery

Industry of India”

Presented by
KSH. Dolly Devi
M.Sc. (ATS) 1st Year 2nd Semester
College of Community Science
Punjab Agricultural University, Ludhiana, Punjab
 INTRODUCTION
• The history of hosiery industry dates back to
around 3000 BC.
• The diversity of fibres found in India, intricate
weaving on its state-of-art manual looms and its
organic dyes attracted buyers from all over the
world for centuries.
• The idea was initially ingrained and associated
with leg wear only, but with innovation and
understanding the same received an upward
thrust and any knitted piece of underclothing
began to be grouped under the category –
Hosiery.
• Indian knitwear industry is more than a century
old. Dolly KSH 2020 2
• Calcutta, the cultural capital of India, and the commercial
capital of East India owns the credit of giving verve to this
industry.
• The first knitting unit in India was established in 1893 “The
Oriental Hosiery Company Ltd” near Khiderpore Docks in
Calcutta.
• Ludhiana, Tirupur, Delhi, Bangalore, and Mumbai are the
important knitwear centres
• Key players are:
– Monte Carlo Fashions Limited
– Nahar Spinning Mills Ltd
– Abhinandan Knits Pvt Ltd
– KPR Mill Limited
– SEL Group
 India ranked as 15th largest exporter of hosiery product (2018).
China ranked first (44.55%) followed by Turkey and Italy
(2018)

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IMPORTANCE OF HOSIERY INDUSTRY IN INDIA
• Textile accounts for 30% of the total exports of the
country
– 45% knitwear
– 50 % domestic apparel market
• The knitwear market is expected to grow at a promising
@9% over the next decade to reach Rs 1,61,700 crore
from the market size of Rs 68,932 crore. (2017)
• Tirupur is the most important export cluster, followed
by Ludhiana.
• More than 90% of the garment is manufactured in
Tirupur.

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• Tirupur exported approximately Rs 850 crore
worth of knitted apparels almost 40% of the
total knitted apparel exports from India.

• Main markets of exports for India are: US,

Canada, Europe, Australia, Japan, and the
Middle East.

• The major contributors to the knitwear market

are innerwear and t-shirts accounting for 34
percent and 28 percent of the market
respectively.

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SWOT ANALYSIS

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 STRENGTH
• Availability of raw materials
• Increase in demand:
– being preferred comparatively over woven
garments due to their virtues of comfort,
stretchability, easy care, and the pattern of being
built within the knitted fabric structure.
– growth is increasing adaptation to casual wear by
Indians.
• Created a niche market : India has carved a niche for
its knitted apparels in the global market on the
foundation of its quality, competitive pricing, and
innovative styles.
• Low-priced unbranded products: which contribute
immensely to total value sales.
• Low labor cost
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 WEAKNESS
• Severe power crisis
• Low productivity: A key weakness of the Indian
textile sector due to unskilled labor, which is
almost three times lower than in China
• Poor infrastructure and technology
• Less organized industry – many manufacturers
tend to be unregistered and smaller than in
competing countries, limiting the use of modern
production technologies and the capacity to
take on large orders.
• More focus on cotton garments- limits its
access to the winter clothes market, while
buyers perceive the country as slower and less
reliable than China or Vietnam.

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 OPPORTUNITY
• Rise of Industry 4.0 production methods: It is a
transformation that makes it possible to gather and
analyze data across machines, enabling faster, more
flexible, and more efficient processes to produce higher-
quality goods at reduced costs.

• The Union Ministry of Textiles has launched a

comprehensive scheme for the development of knitting and
knitwear sector under “PowerTex India scheme” in 2019
key components includes:
– Modernisation and upgradation of existing power loom
service Centers
– Common Facility Centre Scheme
–

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 – Group Work Shed Scheme.
– Creation of New Service Centres on Public
Private Partnership (PPP) model by industry and
association in the knitting and knitwear clusters.

• Federation of Hosiery Manufacturers’ Association

of India (FOHMA)
– was established in the early 70’s and have
since been working concertedly to ensure
equitable growth and sustained development
for the Indian hosiery industry.

• The major driving factor of knitwear market are

fashion, media, and health and rise in the number of
women spenders with high disposable income are
boosting the knitwear market.

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 THREATS
• High competition: The country faces fierce
competition from the West European markets, Hong
Kong, Bangkok, Taiwan and Bangladesh.

• Rising cotton and yarn prices

• Removal of excise duty on branded garments in

Bangladesh.

• No import duty on goods imported from Bangladesh

to India. (Importing Chinese goods to Bangladesh
which are being exported to India)

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• High level of outsourcing had prevented the
industry from undertaking large scale
production thereby restricting scale economies.

• Strict emission norms were implemented by

Central Pollution Control Board (CPCB) on dying
units. The firms were asked to install Effluent
Treatment Plants (ETP) to avoid environmental
pollution.

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 Conclusions
• India’s total textile industry market size is
only one-fourth of that of China and to
bridging this gap requires concrete
planning and implementation.

• The Government needs to take a planned

policy decision to face competition with
china.

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THANK YOU

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