Indian Textile Industry

Introduction  Industry is worth over US$ 4395 billion . cotton and silk over the world has boosted the industry in recent years. Among the countries. Global trade in this industry is now at US$ 350 billion. Australia and New Zealand are the significant consumers of Indian textiles. Japan. India ranks second with 8 percent of the total. High production of wool.     .

After independence. Modern textile industry took birth in India in the early nineteenth century.History  The term 'Textile' is a Latin word originating from the word 'texere' which means 'to weave' The history of textile is almost as old as that of human civilization. In India the culture of silk was introduced in 400AD . the cotton textile industry made rapid strides under the Plans       . The first cotton textile mill of Bombay was established in 1854 During the year 1900 the cotton textile industry was in bad state.

2 22 2. . 22 . 22 2 22 2. USD Billion 22 . 22 P 22 2 22 2. Total retail industtry Organised Penetration Percent 22 . 22 .Five years outlook 2 22 2. 22 . 2 22 2. 22 . 22 . 2. 22 . 33 . 22 . 22 . 22 P 22 2 22 2.

Availability of large varieties of cotton fiber and has a fast growing synthetic fiber industry.     .SWOT Analysis Strengths:  Indian Textile Industry is an Independent & Self-Reliant industry. Availability of Low Cost and Skilled Manpower provides competitive advantage to industry. Abundant Raw Material availability that helps industry to control costs and reduces the lead-time across the operation. India has great advantage in Spinning Sector and has a presence in all process of operation and value chain.

There is Declining in Mill Segment. which restrict to tap other potential market. Power and Interest Rates.Weaknesses:           Indian Textile Industry is highly Fragmented Industry. . Lacking to generate Economies of Scale. Lower Productivity in various segments. Transaction Time at Ports and transportation Time. Infrastructural Bottlenecks and Efficiency such as. Unfavorable labor Laws. Industry is highly dependent on Cotton. Lack of Technological Development that affect the productivity and other activities in whole value chain. Lack of Trade Membership. Higher Indirect Taxes.

Emerging Retail Industry and Malls provide huge opportunities for the Apparel. . Handicraft and other segments of the industry. Potential Domestic and International Market. Greater Investment and FDI opportunities are available. Large.Opportunities:         Growth rate of Domestic Textile Industry is 6-8% per annum. Market is gradually shifting towards Branded Readymade Garment. Product development and Diversification to cater global needs. Elimination of Quota Restriction leads to greater Market Development. Increased Disposable Income and Purchasing Power of Indian Customer opens New Market Development.

especially China. Threat for Traditional Market for Powerloom and Handloom Products and forcing them for product diversification. To balance the demand and supply.Threats:         Competition from other developing countries. Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world. . To make balance between price and quality. International labor and Environmental Laws. Geographical Disadvantages. Elimination of Quota system will lead to fluctuations in Export Demand.

does not lend itself to comparative studies in terms of market share etc. 27% of Forex earnings.The shape of the textile industry in India  Large Industry – 3% of GDP.   . 21% of total employment Very large unorganised sector – about 76% of total fabrics production Market is very diverse.

Labour laws Exports have risen by 10% but at the same time China’s exports have risen by more than 20%. even countries like Pakistan and Bangladesh have done better   .The Global Scenario  The end of the MFA arrangement Competitiveness of Indian industry • Low level of modernization • Fragmented nature – low capacities • Infrastructure.

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shirting and knitted garments.Major Players  Arvind Mills Arvind Mills is one of the fully vertically integrated players in India. Its sales are around US$ 300 millions with little less than 9% profitability     . It has large capacities in denim. Adding value by manufacturing denim apparel.

It already supplies to some US retailers.    .Raymonds  Raymonds has the large integrated business model. across the value chain from yarn to retail. It second largest denim player in India. Its annual sales are around US$ 300 millions with little less than 7 % profitability.

It is planning to double its fabric processing capacity to 50 million meters.Vardhaman Spinning  Vardhman has capacities in spinning. Target and Tommy Hilfiger. It is an approved supplier to global retailers like GaP.5% profitability. weaving and processing. Its sales are little over US$ 120 millions with 6.    .

It sells its products in 24 countries. It is supplier to retailers such as Wal-Mart. J C Penny. Its revenues are little over US$ 100 millions with little less than 8%profitability.    .Welspun India  Welspun is among the top five manufacturers of terry towels in the world. and Shopko.

such as availability of raw materials. Various players need to get act together.     . Government is playing the role of facilitator by taking various majors. labour. domestic market and supportive government policies.Conclusion  A huge window of opportunity has opened up for the Indian textile industry . The industry enjoys significant strength and advantages. It’s now for players to make investments in building the capacities and making them integrated manufacturers.

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