Indian textile industry analytics

1. Indian Textile Industry
Ready made garments (RMG)
Group 4
Ajay B.S
Guna sekar
Rohan Shinde
Saimin
Ujjwal

2. Introduction

3. Key players: Indian RMG industry and
nature of competition
KEY PLAYERS:
Some of the key players in the Indian Readymade Garments are as follows :• Raymond India
• Madura garments and
• Arvind Mills
•
Competition in Indian Readymade Garments Industry

4. Segmentation of RMG
• Formal Wear & Casual Wear
• Women dresses, Men Wear & Kids Wear
Rates(%)
• Suits, Trousers, Jackets & Blazers
• Shirts, Sportswear, T-shirts, Denims & Neckwear
• Undergarments, Knitwear & Saris.
Kid's wear
17%
Men's wear
47%
Women's wear
36%

5. S.W.O.T
• Raw Material
• Technology
• Infrastructure
• Cotton Dependent
• Labour
• Flexibility
• Heritage
Strength
Opportunity
• IT & Web Retail
• Removal Of Quota
• Bilateral Negotiation
• Industry Growth
Weakness
Threat
• Foreign Players
• Trading Blocks
• Fashion Cycle

6. P.E.S.T
• Trade & Tariff
Regulations
• New Schemes –
Textile Parks, TUFS.
• Trade Pacts - NAFTA
• Economic Stability –
Value of Rupee
• Monetary Policies
• Economic Growth
Political
Forces
Socio-Cultural
Forces
• Demographics
• Consumer Attitude
Economic
Forces
Technological
Forces
• Automation &
Technology
Incentives
• Competitive Edge :
NIFT

7. Porter’s Diamond Framework
• Abundant Raw &
Labour Resources
• Low Technology
• High Operating Cost
• Complete Value Chain
• Low Quality Production
• Technical Delays &
Ineffective Supply Chain
Factor
Conditions
Demand
Conditions
• Fast Growing Market
• Continuous Demand
• Increase in Export
Related &
Supporting
Industries
Domestic
Rivalry
• Increasing Rivalry Gaining competitive
advantage.
• Textile Parks

8. Market consolidation since 1974 and post 2005
•
Multi Fiber Agreement, 1974
•
2005- MFA scrapped by WTO
•
Top players identified are:
Raymond Group – 11020 Cr
Aditya Birla Nuvo Ltd – 5323 Cr
Arvind Mills – 4660 Cr

9. Contribution of Readymade Garments to
India’s Foreign Trade
• 1991 liberalization of Indian Economy
• Contributors: Electronics (27%), Gems and Jewelry (16%) and Readymade
Garments (6%)
• 39.5 % of total Textile export is contributed by Readymade Garments
which include cotton and manmade fiber
• Top Exports: EU, USA and UAE
• Top Importers: China, Italy and Hong Kong.

10. Marketing in Indian RMG
• The Indian branded garment market is estimated at over Rs. 185 billion,
• Accounts for over 25% of the 745 billion ready-mades market.
• This branded industry is growing by 25%.
• Raymond Apparel Ltd., Madura Fashion & Lifestyle, Arvind Mills.
Source: Khanna, Akanksha (2012).

11. Technology
• Technology in Indian industries are lagging
• CAD in designing, knitting, grading and more
• Trend forecasting is a developing subject
• Government’s role:
• Textile research associations
• Technology up gradation fund scheme

12. Global Scenario of Readymade Garments
• China consistently remains the top exporting country in the
decade 2000 to 2010 followed by Italy and Germany
• India has managed to remain in the top 10 exporters.
• Held 5th position in 2005-06 and 6th and 7th in 2007 and 2008
respectively

13. Future perspective of RMG
• The competitive market will lead to price fight especially
from countries like Pakistan and similar cost structured
countries
• Reasons for persistent demand:
1. Increase in disposal income
2. Growth of the Economy
3. Aesthetical appeal

14. Conclusion
• We have the knowledge, resource and market
• Indian garments have a good brand value by itself.
• The resources to look forward:
Technology, Government and Branding.

15. Thank you!