Textile Industry Analysis in INDIA

1. TEXTILE INDUSTRY
Presented By
Group 1

2.  India’s textile industry is one of the economy’s largest.
 The industry scenario started changing after the economic
liberalization of Indian economy in 1991.
 It has now become the largest industries in the world.
 Indian textile industry contributes about 14 % to industrial
production.
 4% to country’s gross domestic product. 17% to country’s export
earnings
 Provides direct employment to over 35 million people
 The textile industry of India also contributes nearly 14% of the
total industrial production of the country.
 It also contributes around 3% to the GDP of the country
 It is the largest provider of employment after agriculture.
Facts of Indian Textile Industry

3. HISTORY
 English inventors in the 18th century began to automate textile cottage
industry processes including carding, spinning and weaving.
 James Hargreaves developed the Spinning Jenny, a device which replaced
eight hand spinners in one operation. Richard Arkwright assembled these
processes and started the first factory on the Derwent River in Cromford,
England in 1771.
 In the early 1800s, cotton was raised in the southern United States and
exported to mills in England and the north. .
 In 1814, James Cabot Lowell of Boston built a factory in Waltham, up the
Charles River from Boston.
 Later, the Boston Associates built an entire mill town on the Merrimack
River, and later named it "Lowell" in memory of James Cabot Lowell.
 In the 1990s, a new world order began to replace. Buying from the lowest
cost producer drove many textile manufacturers out of the production side
and into imports.

4. STRUCTURE OF TEXTILE
INDUSTRY

5.  Indian textile industry can be divided into several segments,
some of which can be listed as below:
 Cotton Textiles
 Silk Textiles
 Woollen Textiles
 Readymade Garments
 Hand-crafted Textiles
 Jute and Coir

6. SWOT ANALYSIS
STRENGTH
 India has rich resources of raw materials of textile industry. It is
one of the largest producers of cotton in the world and is also rich
in resources of fibres like polyester, silk, viscose etc.
 India is rich in highly trained manpower. The country has a huge
advantage due to lower wage rates. Because of low labour rates the
manufacturing cost in textile automatically comes down to very
reasonable rates.
 India is highly competitive in spinning sector and has presence in
almost all processes of the value chain.

7. WEAKNESS
 Knitted garments manufacturing has remained as an extremely
fragmented industry. Global players would prefer to source their
entire requirement from two or three vendors and the Indian garment
units find it difficult to meet the capacity requirements.
 Industry still plagued with some historical regulations such as
knitted garments still remaining as a SSI domain.
 Labour force giving low productivity as compared to other
competing countries.
 Low bargaining power in a customer-ruled market.

8. OPPORTUNITY
 Low per-capita domestic consumption of textile indicating
significant potential growth.
 Domestic market extremely sensitive to fashion fads and this
has resulted in the development of a responsive garment
industry.
 India's global share is just 3% while China controls about
15%. In post-2005, China is expected to capture 43% of global
textile trade.
 Companies need to concentrate on new product
developments..

9. THREATS
 Competition in post-2005 is not just in exports, but is also likely
within the country due to cheaper imports of goods of higher quality
at lower costs.
 Standards such as SA-8000 or WARP have resulted in increased
pressure on companies for improvement of their working practices.
 Alternative competitive advantages would continue to be a barrier

10. FACTORS AFFECTING TEXTILE
INDUSTRY
Textile
Industry
Rivalry
Demand
Conditions
Cost &
Location
Government
Regulation
Policy

11. India’s Position in World
Textile Economy

12. Recent Developments
 Bangladesh is planning to set up two special economic zones
(SEZ) for attracting Indian companies in view of the duty free
trade between the two countries.
 Italian luxury major Canali has entered into a 51:49 joint
venture with genesis luxury fashion, which currently has
distribution rights of Canali branded products in India . The
company will now sell Canali branded products in India
exclusively

13. Performance of the Textile Industry
 The industry which was growing at 3-4 percent during the last six
decades has now accelerated to the annual growth rate of 9-10 percent
but various factors have effecting annual growth rate of textile Industry,
Global recession is one of them.
 The impact of the global and domestic economic slow down directly
affect the performance of the industry.
 Index of industrial production (IIP) data has been released by the
central statistical organization (CSO) shows a dismal picture of textile
production.

14. PERCENTAGE GROWTH
IN TEXTILES

15. Export scenario
 Developed countries' exports declined from 52.2% share in 1990 to 37.8 %
in 2002. And that of developing countries increased from 47.8% to 62.2 %
in the same period.
 In 2003 the exports figures in percentage of the world trade in Textiles
Group (for select countries) were:

16. INDIAN TEXTILE EXPORTS 2014
45%
25%
18%
4%
18%
2% 2%
ready garment
cotton textile
Man-made
textiles
handi crafts
silk &
handloom
Wool &
Woolen textiles
others

17. India’s Textile Exports
(in US$ billion)
17.6 19.1
22.1 21.2 22.4
26.8
0
5
10
15
20
25
30
FY 06 FY 07 FY 08 FY 09 FY 10 FY 11

18. Textile Export Statistics
Financial year Textile exports
US$ Millions
Total exports US$
Millions
Percentage of
textile exports
2004-2005 14026.72 83538.95 16.79%
2005-2006 17520.07 103090.53 16.99%
2006-2007 19146.04 126262.68 15.16%
2007-2008 19558.53 143567.86 13.62%
2008-2009 18519.96 153018.22 12.10%
2009-2010 22418.00 178751.43 12.54%

19. MAJOR PLAYERS IN TEXTILE
INDUSTRY
Company Business area
Welspun India LTD Home textile,bathrobes, terry towels
Vardhman group Yarn, fabric, sewing threads, acrylic fiber
Raymond Ltd. Tailored clothing,denim,shirting, woolen outerwear
Bombay dyeing &
manufacturing
ltd.compqny
Bed linen, towels, shirts, dresses, and saris in cotton
and polyster blend
ITC lifestyle Lifestyle market
Reliance industries
Ltd.
Fabric, formal men's wear

20. Problems Of Textile Industry
in India
 The plant and machinery and technology by a number of units are absolute.
 Government regulations like the obligation to produce controlled cloth are
against the interest of the industry.
 The cotton yield per hectare of land is very low in India.
 Competition from the man made fabrics and synthetics.
 India has been facing severe competition from other countries like Taiwan,
South Korea, China and Japan.
 The industry faces number of other problems like power cuts,
infrastructural problems, lack of finance, exorbitant rise in raw material
prices and production.

21. Government Initiates and
Regulatory Framework
 The government has offered health insurance coverage to 161.10
million weavers and ancillary workers under handloom weavers
comprehensive scheme.
 As per the 12th year five year plan, the integrated skill development
scheme aims to train over 2675,000 people within next 5 years.
 As per the credit guarantee program, over 25000 artisans credit cards
have been supplied to artisans and 16.50 million additional
applications for issuing credit cards have been forwarded to banks .
 The Indian government has given approval to 40 new textiles parks
to be set up and this would be executed over a period of 36 months.
 The new textiles park would leverage employment to 400,000 textile
workers

22. THANK YOU