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Date:03.10.2011




Economic environment of
business

Prof . Jaisree Desai




                       11/2/2011
Textile industry




           Group members :    Magesh raja .J
                              Prithiviraj .A
                              Shariyank .B.V
                              Vinu .R.V




                  11/2/2011                    2
History of textile industry
 India has been well known for her textile goods
  since very ancient times.
 In the early nineteenth century the modern textile
  industry took birth in India.
 The first textile mill was established at Fort Gloster
  near Calcutta in 1818.
 In 1850's the cotton textile industry, however, made
  its real beginning in Bombay.In the year 1854 the
  first cotton textile mill of Bombay was established
  by a Parsi cotton merchant then engaged in
  overseas and internal trade


                          11/2/2011                        3
   The vast majority of the early mills were the
    handiwork of Parsi merchants engaged in yarn and
    cloth trade at home and Chinese and African
    markets.
   The first cotton mill established in the year 1861
    was at Ahmedabad, which was eventually to
    emerge as a rival centre to Bombay.
   The cotton textile industry made rapid progress in
    the second half of the nineteenth century and by
    the end of the century there were 178 cotton textile
    mills.


                           11/2/2011                       4
Development
 Indian Textile Industry has earned a unique place in our
  country. It is among one of the industries which were
  earliest to come into existence in India.
 It accounted for 14% of the total Industrial
  production, contributes to nearly 30% of the total
  exports and is the second largest employment
  generator after agriculture.
 This industry provides one of the most basic needs of
  people and holds importance; maintaining sustained
  growth for improving quality of life.
 It has an image of self-reliant industry, from the
  production of raw materials to the delivery of finished
  products, with substantial value-addition at each stage
  of processing which forms a major contribution to the
  country's economy         11/2/2011                      5
Latest development
 Indian Textile Industry covers 61 % of the
  international textile market and 22 % of the global
  market
 Indian Textile Industry is known to be the 3rd
  largest manufacturer of cotton across the globe.
 This industry of India claims to be the 2nd largest
  manufacturer as well as provider of cotton yarn and
  textiles in the world
 India holds around 25 % share in the cotton yarn
  industry across the globe
 India Textile Industry contributes to around 12 %of
  the world's production of cotton yarn and textile.
                        11/2/2011                   6
Several segments in textile
industry:
   Indian industry of Textiles can be divided
    into several segments, some of which
    can be listed as below:
   Cotton Textiles
   Silk Textiles
   Woolen Textiles
   Readymade Garments
   Hand-crafted Textiles
   Jute and Coir
                      11/2/2011                  7
Size of the industry
   The Indian Textile Industry today has approximately
    1200 medium to large scale textile mills in India. 20%of
    these mills are located in Coimbatore (Tamilnadu).
   The industry has 34 million cotton textile spindles for
    manufacturing cotton yarn which account for 70 percent
    of India's textile exports.
   Of the Indian textile yarn exports, almost 80 percent
    come from coarser yarns.
    The knitting industry is concentrated in Tirupur
    (Tamilnadu) and Ludhiana (Punjab). Tirupur produces
    60 percent of the country's total knitwear exports.
   Knitted garments account for almost 32 percent of all
    exported garments. The major players include Nahar
    Spinning, Arun Processors and Jersey India.



                             11/2/2011                         8
Growth of indian textile
industry
   Growth along with the investment of
    an industry depends heavily on the
    economic health of the country.
    Indian economy grew rapidly during
    the fiscal year 2006-2007 posting a
    growth rate of 9.4% p.a. Not only
    this, India has been performing
    significantly in the last three years
    where its average yearly rate of
    growth has been estimated to be 8%.
                     11/2/2011              9
Growth in textile industry




              11/2/2011      10
Major players
   Top leading Companies:
    Some of the reputed names in the Textile companies in India are:
    Raymonds,
              Arvind Mills,
              Reliance Textiles,
              Vardhaman Spinning,
              Welspun India,
              Morarjee Mills,
              Century Textiles,Ginni Filaments Ltd,
              Mafatlal Textiles,
              S. Kumar Synfabs,
              Bombay Dyeing Ltd, BSL Ltd,
             Banswara Syntex,
             Grasim Industries,
             Oswal Knit India, Fabindia, Laksmi Mills, National Rayon
    Corp,
             Mysore Silk Factory and many more.
                                 11/2/2011                              11
Total contribution to the
economic sales
   Indian textile industry is one of largest Industries in
    Indian Economy. In 2000-01, the textile and
    garment industries accounted for about 4% of
    GDP, 14%of industrial output, 18% of industrial
    employment and 27% of export earnings. Indian
    textile industry is significant in global context
    also, ranking second to China.
   The Indian textile industry constitutes 14% to
    industrial production, 4% to the country's gross
    domestic product (GDP) and 17% to the country’s
    export earnings, according to the Annual Report
    2009-10 of the Ministry of Textiles.

                            11/2/2011                         12
Domestic and Export share
   According to the Indian Ministry of Textiles, the
    cumulative production of cloth during April’09-
    March’10 has increased by 8.3 % when compared
    to the same period of the previous year.
    The total Indian textile exports have increased to
    US$ 18.6 billion during April’09-January’10, from
    US$ 17.7 billion during the same period of the
    previous year, registering an increase of 4.95 % in
    rupee terms.
    Gradually the share of textile exports in total
    exports has increased to 12.36% during April’09-
    January’10, as per the Ministry of Textiles.

                           11/2/2011                      13
Contd..
   During April-March 2009-10 textiles
    has registered a growth of 5.5%
    according to the Index of Industrial
    Production the data released by the
    Central Statistical Organization (CSO).
    Cotton, white wool, silk and man-
    made fibre textiles have registered a
    growth of 8.2 % while textile products
    including apparel have earned a
    growth of 8.5%.
                     11/2/2011            14
Employment oppurtunities
   Job opportunities are diverse in nature in the textile industry
    ranging from production, designing, distribution and sales.
    The need for manpower for the textile industry is growing to
    keep up with the growing demand; freshers are finding
    numerous job opportunities in the textile industry of India.
    The Indian textile industry offers opportunities to fresher’s
    from various academic backgrounds as nature of job is
    diverse. A textile engineer must have an engineering
    background; either B.E. or B.Tech is preferred.
   The industry considers even the textile diploma for jobs. One
    more interesting demand for textile industry is the textile
    faculties which are in rise, for which a post graduate degree is
    mandatory.
   Textile sales executives is another opportunities required by
    the apparel stores where graduates are recruited from all
    disciplines.
                                11/2/2011                          15
Super spinning mills
Next to agriculture, Textile industries contributes to a larger
extent in india’s GDP
Let us see the rapid growth of textile industry with the export sales data of
SUPER SPINNING MILLS LTD which is headquartered in coimbatore, Tamiln




                                   11/2/2011                            16
Export sales of super spinning
mills ltd




This illustrates the rapid growth of textile industry in india.


                                      11/2/2011                   17
11/2/2011   18

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Economic environment of business

  • 2. Textile industry Group members : Magesh raja .J Prithiviraj .A Shariyank .B.V Vinu .R.V 11/2/2011 2
  • 3. History of textile industry  India has been well known for her textile goods since very ancient times.  In the early nineteenth century the modern textile industry took birth in India.  The first textile mill was established at Fort Gloster near Calcutta in 1818.  In 1850's the cotton textile industry, however, made its real beginning in Bombay.In the year 1854 the first cotton textile mill of Bombay was established by a Parsi cotton merchant then engaged in overseas and internal trade 11/2/2011 3
  • 4. The vast majority of the early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at home and Chinese and African markets.  The first cotton mill established in the year 1861 was at Ahmedabad, which was eventually to emerge as a rival centre to Bombay.  The cotton textile industry made rapid progress in the second half of the nineteenth century and by the end of the century there were 178 cotton textile mills. 11/2/2011 4
  • 5. Development  Indian Textile Industry has earned a unique place in our country. It is among one of the industries which were earliest to come into existence in India.  It accounted for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture.  This industry provides one of the most basic needs of people and holds importance; maintaining sustained growth for improving quality of life.  It has an image of self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing which forms a major contribution to the country's economy 11/2/2011 5
  • 6. Latest development  Indian Textile Industry covers 61 % of the international textile market and 22 % of the global market  Indian Textile Industry is known to be the 3rd largest manufacturer of cotton across the globe.  This industry of India claims to be the 2nd largest manufacturer as well as provider of cotton yarn and textiles in the world  India holds around 25 % share in the cotton yarn industry across the globe  India Textile Industry contributes to around 12 %of the world's production of cotton yarn and textile. 11/2/2011 6
  • 7. Several segments in textile industry:  Indian industry of Textiles can be divided into several segments, some of which can be listed as below:  Cotton Textiles  Silk Textiles  Woolen Textiles  Readymade Garments  Hand-crafted Textiles  Jute and Coir 11/2/2011 7
  • 8. Size of the industry  The Indian Textile Industry today has approximately 1200 medium to large scale textile mills in India. 20%of these mills are located in Coimbatore (Tamilnadu).  The industry has 34 million cotton textile spindles for manufacturing cotton yarn which account for 70 percent of India's textile exports.  Of the Indian textile yarn exports, almost 80 percent come from coarser yarns.  The knitting industry is concentrated in Tirupur (Tamilnadu) and Ludhiana (Punjab). Tirupur produces 60 percent of the country's total knitwear exports.  Knitted garments account for almost 32 percent of all exported garments. The major players include Nahar Spinning, Arun Processors and Jersey India. 11/2/2011 8
  • 9. Growth of indian textile industry  Growth along with the investment of an industry depends heavily on the economic health of the country. Indian economy grew rapidly during the fiscal year 2006-2007 posting a growth rate of 9.4% p.a. Not only this, India has been performing significantly in the last three years where its average yearly rate of growth has been estimated to be 8%. 11/2/2011 9
  • 10. Growth in textile industry 11/2/2011 10
  • 11. Major players  Top leading Companies: Some of the reputed names in the Textile companies in India are: Raymonds, Arvind Mills, Reliance Textiles, Vardhaman Spinning, Welspun India, Morarjee Mills, Century Textiles,Ginni Filaments Ltd, Mafatlal Textiles, S. Kumar Synfabs, Bombay Dyeing Ltd, BSL Ltd, Banswara Syntex, Grasim Industries, Oswal Knit India, Fabindia, Laksmi Mills, National Rayon Corp, Mysore Silk Factory and many more. 11/2/2011 11
  • 12. Total contribution to the economic sales  Indian textile industry is one of largest Industries in Indian Economy. In 2000-01, the textile and garment industries accounted for about 4% of GDP, 14%of industrial output, 18% of industrial employment and 27% of export earnings. Indian textile industry is significant in global context also, ranking second to China.  The Indian textile industry constitutes 14% to industrial production, 4% to the country's gross domestic product (GDP) and 17% to the country’s export earnings, according to the Annual Report 2009-10 of the Ministry of Textiles. 11/2/2011 12
  • 13. Domestic and Export share  According to the Indian Ministry of Textiles, the cumulative production of cloth during April’09- March’10 has increased by 8.3 % when compared to the same period of the previous year.  The total Indian textile exports have increased to US$ 18.6 billion during April’09-January’10, from US$ 17.7 billion during the same period of the previous year, registering an increase of 4.95 % in rupee terms.  Gradually the share of textile exports in total exports has increased to 12.36% during April’09- January’10, as per the Ministry of Textiles. 11/2/2011 13
  • 14. Contd..  During April-March 2009-10 textiles has registered a growth of 5.5% according to the Index of Industrial Production the data released by the Central Statistical Organization (CSO). Cotton, white wool, silk and man- made fibre textiles have registered a growth of 8.2 % while textile products including apparel have earned a growth of 8.5%. 11/2/2011 14
  • 15. Employment oppurtunities  Job opportunities are diverse in nature in the textile industry ranging from production, designing, distribution and sales. The need for manpower for the textile industry is growing to keep up with the growing demand; freshers are finding numerous job opportunities in the textile industry of India.  The Indian textile industry offers opportunities to fresher’s from various academic backgrounds as nature of job is diverse. A textile engineer must have an engineering background; either B.E. or B.Tech is preferred.  The industry considers even the textile diploma for jobs. One more interesting demand for textile industry is the textile faculties which are in rise, for which a post graduate degree is mandatory.  Textile sales executives is another opportunities required by the apparel stores where graduates are recruited from all disciplines. 11/2/2011 15
  • 16. Super spinning mills Next to agriculture, Textile industries contributes to a larger extent in india’s GDP Let us see the rapid growth of textile industry with the export sales data of SUPER SPINNING MILLS LTD which is headquartered in coimbatore, Tamiln 11/2/2011 16
  • 17. Export sales of super spinning mills ltd This illustrates the rapid growth of textile industry in india. 11/2/2011 17
  • 18. 11/2/2011 18

Hinweis der Redaktion

  1. The figure above shows total produce of Indian Textile Industry in fabric sector along with the produce in all the sub sectors under it. This highlights the fact that the total production of fabricated products by the Indian Textile Industry between the period 2002-2003 and 2004-2005 increased at a moderate rate from 41973 million square meters to 45378 million square meters. But after the MFA period (ie. after 01.01.2005), the same has increased from 45378 million sq. mts to 54260 million sq. mts between the period 2004-2005 and 2006-2007. Hence it is evident that the percentage increase in the fabric textile product during the period 2004-2005 and 2006-2007 has seen a rise of around 16.37% whereas it was only 7.5% during 2002-2003and 2004-2005. Thus, the competitive edge that was created after MFA is quite clear.Now, let us analyze the growth pattern evidenced in the spurn yarn sector.At the eve of the new millennium the total yarn production was hovering around 3160 million Kgs. The rate of growth in spurn yarn production evidenced a sluggish growth up to 2003-2004. But during the next two financial years this production again saw an increasing trend and during the 2006-2007 fiscal the same is expected to surpass the 3700 million Kg mark. The total production of Spun Yarn over the years 1999-2000 to 2006-2007 is summarized in the figure below. It highlights the fact that the growth rate of production in this sector was almost stagnant between the years 1999 and 2004. From the financial year 2004-2005, the total production of yarn geared up and is projected to do still better during the fiscal 2006-2007.