3. INDIAN SILK INDUSTRY
India is the second largest silk producer of raw
silk and also has the distinction of being the
world’s largest consumer of pure silk
Exquisite brocade fabrics of Banaras, silks of
Karnataka, tie-and –dye and Patola of Gujarat
and Rajasthan, ikats from Orissa, fine
Bandhej and temple silks of Kancheepuram
and Tanjore
Only country in the world to produce all the four
known varieties of silk
4. SILK FABRIC AND ITS TYPES
One of the softest natural fabrics, highly lustrous
Made from cocoons of silk worms
Silk is known as Resham in eastern and north India, and Pattu in southern parts of
India
4 types of silk:
Mulberry silk is the most important and contributes as much as 90 per cent of world
production
Mulberry Eri Tussar Muga
5. Source: Statistics. (2013). Retrieved January 29, 2017, from http://inserco.org/en/?q=statistics
Global Silk Production (in metric tonnes)
Silk production in India
- Maximum production of Mulberry silk
- South India main producers
- Quite a lot of tasar silk
- Eri silk concentrated in North East
6. SILK PRODUCTS MANUFACTURED IN
INDIA
Natural silk yarns and fabrics, made
ups, readymade garments, silk
carpets, accessories, upholstery
Carpets The main destinations for
exports - US, Germany, UK and
France.
Readymade Garments The main
destinations for export of Readymade
garments from India are the US, UAE,
UK, Italy and France.
7. Vendors
Vendor Major Clients Products Raw Material
Mysore silk (KSIC)
Eastern silks private
limited
Chamundi Textiles
Mysore silk heritage
weave
Mostly exports
Aditya Birla Group,
Exports to China.
Saree
Silk yarns and fabrics.
Saree & Kurtis
T.Narasipura factory
and Open Market.
Karnataka
Mysore, Andhra
Pradesh
8. Vendor Major Clients Products Raw Material
Bharat silk mills pvt.
Limited
Mulberry silk limited
Universal textiles Pvt.
Limited
Exports, Raymond
group
Exports & Bombay
dyeing , Aditya Birla
Group.
Exports to US & Japan
Silk fabric & Apparel
Home furnishings &
Apparel
Home décor, draperies
Andhra Pradesh,
Karnataka
Karnataka
Karnataka, West
Bengal
9. PROCUREMENT PROCESS
GENERAL PROCESS
Start of season, collection of fabrics
Vendors source fabrics, classified by sort numbers
Initially 1-2m, sent for approval to buyers
If accepted, bulk order placed [ranged from 1000m to 20,000m]
3 months prior, pre-booking
If not matched with requirements [like GSM etc], fabric is made
Large number of vendors, each quote a price, best deal selected
10. PROCUREMENT PROCESS
CONDITIONS
Fabric lead time: 120 to 140 days [yarn dyed/ quality/ other specifics]
90 to 95 days [solids]
If bulk order promised and then cancelled, some amount has to be paid [debit
note]
SALESMAN SAMPLE [SMS]
Samples made in all sizes and colours, 10-12 pieces each style
Sent to retail outlets for trials by customers, pinned samples
11. PROCUREMENT PROCESS
SALESMAN SAMPLE [SMS]
Team gets intimation 1 week prior
Fabrics arranged on priority basis
Protosamples, size sets made in available fabrics
Pin protosample
Then SMS
Time: 1 month
By then fabrics and trims become in-house
Prior information sent to factory to keep line empty
12. PROCUREMENT PROCESS
MINIMUM ORDER QUANTITY
AOP Fabrics: 2500 to 5000m
Solids: 1500 to 3000m
Yarn dyed fabrics: 4000 to 8000m
CRITERIA FOR VENDOR SELECTION
Industry chooses vendors
Whoever is ready to negotiate [price based]
Quality, GSM requirements etc
13. PROCUREMENT PROCESS
COSTING
Marker checked for fabric consumption, costing done for largest size
Check timeline before sending final price to buyers
Cross checked with Bangladesh for lowest pricing possible with required profit
margin, cross checked with competing mills
Mark up on fabric: generally consumption + 5% [includes predicted wastage and
profit]
12 rupees is added as transportation cost per meter by default.
Mark ups added on individual sections like fabrics, finishes, trims etc.
DMM decides final mark-up if senior merchandiser is not satisfied
14. MADURA FASHIONS LTD
ADITYA BIRLA GROUP
VAN HUESEN | LOUIS PHILIPPE | ALLEN SOLLY | PEOPLE | PANTALOONS | PETER
ENGLAND
15. INDUSTRY EXAMPLE: MADURA
FASHIONS LTD
PRODUCT: Women’s Silk Blouse
Buyer/Brand: Allen Solly
Type of silk: Mulberry
Consumption: 1.5 mtrs
Vendor: Mulberry Silks International Ltd
Location: Bommasandra, Bengaluru
Reason: Best deal wrt price
Cost price: Rs. 300/- per metre
Mark up on fabric= 5%( Rs.472.5)
Retail price = Rs. 2.5k onwards
% weight of fabric in the final retail
price=18.88%
17. INDUSTRY EXAMPLE: RELIANCE
GROUP OF INDUSTRIES
PRODUCT: Women’s Silk Skirt Buyer/Brand: Reliance Trends
Type of silk: Raw silk/dupion silk
Consumption: 4 mtrs
Vendor: Sharda Group
Location: Nagpur
Reason: Best deal wrt price and GSM
Cost price of Fabric: Rs. 125/- per metre
Mark up on fabric= 5%( Rs.525)
Final Retail price = Rs. 1200 onwards
% weight of fabric in the final retail price=
43.75%
18. SHAHI EXPORTS PVT LTD
FARIDABAD, BANGALORE
MAINLY INTERNATIONAL CLIENTS BASED IN ITALY, UK ETC
19. INDUSTRY EXAMPLE: SHAHI EXPORTS
PRODUCT: Silk Cushion Cover
Buyer/Brand: Harlequin, UK
Type of silk: Jacquard embroidered
Consumption: 80cm/cushion (small)
Vendor: RMP India
Location: New Delhi
Reason: Best deal wrt price and GSM
Cost price of fabric: Rs. 400/- per metre
Mark up on fabric= 5%( Rs.336)
Retail price = Rs. 1314 ( 18 pounds) onwards
% weight of fabric in the final retail price=25.57%
21. INDUSTRY EXAMPLE: NALLI SILKS
PRODUCT: Silk Saree
Buyer/Brand: Nalli’s
Type of silk: Tussar Silk
Consumption: 6 mtrs
Vendor: Reka exports
Location: Chennai, India
Reason: In-house manufacturing, close location,
best quality
Cost price: Rs. 400/- per metre
Mark up on fabric= 5%( Rs.2520)
Retail price = Rs. 7k onwards
% weight of fabric in the final retail price= 36%
23. CONCLUSION/ LEARNING OUTCOMES
Procurement process knowledge
Time taken to manufacture
Interaction with merchandisers
Differences in cost and selling price
Depth of the garment industry
24. BIBLIOGRAPHY/REFERENCES
Industry:
Ms. Shruti Ojha- Junior Merchandiser, previously at Shahi Exports, now at Madura Fashions
Ms. Roshni Chakrapani- Designer, former Junior Designer at Karle Exports
Others:
Statistics. (2013). Retrieved January 29, 2017, from http://inserco.org/en/?q=statistics
Infomedia, T. (2015). Pure silk manufacturers, suppliers, wholesalers & exporters in Chennai,
Tamil Nadu, India. Retrieved January 29, 2017, from
http://www.textileinfomedia.com/chennai/pure-silk.htm
Nalli Silks. Retrieved January 29, 2017, from http://chennaibest.com/e-profile/nalli-silks/
Retrieved January 29, 2017, from http://www.khemchandjain.com/price-list.htm
KSIC: Mysore Silks, grandeur of Mysore. Retrieved January 29, 2017, from
http://www.ksicsilk.com/Web/MysoreFactory
