Key players: Indian RMG industry and
nature of competition
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
Porter’s Diamond Framework
• Abundant Raw &
• Low Technology
• High Operating Cost
• Complete Value Chain
• Low Quality Production
• Technical Delays &
Ineffective Supply Chain
• Fast Growing Market
• Continuous Demand
• Increase in Export
• Increasing Rivalry Gaining competitive
• Textile Parks
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
Contribution of Readymade Garments to
India’s Foreign Trade
• 1991 liberalization of Indian Economy
• Contributors: Electronics (27%), Gems and Jewelry (16%) and Readymade
• 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.
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).
• 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
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
Future perspective of RMG
• The competitive market will lead to price fight especially
from countries like Pakistan and similar cost structured
• Reasons for persistent demand:
1. Increase in disposal income
2. Growth of the Economy
3. Aesthetical appeal
• 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.