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Textile industry ppt strategic management
♫   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
♫   India earns about 27% of its total foreign exchange through textile
    exports.
♫   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.
   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 1792, Samuel slater opened a yarn spinning mill in Pawtucket, Rhode
    Island, the first successful automated yarn spinning in the US.

   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. Manufacturing companies changed to marketing companies
Textile industry ppt strategic management
    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
Facts of Indian Textile Industry

    India is the second largest producer of cotton yarn.



               4% contribution to GDP

                2nd largest producer of cotton

               14% contribution to industrial production

               17% contribution to export earning

               Direct employment to more than 35 million people

               India is the largest in loom age Concluding handloom in the world and

                contributes about 61 percent to the world loom age.



   Strong and Diverse raw material base

    Second largest exporter of yarn

   . Globally competitive spinning industries.

    Strong presence in entire textile value chain.

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Textile industry ppt strategic management

  • 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 ♫ India earns about 27% of its total foreign exchange through textile exports. ♫ 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.
  • 3. 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 1792, Samuel slater opened a yarn spinning mill in Pawtucket, Rhode Island, the first successful automated yarn spinning in the US.  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. Manufacturing companies changed to marketing companies
  • 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. Facts of Indian Textile Industry India is the second largest producer of cotton yarn.  4% contribution to GDP  2nd largest producer of cotton  14% contribution to industrial production  17% contribution to export earning  Direct employment to more than 35 million people  India is the largest in loom age Concluding handloom in the world and contributes about 61 percent to the world loom age.  Strong and Diverse raw material base  Second largest exporter of yarn  . Globally competitive spinning industries.  Strong presence in entire textile value chain.
  • 7. 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. ♫ Indian garment industry is very diverse in size, manufacturing facility, type of apparel produced, quantity and quality of output, cost, and requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or exports markets.
  • 8. 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. ♫ Technology obsolescence despite measures such as TUFS. ♫ Low bargaining power in a customer-ruled market. ♫ India seriously lacks in trade pact memberships, which leads to restricted access to the other major markets. ♫ Indian labour laws are relatively unfavourable to the trades and there is an urgent need for labour reforms in India.
  • 9. 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. ♫ Increased use of CAD to develop designing capabilities and for developing greater options.
  • 10. 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
  • 11. Rivalry Government Regulation Textile Demand Policy Industry Conditions Cost & Location
  • 13.  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
  • 14.  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 . PERCENTAGE GROWTH IN TEXTILES
  • 15. 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. 2% 2% ready garment 18% cotton textile 4% 45% Man-made textiles handi crafts 18% silk & handloom Wool & 25% Woolen textiles others
  • 17. 30 25 20 15 26.8 22.1 21.2 22.4 10 19.1 17.6 5 0 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11
  • 18. Financial year Textile exports Total exports US$ Percentage of US$ Millions Millions 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. Company Business area Welspun India LTD Home tesxtile,bathrobes, terry towels Vardhman group Yarn,fabric,sewing threads, acrylic fibre Raymond Ltd. Tailored clothing,denim,shirting, woollen outerwear Bombay dyeing & Bed linen, towels, shirts, dresses, and saris in cotton manufacturing and polyster blend ltd.compqny ITC lifestyle Lifestyle market Reliance industries Fabric, formal men's wear Ltd.
  • 20. Highest incidence of sickness  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 Koria, China and Japan.  The cotton textile industry is frequently plagued by labour problems.  The industry faces number of other problems like power cuts, infrastructural  problems, lack of finance, exorbitant rise in raw material prices and production  costs etc.
  • 21. The government has offered health insurance coverage to 161.10 million weavers and ancillary workers under handloom weavers comprehensive scheme.  The CENTRAL COTTAGE INDUSTRIES CORPORATION OF INDIA and THE HANDICRAFTS AND HANDLOOMS EXPORT CORPORATION OF INDIA have developed a number of e- marketing platforms to simplify marketing issues.  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