Textile Industry


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Textile Industry

  1. 1. Indian Textile Industry Syndicate I
  2. 2. Multi - Fibre Arrangement <ul><li>Quotas on imports of textile from more competitive developing countries. </li></ul><ul><li>Dismantling of quota on Jan 1,2005 </li></ul><ul><ul><li>Increased opportunities </li></ul></ul><ul><ul><li>Competition </li></ul></ul>
  3. 4. Perspective of the Economy <ul><li>Total market size (2006-07): </li></ul><ul><ul><li>Exports: USD 18.73 bn </li></ul></ul><ul><li>Strong contribution to Indian Economy </li></ul><ul><ul><li>14% contribution to industrial production </li></ul></ul><ul><ul><li>4% contribution to GDP </li></ul></ul><ul><ul><li>17% contribution to export earnings </li></ul></ul><ul><ul><li>Direct employment to more than 35 million people </li></ul></ul>
  4. 5. <ul><li>Sector is diverse </li></ul><ul><ul><li>hand-spun and hand woven sector </li></ul></ul><ul><ul><li>capital intensive, sophisticated mill sector </li></ul></ul>
  5. 6. Segments <ul><li>Organized Cotton/ Man-Made Fibre Textiles Mill Industry </li></ul><ul><li>Man-made Fibre/ Filament Yarn Industry </li></ul><ul><li>Wool and Woolens Textiles Industry </li></ul><ul><li>Sericulture and Silk Textiles Industry </li></ul><ul><li>Handlooms </li></ul><ul><li>Handicrafts </li></ul><ul><li>Jute and Jute Textiles Industry </li></ul><ul><li>Textiles Exports </li></ul>
  6. 7. SWOT Analysis
  7. 8. Strengths <ul><li>India’s strong base in raw-materials </li></ul><ul><ul><li>Cotton dominates the industry </li></ul></ul><ul><ul><ul><li>Nearly 56% of yarn produced is made of cotton </li></ul></ul></ul><ul><ul><ul><li>Country produces nearly 23 varieties of cotton </li></ul></ul></ul><ul><ul><ul><li>India is the second largest player in the world cotton trade </li></ul></ul></ul>
  8. 9. <ul><ul><li>India’s position is strong vis-à-vis other countries in most raw materials </li></ul></ul><ul><ul><ul><li>Largest producer of jute </li></ul></ul></ul><ul><ul><ul><li>Second largest producer of silk </li></ul></ul></ul><ul><ul><ul><li>Third largest producer of cotton, accounting for nearly 16% of global production </li></ul></ul></ul><ul><ul><ul><li>Third largest producer of cellulosic fibre/yarn </li></ul></ul></ul><ul><ul><ul><li>Fifth largest producer of synthetic fibres/yarn </li></ul></ul></ul><ul><ul><ul><li>Eleventh largest producer of wool </li></ul></ul></ul>
  9. 10. <ul><li>Low cost skilled labour </li></ul><ul><li>Presence across the value chain </li></ul><ul><ul><li>Reduced lead time </li></ul></ul><ul><li>Growing domestic market </li></ul>
  10. 11. Weakness <ul><li>Fragmented Industry </li></ul><ul><li>Historical Regulations </li></ul><ul><li>Lower Productivity and Cost Competitiveness </li></ul><ul><li>Technology Obsolescence </li></ul>
  11. 12. Opportunities <ul><li>New Product Development </li></ul><ul><ul><li>Stress on product development </li></ul></ul><ul><ul><ul><li>New specialized fabrics </li></ul></ul></ul><ul><ul><ul><li>Investing in design centers and sampling labs </li></ul></ul></ul><ul><ul><li>Increased use of CAD to develop designing capabilities </li></ul></ul><ul><ul><li>Investing in trend forecasting </li></ul></ul>
  12. 13. Threats <ul><li>Competition in domestic market </li></ul><ul><li>Ecological and social awareness </li></ul><ul><li>Regional alliances </li></ul><ul><li>China </li></ul>
  13. 14. Major Players of Indian Textile Industry <ul><li>Arvind Mills </li></ul><ul><li>Raymonds </li></ul><ul><li>Reliance Textiles </li></ul><ul><li>Vardhaman Spinning </li></ul><ul><li>Welspun India </li></ul>
  14. 15. Comments <ul><li>&quot;We need to maintain and manufacture high quality products. We have timely deliveries because India is recognized as major player in international textile market. So, if we maintain our competitiveness, we'll be able to regain some markets, we have lost to China,&quot; </li></ul><ul><ul><ul><ul><ul><li>K V Srinivasan, Chairman, South India Mills </li></ul></ul></ul></ul></ul>
  15. 16. The Meltdown <ul><li>In US </li></ul><ul><ul><li>Rising Commodity Prices </li></ul></ul><ul><ul><li>Credit Crunch </li></ul></ul>
  16. 17. Impact on Indian Textile Industry <ul><li>Decreasing demand in European and US markets </li></ul><ul><li>Decreasing demand for retail garments </li></ul><ul><li>Mills in Rajasthan and Tamil Nadu </li></ul><ul><ul><li>reduced shifts (resulting in job loss) </li></ul></ul><ul><ul><li>cut down capacity </li></ul></ul>
  17. 18. <ul><li>India was losing out to countries like Bangladesh, Vietnam and Cambodia </li></ul><ul><ul><ul><ul><ul><li>The chairman, Confederation of Indian Textile Industry (CITI), R.K. Dalmiya </li></ul></ul></ul></ul></ul>
  18. 19. Conclusion <ul><li>A huge window of opportunity has opened up for the Indian textile industry which is fast closing up. Various players need to get act together. It’s now for players to make investments in building the capacities and making them integrated manufacturers. They need to invest more in R&D. This is the only way they can compete with the Chinese dragon. </li></ul>