SWOT analysis of hosiery industry in India. Indian Knit wear industry

1. SWOT analysis of “Hosiery
Industry of India”
Presented by
KSH. Dolly Devi
M.Sc. (ATS) 1st Year 2nd Semester
College of Community Science
Punjab Agricultural University, Ludhiana, Punjab

2. INTRODUCTION
• The history of hosiery industry dates back to
around 3000 BC.
• The diversity of fibres found in India, intricate
weaving on its state-of-art manual looms and its
organic dyes attracted buyers from all over the
world for centuries.
• The idea was initially ingrained and associated
with leg wear only, but with innovation and
understanding the same received an upward
thrust and any knitted piece of underclothing
began to be grouped under the category –
Hosiery.
• Indian knitwear industry is more than a century
old. 2Dolly KSH 2020

3. • Calcutta, the cultural capital of India, and the
commercial capital of East India owns the credit of
giving verve to this industry.
• The first knitting unit in India was established in
1893 “The Oriental Hosiery Company Ltd” near
Khiderpore Docks in Calcutta.
• Ludhiana, Tirupur, Delhi, Bangalore, and Mumbai are
the important knitwear centres
• Key players are:
– Monte Carlo Fashions Limited
– Nahar Spinning Mills Ltd
– Abhinandan Knits Pvt Ltd
– KPR Mill Limited
– SEL Group
 India ranked as 15th largest exporter of hosiery product
(2018). China ranked first (44.55%) followed by Turkey
and Italy (2018)
3Dolly KSH 2020

4. IMPORTANCE OF HOSIERY INDUSTRY IN INDIA
• Textile accounts for 30% of the total exports of
the country
– 45% knitwear
– 50 % domestic apparel market
• The knitwear market is expected to grow at a
promising @9% over the next decade to reach Rs
1,61,700 crore from the market size of Rs 68,932
crore. (2017)
• Tirupur is the most important export cluster,
followed by Ludhiana.
• More than 90% of the garment is manufactured in
Tirupur.
4Dolly KSH 2020

5. • Tirupur exported approximately Rs 850 crore
worth of knitted apparels almost 40% of the
total knitted apparel exports from India.
• Main markets of exports for India are: US,
Canada, Europe, Australia, Japan, and the
Middle East.
• The major contributors to the knitwear market
are innerwear and t-shirts accounting for 34
percent and 28 percent of the market
respectively.
5Dolly KSH 2020

6. SWOT ANALYSIS
6Dolly KSH 2020

7. STRENGTH
• Availability of raw materials
• Increase in demand:
– being preferred comparatively over woven
garments due to their virtues of comfort,
stretchability, easy care, and the pattern of
being built within the knitted fabric structure.
– growth is increasing adaptation to casual wear
by Indians.
• Created a niche market : India has carved a niche
for its knitted apparels in the global market on the
foundation of its quality, competitive pricing, and
innovative styles.
• Low-priced unbranded products: which contribute
immensely to total value sales.
• Low labor cost
7Dolly KSH 2020

8. WEAKNESS
• Severe power crisis
• Low productivity: A key weakness of the Indian
textile sector due to unskilled labor, which is
almost three times lower than in China
• Poor infrastructure and technology
• Less organized industry – many manufacturers
tend to be unregistered and smaller than in
competing countries, limiting the use of modern
production technologies and the capacity to
take on large orders.
• More focus on cotton garments- limits its
access to the winter clothes market, while
buyers perceive the country as slower and less
reliable than China or Vietnam.
8Dolly KSH 2020

9. OPPORTUNITY
• Rise of Industry 4.0 production methods: It is a
transformation that makes it possible to gather
and analyze data across machines, enabling
faster, more flexible, and more efficient processes
to produce higher-quality goods at reduced costs.
• The Union Ministry of Textiles has launched a
comprehensive scheme for the development of
knitting and knitwear sector under “PowerTex
India scheme” in 2019 key components includes:
– Modernisation and upgradation of existing
power loom service Centers
– Common Facility Centre Scheme
–
9Dolly KSH 2020

10. – Group Work Shed Scheme.
– Creation of New Service Centres on Public
Private Partnership (PPP) model by industry and
association in the knitting and knitwear clusters.
• Federation of Hosiery Manufacturers’ Association of
India (FOHMA)
– was established in the early 70’s and have
since been working concertedly to ensure
equitable growth and sustained development
for the Indian hosiery industry.
• The major driving factor of knitwear market are
fashion, media, and health and rise in the number of
women spenders with high disposable income are
boosting the knitwear market.
10Dolly KSH 2020

11. THREATS
• High competition: The country faces fierce
competition from the West European markets, Hong
Kong, Bangkok, Taiwan and Bangladesh.
• Rising cotton and yarn prices
• Removal of excise duty on branded garments in
Bangladesh.
• No import duty on goods imported from Bangladesh
to India. (Importing Chinese goods to Bangladesh
which are being exported to India)
11Dolly KSH 2020

12. • High level of outsourcing had prevented the
industry from undertaking large scale
production thereby restricting scale economies.
• Strict emission norms were implemented by
Central Pollution Control Board (CPCB) on dying
units. The firms were asked to install Effluent
Treatment Plants (ETP) to avoid environmental
pollution.
12Dolly KSH 2020

13. Conclusions
• India’s total textile industry market size is
only one-fourth of that of China and to
bridging this gap requires concrete
planning and implementation.
• The Government needs to take a planned
policy decision to face competition with
china.
13Dolly KSH 2020

14. THANK YOU
14Dolly KSH 2020