Cotton industry

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cotton industry

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Cotton industry

  1. 1. DEVELOPMENT OF COTTON INDUSTRY IN INDIA
  2. 2. TEXTILE INDUSTRY Contribution of T&C industry to India’s GDP 4% Contribution of T&C industry to India’s Industrial Production 14% Contribution of T&C industry to export earnings 12%
  3. 3.  Indian textile industry can be divided into several segments, some of which can be listed as below: • Cotton Textiles • Silk Textiles • Woolen Textiles • Readymade Garments • Hand-crafted Textiles • Jute and Coir
  4. 4.  Second largest provider of employment after agriculture.  Cotton textiles has registered a growth of 8.2% during April-September 2010-11, while wool, silk and man-made fibre textiles have registered a growth of 2.2 % while textile products including wearing apparel have registered a growth of 3 %.  India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5% to 8 % and reach US$ 80 billion by 2020.
  5. 5. MARKET SIZE  The Vision Statement for the textiles industry for the 11th Five Year Plan (2007-12) sees India securing a 7% share in the global textiles trade by 2012.  Currently, the Indian textiles industry is valued at US$ 55 billion, 64 % of which caters to domestic demand.  Total textile exports during April-March 2010- 11 stood at US$ 12.5 billion.
  6. 6. (US$ BILLION)
  7. 7. VALUE (US$ BILLION ) SHARE IN WORLD IMPORTS(%) ANNUAL PERCENTAGE CHANGE (%) 2010 1980 1990 2000 2010 2005-10 2008 2009 2010 EUROPEAN UNION 164 - - 41.0 44.7 5 16 -11 2 Extra –EU (27)imports 88 - - 19.8 23.8 6 10 -9 3 UNITED STATES 82 16.4 24 33.1 22.3 0 -3 -13 14 JAPAN 27 3.6 7.8 9.7 7.3 4 7 -1 5 HONK0NG 17 - - - - -2 -3 -16 7 CANADA 8 1.7 2.1 1.8 2.3 7 8 -8 10 Source : WTO –International Trade Statistics : LEADING IMPORTERSLEADING IMPORTERS
  8. 8. PRODUCTION CENTRES
  9. 9. EXPORT GROWTH 2005-06 2006-07 2007-08 2008-09 2009-10 APPAREL EXPORT 17.52 19.5 22.15 20.94 22.42 0 5 10 15 20 25 PERCENTAGE APPAREL EXPORT SOURCE : MINISTRY OF TEXTILES
  10. 10. REGION WISE EXPORTS (COMPARISON) 2010-11 2009-10 2008-09 Source : Ministry of Commerce
  11. 11. FOREIGN TRADE POLICY (2009-2014)  Duty free import of specified trimmings, embellishment etc shall be available @ 3% on exports of polyester made-ups in line with the facility available to sectors like textiles & leather.  It will promote export of products such as micro cloth, which has become popular in home textiles.  Readymade Garment sector granted enhanced support under MLFPS for a period of further 6 months from October, 2010 to March, 2011 for exports to 27 EU countries.
  12. 12. TEXTILE PRODUCTION CENTRES  Amritsar  Phagwara  Ludhiana  Bhiwani  Delhi  Faridabad  Modinagar  Kanpur  Kolkata  Ahmadabad  Surat  Mumbai  Bengaluru  Chennai  Coimbatore  Madurai  Raurkela  Tirrupur
  13. 13. MAJOR PLAYERS IN TEXTILE INDUSTRY  Welspun India ltd.  Vardhaman Group  Alok Industries ltd.  Raymond Industries  Arvind Mills Limited  Bombay Dyeing  Garden Silk Mills  ITC Lifestyle
  14. 14. TRENDS IN DOMESTIC MARKET  Domestic Apparel market growing at 10% p.a.  Urban Consumers increasingly seeking branded and lifestyle products.  Semi-urban and rural Indian markets are growing faster than expected.  Helpful demographic profile and increase in working female population
  15. 15. FACTS AND FIGURES  Current share in world export of textiles – 3.5 - 4 %.  Current share in world clothing export – 3 %.  Largest export segment – Readymade Garments.  The apparel sector supports 7 million people as a part of its workforce.
  16. 16. OPPORTUNITIES  Integration of information technology.  Emerging retail industry and malls.  Increased disposable income.
  17. 17. Strengths  India’s strong base in raw-materials  Cotton dominates the industry  Nearly 56% of yarn produced is made of cotton  Country produces nearly 23 varieties of cotton  India is the second largest player in the world cotton trade
  18. 18.  India’s position is strong vis-à-vis other countries in most raw materials  Largest producer of jute  Second largest producer of silk  Third largest producer of cotton, accounting for nearly 16% of global production  Third largest producer of cellulosic fibre/yarn  Fifth largest producer of synthetic fibres/yarn  Eleventh largest producer of wool
  19. 19.  Low cost skilled labour  Presence across the value chain  Reduced lead time  Growing domestic market
  20. 20. Weakness  Fragmented Industry  Historical Regulations  Lower Productivity and Cost Competitiveness  Technology Obsolescence
  21. 21. Opportunities  New Product Development  Stress on product development  New specialized fabrics  Investing in design centers and sampling labs  Increased use of CAD to develop designing capabilities  Investing in trend forecasting
  22. 22. Threats  Competition in domestic market  Ecological and social awareness  Regional alliances  China
  23. 23. Major Players of Indian Textile Industry  Arvind Mills  Raymonds  Reliance Textiles  Vardhaman Spinning  Welspun India
  24. 24. Impact on Indian Textile Industry  Decreasing demand in European and US markets  Decreasing demand for retail garments  Mills in Rajasthan and Tamil Nadu  reduced shifts (resulting in job loss)  cut down capacity
  25. 25.  India was losing out to countries like Bangladesh, Vietnam and Cambodia The chairman, Confederation of Indian Textile Industry (CITI), R.K. Dalmiya
  26. 26. Conclusion A huge window of opportunity has opened up for the Indian Cotton 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.
  27. 27. PRESENTED BY :- KUSH AGGARWAL VIII-A

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