indian readymade garment industry

1. Indian Readymade Garment
Industry
- Past, Present and Future
-Presented by
Zainab Shafi
2nd year B.Sc (Hons) in TCFS
Roll No. - 46

2. The Indian Readymade Garment sector is the second largest provider of
employment after agriculture. Thus, the growth and all round development
of this industry has a direct bearing on the improvement of India's
economy
The Indian Readymade Garment industry has made a major contribution
to the national economy in terms of net foreign exchange earnings and
contribution to the GDP .
Readymade Garment exports from India will touch US$ 185 billion by the
year 2024-25.
Indian Readymade Garment provides direct employment to over 45
million people
 A huge Garment industry growing at the rate of 30% per annum.
Distributed equally across all major cities of India. It has an output of about
7% of total industrial production and market capitalization is at a rate of
20% per annum.

3. 19th century saw the emergence of ready-made garment industry in the world,
Post World War-I, the rapid rise of the sector began.
The year 1920 is considered to be the sunrise year for this sector.
 During 1960s & 1970s, Indians emigrants acted as import agents opening up
huge export market for India.
 Need mass production, in the absence of large corporates led to the emergence of
a fragmented & small units, a trend that continues till today(Small and Medium
scale industry).
The annual plan for 2007-08 formulated by Indian government to promote the
garment sector, includes schemes for attracting foreign direct investments, brand
promotion through public- private partnership (PPP) for global acceptance of
Indian brands, trade centers for facilitating business and image building, fashion
hubs as a stable marketplace for Indian fashion, common compliance code for
creating apparel standards for the benefit of buyers, and training centers for
developing human resources.
The total textile exports during 2012-13 was valued at Rs 137619.44 crore as
against Rs 129829.30 crore during the corresponding period of financial year 2011-
12, registering an increase of 6.00 percent in rupee terms.
Export of garment product from India has increased steadily over the last few
years, particularly after 2004 when textile exports quota was discontinued.

4. Today the textile and garments industry plays a significant role in the
economy.
It is one of the largest and the most important sectors of Indian economy
in terms of output, foreign exchange earnings and employment.
The sector employs 45 million persons. Of this, textile segment alone
accounts for 29 million and the clothing industry accounts for the
remaining 16 million people.
It contributes nearly 20 per cent to the country’s total export earnings.
Indian garment industry is amongst the top players in terms of export
(Currently in the 2nd Position) main competitors are Bangladesh & China.
 Bulk of India’s exports go to the US, Canada and the European Union.
 Indian exports have become competitive, thanks partly to the
government’s restrictions ( Multi Fibre Agreement MLA ) on exports of
cotton and cotton yarn which lowered the raw material prices

5.  Emerging retail industry and malls.
 Elimination of quota restriction leads to greater market.
Growth rate of domestic textile industry.
 Shifting towards Indian branded readymade garment.
Product development and diversification.
Indian Readymade Garment Industry share in the nation’s GDP is 6%
and 13% in exports.
Taking innovative measures in partnership with International industry
and learning from experience, India could aspire to achieve 20% growth in
exports over the next decade. In any case the achievement of 15% growth
rate in exports should be feasible.
 In the domestic market, sustaining an annual growth rate of 12% should
also not be difficult.
 This implies that with a 12% CAGR in domestic sales the industry should
reach a production level of US$ 350 billion by 2024-25 from the current
level of about US$ 100 billion for the domestic market.

6. Year Domestic Industry($ Billion)
2016 82.6
2017 88.4
2018 94.5
2019 101.2
2020 108.2
2021 115.8
2022 123.9
2023 132.6

7. Category Range Some Brands
Formal Wear Suits, Trouser, Shirts,
Jackets, Blazers, Neckties
Allen Solly, Arrow, Colour
Plus, Louis Philippe, Peter
England, Park Avenue,
Van Heusen
Casual Wear Shirts, Trousers, Jeans,
Tee Shirts, Shorts
Lee, Parx, Weekender,
Wear-house, Benetton
Kids Wear Shirts, Frocks, Jeans,
Shirts, Shorts
Ruf ‘n’ Tuf, Lee,
Weekender, Wear-house
Ladies Wear Shirts, Tops, Salwar
Kameez, Sarees
Biba, W , Melange, Global
Desi
Under Garment Knitwear Vest, Briefs, etc Jockey, Byford, Tantex

8. Raymond
Ltd
Loyal Group
Mandhana
Industries
Ltd
Alok
Industries
Ltd
Bombay
Rayon
Fashion Ltd

9. Size of the Industry has trade growing at the rate of 30% per annum
Geographical Distribution is all major cities in India
Output per annum is 7% share of industrial production
Market Capitalization Growing at 20% rate.
 Availability of low cost and skilled manpower provides competitive
advantage to industry.
Availability of large varieties of cotton fibre and has a fast growing
synthetic fibre industry.
 India is one of the largest exporters of yarn in international market.
 Growing economy and potential domestic and international market.
Industry has large and diversified segments that provide a wide variety of
products.

10. Manufacturing
Outsource
Manufacturing
Own
Manufacturing
Branding Stage
Brand Name
Sale To Brand
Owner or
Purchase Brand
Distribution Store
Distribution
through own
store
Distribution
through others

11. Exposure to Toxic Chemicals
High Noise Levels
Poor Working Conditions
Working Conditions Can Cause Bad Ergonomics
Cotton Dust Can Cause Breathing Problems
Waste in the Industry
Sumangali System in the South of the Country and other slave like practices
bonded and child labour.
Prevalence of factories operating in the informal sector: lack of legally binding
employer relationships, no access to legal protection for workers, lack of Trade
Union protection, collective bargaining, and grievance mechanisms.
No payment of minimum/ living wage, and other employment related benefits
Discrimination: Caste and Gender based.

12. Nepal
Bangladesh
Pakistan
China
Sri Lanka
Vietnam
Nigeria
Egypt
Japan

13.  The Government of India has started promotion of its ‘India Handloom’ initiative on
social media like Facebook, Twitter and Instagram with a view to connect with
customers, especially youth, in order to promote high quality handloom products as
India Handloom Brand.
The Ministry of Textiles launched Technology Mission on Technical Textiles (TMTT) ,
The objective of TMTT is to promote technical textiles by helping to develop world class
testing facilities at eight Centres of Excellence across India, promoting indigenous
development of prototypes, providing support for domestic and export market
development and encouraging contract research.
Skill development under Integrated Skill Development Scheme will provided training
to 1.5 Million people to coverall sub-sectors of textiles such as Textile and Apparel,
Handicrafts, Handlooms, Jute and Sericulture.
Concept of Zero defect and Zero effect approach.
Under the Make in India initiative, investment opportunities for foreign companies
and entrepreneurs are available across the entire value chain of garments, and retail
brands.
Already several foreign companies have invested in India. These include textile
machinery manufacturers Rieter and Trutzschler; and apparel retailers like Zara and
Mango (both from Spain), Promod (France), Benetton (Italy), etc.
The government has also proposed to extend 24/7 customs clearance facility at 13
airports and 14 sea ports resulting in faster clearance of import and export cargo.

14. Customers prefer branded readymade garments . Exporting units
maintaining quality and also to have greater control over the production
process, the portion of work subcontracted gradually declines. The
profitability trends, working of garment units, dependence of garments
industries on imports are some of the areas which have also been touched
upon
Differences in costs between exported and those produced for the domestic
markets do not always match with differences in technology and skill of
workers between the two segments, nevertheless large gaps exist in the
quality of the fabric, designs and colours, processes like dyeing, printing,
compacting and so on that involves higher costs. India enjoys good
reputation internationally for its engineering skills. Hence, a major
attraction for European and Japanese textile and clothing equipment
manufacturers to setup shop in India
THANK YOU, Any questions?