The document analyzes the competitiveness of the Indian textile industry compared to its neighboring countries. It discusses factors like labor costs, power costs, interest rates, taxes, export/import procedures, transportation costs, and productivity levels. It finds that while India has higher labor costs than countries like Bangladesh and Vietnam, its labor productivity is also lower. Power availability and costs are also issues. It conducts a SWOT analysis and examines the strengths and weaknesses of the Indian textile industry compared to countries such as China, Bangladesh, and Sri Lanka. The document samples 20 textile exporters in Ludhiana, India to understand the technologies they use, hindrances faced, and which countries provide the biggest competitive threats.

1. Analysis of competiveness of Indian Textile Industry with its neighboring countries Under the guidance of : Mr. GautamBansal Presented by: ManpreetCheema MBA-IB

2. Introduction About the Company

3. Envision Exports Pvt. Ltd. is in operation since 1994, with its head office in Ludhiana (India) and an associate office in Bangladesh. The company is engaged in Textile Sourcing Business of Fibers, Yarns, and garments

4. Mission: To assimilate knowledge, To develop capabilities, & to manage collective enterprise to profitably tap global commercial advantages.

5. Business The business is basically a servicing and sourcing solution for textile needs, meeting the demands and requirements of the customers from all over the world.

6. Services To give complete yarns & fabrics sourcing for all varieties, adding to customer’s convenience. To provide weekly/ fortnightly market information . To provide complete sampling support to all of their customers. They have a dedicated desk for shipment follow - ups. Customers are updated through SMS, E-Mailing & can track shipments with a personal username & password over their website

7. Markets The company is only a middleman firm, taking products from their Suppliers here at Ludhiana and supplying their products to their precious customers worldwide.

8. SWOT Analysis

9. Envision Business Growth in the Past ten Years:

10. Customers The company has a regular base of customers in Korea, China, Egypt, Singapore and Bangladesh. All their prestigious customers are working for Top end final buyers like HNM(Hennes & Mauritz), Zara, New Look, GAP, J.C. Penny, Tesco etc.

11. Major suppliers Yarn suppliers Abhishek Industries Ltd.., India Aarti International Ltd.., India Garg Acrylic, India GTN Industries, India etc Fabrics & Garments suppliers Anowara knitting Ltd., Bangladesh Fakir apparels Ltd., Bangladesh Metro knitting Ltd., Bangladesh Northern corporation, Bangladesh Tung Hai Sweaters, Ltd.., Bangladesh Starlight Sweaters, Bangladesh

12. Organization chart

14. DEPARTMENTS: Managerial department Mr. KanwalKhurana: He is the director and heads the overall organization. He administers the organization and sees the overall functions. Marketing Department Mr. JitinSethi. His main focus is how to develop a new market. He coordinates the working of various suppliers and focus on creating new customers. He keeps an eye on all the happenings around the market

15. Shipment Department: ShallyKapoor: She handles all the suppliers’ offers. She focuses on various contracts of the company and manages the existing customers of the company Post Shipment: Mr. Shubham Sharma: - He handles all the commercial executions, post contracts. He also takes care of all the procedures related to LC mainly on its follow up and various commissions. Mr. VibhanshuBhasin: He deals with all the logistic functions and takes care of all the shipment.

16. Technical Department: Mr. RishabAhuja: He takes care of all activities related to inspections. He handles all the complaints related to quality. Accounts: Mr. Shambhu Gupta handles the activities related to accounts and takes care of banking, accounting and taxation. He keeps all the accounts of the company and maintains office security and insurance. BalwinderKaur: She handles all the office administration and cost control systems. She deals with all liaison work and relation support services.

17. Financial Statement Analysis Ratio Analysis is one of the most powerful tools of financial analysis. It is used as a device to analyze and interpret the financial health of an enterprise

18. Current Ratio= CurrentAssets/CurrentLiabilities Firm’s ability to pay its current liabilities out of its current assets. Since current ratio is less than 2 i.e. it is 0.67 in 2007, so it is not ideal for the concern, difficulty may be experienced in the payment of current liabilities and day to day operations may suffer.

19. Operating Leverage Ratio: Contribution/EBIT firm’s ability to bear its operating expenses in the short run. Lower the ratio, better it is

20. Operating Cash Flow Ratio:-= Net cash flow from operating activities/Current Liabilities the cash availability from operating activities towards meeting the current liabilities and obligations. Not adequate. Company just has incorporated on 04th Jan, 2008 and funded by large amount of loan to which includes in current liabilities and having a major hold on company assets

21. Net Profit Ratio:- Net Profit after Tax/Net Sales*100 Shows the efficiency of the management in every activity of the concern Higher the ratio, better it is because it gives the idea of improved efficiency of the concern.

22. Financial Leverage:- = EBIT/EBT When a firm procures debt capital to finance its needs, it is said to have a financial leverage Good. If the rate of return on investment of a firm is higher than the cost of debt capital, it is said to have a favorable financial leverage, otherwise it has a unfavorable financial leverage

23. INTRODUCTION TO INDIAN TEXTILE INDUSTRY

25. The industry contributes 4% to the country’s GDP and 14% to the country’s industrial production.

26. Employs nearly 35 million people and after agriculture, is the second-highest employer in the country.

27. Contributed 12% to the foreign exchange earnings.

28. Value-wise share of various products in total T&C exports by India (2007-08)

29. Share of major export markets in total T&C exports by India (2007-08 Value-wise)

30. Competitive Assessment of Indian Textile industry vis-a-vis other countries

31. Labor cost India has higher labor cost as compared to Bangladesh, Vietnam and Sri Lanka. Moreover, India has lower labor productivity as compared to other countries.Labor productivity in China and India surged ahead of other nations in the Asian region between 2007-2009, expanding by 8.7 per cent and 4 per cent respectively.

34. Corporate Tax Corporate tax refers to a tax levied by various jurisdictions on the profits made by companies or associations.

35. Exim procedures Documents preparation and Customs clearance take around 10-12 days for Indian companies.

37. Inadequate road and rail infrastructureCosts in US $

38. Productivity Comparison: Productivity in China, Turkey and Brazil is over 1 tone / ha. In India it is only about 0.3 tones / ha Supply chain in this industry: highly fragmented Average delivery lead times: 45-60 days International lead delivery times : 30-35 days.

39. Countries and their positive and negative aspects with regard to textiles

40. Title: “Analysis of competiveness of Indian Textile Industry with its neighboring countries”

42. to study the extent of modernization of Indian textile machinery

43. to study the various hindrances being faced by this sector

45. Sample Unit: Any singlespinning company in Ludhiana which is into export business. Sampling technique: Convenience of time and links Sample Size: 20 exporters Sample type: Area Sampling: Sample area of the study is Ludhiana Source of Data Primary: questionnaires and e-mails Secondary : websites and journals.

47. The Sample size has been restricted to 20.

48. The analysis could have been made much more accurate, if the project be done in other cities also.

49. The respondents were busy or for some other reasons, did not show much attention filing the questionnaire; hence the chances of biasness could be possible.

51. Fig 4.1 Year of incorporation N=20

52. Fig 4.2 Title: The sales trend of your company N=20

53. Fig 4.3.1 Title: Indian textile industry progressive N=20

54. Fig 4.3.2 Title: Indian textile industry aggressive N=20

55. Fig 4.4 Title: Foresee the growth of Indian textile industry as compared to its neighbors N=20

56. Fig 4.5 Title: Are you using any latest technology in your company? If yes please specify N=20

57. Fig:4.6 Title: Effect of using those technologies in your company N=20

58. Fig:4.7 Title: Do you think technology adopted by Indian companies is competitive enough as compared to its neighbors N=20

59. Fig: 4.8 Title: Companies you are aware of N=20

60. Fig:4.9 Title: Rank the latest machinery provided by these companies according to your preferences to adopt them starting from 1 N=20

61. Fig: 4.10 Title: Hindrances in exporting yarn to neighboring countries N=20

62. Fig: 4.11 Title: country which is giving a huge competition to Indian textile industry N=20

63. Fig: 4.12 Title: policies framed by Indian government are posing a challenge to your business N=20

64. Fig 4.13 Title: Effect of these policies on your business N=20

65. Fig: 4.14 Title: Indian government is supportive enough to boost textile industry as compared to its neighbors N=20

66. Fig: 4.15.1 Title: strengths of Indian textile industry N=20

67. Fig: 4.15.2 Title: Weakness N=20

68. Fig: 4.16 Title: factors affecting the competiveness of this sector N=20

69. Fig: 4.17 Title: Indian textile industry is competitive enough to beat its competitors N=20

71. Most of the companies are using the latest technologies from big companies like LMW, Rieter etc. they are buying the technologies wherever it is available. But that is on the individual basis but in the whole Indian textile sector lags behind from many countries in technology improvement.

75. Adopting rapidly changing technologies and efficient processes.

76. Innovation

77. The weak links in the Indian conventional industry such as weaving and finishing have to be strengthened

78. Government should take steps to reduce the cost disadvantage of Indian T&C manufacturers.