The document provides an overview of the Indian garment industry. It discusses that the industry contributes significantly to India's economy through industrial production, GDP, and exports. The industry is concentrated in eight major apparel clusters across India and exports textiles and clothing to over 100 countries, with the US and EU being the largest export destinations. It then analyzes the strengths, weaknesses, opportunities, and threats facing the Indian garment industry. Key strengths include low labor costs and raw material availability. Weaknesses include industry fragmentation and lower productivity compared to competitors. Growing domestic demand and rising incomes present opportunities. Threats include global competition and currency fluctuations.

1. Introduction to Indian
Garment Industry
By ANKUR MAKHIJA –NITRA, Ghaziabad

2. APPAREL INDUSTRY-an
overview
• The Indian textiles industry plays an important role in the
country’s economic growth
• It contributes around 14% to industrial production, 4% to GDP
and 17% to the country’s export earnings
• One of the key trends seen in the liberalised post-quota
period is that India emerged a major sourcing destination for
new players.
• The industry’s size is estimated at US$ 55 bn with 64%
companies catering to domestic demand. The textiles industry
provides direct employment to more than 35 mn people and
indirect employment to 47 mn.

3. Apparel clusters in India
• The apparel industry is concentrated mainly in eight clusters:
• Tirupur,
• Ludhiana
• Bengaluru
• Delhi/Noida/Gurgao
• Mumbai
• Kolkata
• Jaipur
• Indore.
While Tirupur, Ludhiana and Kolkata are major centres for
knitwear, Bengaluru, Delhi/Noida/Gurgaon, Mumbai,
Jaipur and Indore are major hubs for woven garments.

4. Export Scenario
• India’s share in global T&C trade: 4% in textiles and 2.8% in
clothing
• India’s rank in world trade: 7th in textiles and 6th in clothing
• Share in the country’s total exports basket: 12%
• Readymade garments share: nearly 50% of total textile
exports
• India’s textiles products are exported to over 100 countries
• Two-third of India’s textiles are exported to the US and EU
• Other major export destinations include Canada, UAE, Japan,
Saudi Arabia, Republic of Korea, Bangladesh and Turkey.

5. Major Apparel Segments

6. SWOT ANALYSIS OF INDIAN GARMENT
INDUSTRY

7. Strength of Indian Garment
Industry
• Abundant raw material availability
India is one of the leading producers of natural and man made fibers.
The abundance of raw material allows industry to control cost and
reduce over all lead time.
• Low cost skilled labour
India has third lowest wage rate as compared to other key garment
manufacturing companies. This provides industry with a distinct
competitive advantage.
• Presence across value chain
Indian industry has manufacturing capacity present across complete
product range, that allows garment manufacturers to source raw
material locally and thus reduces the lead time.
• Growing domestic market
The Indian domestic market is extremely sensitive to fashion fads and
this has resulted in development of very responsive garment industry.

8. Weakness of Indian Garment
Industry
• Fragmented industry
Global buyers prefer to source their requirements from two to three vendors and
Indian garment manufacturers find it difficult to fulfill the capacity requirements.
• Effect of historical government policies
The industries continues to be affected by several historical regulations, for
instance there is still an absence of viable exit options for industry players. These
regulations resulted in complex industry structure, which is currently an obstacle. In
the Pre 2000 era garmenting sector was reserved for the Small scale Sector, which
has resulted in most units being set up with small capacities. Till now, knitted
garment sector is reserved for the small scale sector. Though the historical
regulations are relaxed now, they continue to be an impediment to global
competitiveness.
• Lower productivity & cost competitiveness
Lower cost competitiveness has hampered ability to compete with lower cost
global players because the labour force in India has a much lower productivity as
compared to competing countries like China, Sri Lanka.
• Technological obsolescence
A large portion of the industry’s processing capacity is obsolete. This has resulted in
low value addition in the industry and a need has risen for significant technology
investments to achieve world class quality.

9. Opportunity of Indian Garment
Industry
• Liberalizing economy
• Opening up of Indian economy has presented the players with lots of
opportunities; Indian companies are tying with global brands. They are
leveraging the brand name of global brands.
• Growing dual income
• With number of working women’s increasing the dual incomes are
income thus income available at peoples discrete has also increased.
• Rising Disposable Income
• Sizeable urban middle class
• As Indian incomes rise, the shape of the country’s income pyramid will
also change dramatically. Apart from a substantial reduction in poverty,
India will create a sizeable and largely urban middle class.
• Fifth largest consumer
India will become the world’s fifth largest consumer market by 2025. the
combination of rapidly rising household incomes and a robustly growing
population will lead to a striking increase in overall consumer spending.

10. Threats of Indian Garment
Industry
• Fluctuation in rupee value
The fluctuation in rupee value posses a big threat in front of importers and
exporters. The exchange value of Rupee against UD Dollar has depreciated to Rs
50.03 which has resulted in huge losses for the importers. Thus there is always a
great threat for players in international
trade. But since it affects only international players thus it is not as big a threat as
some of other threats.
• State of Recession in the economy
The apparel industry gets severely hit during recession because of less liquidity in
the market. This industry is an export-oriented industry which lies in doldrums
during this stage.
• Competition from global players
The major exporters of garments from all over the world are giving tough
competition to India as they are providing higher productivity with lower costs.
Competition is not likely to remain just in the exports space, the industry is likely to
face competition from cheaper imports as well. This is likely to effect the domestic
market and may lead to increased consolidation.
Ecological & Social Awareness is likely to result in increase pressure on the
industry to follow international labour and environmental laws.

11. Top Companies
• Pantaloon Retail India Ltd
• Shopper's Stop
• Globus stores Pvt Ltd
• Arvind Brands Ltd
• Provogue India Ltd
• The Raymond Group
• Madura Garment
• Reliance Retial Ltd
• Wills lifestyle
• Landmark Group
• Gokalda Group
• Zodiac Clothing

12. Some Major companies attributes

13. Garment Factory Structure
Merchandising Department
Trim & Accessory Store
Cutting Department
Sampling Department
Purchase Department
Fabric Store

14. Embroidery Department
Washing
Packaging
Finishing Department
CAD
Production Department

15. ACTIVITIES INVOLVED UNDER EACH
DEPARTMENT

16. Merchandising Department
• Communication with buyers in terms of sample development,
approvals, order confirmation
• Communication with internal departments and forwarding
required information to the respective departments
• Procure order & Order confirmation
• Product development, sample development and sample
approval
• Development of bit loom, print strike off, embroidery strike off
etc
• Style Costing
• Calculating consumption of raw materials (Bill of material)
• Price Quoting
• Lab dip & Approval

17. Merchandising Dept Contd.
• Sourcing and purchasing of raw materials,
• Approval of fabric, Trims and Accessories
• Fabric Testing and garment testing done from testing labs
• Factory Scheduling / Planning
• Order Follow up: all steps of production & Quality
• Follow up vendors for subcontracting jobs like printing, hand
embroidery and washing
• Ensure on Time Delivery
• Liaison with the customer during Design, Sourcing, Production &
Shipping
• Conduct pre-production (PP) meeting with other departments,
handover production file and samples to the production team.
• Attend buyer’s meeting
• Ensure Customer Satisfaction

18. Apparel Production Planning
• Job or Task Scheduling: Preparation of time and action calendar for
each order from order receiving to shipment. The job schedule contains
list of tasks to be processed for the styles. Against each tasks planner
mentions when to start a task and what is dead line for that task.
• Material Resource Planning (Inventory): Preparation of Material
requirement sheet according to sample product and buyer specification
sheet.
• Loading production: Planner defines which style to be loaded to the
production line and how much quantity to be loaded.
• Process selection & planning: Processes needed to complete an order
vary style to style. According to the order (customer) requirement PPC
department select processes for the orders. Sometime extra processes
are eliminated to reduce cost of production.

19. • Facility location: Where a company has multiple factories
(facilities) for production and factories are set for specific
product, planner need to identify which facility will be most
suitable for new orders. Sometimes there may be a capacity
shortage in a factory, in that case planner need to decide which
facility will selected for that orders.
• Estimating quantity and costs of production: Planner estimate
daily production (units) according to the styles work content.
With the estimated production figure, production runs and
manpower involvement planner also estimate production cost
per pieces.
• Capacity planning: PPC department plays a major role during
order booking. They decide (suggest) how much order they
should accept according to their production capacity. Allocating
of total capacity or deciding how much capacity to be used for
an order out of total factory capacity. Regularly updating
factories current capacity (production capacity).

20. • Line planning: Preparing detailed line planning with daily
production target for the production line. Most cases line
planning is made after discussing with production team and
Industrial engineers.
• Follow up and execution: Whatever plan is made is executed
by PPC department. PPC department keeps close look
whether everything is progressing according the plan. Chasing
other department heads on daily basis to keep plan on track.
They update order wise completed tasks on the Time & action
Calendar. When they found something is going to be late they
expedite and create an alarm about the delay.

21. Have a virtual Tour…

22. THANK YOU…