slideshare files

1. Indian Textile Industry
Syndicate I

2. Multi - Fibre Arrangement
 Quotas on imports of textile from more
competitive developing countries.
 Dismantling of quota on Jan 1,2005
 Increased opportunities
 Competition

4. Perspective of the Economy
 Total market size (2006-07):
 Exports: USD 18.73 bn
 Strong contribution to Indian Economy
 14% contribution to industrial production
 4% contribution to GDP
 17% contribution to export earnings
 Direct employment to more than 35 million people

5.  Sector is diverse
 hand-spun and hand woven sector
 capital intensive, sophisticated mill sector

6. Segments
 Organized Cotton/ Man-Made Fibre Textiles
Mill Industry
 Man-made Fibre/ Filament Yarn Industry
 Wool and Woolens Textiles Industry
 Sericulture and Silk Textiles Industry
 Handlooms
 Handicrafts
 Jute and Jute Textiles Industry
 Textiles Exports

7. SWOT Analysis

8. 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

9.  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

10.  Low cost skilled labour
 Presence across the value chain
 Reduced lead time
 Growing domestic market

11. Weakness
 Fragmented Industry
 Historical Regulations
 Lower Productivity and
Cost Competitiveness
 Technology
Obsolescence

12. 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

13. Threats
 Competition in domestic market
 Ecological and social awareness
 Regional alliances
 China

14. Major Players of Indian Textile
Industry
 Arvind Mills
 Raymonds
 Reliance Textiles
 Vardhaman Spinning
 Welspun India

15. Comments
 "We need to maintain and manufacture high
quality products. We have timely deliveries
because India is recognized as major player
in international textile market. So, if we
maintain our competitiveness, we'll be able to
regain some markets, we have lost to China,"
K V Srinivasan, Chairman, South India Mills

16. The Meltdown
 In US
 Rising Commodity Prices
 Credit Crunch

17. 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

18.  India was losing out to countries like
Bangladesh, Vietnam and Cambodia
The chairman, Confederation of Indian Textile Industry
(CITI), R.K. Dalmiya

19. Conclusion
A huge window of opportunity has opened up
for the Indian textile 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.