Textile sector 2009


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Textile sector 2009

  1. 1. TEXTILE INDUSTRY<br />
  2. 2. Objectives of the Eleventh Plan for Textile Industry<br /><ul><li>Build up world class state-of-the-art manufacturing capacities to attain and sustain predominant global standing in manufacture and export of textiles and clothing.
  3. 3. Attain the 9% share in global textile trade by the terminal year of the Plan period.</li></li></ul><li>Introduction<br /><ul><li>With China leading the global textile trade, India ranks second with 8%.
  4. 4. India’s share of the world trade in textiles (3.9%) and apparel (3%) is increasing
  5. 5. Exports grew by 8% in 2006-07 over the last year
  6. 6. Textiles is the second largest employer after agriculture, with about 35 million people directly employed</li></li></ul><li>Global Scenario<br /><ul><li>The global textiles and apparel trade estimated at US$ 450 billion.
  7. 7. Expected to touch US$ 700 billion by 2010.
  8. 8. For textiles, the European Union is the biggest exporter
  9. 9. Asia accounted for 45.1% of world textiles exports.
  10. 10. The EU and the US are the biggest importers of textiles.
  11. 11. Clothing provided more than 40% of total merchandise exports for Cambodia, El Salvador, Bangladesh, Sri Lanka, Mauritius and Lesotho.</li></li></ul><li>Industry Growth<br /><ul><li>Production of textile yarn witnessed a compounded annual growth rate (CAGR) of 3.6 per cent between 1996 and 2006.
  12. 12. Finished cloth has witnessed a higher CAGR of 4.1 per cent during the same period.
  13. 13. This growth outperforms the global production, which experienced a CAGR of 2.25 per cent (both yarn and cloth).</li></li></ul><li>Achievements<br /><ul><li>India has the highest number of looms.
  14. 14. India ranks 1st in jute production (at 1,900 million kilograms)
  15. 15. 2nd in silk production (at 15 million kilograms of raw silk)
  16. 16. 2nd in cotton exports (at 2,000 million kilograms)
  17. 17. 2nd in cotton production (at 2,700 million kilograms of cotton fibre)
  18. 18. 5th in man-made fibres(at 2,000 million kilograms)
  19. 19. Ranks 8th in the total production of wool (at 51 million kilograms) in the world.</li></li></ul><li>Opportunities for investing in theIndian Textile Sector<br /><ul><li>Cost competitiveness
  20. 20. Ring Knitted Fabric
  21. 21. Ring Woven Fabric
  22. 22. Open-ended Knitted Fabric
  23. 23. Open-ended Woven Fabric
  24. 24. If we compare this with countries like South Korea, China, Brazil we carry out this work at low price then them.</li></li></ul><li>Cont..<br /><ul><li>Favourable domestic market
  25. 25. Growing demand for consumption a revolution is taking place in India’s retail sector (increase in disposable income of people)
  26. 26. Government initiatives to promote investment
  27. 27. It is estimated that this industry will require US$ 22 billion of new capital investments over the next five years.
  28. 28. Encouraging institutes as NIFT (National Institute of Fashion Technology) and Apparel Training and Design Centres (ATDCs) offer courses in Textile Engineering.</li></li></ul><li>Cont..<br /><ul><li>Government initiatives to promote investment
  29. 29. Technology Up-gradation:
  30. 30. Established the Technology Up-gradation Fund Scheme (TUFS), to enable firms to access subsidised low-interest loans for technology up-gradation.
  31. 31. Revival of sick units:
  32. 32. Revival plans of the mills run by National Textiles Corporation (NTC).
  33. 33. For modernisation of 18 textile mills 2.2millon US$ will be spent. </li></li></ul><li>Critical success factors for manufacturers.<br /><ul><li>Scale
  34. 34. Compared to Chinese there are fewer larger firms and firms have 1.5 times higher spinning capacity than those of India.
  35. 35. Cant exploit economics of scale and need full time work force in lean seasons.
  36. 36. Lean supply chains
  37. 37. Supply chain is long and complex.
  38. 38. Have impact not only the cycle times, but also the delivery times.
  39. 39. The average cycle time is about 45-50 days, which sometimes extends to 80 days.</li></li></ul><li>Cont..<br /><ul><li> Customer-centricity in products and brand competitiveness
  40. 40. Synthetic products contribute to nearly 50 per cent of the global trade and India lacks a prominent position in this segment.</li></li></ul><li>TEXTILE INDUSTRY<br />12<br />
  41. 41. Attractive states and state specific incentives<br /><ul><li>An assessment of the key states which appear attractive for this industry on :-
  42. 42. Factor conditions
  43. 43. Specific incentives
  44. 44. HARYANA
  45. 45. The state produces textiles and RMG worth US$ 1 billion
  46. 46. Textiles contribute
  47. 47. 27% of the capital investment
  48. 48. 15% of the exports from this state.</li></li></ul><li>Cont..<br /><ul><li>Abundant availability of raw materials, especially cotton and wool and number of garment manufacturing units.
  49. 49. Easy access to key buying centres such as Delhi and Gurgaon.
  50. 50. Low labour costs at US$ 8 per month.
  51. 51. Fiscal Incentives US$ 0.14 million for projects.
  52. 52. Textile cluster in Panipat, which is one of the largest textile clusters in India and is proactive in setting up textile-promoting SEZ’s and FEZ’s (Free Enterprise Zones).</li></li></ul><li>Cont..<br /><ul><li> ANDHRA PRADESH
  53. 53. The state of Andhra Pradesh is one of the major exporters of textiles in the country at US$ 90 million in 2003-04.
  54. 54. It ranks 2nd in the production of raw silk
  55. 55. 4th in the production of wool
  56. 56. 4th in the number of textile mills in India.
  57. 57. Production capacity of 750 million metres of fabric are located in the state.</li></li></ul><li>Cont..<br /><ul><li>Fiscal Incentives
  58. 58. Units are exempt from corporate tax in SEZs besides the tax on exports and imports
  59. 59. 100 % reimbursement of stamp duty, transfer duty and registration fee on all textile units
  60. 60. Incentive of US$ 110 per worker employed in textile parks
  61. 61. Non-fiscal Incentives
  62. 62. Encourages spinning mills with a capacity greater then 12,000 units
  63. 63. Textile parks of area greater than 25 acres inside the city</li></li></ul><li>Cont..<br /><ul><li> GUJARAT
  64. 64. Contributes 23% to the state.
  65. 65. It contributes 12% to the total textile exports of the country .
  66. 66. Produces 40 per cent of the country’s art silk fabric.
  67. 67. Have various institutes for textile product design and development, like the National Institute of Fashion Technology (NIFT).</li></li></ul><li>Cont..<br /><ul><li>Fiscal Incentives
  68. 68. 20 % credit- linked subsidy for setting up power-looms
  69. 69. 5% interest subsidy under TUF
  70. 70. Capital subsidy of 10% in processing sector
  71. 71. Interest subsidy of 3% p.a. to a new unit in the textile sector</li></li></ul><li>
  72. 72.
  73. 73. P<br />olitical Factors<br />E<br />conomic Factors<br />P<br />S<br />ociocultiral Factors<br />T<br />echnological Factors<br />
  74. 74. Political factor<br /><ul><li>The political factor has a huge influence upon the regulation of businesses
  75. 75. How stable is the political environment?
  76. 76. Will government policy influence laws that regulate business?
  77. 77. What is the government's policy on the economy?
  78. 78. Does the government have a view on culture and religion?
  79. 79. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?</li></li></ul><li>Economic Factors<br /><ul><li>Marketers need to consider the state of a trading economy in the short and long-terms.
  80. 80. This is especially true when planning for international marketing. You need to look at:
  81. 81. Interest rates.
  82. 82. The level of inflation Employment level per capita.
  83. 83. Long-term prospects for the economy Gross Domestic Product (GDP) per capita.</li></li></ul><li>Socio-cultural Factors <br /><ul><li>It is very important that such factors are considered. Factors include:
  84. 84. What is the dominant religion?
  85. 85. What are attitudes to foreign products and services?
  86. 86. How much time do consumers have for leisure?
  87. 87. What are the roles of men and women within society?</li></li></ul><li>Technological Factors <br /><ul><li>Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:  
  88. 88. Does technology allow for products and services to be made more cheaply and to a better standard of quality?
  89. 89. Do the technologies offer consumers and businesses more innovative products and services.
  90. 90. How is distribution changed by new technologies.
  91. 91. Does technology offer companies a new way to communicate with consumers e.g. CRM </li></li></ul><li>MAJOR PLAYERS<br />26<br />
  92. 92. COMPARISON BETWEENKEY PLAYERS<br /><ul><li>ARVIND MILLS- It is the flagship company of the LALBHAI GROUP.
  93. 93. Established in the year 1931 by Kasturbhai Lalbhai with a share capital of Rs. 25,25,000.
  94. 94. Sanjay Lalbhai is the CEO & MD of the company.
  95. 95. It generates a revenue of $451million.
  96. 96. It enjoys a share of 72% of the total denim market.
  97. 97. It is listed in both NSE & BSE. </li></li></ul><li><ul><li>RAYMOND’S INDIA- It is the flagship company of the SINGHANIA GROUP.
  98. 98. It was incorporated in the year 1925 as a producer of wool.
  99. 99. Mr. Gautam.H.Singhania is the Chairman & MD.
  100. 100. It is a $318 million company with a very good market share in premium branding.
  101. 101. It is being quoted as ‘THE FUTURE OF TEXTILE INDUSTRY’.
  102. 102. It is listed in the BSE.</li></li></ul><li><ul><li>WELSPUN GROUP- It is one of the fastest growing companies in India.
  103. 103. Established in the year 1985 as a small scale unit.
  104. 104. Mr. B.K.Goenka is the Vice Chairman & MD.
  105. 105. It has a strong client base with companies such as Wal-Mart, Chevron, Exxon etc.
  106. 106. It is listed in BSE.
  107. 107. It is a US $ 300 million company with 20000 employees & 50000 shareholders with presence in about 50 countries.</li></li></ul><li>
  108. 108. COMPARISON (in Crores)<br />31<br />
  109. 109. India Enjoy Significant Advantage <br />
  110. 110. Indian Textile Industry : Future Outlook<br />
  111. 111. Group 1<br />TANMAY PANDYA<br />TANESH KOTHARI<br />RONAK JAIN<br />PEEYUSH PAREEK<br />JATINDER SINGH SANDHU<br />GAUTAM JAJU<br />AVIJIT TIBRAWAL<br />ADITYA BHUTANI<br />ABHISHEK BHATIA<br />Most Expensive<br />Saree<br />40 lakhs <br />
  112. 112. 35<br />QUESTION ROUND<br />