Sie sind auf Seite 1von 45

1

PROJECT REPORT

ON

EVALUATION AND FUTURE OPPORTUNITIES OF INDIANS TEXTILE INDUSTRY.

SUBMITTED TO

SUBMITTED BY

Mrs. PARUL PURI

Manisha Singh

Roll No.11051

STUDENT UNDERTAKING
The project is submitted to institute of management studies, Noida, as a Project for Partial fulfillment of PGDM program.

PROJECT GUIDES: (PARUL PURI) .

By Manisha Singh

ACKNOWLEDGEMENT
We would like to express our sincere gratitude to all those who have been instrumental in the preparation of this project report. We would like to thank Mrs . . . . PARUL PURI, for his guidance and support in our project. We wish to place on record our deep sense of gratitude to Mrs .VANDANA MATHUR for imparting us an opportunity to observe the real marketing conditions of textile inustry as well as the peculiar and unpredictable consumer buying behavior. We are deeply obliged to IMS B-School and its Management for its support in the project.

EXECUTIVE SUMMARY

The project EVALUATION AND FUTURE OPPORTUNITIES OFINDIAN TEXTILE INDUSTRY provides a deep knowledge of various industry which produces the readymade garments. It also provides a comparative study of different textile production and marketing companies like ARVIND MILLS, RELIANCE TEXTILES, BIRLA GROUP, RAYMONDS, and BOMBAY DEYING AND OTHERS with similar profile to discuss about their products, offers, policies, services and providing suggestion to them. On the basis of feedback through questionnaire and observation method, I fond that there is close competition between the companies. As each of them are increasing their products ,qualities , looks and providing better services every day. The entry of the MNCs are also the major opportunity for the industry and it enlarge the competition of the industry. The Indian textile industry is the one of the biggest industry of India. It is a total market size of $55 billion. It contains at least 4% of GDP, 17% of total industrial production,19% of The domestic market is likely to increase from US$ 34.6 billion to US$ 60 billion by2012. It is expected that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period. India's textile exports have shot up from US$ 19.14 billion in 2006-07 to US$ 22.13 billion in 2007-08, registering a growth of over 15 per cent .

My analysis is based on sample results. It was a difficult task to gather the information from respondents by meeting them personally in order to get questionnaire filled. There was a lot of time pressure and sometimes unwillingness of respondents to respond.

CONTENTS:-

Page No. Chapter 1- INTRODUCTION------------------------------- 06 Chapter 2- LITERATURE REVIEW----------------------- 10 Chapter 3- RESEARCH METHODOLOGY-------------- 13 Chapter 4- OVERVIEW OF INDIAN TEXTILE INDUSTRY 15 Chapter 5- DATA ANALYSIS ----------------------------------------30 Chapter 6- SUGGESTIONS AND CONCLUSION---------------- 40

INTRODUCTION

Textile is the core business of India from the ling time. It is major business for our short term and cottage industries. Indian textile industry is as old as the word textile itself . This industry holds a significant position in India by providing the most basic need of Indians. Starting from the procurement of raw materials to the final production stage of the actual textile , the Indian textile industry works on an independent basis. BACKGROUND OF THE STUDY:Textile is the oldest business of Indians. Mainer places in India accounting for its remarkable achievement in the field of textiles. It is a major source of the earning of their venue generation for the country. From the last 50 years after the independence, this sector continuously is a part of the revenue generation of the countries. It is a major industry in employment generation of the country. From the last couple of years, it accounting for a leading role in the GDP of the country. It accounts for around 4 per cent of the gross domestic product (GDP), 14 per cent of industrial production and over 13 per cent of the country's total export earnings . Moreover, it provides employment to over 35 million people .The Indian textile industry is estimated to be around US$ 52 billion and is likely to reach US$ 115 billion by 2012. The domestic market is likely to increase from US$34.6 billion to US$ 60 billion by 2012. It is expected that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period. India's textile exports have shot up from US$ 19.14 billion in 2006-07 to US$ 22.13 billion in2007-08, registering a growth of over 15 per cent.

HISTORY OF INDIAN TEXTILE INDUSTRY:India has a diverse and rich textile tradition. It is the second largest producer of textile and clothing in the world with its products being exported to over 120 countries. Recent estimates indicate that the country's textile sector will grow faster in the coming years and contribute a lot to the our overall economy. There are different time per time revolution has been taken place in the Indian textile industry. The textile sector has been thriving in India for decades. The traditional textile industry of India had virtually decayed during the colonial regime. However, in the nineteenth century, the industry was revived with the establishment of textile mills in Calcutta(now Kolkata) in 1818. Cotton textile industry had begun functioning in Bombay (now Mumbai)in 1850s and the first cotton textile mill in the city was established in 1854 by a Parsi cotton merchant. These growth expectations run contrary to the perceived vied, a decade back or so ,that textile was a sunset industry. Till 1985, India has no specialized policies to promote the textile industry. It is is 1985 that the government announced a separate policy statement with regard to development of textile sector. In the year 2000, National Textile Policy was announced and since then the Indian textile industry has been exhibiting a distinguished performance opening up new opportunities for the small and medium scale industries (SMEs) in the country

Parallel to these developments the Indian textile industry has witnessed over the last few years, textile exports of the country have also grown exponentially despite stiff competition from Asian rivals like Vietnam, China, Pakistan and Indonesia. During 2006-07,India's textile exports were valued at $18.73 billion (Rs 84,752 crore) and they are estimated to be at $22 billion in the year to March 2009. SCOPE OF THE STUDY:The study will cover the brief description of Indian textile sector, its current situation, position, future prospect, SWOT, and its international competitiveness. The brief scopes of the study has been given as follows. The export competitiveness of Indian textile industry. The brief overview of Indian textile industry. Evaluation of Textile policy 2000. Future prospect of Indian textile industry. Analysis of Quality control and logistic of Indian textile industry.

NEED OF THE STUDY:The study will provide a clear and brief view about the current situation and future prospect of the Indian Textile sector. As it is said that the Indian Textile sector is the one of the old and more profit earning sector from many years. The study will give the perfect overview and actual analysis of the relevant datas for the clear picture of the industry .There are following need for the study of the report.; Increase in the international demand of the apparels and clothes. Entry of multinational companies in the India. Implementation of different promotion policies of govt. Providing fruitful information to the major companies of Indias textile sector.

OBJECTIVE OF THE STUDY: To determine the exact position of Indian Textile Industry. To know about the areas where it is lacing. To know the opportunities of the industry in future. To know the effect of the current competitive environment on the Indian Textile Industry. To determining the demand of Indian textile products in international market. Rationale of the study The main focus of the study is to understand textile industry of india and find out the EVALUATIONAND INDUSTRY. FUTURE OPPORTUNITIES OF INDIAS TEXTILE

CHAPTER2 LITERATURE REVIEW

10

LITERATURE REVIEW

The study has been take into implementation of the different research surveys of many famous national and national researchers. ASSOCHAM study on textile in India. AC Nielsens surveys are the major ones which takes into implementation and there suggestions has been deeply implemented .

According to the report given by ASSOCHAM, the textile sector registered 50 per cent increase in investment during 2008-09 to US$ 10.46 billion from US$ 6.57 billion in 2007-08. The textile industry has attracted foreign direct investment (FDI) worth US$ 677 million from April 2000 to March 2009.According to the Textiles and Apparel Report 2007, by the Confederation of Indian Industry and Ernst & Young, the Indian sourcing market is estimated to grow at an annual average rate of 12 per cent from an expected market size of US$ 22 billion-US$ 25 billion in2008 to US$ 35 billion-US$ 37 billion by 2011.Simultaneously, world's cutting edge fashion brands such as Hugo Boss, Diesel and Liz Claiborne are stepping up their sourcing from India .According to the ICRA Information, Grading and Research Service, Indias textile and apparel exports to US during January-April 2005 have37%grown by 27 per cent as compared to the corresponding period in the previous year. However ,this has been at a slower rate as compared to China (59 per cent) during the same period. India needs to shift its focus to exports of textile and clothing based on manmade fibres , which accounted a meager 16 per centof the total textiles and apparel exports in 2004, while 37 percent of US textile and apparel imports constituted imports of manmade fibre in 2004. Thus, it is necessary to leverage our cost advantage in terms of labour costs to boost overall textiles and apparel sector in the future. Chandra (1998) in his article wrote on challenges ahead of Indian textile and clothing industry in post quota regime. It put special emphasis on production capabilities and efficiencies as most essential elements to fight global competition. It suggests various strategic decisions Indian textile manufacturers have to make to survive the competitiveness in post quota regime. Bagchi (1997) critically examined the removal of quota between 1995-2005 in four phases is not as beneficial as it is projected by developed world. The first two phases are composed of goods which are not of high importance and already almost free. These two phases are not of high importance. The other two phases are of high importance.

11

Simpson and Shetty (2001) did a vast study on Indias textile industry. The purpose of study is to analyze Indias textile and apparel industry, its structural problems, market access barriers, and measurements taken by government of India to enhance the industrys competitiveness in the post Multi fibre Agreement (MFA) era. The study also assesses Indias textile and apparel market potential and trade and investment opportunities for U.S. firms as India steps into a more free and transparent trade regime. For the purpose of study exploratory study is done in which in-depth interviews are done with various government officials in Textile Export Promotion Council, Ministry of . 101 textile, Cotton Council of India, Apparel Export Promotion Council (AEPC), Federation of Karnataka Chamber of Commerce and Industry, Handloom Export Promotion Council, Madras Chamber of Commerce and Industry, The South India Textile and Research Association, and almost all top executives of Indias large textile mills. Verma (2002) did a comprehensive study with objective to evaluate the export competitiveness of Indian textile and clothing sector. Because Indian textile and clothing sector is predominantly cotton based, the study is focused on cotton textile and clothing and look at the entire value chain from fiber to garment and retail distribution. The scope of study covers the products in Indian export basket which have shown a promising growth in value. The Study concludes that Indian exports to US and EU are export competitive as a whole. Sector wise analysis of export performance of Indian textile and clothing sectors to US and EU reveal that so far apparel or clothing and made-up is concerned; quota is the major constraint in the growth, while it is not true in case of yarn exports. Indian textile and clothing sector has tremendous potential and only a portion of which is explored till now and this shortcoming is due to policy constraints. . 102 Meenakshi (2003) did a comprehensive study on the opportunities that would be provided by WTO to Indian Textile industry. This paper gives a lot emphasis on new capacity installation to take the benefits to the fullest extent in India has to be a true gainer in competition to other nations. Since Indias own consumption per capita is also on the rise with the rise of income and consumption habits, the profit margins available to Indian textile and clothing producers will be more. But in export market, the prices will be driven by international factors and profits will be under pressure. So the exporters might have to go for strategy of partial exports and partial domestic sale. Pandey (2003) in his article expected that Indian textile exporter would be benefited with quota elimination. It discusses on various sectors of textile and clothing. Also he expects that hosiery industry will be one of the gainer and small scale exporters will be more competitive due to small size and controlled cost and lower overheads.

12

Uraiwan (2004) had worked extensively on the knitwear/hosiery products development process to understand the complexities underlying in it; because a well defined development process assist the organization to determine its future direction, plan for rapid changes, create new product line with profits and plan for technology adaptation and implementation. The goal of this research was to propose an optimal product development process for a knitwear/hosiery company by examining the process used by major US Sweater Company and comparing its process to established processes. . 103

Vivek (2004) in his article had said that JC Penny a leading retail chain of US looks India for sourcing its garments in woven and hosiery. He is of opinion that India will be fulfilling its major need of Hosiery and woven garments in cotton while China will be good for synthetic fabrics and its garments.

Chugan (2005) emphasized that Indian textile Industry has to change to be more competitive in the long run. This paper emphasis that merely cost competence is not enough to maintain the lead while Indian companied has to have a global competitive view.

13

CHAPTER 3

RESEARCH METHODOLOGY

14

RESEARCH METHODOLOGY The different primary and secondary datas has been used in the research project report. For the aspects, the secondary data analysis has been takes into consideration, but maximum areas and parts of the project has been covered by primary datas. .PRIMARY DATA: Primary data was collected . SECONDARY DATA: Secondary data was collected through magazines, research papers, internet etc. SAMPLE SIZE : 200 RESEARCH INTRUMENTS QUESTIONNAIRE DESIGN: As the questionnaire is self administrated one.Words used in questionnaire are readily understandable to all respondent. Also technical jargons are avoided to ensure that there is no confusion for respondents

15

CHAPTER4

OVERVIEW OF INDIAN TEXTILE INDUSTRY

16

OVERVIEW OF INDIAN TEXTILE INDUSTRY Indian textile industry is the countrys leading profit gainer industry. It is a very old and traditional business of India. This industry holds a significant position in India by providing the most basic need of Indians. Starting from the procurement of raw materials to the final production stage of the actual textile, the Indian textile industry works on an independent basis. Until the economic liberalization of Indian economy, the Indian Textile Industry was predominantly unorganized industry. The opening up of Indian economy post 1990s led to stupendous growth of this industry. Indian Textile Industry is one of the largest textile industries in the world. Today ,Indian economy is largely dependent on textile manufacturing and exports. India earns around27% of the foreign exchange from exports of textiles. Further, Indian Textile Industry contributes about 14% of the total industrial production of India. Furthermore, its contribution to the gross domestic product of India is around 3% and the numbers are steadily increasing. Indian Textile Industry involves around 35 million workers directly and it accounts for 21% of the total employment generated in the economy. Indian textile industry concludes of various segments like: 1. Woolen Textiles. 2. Cotton Textiles. 3. Silk Textiles. 4. Readymade Garments. 5.Jute And Coir. 6. Hand-Crafted Textile Like Carpets 7. Man Made Textiles Indian textile industry in a very short span had made a distinct position globally, alluring the globe towards the World of Indian textiles. This has happened mainly because high availability of raw materials. 8. Highly skilled economical labor, an added advantage 9. Largest producer of cotton yarn contributing 25% towards worlds cotton.

10. Availability of all kinds of fibers like silk, cotton, wool and even high quality synthetic fibers.

17

11. Flexibility of the readymade garment industry in terms of sizes, fabric variety, quantity , quality and cost .Its not just the present that is shinning like a bright start but also the future, as the textile export market of India is expected to reach a high of $50 billion by 2010. This will eventually make a profit by 300%. In order to attain this target Indian textile industry has already started improving their design skills, including a combination of various fibers. Indian textile industry is all set to meet international standards and is planning to invest $5 billion in machineries very soon .Most of the international brands like Marks & Spencer, JC penny, Gap have started procuring most of their fabrics from India. In fact, Walmart , who had procured textile worth $ 200 million last year, intends to procure $ 3 billion worth of textile this year. The golden phase of the Indian textile industry has just begun where the world is chasing it from all nooks and corners. MAJOR TEXTILE COMPANIES OF INDIA :The major textile companies of India are as follows : Arvind Mills:Arvind Mills is Indias largest Textile Mill. It has large production in denims, shirting and knitted garments. It is now adding value by manufacturing denim apparel . Its sales are around US$ 300millions. Raymonds :It is a brand name of Textiles all over the world. It specialized in the diversified woolen garments. It is expanding its products through the organized retail stores and showrooms. It also looking to also expanding denim capacity and to become second largest denim player in India. Its presence in retail will be big positive in future .Its annual sales are around US$ 300 millions Reliance Textiles:Reliance Textiles is one of the major Textile Company that is in business of fully integrated manmade fiber. It has capacity of more than 6 million tones per year. It has joint venture partners like, DuPont, Stone & Webster, Sinco (Italy) etc. Vardhaman Spinning:Vardhman deals in spinning, weaving and processing segment of the industry. It is planning to double its fabric processing capacity to 50 million meters. It is an approved supplier to global retailers like GaP, Target and Tommy Hilfiger. Its sales are little over US$ 120 millions

18

Welspun India (Manufactures terry towels) Century Textiles (Composite mill, cotton & Man-made) Morarjee Mills (Fully integrated Composite Mill) Indo Rama (Cotton and Man-made) GTN Textiles (Cotton Yarn and Knit Fabrics) Ginni Filaments Ltd. (Yarn and Fabrics) LNJ Bhilwara Group (Diversified and vertically integrated denim producer with spinning and weaving capacity) Mafatlal Textiles (Fully integrated Composite Mill) Modern Group (Diversified, producer of denim, syntax and thread) Ashima Syntex (Man-made Fiber) KG Denim (Fabrics) Sanghi Polyesters Ltd. (Manmade Fiber) Nova Petrochemicals (Man-made Fiber) S. Kumar Synfabs Ltd. (Home furnishing and Suit Fabrics)

19

Bombay Dyeing Ltd. (Composite and fully integrated) Rajasthan Petro synthetics National Rayon Corp. (Man-made fiber) GSL India Ltd. (Threads) Indian Rayon (Man-Made Fiber) Alok Textiles (Cotton and Man-made Fiber Textiles) Sharda Textile Mills (Man-made Fiber) Birla Group Dormeuil Birla VXL Ltd. (Fully integrated woolen textiles) Gokuldas Images (Diversified) Hanil Era Textiles (Yarn, Cotton & Man-made Fiber) Oswal Knit India (Woolen Wear) Niryat Sam Apparels (Apparel) Filaments India Ltd. (Manmade Textiles)

The industry has several segments such as hosiery and ready-made garments an divided into the organised and the un-organised sector, with players from both sectors often grouped together in export oriented clusters. Some of the important textile clusters are based in places such as Bhilwara, Sanganer, Panipat, Palli, Jetpur, Jodhpur, Surat, Sambhalpur, Mysore and Bhiwandi.

20

THE TOTAL PRODUCTION OF YARN IN INDIA :-

The production of yarn shows a increasing tend from last decade. In the year 2003-04 the total production of yarn in India was 2900 million kg. which has been continuously increasing to 3100(2004-05), 3300, 3600, 3800 and 4200 million kg.

EXPORTS :-

21

Some Facts :
India is the largest exporter of yarn in the international market and has a share of 25 per cent in world cotton yarn exports. India accounts for 12 per cent of the world's production of textile fibres and yarn. In terms of spindle age, the Indian textile industry is ranked second, after China, and accounts for 23 per cent of the world's spindle capacity. The country has the highest loom capacity, including handlooms, with a share of 61 per cent in world loomage. India is the largest producer of jute in the world. It is the second largest producer of silk and the only country to produce all four varieties of silk mulberry, tusar, eri and muga. India is the fifth largest producer of synthetic fibres/yarn.

22

Indian textiles, handlooms and handicrafts are exported to more than a 100 countries, Europe continues to be India's major export market with 22 per cent share in textiles and 43 per cent in apparel, the US is the single largest buyer of Indian textiles and apparel with 19 per cent and 32.6 per cent share, respectively. Other significant countries in the export list include the UAE, Saudi Arabia , Canada, Bangladesh, China, Turkey and Japan. Readymade garments (RMG) are the largest export segment, accounting for almost 45 per cent of total textile exports and 8.2 per cent of India's total exports. This segment has benefitted significantly with the termination of the Multi-Fibre Arrangement (MFA) in January 2005. RMG exports from India were worth US$8.51 billion in FY 2008. They are expected to touch US$ 14.5 billion by 200910 with accumulative annual growth of 18 to 20 per cent, according to the Apparel Export Promotion Council. Another segment in which India has excelled in the export market is carpets. Exports of carpets have increased from US$ 654.32 million in 200405 to US$ 806.71 million in 200708.Significantly, apparel is the second largest retail category in India. It accounts for about 10 per cent of the US$ 37 billion Indian retail market, and with the continuing boom in consumer demand is estimated to grow at the rate of 1215 per cent annually. In fact, reflecting the huge opportunity in this segment, AT Kearney's 'Retail Apparel Index' ranks India as the third most attractive market destinations for apparel retailers.

MAJOR TEXTILE EXPOT PROMOTION COUNCILS OF INDIA The major export promotion councils of India are given as follows :A) Apparel Export Promotion Council. B) Cotton Textile Export Promotion Council . C) Handloom Export Promotion Council. D) Indian Silk Export Promotion Council.

23

Apparel Export Promotion Council : APEC is a nodal agency sponsored by the ministry of Textile, Govt. of India. It performs the following functions :Monitors garment exports quotas and promotions of exports of readymade garments of India. Continuously involves in the task of promoting exports by organizing buyer-seller meets, Leads trade delegations to potential markets globally. Participates in specialized international fairs. Organized the Indian International Garment Fair biannually.

Cotton Textile Export Promotion Council :Cotton Textile Export Promotion council is an autonomous, non-profit export promotion body. Its activities includes : Acting as an international face of Indian Textile Exports. Collection and dissemination of information.

Handloom Export Promotion Council :It is a statutory body. Its function is to promote the exports of all handloom products like fabrics, home furnishings, carpets and floor covering etc. Indian Silk Export Promotion Council :- It is the nodal agency for promotion of silk exports from India. Consist of more than 1200 silk exporters as members

24

INDIAN TEXTILE POLICY 2000. Highlights of the National Textile Policy 2000 The Government of India recently announced the new National Textile Policy(NTP) 2000, with the objective of facilitating the industry to attain and sustain a pre-eminent global standing in the manufacture and export of clothing. In furtherance of these objectives, the strategic thrust is to be placed on technological upgradation , enhancement of productivity and quality, product diversification, and strengthening the raw material base in the country .Through NTP 2000, the Government would endeavor to achieve the target of textile and apparel exports from the present level of U.S. $11 billion to U.S. $50 billion by 2010.Of this, the share of garments would be U.S. $25 billion. The policy provides for setting up a venture capital fund for tapping knowledgebased entrepreneurs and assisting the private sector to set up specialized financial arrangements to fund the diverse needs of the textile industry .The new policy would also encourage the private sector to set up world class, environment-friendly, integrated textile complexes and textile processing units in different parts of the country and would review and revitalise the working of the TRAs (Textile Research Associations) to focus research on industry needs. Sect oral Initiatives.

Within the framework of the new Policy, the following sector specific initiatives will be taken: RAW MATERIALS The thrust will be on improving the availability, productivity and quality of raw materials at reasonable prices for the industry. Though cotton is expected to continue to be the dominant fiber, special attention will be given to bring the balance between cotton and non-cotton fibers closer to international levels.

COTTON The primary aim of the policy for this segment will be to improve production, productivity and quality, and stabilize prices. The Technology Mission on Cotton will be the instrument for achieving these parameters. Ministry of Textiles, Ministry of Agriculture, Cotton growing States, farmers and industry associations will be actively involved in the implementation of this Mission .

25

SILK Focus will be on achieving international standards in all varieties of silk. Steps will include: Improving Research & Development and effective transfer of technology at all stages. Increasing the production of non-mulberry varieties of silk. Encouraging clustering of activities of reeling and weaving and strengthening linkages between producers and industry. Reviewing the import policy periodically for raw silk, taking into account the balanced interests of the seri -culturists as well as the export manufacturers . WOOL In order to augment availability of quality wool, the following measures will be initiated: Take up collaborative research projects with the leading wool producing countries of the world. Encourage private breeding farms to increase productivity. Promote private sector linkages for marketing of wool. Take up an integrated development program for angora wool. JUTE A Technology Mission on Jute will be launched to achieve the following objectives: Develop high yielding seeds to improve productivity and acceptability in markets. Improve retting practices to get better quality fiber. Transfer cost effective technologies to the farmers and create strong market linkages. CLOTHING The role of this sector is poised for radical change in view of the transformation in the international trading environment brought about by the rules and regulations of the WTO. The industry will be restructured as follows: Garment industry will be taken out of the SSI reservation list. Joint ventures and strategic alliances with leading world manufacturers will be promoted. Schemes with necessary infrastructural facilities for the establishment of textile/apparel parks will be designed with the active involvement of state governments, financial institutions and the private sector. JUTE INDUSTY In the jute sector, attempts would be made to revive the jute economy through supportive measures covering research and development, technology up gradation, creation of infrastructure

26

for storage and marketing of raw jute, and product and market development activities for jute and diversified jute products. SPINNING SECTOR The NTP seeks to continue efforts to modernize and upgrade technology to international levels ,and proposes to take the following steps, in cotton spinning as well as in the worsted woolen sectors: Encourage the spinning sector to continue to modernize. Liberalize and encourage export of cotton yarn. ORGANIZED MILLS INDUSTRY Efforts will be made to restore the organized mill industry to its position of pre-eminence to meet international demand for high value and large volume products. For this purpose, the following measures will be initiated: Integration of production efforts on technology driven lines Encouragement for setting up large integrated textile complexes Strategic alliances with international textile majors, with focus on new products and retailing strategies Creation of awareness and supportive measures for application of IT for up gradation of technology, enhancement of efficiency, productivity and quality, better working environment and HRD. The earlier policy of not nationalizing sick units will be continued. As regards the unviable Public Sector Undertakings (PSUs), various options for strategic partnerships or privatization will be explored. Non-viable mills will be closed down with provision for an adequate safety-net for workers and employees. POWER LOOM INDUSTRY The power loom sector occupies a pivotal position in the Indian textile industry. However, its growth has been stunted by technological obsolescence, fragmented structure, low productivity and low-end quality products. The focus will therefore be on modernization of power loom service Centres and testing facilities, and clustering of facilities to achieve optimum levels of production. HAND LOOMS INDUSTRY The handloom sector is known for its heritage and the tradition of excellent craftsmanship. It provides livelihood to Indias millions of weavers and crafts-persons. The industry has not only survived but also grown over the decades due to its inherent strengths like flexibility of production in small quantities, openness to innovation, low level of capital investment and immense possibilities for fabric design. The Government will continue to accord priority to this sector. Steps would be taken to promote and develop its exclusiveness for the global market .Measures will include the following:

27

Training modules for weavers engaged in the production of low value added items with the objective of upgrading their skills to enable them to find alternate employment in the textile or other allied sector

Comprehensive welfare measures in close cooperation with the State Governments, for better working environment and social security of weavers Effective support systems in R&D, design inputs, skill up gradation Review of the Hank Yarn Obligation Order and the Reservation Orders issued under the Handloom (Reservation of Articles for Production) Act 1985, keeping in mind the needs of handloom weavers Merchandising and marketing will be central to the success of the handloom sector, the present package of schemes for production of value added fabrics will be stream lined, innovative market oriented schemes will be introduced, and joint ventures will been couraged both at the domestic and international levels. Brand equity of handlooms will also be commercially exploited to the extent possible. KNITTING Hosiery knitting, the growth of which has accelerated during the last decade primarily because of expansion of hosiery into global fashion knitwear, is expected to expand into the apparel and home furnishing sectors. In this segment, the following measures will be taken. Review of the Policy of SSI Reservation for this sector Encouraging technology up gradation and expansion of capacity Introduction of support systems for commercial intelligence, design and fashion inputs Carpets ,While machine-made carpet manufacturing in the mill sector will be guided by the policy framework for the organized industry, the policy for the hand knotted carpet sector will focus on sustained growth of exports and welfare of weavers and their children. Encouragement will be given to the manufacture of products that conform to and bear the KALEEN mark of standards ,with insistence on compliance with the provisions of the Child Labor (Prohibition and Regulation) Act, 1986. Government intervention will be in technology up gradation, including indigenization of machines, development of testing facilities, and use of natural dyes. Adaptation of traditional motifs and promotion of brand image would also constitute thrust areas.

28

SWOT ANALYSIS OF INDIAN TEXTILE INDUSTRY : -Indian Textile Industry has done a remarkable achievement in terms of growth and earning foreign exchange. The SWOT analysis of the industry is given as follows :STRENGTH : A large organized sector. A big production of yarn and silk. Govt. initiatives. A healthy foreign market share of 25%. There are well-established production bases for made-ups export as well as for domestic market. There are adequate processing facility for yarn dyeing and production of yarn dyed Fabrics. Availability of well engineering industries. There are a large number of power loom owners and looms that are expanding in size over the recent period.

WEAKNESS : Poor supply chain management. Unavailability of skilled labours . Poor Transport facility. The most serious problem of the industry is the lack of adequate processing facilities ; there is over-dependence on hand processors and traditional items. The majority of the SMEs are tiny and cottage type units without sufficient capital back-up. The quality of wider-width fabrics for meeting the export demand is lacking in many respects, which is acting as a disadvantage to the growth of the industry.

29

OPPORTUNITIES : Avast rural market in the country and European market. Upcoming commonwealth games in the country. Grey fabric export is continuing to grow and will show increasing trends. Nearly 40 textiles parks are being set up throughout the country under the Scheme for Integrated Textile Parks (SITP), which is stated to attract an investment of Rs 21.502crore (US$ 4.42 million) and create employment, both direct and indirect for 9.08 lakh workers and produce goods worth Rs 38.115 crore (US$ 7.82 million) annually.

THREATS : Abolition of quota system will lead to fluctuations in the export demand Increasing competition from other states/centres (like Surat) will be a major problem where the industries have come up afresh and are well developed and technologically more advanced. Entry of global competitors.

30

CHAPTER5

DATA ANALYSIS

31

DATA ANALYSIS

Data of the duration of purchasing habits of peoples :Table 1:- Duration of Purchase

Interpretation ;The above data shows the purchasing durations of the customer for ready made garments. According to that data, more than 35%(39 %) peoples goes once a month for purchasing readymade garments. 21% peoples goes occasionally like- during festive season, during going for important parties, during going to tour etc. 17% people goes at an interval of every two months gap, 15% goes twice a month and at last 8% peoples purchases once a year.

32

Table 2:- Buying Habits of peoples.:-

Interpretation :Day per day the buying habits of customers are changing. At the present time more than 40% people are looking for a fashionable verity of products, 35% looking for a good brand they are the working class and higher class peoples, 18% customers goes for verity of colors, exdifferent color verity of formal shirts for offices or occasions, at last 6% customers looking for cheaper products.

33

Table 3 :-Buying Destinations of customers :-

Interpretation :The present customers have change their favorable place for buying products from traditional retails to modern malls. Approx 50 % customers goes local stores for purchasing of readymade garments. 30% goes to organized retail stores like, Big Bazaar, Vishal Mega Mart, TNG, Cotton County etc. 10% customers are looking foe the authorized showrooms of the company and 12% customers are looking for malls.

34

Table 4:- Purchasing Limit of Customers :-

Interpretation:At the present time, the average customer wish to pay Rs. 1500 to 3000 for a readymade garment. 28% customers are those whose purchasing limit is between 1000to 1500 .the 19% peoples have a purchasing limit of below 1000 they are the people of semi urban areas.

35

Table 5 :- Purpose of purchasing of readymade garments

Interpretation :Basically, the main purpose of purchasing of readymade garments are for occasions or general purpose but from the last decade, it is found that more than 35% customers are purchasing garments for office use, it is only due to the corporate dress code. 30% garments are sell for general purpose, 20% for daily use, and 15% for party wear.

36

Table 6:- References for purchase:-

Interpretation : 41% customers influenced by their friends and other relatives. 35% customers influenced by advertisements. 20% customers influenced by other source of reference. 4% customers influenced by their family members

37

Table 7:-Companies with most festival offers

Interpretation :At the modern time the main promotion strategy of maximum companies are offering attractive schemes and free offers like.. buy one get two free, etc. in this field Arvind Mills leads with 32% of market share, Reliance textiles follow with 18%, Raymonds with 15%and Birla Groups occupies 11% market share in offering attractive schemes. The other MNCs and some local companies maintain a healthy share of 20% in issuing attractive schemes

38

Table 8:- Market Share of Major Textile Companies

Interpretation :Arvind mills leads the market with a capitalization of 39%, it followed by Reliance Textiles with 20%, Raymonds occupied third place with a market share of 18% of shares. Birla Groups has also occupies a healthy market share of 16% with the entry of some international brands like Van Husain. Other players like Bombay Dyeing, Mafatlal Shutting etc occupied the rest of 7% of market

39

Table 9:- DATA ANALYSIS OF RATE PROVIDED BY THE PEOPLE ON THEBASIS OF FOLLOWING FACTORS We have asked the people to give rates to the product on the basis of following factors : PRICE QUALITY LOOKS on the basis of their choices we have got the following data: Bar Chart for analysis

Conclusion : In this analysis, we found that majority of people want quality product as the people has given highest rating to quality where as looks and price are some how rated equally by the people.

40

CHAPTER6

FINDINGS, SUGGESTIONS AND CONCLUSION

41

KEY FINDINGS After going through the whole study I found the following key findings :1. The Indian Textile Sector is an emerging sector of India. 2. The organized textile sector is more develop than the unorganized sector. 3. The growth rate of this sector is increasing much higher with a healthy rate of 20%. 4. It contains a major part in industrial production and export of country. 5. The increasing income level of people supports the growth of the industry. 6. Low level of technology and poor supply chain management are major resistance in the development of the industry. So the major companies and the govt. has to do a hard work on it . 7. T h e r e i s a h i g h a v a i l a b i l i t y o f r a w m a t e r i a l s . 8. 8.Highly skilled economical labor, an added advantage. 9.Largest producer of cotton yarn contributing 25% towards worlds cotton . 10.Availability of all kinds of fibers like silk, cotton, wool and even high quality synthetic fibers. 11.Flexibility of the readymade garment industry in terms of sizes, fabric variety, quantity, quality and cost.

42

SUGGESTIONS :After the basis of above facts and findings I comes to the following suggestions :1. There is a need to improve our supply chain or logistic management. 2. There is a need to some more liberalization of export tariffs. 3. Need of import and implement of high quality technology. 4. Govt. has to provide some more financial assistance to the domestic textile companies. 5. The all promotion councils has to provide technical and management assistance to the domestic industries. 6. . 7 . P r o p e r i m p l e m e n t a t i o n o f e l e v e n t h f i v e ye a r p l a n . 8. 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 Need to improve the quality of raw materials like cotton, yarn, synthetic etc

CONCLUSION :As we analyzed the various data based on questionnaire, a fact has came into light that Arvind Mills is the most known and popular Brand in context of major Textile gaint followed by Reliance and Birla Group. Because of applying innovative ideas such as providing various facilities, launching new schemes & offers Arvind Mills garments are more used by people as compared to other one. Except it, people firstly prefer for good quality and comparatively low prices Textile garments then they emphasized on qualities and durability.

43

BIBILOGRAPHY

Some books helped us to have an idea about research methodology and preparing questionnaire .These reference books are: RESEARCH METHODLOGY- NARESH K MALHOTRA RESEARCH METHODLOGY- C R KOTHARI

WEBSITE ADDRESS: www.wikipedia.com www.moneycontrol.com www.google.com www.hepcindia.com www.indiancarpet.com www.aepcindia.com.- MAGAZINE Textile policy 2000

ANNEXURES

44

QUESTIONNAIRE:Name:-Age:-Address :-Occupation:-Contract No.:1 . W h a t i s yo u r t o t a l m o n t h l y i n c o m e ? Ans. A) below 5000p.m _______ B)5000 to 10000_______ C) 10000 to 20000 p.m_______ D) Above 25000 p.m_______ 2.How many times you go to store for purchase readymade garments? Ans. A) Once a month______ B) Twice a month____C) Every two months gap______ C) Once a year _______ D) Occasionally _______. 3 . W h i c h k i n d o f g a r m e n t s yo u l i k e t o p r e f e r ? Ans. A) Branded______. B) Cheaper _______ C) Color Varity ______ C) Fashionable ______. 4 . W h e r e yo u g o e s f o r s h o p p i n g o f g a r m e n t s ? Ans. A) Malls _______ B) Retail stores ______ C) Company Showrooms_______ C) Local stores ______. 5.What is your minimum purchasing limit of a readymade garment? Ans. A) below Rs. 1000 _____ B) Between 1000 to 1500.______ C) Rs. 1500 to Rs. 3000._____ D) Above 3000 _______. 6.What is the purpose of your purchasin g of garments? Ans. A) For Party wear______ B) For office purpose______.C) For daily use ______ D) General porpose.

45

7.Which factor mostly affects your decision while purchasing any readymade garments ? Ans. A) FRIENDS ______ B) ADVERTISEMENT _______ C) PARENTS ______ D) OTHERS ______ . 8.Which company provides you most festival offers? Ans. A) Arvind Mills______ B) Reliance ______C) Raymonds______ C) Pape Jeans_______ 9.Which brand you prefer much more? Ans. A) Arvind mills______ B) Reliance Textiles _______ C) Raymonds_______ D) Birla Group ______ E) Others______ .

Suggestion: