minum Banking Cement

Commercial Vehicle Cotton & Cotton Ya

Component Business Process Management (BPM) Construction

parel Industry Chlor-Alkali CRAMS Industry

Educat

Crude Oil Gems & J

Coal

Natural Gas Pesticides Power Generation

Steel Pa
Manganese Ore Pharmaceutical

eight Transport

Refining & Marketing Reta

Shipping Sugar Tractor Telecom Tower

o Wheeler Tyre
Apparel Passenger Vehicle Auto C
able Energy Sources Pipe Telecom-Wireless Seed Industry Two
an Made Fibre Paper Housing Finance Passenger Vehicl
ger Vehicle Hospital Industry Roads & Highways Zinc & L

Aluminum Cotton & Cotton Yarn Tracto

anking Express Service
The

onent Shipbuilding

Steel Two Wheeler Pesticide

Indian
Apparel
Industry

oads Freight Transport Gems & Jewellery

Express Service Cr
eed Industry Passenger Vehicle CRAMS Industry
Natural Gas
May
2014

The domestic apparel industry in India grew at a CAGR of 9 per cent from
Rs.1,360 billion in FY08 to Rs.2,115 billion in FY13. Despite a good monsoon,
commodity prices stayed at elevated levels while high food inflation caused
overall inflation to rise significantly. Furthermore, consumer sentiments also
remained muted for the better part of the year. However, after a lacklustre
performance in FY13 when the overall exports dipped and the domestic
industry grew by 4-5per cent annually to Rs.2,115 billion from Rs.2,026 billion in
FY12, the industry witnessed some respite in FY14 with exports growing
significantly.

Mens apparel market to

remain the largest segment

CARE Research expects the mens apparel forms the most penetrated
segment of the domestic apparel market and is expected to remain the
largest segment, even as the womens segment would nearly catch up with in
size due to the segments comparatively higher growth rate.

The rapid shift in preference from tailor-made to ready-to-wear apparel

should drive growth in the Indian apparel industry. This is primarily due to the
easy availability of ready-to-wear apparels in different sizes, pattern and colors.
The increasing levels of work pressure leave the consumer with little time to
go to the tailor, thereby leading to an increased demand for ready-to-wear
apparels.

Emergence of E-commerce
as an alternative channel

Domestic demand to
recover gradually from a
difficult year even as
growth in apparel exports
is anticipated to outshine
growth in domestic
market

Growing preference for

ready to-wear apparels

The growing number of internet users, credit card holders, spread of

internet enabled devices such as smart phones and laptops/ tablets and the
rapid spread of Indian consumerism has led to significant growth in the
channel which is expected to continue in the near to medium term.

The growing use of plastic money, i.e., credit and debit cards has resulted in
spendthrift behaviour amongst the consumers thereby fuelling demand. With
the acceptance of plastic money by almost all the retailers in the organised
retail segment, the number of outstanding plastic cards in the country is on a
rise. The incentives such as cash-back offer or discounts on selected sales
linked to the plastic money have lured the Indian consumer to experience the
pleasure of cashless shopping.

Growing spread of plastic

money escalates impulse
buying behaviour thereby
increasing consumption

SECTION I CARE Research Outlook

Domestic demand to recover gradually from a difficult year even as growth in apparel exports is
anticipated to outshine growth in domestic market

In the domestic market, mens apparels to remain the largest segment

Domestic Womens Apparel: Lingerie and western wear to drive the growth
Rising income levels to boost consumption
Intensifying urbanization to spur demand
Positive demographic dividend along with changing consumer preference to fuel expansion
Growing spread of plastic money escalates impulse buying behaviour thereby increasing consumption
Increased organized retail penetration to provide a booster shot for apparel demand
Growing preference for ready-to-wear apparels
Emergence of E-commerce as an alternative channel
As textile production is positively correlated to GDP, reduction in economic uncertainties to revive
growth in medium to long-term period

Challenges

SECTION II Industry Section

Domestic Apparel Market

Indian Textile and Apparel Industry Overview

Domestic Apparel Industry showed a robust growth of 9.2 per cent CAGR during FY08-13, but
overall slowdown impacted the YoY performance in FY13.

Apparel Industry Segmentation Mens apparel continues to be the largest segment

Mens Apparel

Overview
Industry Segmentation
Mens Shirts
Mens Suits
Mens Trousers
Mens T-shirts
Price segmentation
Womens Apparel

Industry Segmentation
Ethnic Dresses

 Sarees
Tops
Trousers/Skirts
Lingerie
Price segmentation
Other Apparel

Kidswear Apparel Market

Uniform
Unisex Apparel
Indian Apparel exports

Overview
Fibre-wise Indias apparel exports (Value-term)
Country-wise Indias apparel exports (Value-term)
Performance of apparel exports in FY13
US and EU Imports

US Overall Imports (Value-term)

US Overall Imports (Volume-term)
US Overall Imports Fiber-wise
US Apparel Imports Category-wise
Category-wise Indias Exports to US
EU Imports Category wise
Knitted Apparel Exports from India to EU
Non Knitted Apparel exports from India to EU
Regulations and Policies

National Textile Policy

Technology Upgradation Fund Scheme (TUFS)

Scheme for Integrated Textile Parks (SITP)

FDI in Single Brand & Multi Brand retail outlets

FDI in the Textiles Sector

Export Incentives

Recent measures taken by government to support exports

Key initiatives announced in Union Budget 2014-15

Industry Characteristics
Distribution Channel

Exclusive Brand Outlets

Multi Brand Outlets
General Retailers
Wholesale Distributors
Discount Stores
Exports
E-commerce An emerging channel
Cost Analysis

Raw material forms 65 per cent of overall cost of production for apparel manufacturers
Operating margins witnessed improvement in FY13
Net profit margins witness minor improvement in FY13
Debt equity remains stable despite sharp volatility observed in profitability
Working capital management

SECTION III Company Section

Bombay Rayon Fashions Limited
Kewal Kiran Fashion Ltd
Zodiac Clothing Pvt Ltd
Gokaldas Exports

SECTION IV Annexures

LIST OF GRAPHS and TABLES

SECTION I CARE Research Outlook

Projected growth in Domestic Apparel Industry

Projected Apparel Exports

Projected segment wise demand market size

Projected segment wise Mens Apparel market size

Projected segment wise Womens Apparel market size

Indian GDP per capita (at current prices)

Private final consumption expenditure at constant prices

Average annual rate of change in urbanization rate

% of population in urban areas

Age distribution of Indian population

Median age of population CY12

Credit card usage trend

Debit card usage trend

India Internet users (per 100 people)

GDP Growth vs Textile Production Growth

Country wise comparison of input costs

Country wise comparison of input costs

Country wise comparison of infrastructure

SECTION II Industry Section

Domestic Apparel Market

Domestic Apparel Industry Market Size

Domestic Apparel Industry segment wise market size
Mens Apparel

Trend in market size for Mens Apparel

Mens Apparel Segment wise share (Rs Bn)
Mens Apparel Segment wise share (Per cent)
Price Segment wise share of Menswear

Womens Apparel

Womens Apparel Segment wise share (Rs Bn)

Womens Apparel Segment wise share (%)
Ethnic Dresses market size and Y-o-Y Growth
Sarees Market Size and Y-o-Y Growth
Tops Market Size and Y-o-Y Growth
Trouser/Skirts Market Size and Y-o-Y Growth
Lingerie Market Size and Y-o-Y Growth
Share of Price Segments
Other Apparel

Kids Apparel Market size

Uniform Market Size
Unisex Apparel Market Size
Indian Apparel exports

Indian Apparel Exports (in Rs bn)

Indian Apparel Exports (US $bn)
Fibre wise exports (FY09) vs Fibre wise exports (FY13)
Indias apparel exports Country wise share 2013 (%)
Country-wise Indias apparel exports (Value-term)
Performance of apparel exports in FY13
US and EU Imports

US Fiber-wise Apparel Imports

Apparel Exports to US Cotton Dresses
Apparel Exports to US Men/Boys Knit Shirts
Apparel Exports to US Woman/Girls Knit Shirts
Apparel Exports to US Men/Boys Cotton Shirts
Indias Apparel Exports to US Category-wise (in value)
Indias Apparel Exports to US Category-wise (in volume)
Knitted Apparel Exports from India to EU
Non Knitted Apparel exports from India to EU
Distribution Channel

Channel of distribution
Cost Analysis

Trend in break up cost for Apparel Manufacturers

 Trend in Operating Margins

Trend in Net profit Margins
Key financial ratios

SECTION III Company Section

Bombay Rayon Fashions Ltd

P&L Statement
Balance Sheet
Key Financial ratios
Nine Monthly Financial
Key Clients
Shareholding Pattern
Revenue Break up
Share Price Movement

Gokaldas Exports

P&L Statement
Balance Sheet
Key Financial ratios
Nine Monthly Financial
Key Clients
Shareholding Pattern
Product category mix
Product Mix
Export Revenue Share
Share Price Movement

Kewal Kiran Clothing Ltd

P&L Statement
Balance Sheet
Key Financial ratios
Nine Monthly Financial
Plant Location
Shareholding Pattern
Brand wise share (FY12 and FY13)
Product wise share (FY12 and FY13)
Share Price Movement

Zodiac Clothing Ltd

P&L Statement
Balance Sheet
Key Financial ratios
Nine Monthly Financial
Plant Location
Shareholding Pattern

 Share Price Movement

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