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Names Pradnya P. Patil Rohit Murugkar Smita K. Kamble Niharika C. Binju Pooja P.

Narawade

roll no 06 26 33 43 44

Employment generator Independent Industry

National Textile Policy

Strengths Rich in resources

Weakness Lack of Technological Development Lack of trade membership Poor labour law Lower productivity Dependent on cotton

High man power


Garment industry Exporter of yarn apparel industry

Opportunities

Threats

Growth rate
Market New market Development

Competition
Elimination of quota system Threat to traditional markets

1997 Asia attracted almost half of the total capital inflow Growth rate of GDP 8-12% Criticism by economist Paul Krugman Thailand's economy developed into a bubble fueled by "hot money crony capitalism

On other hand US economic started developing Growing export to china Improper policies Withdawal of money

Reduction in value of currencies Businesses collapsed Millions of people fell below the poverty line in 19971998

Exchange rate (per US$1)


Currency June 1997 July 1998 Change Country

GNP (US$1 billion) Change June 1997 July 1998

Thai baht

24.5

41

40.2%

Thailand

170

102

40.0%

Indonesian rupiah

2,380

14,150

83.2%

Indonesia

205

34

83.4%

Philippine peso

26.3

42

37.4%

Philippines

75

47

37.3%

Malaysian ringgit

2.5

4.1

39.0%

Malaysia

90

55

38.9%

South Korean won

850

1,290

34.1%

South Korea 430

283

34.2%

Size of the market Growth stage of the market The degree to which firm can influence price Relative strengths of buyers and sellers

Potential threats in this market Nature of commodity sold Buyers profile

Cash flow problem Recession in domestic and overseas market Spinning industry dependent on export market

Problem of wages and job Demand recession and steep fall in yarn export

15 per cent increase in power charges

Pradyuman Chatterjee, Vidya Rao and Mrinal Haldar conducted the studies on Indian Textile Companies. Study of Demand , Supply and Cost Conditions to come up with a plausible solution. Study of Power Mills, Power looms and Handlooms.

The Short Run Supply Function : -30+10P The Total Demand Function : 70-5P Where P= Price in Rupees The Average Constant Cost= Rs. 7 per metre.

Constant Cost Situation: Perfectly competitive industry with a horizontal long-run industry supply curve causes no change in production cost or resource prices.

Increase in demand for Indian textiles and garments.

Lowering of customs duties on imported textile machinery.


Reduced government restrictions on the import of the used capital goods. The reduced cost of the used equipment which makes textile manufacturing operations more viable.

During October 2008, total output of the textile sector came down by 10%.

Investments in textiles were also decreasing, ultimately affecting the profitability of the industry.
Some biggest apparel companies in India, located in Ludhiana in Punjab generating has suffered a 50% loss in sales especially the exports during 2008.

Textile industries are running on 75% of their capacities, or have reduced their three shifts into one.

launched February, 2000


The mission comprises of four mini missions

Issues of raising productivity Improving quality


Reducing the cost of production

Ensuring attractive returns to the farmers


Pay integrated attention to all aspect of cotton cultivation and utilization.

Initiated in 1999 as a 5-year project

Reduce production costs Improve profitability of mills. Improve quality More price-competitive Domestic market

5% interest reimbursement on the normal interest rate charged by the lending agency on rupee-term loan.

Varying rates of capital subsidy on the purchase of new equipment & machinery.

Funding to private handloom entrepreneurs, cooperatives, NGOs, minimum of 10 handlooms housed in a common work area. Textile units are eligible under the TUFS for soft-loans for modernising their operations through nationalized banks.

Definition: A perfectly competitive industry with a negatively-sloped long-run industry supply curve that results because expansion of the industry causes lower production cost and resource prices.