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Textile Industry

By Group 4
Surbhi Sharma
Atul Gupta
Manoj
Shantanu Srivastava
Shubhra Sasmit
Siddhant Khunger
Vaibhav

Our process is easy


Marke
t

Intro

Socia
l
Issue
s

Govt.
Laws

Q&A

Unfair
Practices

LEGENDS USED
MMF Man Made Fibre
ADD Anti Dumping Duty

Textile Industry in india


Textile sector contributes 14 per cent to industrial production and 4 per cent to GDP
With over 45 million people, the industry is one of the largest source of employment
generation in the country for both skilled as well as unskilled labors
The textile industry is basically divided across:
Ready Made Garments
Cotton Textiles
Man-made textiles (polyester, nylon, viscose, acrylic)
The industry accounts for nearly 13 per cent of total exports
India is also the second largest textile exporter after China
The size of Indias textile market in 2014 was US$ 99 billion; the market is expected
to expand at a CAGR of 9.6 per cent over 201423
Source: Ministry Of Textiles, TechSci Research

Maps

Source:
Indiatoday.co.in

Assessment of market concentartion


The overall market size is Rs. 214918.45 crores
The Market share of top companies are
Firm

Market Share

Grasim
Lakshmi Mills
Vardhman
Arvind
Bombay Dyeing
Raymond

13.64%
10.14%
2.41%
2.22%
1.31%
1.02%
Source: transparencymarketresearch.com

The HHI for the top companies is 302.36 which indicates


perfect competition
The market shares of the top 6 companies is 30.75%
which indicates that it is a highly competitive market

Regulatory Framework

The government has offered health insurance coverage to 161.10 million weavers and ancillary
workers under handloom weavers comprehensive scheme.

As per the 12th year five year plan, the integrated skill development scheme aims to train over
2675,000 people within next 5 years.

As per the credit guarantee program, over 25000 artisans credit cards have been supplied to
artisans and 16.50 million additional applications for issuing credit cards have been forwarded to
banks .

The Indian government has given approval to 40 new textiles parks to be set up and this would
be executed over a period of 36 months.

The new textiles park would leverage employment to 400,000 textile workers

Changes in Regulation

The Indian government has come up with a number of export promotion policies for the textiles
sector. It has also allowed 100 per cent FDI in the Indian textiles sector under the automatic route.

Some of initiatives taken by the government to further promote the industry are as under:

The government has taken a number of initiatives for the welfare and development of the weavers
and the handloom sector. Under revival, reform and restructuring (RRR) package, financial assistance
to the tune of Rs 1,019 crore (US$ 164.72 million) has been approved and the Indian government
has released Rs 741 crore (US$ 119.78 million).
The Cabinet Committee on Economic Affairs (CCEA) has approved an Integrated Processing
Development Scheme (IPDS) with a corpus of Rs 500 crore (US$ 80.82 million) to make textiles
processing units more environment-friendly and globally competitive.
The Ministry of Textiles plans to ink a deal with Flipkart to provide an online platform to handloom
weavers to sell their products
The Indian government has given approval to 40 new textiles parks to be set up and this would be
executed over a period of 36 months.

Abuse of Dominance

Mass recruiter
industy,
therefore
extremely
unfair
compensation

Holds political
sway to resist
changes in
regulations
harming their
interest

Terrible
Working
Conditions,
especially for
the women
and children

Anti Competitiveness

Price fixation of MMF products in the domestic markets


The domestic manufacturer of MMF basing their price on import landed cost
Selling cheaper in overseas market than domestic market
Allocation of customers for specific suppliers and other suppliers not supplying to
these customers/regions.
Cutting down production jointly to avoid competition.
Due to the imposition of ADD the prices becoming higher in the domestic market.
Export incentives provided to the exporters of MMF manufacturers giving them the
extra benefit.
Unfair, ambiguous, monopolistic and dominating policies on pricing, discounts and
dispatches.
Limiting quantity of specific quality of fibre (Kharach fibre), when there is a
requirement of yarn made out of that fibre.


Social Issues
Worker exploitation
Child labour
Low wages
Poor working conditions
Animal abuse


Environmental
Issues

Greenhouse gas emission


Natural resource abuse
Use of toxic chemicals
Noise, water and air
pollution


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Any questions?