THE TEXTILE INDUSTRYAN OVERVIEW

GROUP- 1

07- AKSHAY RATHOD 17- DISHA KOTHARI 27- LYNETTE RODRIGUES 37- POONAM BANSAL 47- SAURABH JOSHI 57- VINAY DIXIT

INTRODUCTION
The textile industry occupies a vital place in the

Indian economy and contributes substantially to its export earnings

India is the worlds second largest producer of

textiles after China

The textile industry in India is one of the oldest

manufacturing sectors in the country and currently its largest

 This important place is because of the industrys

contribution to industrial output, employment generation and foreign exchange earnings

The textile industry can be broadly classified into 2

categories, the organized mill sector and the decentralized mill sector
Considering the significance and contribution of

textile sector in national economy, efforts are being made to take urgent and adequate steps to attract investment and encourage wide spread development and growth in this sector

FIGURES!
The Indian textile industry contributes:

14% 4% 17%

INDUSTRIAL PRODUCTION GROSS DOMESTIC PRODUCT TOTAL EXPORT EARNINGS

It also provides direct employment to over 35

million people and is the second largest provider of employment after agriculture

RAW MATERIAL ADVANTAGE

India possesses a natural advantage in terms of

raw material availability

2nd LARGEST 2ND LARGEST PRODUCER OF COTTON PRODUCER OF SILK

3RD LARGEST
5TH LARGEST

PRODUCER OF CELLULOSIC YARN

PRODUCER OF SYNTHETIC FIBRES

LARGEST PRODUCER
HOME TO LARGEST PRODUCER OF

JUTE
POLYESTER

STRENGTHS Abundant RM availability Cheap and abundant labor

Presence across Value Chain

Domestic market potential OPPORTUNITIES Product and market diversification Labeling and product up gradation R&D development

WEAKNESSES Low productivity, lack of technical manpower Effect of historical Government policies Technological Obsolescence Fragmented Industry THREATS Competition from China, Indonesia and Thailand Rising cost of inputs Ecological and social awareness

IMPORTANT DEVELOPMENTS IN THE INDUSTRY

1. INCREASED COMPETITION FROM SOUTH ASIAN COUNTRIES:
A significant phenomenon that has occurred of late is

the shifting of textile industries from all over the world to the developing countries, notably the Asian continent Thus China, Hong Kong, Korea, Thailand, Philippines and Indonesia have become major competitors

2. WORLDWIDE SHIFT IN USAGE FROM COTTON TO MANMADE FIBRES:

Major reasons for this shift include i. Properties imparted in manmade fibers, e.g. easy care, durability etc. ii. Low cost of production due to low cost of input iii. Changing trends in consumer tastes

3. GOVERNMENT SUPPORT:

Technology Up-gradation Fund Scheme

provides low interest loans for technology upgradation and setting up of new units with state-ofthe-art technology 100% FDI allowed in textile and apparel industry Scheme for Integrated Textile Parks (SITP) to build world-class infrastructural facilities Product specific cluster approach targeting 100 additional clusters in textiles

4. COST OF PRODUCTION:HIGH

The fastest growing component of cost is labor wages Real wage rates between 1949 and 1999 increased by as much as 10 folds. The price of energy, raw material, and capital rental prices increased between three and five folds Output prices have remained low due largely to competition from low-cost imports Highly labour and material intensive Switching costs for supplier is less due to low product differentiation Lack economy of scale

5. GERMAN BAN ON TEXTILES

The German Health Ministry has imposed a ban on the import and manufacture of goods dyed with Azo dyes, Benzidine and other similar amines considered carcinogenic The other EU countries, USA and Canada may also follow suit

6. ECO-FRIENDLY GARMENTS AND TEXTILES:

A significant and lasting trend in the exports of textiles to the USA and other European countries is the increasing concern for environmental health

Ecological issues are becoming primary

concerns of consumers because of health hazards

7. MERGERS AND ACQUISITIONS

COMPETITIVE ANALYSIS
Porters five forces model Value chain analysis

PORTERS 5 FORCE MODEL

Threat of new entrants (VERY LESS) Barriers of entry is strong Bargaining power of supplier (WEAK)

Industry competitors Rivalry among existing Players (MEDIUM)

Bargaining power of buyers (STRONG)

Threat of substitutes(VERY LESS)

TOP TEN TEXTILE COMPANIES

Bombay Dyeing

Fabindia
Grasim Industries JCT Limited

Lakshmi Mills
Mysore Silk Factory Arvind Mills

Raymonds
Reliance Textiles

VALUE ANALYSIS

The greatest value addition in the textile chain is generated in the apparel segment

FUTURE OUTLOOK
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 The readymade garment segment will be the principal driver of growth even in the domestic industry Investment in the Indian Textile Industry: In order to achieve the vision, investments of US $ 36 billion will be needed within the period from 2004-2011

REFERENCES
www.texmin.nic.in

Annual Industry Report 2010

www.quickmba.com Dun and Bradstreet Report 2011

THANK YOU!!!