textile industry
Post on 27-Jun-2015
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T£XTIL£ INDUSTRY
SUBMITTED BY PRANJUL CHOPRA
ROLL NO. 1065
THE INDIAN TEXTILES INDUSTRY HAS AN OVERWHELMING PRESENCE IN THE
ECONOMIC LIFE OF THE COUNTRY. APART FROM PROVIDING ONE OF THE
BASIC NECESSITIES OF LIFE, THE TEXTILES INDUSTRY ALSO PLAYS A
VITAL ROLE THROUGH ITS CONTRIBUTION TO INDUSTRIAL
OUTPUT, EMPLOYMENT GENERATION, AND THE EXPORT EARNINGS OF THE
COUNTRY.
INTRODUCTION
The sector contributes about 14 per cent to industrial production, four per
cent to the gross domestic product (GDP), and 17 per cent to the country's export earnings. India's textile industry
is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scope for the other
ancillary sectors. Indian textile industry currently generates employment for
more than 35 million people.
MARKET SIZE
The Indian textile industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand.
Abundant availability of raw materials such as cotton, wool, silk and jute and skilled
workforce has made India a sourcing hub.India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5 per cent to eight per cent
and reach US$ 80 billion by 2020.Textile exports in FY15 are expected to grow
by 25 per cent to US$ 50 billion,
PORTER’S FIVE FORCES FRAMEWORK
Porter’s five forces framework models that competitive interaction in any industry is
influenced by five forces. The framework has helped businesses become
more profitable and government to stabilise industries.
If effectively applied, the five force framework helps develop business strategy to maximise
profits.
PORTER’S FIVE FORCES FRAMEWORK
THREAT FROM NEW ENTRANTS (LOW)
Retailing not allowed for foreign players
Huge investments in infrastructure is required
Availability of skilled labors and technical know-how is low
AVAILABILITY OF SUBSTITUTES (HIGH)
Unorganized retailing
E-retailing
Catalogue sales
BARGAINING POWER OF BUYERS (MODERATE)
Individually, customers have very little bargaining power within the
organized retail stores Lots of various shopping formats
available to shop fromLots of brand choices available for similar qualities with different price
BARGAINING POWER OF SUPPLIERS (LOW)
Being bulk purchases done by organized retailer’s suppliers have very little bargaining
power in organized retailing.
Many retailers are doing backward integration and coming out with private labels, thus decreasing dependence on
traditional suppliers.
INDIA’S TEXTILE EXPORTS
Source: www.ibef.org/industry/textiles.aspx
The size of India’s textile market is expected to expand at a CAGR of 10.1 per cent over 2009–21
PRODUCTION OF RAW COTTON IN INDIA
Source: www.ibef.org/industry/textiles.aspx
GOVERNMENT INITIATIVES
The government has taken a lot of initiatives for the welfare and development of the
weavers and handloom sector. Under revival, reform and restructuring (RRR) package,
financial assistance to the tune of Rs 1,019 crore (US$ 168.49 million) has been
approved and the government has already released Rs 741 crore (US$ 122.52 million).
FUTURE OUTLOOK
With consumerism and disposable income on the rise, the retail sector has experienced a rapid
growth in the past decade with several international players like Marks & Spencer, Guess
and Next having entered Indian market. The organized apparel segment is expected to grow at a compound annual growth rate (CAGR) of more
than 13 per cent over a 10-year period.
The Government of India is also taking initiatives to attract foreign investments in the textile sector
through promotional visits to countries such as Japan, Germany, Italy and France.
THANK YOU
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