an emerging market opportunity for global manufacturers & suppliers ofapparel fabrics & accessories
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apparel fashion garments style projectTRANSCRIPT
- 1. India An Emerging Market Opportunity for Global Manufacturers & Suppliers of Apparel Fabrics & Accessories &
- 2. Indias Textile Industry
- Produces 42,000 million sq mtrs of Fabric per year
- 420
- 5,000 million pieces of Readymade Garments per year
- 50
- Fiber breakup of Fabrics is as follows :
- :
- - 43% Cotton
- 43%
- - 14% Cotton blended
- 14 %
- - 42% Non-Cotton
- 42%
- - 01% Others
- 01%
- 3. Textile Map of India
- 4. Textile Exports Current Scenario
- Readymade Garments make up US$ 6.1 billion
- 61
- Cotton Textiles is US$ 3.5 billion
- 35
- Man-made Textiles is US$ 1.8 billion
- 18
- Silk, Woollen and others is US$ 1.6 billion
- 16
- ( @ Rs. 43.5 = US$)
- 5. Imports of Textiles into India Source: DGCIS, Kolkata 347.90 (mn sq mtrs) 84.22 68.40 Fabrics 165 177 139 Yarn 523 817 611 Fiber & Fiber waste 2003-04 (Figures in tons) ( : ) 2002-03 2001-02
- 6. Apparel Industry in India (Figures in US$ billion) ( ; ) 23.00 18.75 18.07 Total production of Apparel 16.90 13.80 13.30 Domestic availability of Apparel 6.10 4.95 4.77 Exports of Apparel 2004-05 2003-04 2002-03
- 7. Major Supplying Countries to India (Figures in US$ million) ( : ) (Arranged in descending order as on 2003-04) 2,021.96 1,645.47 1,537 All countries 55.02 53.21 42.33 Thailand 55.17 86.54 58.30 Indonesia 63.21 55.95 30.29 Hong Kong 76.35 40.15 50.22 Nepal 109.30 117.32 130.60 Australia 123.06 101.07 97.90 Korea. S 126.62 110.25 114.91 Taiwan 185.15 123.15 173.45 USA 492.46 331.02 252.95 China 2003-04 2002-03 2001-02
- 8. India Brimming with Opportunities
- Average GDP growth is 7% and will keep increasing
- 7%,
- Industrial production growth 8.5% in 2004-05 fastest in 8 years
- 2004-05 8.5% - 8
- 300 million middle class consumers with strong purchasing power
- 3 ,
- Penetration of reforms in rural sector is increasing purchasing power & improved living
- 9. India Brimming with Opportunities
- Improved literacy in rural India, expanding job opportunities + increasing incomes create new markets
- , +
- Indian economy fast integrating with world economy
- Focus on modernization, upgradation of technology & building of large-sized units to increase price competitiveness and enlarged job opportunities
- , ,
- 10. Strong Textile-led Growth
- Export & Domestic market size is US$ 23.00 billion; expected to reach US$ 70 billion by 2010
- 230 ; 2010 700
- Apparel exports presently US$ 6.10 billion; set to rise to US$ 15 billion by 2010
- 61 ; 2010 150
- Domestic Apparel Market size, currently US$ 16.9 billion expected to reach US$ 55 billion by 2010
- 169 ; 2010 550
- Apparel Per Capita Consumption currently 6 pieces expected to reach 20 pieces by 2010
- 6 ; 2010 20
- 11. Government Policies
- Peak Customs Duty on semi-finished and finished textiles brought down to 15% from 20% earlier
- 20% 15%
- Possibilities of Specific Duties on Textiles and Apparel to be phased out
- Excise Duty continuously lowered and made optional for fabrics and garments
- ,
- Processing sector granted 10% cash subsidy for modernization
- , 10%
- Import duty on all textile machinery reduced to 10% & on 140 items of apparel machinery to 5%
- 10% 140 5%.
- Knitted garment sector de-reserved from Small Scale Industry Sector, creates tremendous potential for growth
- , .
- Labour reforms set to be made industry friendly
- 12.
- Government Policies
- Special Tax benefits to textile manufacturing units
-
- 10 year tax holiday.
-
- Income tax at half rate for the next five years.
-
- Income tax exemption for the next five year upto total investment.
-
- No duties within Special Economic Zones (SEZs) and for Export Oriented Units (EOUs) located outside SEZ.
- No import duties if exports are to EOUs.
- 100% Foreign Investment permitted in textile manufacturing.
- Retail sector expected to be opened for foreign investment in near future.
- 13. Strong Textile-led Growth
- Foreign Direct Investment in Garment sector permitted without limit
- Foreign Direct Investment in Retail to be raised to 49%
- 49%
- Major International Retailers eyeing India as sourcing hub, next only to China
- , , .
- 14. What does India need? ?
- Performance Fabrics
- Linen, Ramie,
- ,
- Specialized fiber based Tencel, Lycra
- , Tencel
- Micro fiber Yarns
- Coated/laminated Fabrics
- /
- Special finishes in Synthetic Blends
- Special and fashion Embellishments
- Technical Textiles
- Fire proof and Ballistic-proof Fabrics
- And much more
- 15. India beckons India is increasingly opening its markets to the worldthe opportunities in the Textile and Apparel sector are there for the picking
- 16.
- Comparing India and China
- Indias share in global textile trade is 3%.
- Indias textile sector could easily grow at 25-30% annually without attracting negative measures from US and EU.
- Indias strength is variety and innovation and Chinas strength is bulk production and consistent designs.
- Indias strength is hand made textile Chinas strength is machine made.
- 17.
- Indias Textile Market expected to be USD 60 billion by 2010.
- Indias exports 6 billion of textiles and 6 billion of clothes annually.
- Composition of global textile market
- 60% polyester
- 40% cotton
- Composition of Indias textile market is
-
-
- 80% cotton
-
-
-
- 20% polyester
-
- Taiwan could supply polyester, blended, coated, high technology fabrics, technical and specialty fabrics & textiles to India
- 18.
- Frequently Asked Questions
- Q Number of textile manufacturers in India?
- A 15,000 Export Oriented Units (EOUs) and about 50,000 more manufactures are in the domestic textiles market. There are many unregistered small time manufactures.
- Q Centers of textile industry in India?
- A Mumbai (Mens wear), Delhi, Bangalore, Calcutta (Childrenwear) , Chennai (Womens wear), Ludhiana (Hosiery & Knitwear in Punjab province), Tirpur ( Hosiery & Knitwear in Tamil Nadu Province), Indore (Madhya Pradesh province).
- Q Average size of the factories in textile export?
- A 500-700 machines.
- 19.
- Q Mode of business payment?
- A LC at sight is the normal mode of payment.
- Q Import duty on textile products?
- A 15% and a counter veiling duty of 16%. These duties are not applicable within SEZs, EOUs and for units engages in re-export.
- Q Import Tax on textile imports?
- A Within Special Economic Zones (SEZs) and for Export Oriented Units (EOUs) there is no import duty. Units (domestic and foreign) need to give a bank guarantee towards export of goods against imports.
- Q Limit on foreign investment in textile sector:
- A None. 100% foreign investment is permitted in textile manufacturing. However foreign investment in retail is not allowed yet. FDI in retail sector is expected soon.
- 20.
- Q Norms on factory construction, wages, safety standards etc?
- A Factory Act governs these aspects.
- Q Labour issues?
- A Special Labour Officers are appointed in the courts. For the in units within Special Economic Zones (SEZs) the Development Commissioner is the labour officer also.
- Q Tax benefits within SEZs?
- A No income tax for first 10 years
- Income tax at half rates for next 5 years
- exemption for the next five year upto the amount of investment in the project.
- 21.
- Q Minimum wage in the textile sector?
- A For unskilled worker minimum wages could be as low as 80 USD/ month, though the figure is merely indicative.
- Q What are land and construction costs:
- A These vary widely from place to place
- some SEZs offer land at USD 20,000 per acre
- construction cost could be 15-25 USD per sq ft.
- 22. Thank You! !