apparels industry india

8/9/2019 Apparels Industry India

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ABC Apparel Export

Pvt. LtdTextiles export firm


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Indian Apparel and Textile Industry

One of the earliest industries to come intoexistence in the country,

conduces to about 30% of the total exports and isthe second largest employment creator afteragriculture.

The Indian apparel and textile industry employsaround 35.0 million people contributes 4 % to theGDP .

The sector aims to grow its revenue to US$ 85bn,its export figures to US$ 50bn and employment to12 million by the year 2010.


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Indian Exports of Apparel & Textile Facts &

Figures

Current share in world export of textiles 3.5 - 4 %.

Current share in world clothing export 3 %.

Major export market Europe (22% share in textiles &43% share in apparel).

Single largest buyer US (10% share in textiles and32.65 share in apparel).

Other major export markets include - UAE, Saudi Arabia,Canada, Bangladesh, China, Turkey and Japan.

Largest export segment Readymade Garments (45%share in textile exports and 8.25 share in India's totalexports).


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Product-wise Export Share

Readymade Garments 6038.69

Cotton Textiles 3290.31

Man-made Textiles 1948.72

Wool & Woolen Textiles 66.57

Silk Textile 406.82

Total 11751.11

(Fig In Mn US $)

Source : Apparel Online


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Trend In International Trade of Apparel Sector

Commodity Apr-Mar 2008 Apr-Mar 2009(P) %Growth %Share

A) PLANTATION 3,906.44 4,943.39 26.54 0.59

B) AGRI & ALLIED PRDTS 54,510.53 65,769.38 20.65 7.83

C) MARINE PRODUCTS 6,926.67 7,064.11 1.98 0.84

D) ORES & MINERALS 36,716.93 35,874.05 -2.3 4.27

E) LEATHER & MNFRS 14,101.30 16,351.11 15.95 1.95

F) GEMS & JEWELLERY 79,227.74 127,424.33 60.83 15.17

G) SPORTS GOODS 539.94 660.12 22.26 0.08

H) CHEMICALS & RELATEDPRODUCTS

90,040.06 109,592.65 21.72 13.05

I) ENGINEERING GOODS 135,719.27 183,975.64 35.56 21.9

J) ELECTRONIC GOODS 14,131.50 32,781.90 131.98 3.9

K) PROJECT GOODS 584.06 626.05 7.19 0.07

L) TEXTILES 74,399.19 88,498.38 18.95 10.54

M) HANDICRAFTS 2,046.21 1,375.48 -32.78 0.16

N) CARPETS 3,797.91 3,564.09 -6.16 0.42

O) COTTON RAW INCL WASTE 8,865.39 2,865.85 -67.67 0.34

P) PETROLEUM PRODUCTS 114,191.68 123,397.98 8.06 14.69

Q) UNCLASSIFIED EXPORTS 16,158.71 35,213.45 117.92 4.19

Total 655,863.50 839,977.94 28.07 100

(Fig In US $ Mn)

Source : Ministry of Commerce and Industry


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Top 5 Export Destinations.

Rank CountryApr-

Mar 2008Apr-

Mar 2009(P)%Growth %Share

1 U.A.E 62,915.03 110,021.10 74.87 13.1

2 U S A 83,388.07 95,750.58 14.83 11.4

3 CHINA 43,597.41 42,661.32 -2.15 5.08

4 SINGAPORE 29,662.23 37,746.56 27.25 4.49

5 HONG KONG 25,385.25 30,639.15 20.7 3.65

Total 655,863.50 839,977.94 28.07 100

(Fig In US $ Mn)

Source : Ministry of Commerce and Industry


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Year Of Incorporation-2000

Place: Ludhiana Firm Type - Proprietorship

Nature of Business Manufacturer and Exporter.

Level to Expand - International

Export Markets- Asia Oceania Region (Australia &

New Zealand)

ABC Apparel Exports.(Company Profile)

BUSINESS PLAN


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ABC Apparel Exports Pvt Ltd.

Focus Product is Woolen Jackets (Menswear).

Parties Involved

Production Centers located in (Punjab)Ludhiana.

ABC Global Ltd - Indenting Agency in Delhi. Export Destination McLaren Store Sydney

Australia.


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ABC Apparel Exports Pvt Ltd.

Factory Location Ludhiana MUB

Import Requirements- Synthetic fibre (MLFPS).

Number of samples can be extended to 50.

Export Location Australia & New Zealand [Focus

Market Scheme (FMS) ]


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Processes Involved


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Governing Agencies In India

Apparel Export Promotion Council

Incorporated in1978, AEPC is the official body of apparelexporters in India that provides invaluable assistance toIndian exporters as well as importers

For Indian exporters, AEPC is a one-stop shop forinformation, technical guidance to work force and marketintelligence. Members have access to updated trade statistics, potential markets,

information on international fairs and assistance in participating at

these fairs.

Source : Apparel Export Promotion Council


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Indian Cotton Mills' Federation (ICMF) CITI in May 2005

Chairman of Cotton Textiles Export Promotion Council(Texprocil), Synthetic and Rayon Textiles Export PromotionCouncil (SRTEPC) and Apparel Export Promotion Council(AEPC) are members to the Committee of CITI.

Confederation established a Young Entrepreneurs Group (YEG)in March 2003. The Group comprises young entrepreneurs in thetextile industry holding executive positions. Its objective is to harness the inherited textile knowledge and

new ideas and initiatives of the young entrepreneurs in theindustry.

Provides a forum for interaction among these new players inthe Industry and supports the activities of ICMF and theindustry.


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The highlights of FTP 2009-2014 wrt TextileSector

1. Promotional measures Incentives to status holders Status holders will be entitled to

Duty Credit Scrip equal to 1% of their export of specified productgroups to upgrade technology and reduce cost of production.This facility shall be available for sectors of leather (excluding finished

leather), textiles and jute, handicrafts, engineering (excluding Iron &steel & non-ferrous metals in primary and intermediate form, automobiles& two wheelers

Expansion of FMS Focus Market Scheme (FMS) has beenexpanded by adding 26 new markets, out of which 16 are in Latin

America and 10 in Asia-Oceania. Incentive under the scheme hasbeen enhanced from 2.5% to 3%.

Expansion of FPS Incentive under the scheme has been

enhanced from 1.25% to 2%.A large number of products from various sectors have been included for

benefits under FPS. These include Technical Textiles.


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Market Linked Focus Product Scheme - Market Linked Focus

Product Scheme (MLFPS) has been expanded by adding 153new products and 13 markets.Some major products include; Pharmaceuticals, Synthetic textile fabrics,

value added rubber products, value added plastic goods, textilemadeups, knitted and crocheted fabrics

Benefits to these products will be provided, if exports are made to 13identified markets (Algeria, Egypt, Kenya, Nigeria, South Africa,Tanzania, Brazil, Mexico, Ukraine, Vietnam, Cambodia, Australia andNew Zealand)

Free imports of samples by exporters - Number of freesamples allowed is increased from 15 to 50 as per para 49 ofHighlights of Foreign Trade Policy announced on 27-8-2009. Itseems the change will be effective after relevant customsnotification is suitably modified.


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2. Duty exemption and remission schemes

The Government has been taking various steps for augmentingthe export of textile and clothing products as a whole, includingman-made fibre based products. Some of the importantmeasures taken by the Government are as follows:-

i) Extension of the Duty Entitlement Pass Book (DEPB)Scheme upto December 31, 2009;

ii) Increase in Duty Drawback rates on knitted fabrics and onspecified categories of yarn;

iii) Providing pre and post-shipment credit assistance in rupeesas well as in dollars;

iv) Reduction in import duties of raw materials; and

v) Reduction in interest rates on export finance; etc.


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3. EPCG scheme

Zero dutyEPCG scheme - A zero duty EPCG scheme hasbeen introduced in FTP 2009-14 for a limited period i.e. upto 31-3-2011 vide para 5.1 of FTP 2009-14The scheme is available for exporters of engineering and electronic

products, basic chemicals and pharmaceuticals, apparels andtextiles, plastics, handicrafts, chemicals and allied products and

leather and leather products, except those excluded in HBP Vol. 1.

4. Manufacture under Bond

Under the Manufacture under Bond Scheme, all factoriesregistered to produce their goods for export are exempted fromimport duty and other taxes on inputs used to manufacture such

goods. Against this the manufacturer is allowed to import goodswithout paying any customs duty. The production is made under

the supervision of customs or excise authority.


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FOCUS PRODUCT SCHEME

Under these 4 digit codes various items are covered at 8 digit leveland all such items are eligible for duty free credit.

4203 10 Articles of apparel: 4203 10 10 Jackets and jerseys 4203 10 90 Other Gloves, mittens and mitts :4203 21Specially

designed for use in sports:

4203 21 10 Gloves 4203 21 20 Mittens and mitts 4203 29 Other : 4203 29 10 Gloves for use in industry 4203 29 20 Other gloves 4203 29 30 Mittens and mitts

4203 30 00 Belts and bandoliers 4203 40 Other clothing accessories : 4203 40 10 Aprons 4203 40 20 Semi chrome grain garments 4203 40 90 Other


18/19

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FTP Provisions Disappoints Apparel Exporters.

Problems Faced By Apparel export

Falling sales in Europe & US lead to many job lossesthis year which will stagnate the apparel export thisfiscal year.

Duty free scrips still at 2%, it will not work as these areprovided to the units which are not taking the benefitunder TUFS(Technology upgradation fund scheme)and most of the units take benefits under TUFS.

Addition of 26 new markets under focus market

scheme yield marginal results in short run. Foreign Trade Policy end up speaking of clothing and

textile industry but doing very little to it.


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