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AN ANALYSIS ON EXPORT OF INDIAN TEXTILE INDUSTRY WITH SPECIAL
REFERENCE TO LUDHIANA.
Presented By : Pushp Sambyal
MBA- 2B
Introduction to The Company
“At Nahar,
excellence is always an ongoing journey
never destination”
The Nahar Group
Nahar group came into existence in 1949 .
It was established with initial efforts of three Oswal brothers Sh.Vidya Sagar Oswal ,Sh. Lachman Dass& Sh. Rattan Chand Oswal.
The initial capacity of nahar group was 800 spindles.
At present it has more than 66200 spindles of capacity.
OSWAL WOOLLEN MILLS LTD.
NAHAR INDUSTRIAL ENTERPRISES LTD.
NAHAR SPINNING MILLS LTD.
Nahar Group of Companies
Introduction to
At OWM, Even the Word“Impossible”
Says“I’m Possible.”
It was established in 1949 by Sh. Vidya Sagar Oswal.
It is manufacturing all type of blended worsted yarn, weaving yarn, shawls,garments etc.
OSWAL WOOLLEN MILLS LTD
Group turnover is Rs. 2500 Crore.
Export Markets: Argentina ,Brazil ,China, Poland ,Portugal ,U.K ,U.S.A, Turkey, South Africa, Egypt, Israel and Bangladesh.
Social upliftment by establishing Jawahar Lal Oswal Public
Charitable Trust and Mohan Dai Oswal Memorial Hospital.
Features
Mr. Jawahar Lal Oswal Chairman-Cum-Managing Director
Mr. Amarjeet Singh Director
Mr. Dinesh Oswal Director
Mr. Kamal Oswal Director
Mr. Sandeep Jain Executive Director
Mr. Dinesh Gogna Executive Director
Dr. (Mrs.) H.K. Bal Additional Director
Mr. O.P. Sahni Additional Director
Mr. K.S. Maini Additional Director
Dr. Suresh Kumar Additional Director
List of Directors
Wool / acrylic top
Yarns
Textile fabrics
Hosiery knitwear products
Product Portfolio
Brands of OWM
Quality Control
Human Resource Department
Finance Department
Marketing Department
Departments in OWM
Major competitors in pullovers and cardigans
Casablanca Pringle (Scotland)
Competitors of woolen/blended worsted yarn Vardhman Textiles Limited Jayshree Textiles Limited
Malwa Cotton Mills Limited
Competitors of their denim fabric
Arvind Mills Limited Aarvee Denims Limited Raymond Limited
Competitors
SWOT Analysis
Good Brand Image.
Many persons are working here for more than 50 yrs. This shows commitment of employees towards their org.
Member of wool mark and ISO 9002.
Laboratories for testing the quality of the product.
Strengths
OWM is dependent upon foreign producers for greasy wool.
Depend on the third party for sale and the distribution of the product.
Weaknesses
Fabrication for various companies likes NIKE, MARKS AND SPENCER, GAP, WILLS, etc.
Manufacturing of kids garments.
Opportunities
Mushrooming and upcoming of small hosieries in Ludhiana.
Seasonal demand for their major product i.e. pullovers.
Threats
Ratio Analysis is one of the most powerful tools of
financial analysis. It is used as a device to analyze and interpret the financial health of an enterprise .
FINANCIAL ANALYSIS
Particulars 2006-2007 in Lac 2007-2008 in Lac 2008-2009 in Lac
Current Assets 20543.67 30129.28 30422.64
Current Liabilities 11185.67 9044.30 9897.32
Current Ratio 1.84 3.33 3.07
Current Ratio = Current Assets / Current Liabilities
Firm’s ability to pay its current liabilities out of its current assets.
Particulars 2006-07 in Lacs
2007-08 In Lacs
2008-09 In Lacs
Quick Assets 9060 17328 17506
Current Liabilities 11185 9044 9897
Quick Ratio 0.81 1.915 1.7688
Quick Ratio = Quick Assets/Current Liabilities
In the years 2007-08 & 2008-09 ,the company is satisfactorily liquid to fulfill C.L well in time but it is not satisfactory in the year 2006-07 i.e. 0.81 which is less than rule of thumb 1:1.
Particulars 2006-07 in Lacs 2007-08in Lacs 2008-09in Lacs
Net profit available 1402 2127 2368
Number of shares 249 249 249
EPS 5.63 8.54 9.51
Earning Per Share = Net profit available to equity holders after tax & preference dividend
Number of ordinary shares outstanding
EPS is increasing in the year 2006-07 to 2008-09 . The major reason is that company s net profit is increasing every year but the number of shares being the same every year, so the earning per share is increasing every year.
INTRODUCTION
TO
INDIAN TEXTILE INDUSTRY
India textile industry largely depends upon the textile manufacturing and export.
India earns about 27% of its total foreign exchange through textile exports.
It also contributes around 3% to the GDP of the country
Indian Textile Industry
It is the second largest employer after the agriculture sector in both rural and urban areas.
Textile sector contributes 14% of value addition in manufacturing sector.
Contd…
Indian Textile Industry
COTTON TEXTILE
MAN -MADE
SILKJUTE
WOOLLEN TEXTILES
2008-09 % ShareTextile Clothing & Garments
20,219 93%
Undergarments 1,487 6.80%
Home Textile Furnishings 2.16 0.01%
Accessories 0.29 0.001%
Total 21,708.45
Market Size of Indian Textile Industry
Value-wise share of various products in total T&C exports by India (2008-09):
Share of major export markets in total T&C exports by India (2008-09 Value-wise):
INDIAN TEXTILE EXPORTS (2008-09)ITEM WISE
Strength
Export Target of Indian Textile Industry
Ludhiana is one of the principal producers of woolen and acrylic knitwear, apart from it also uses cotton and blended fiber to produce hosiery, knitwear and various ready-made garments.
The total output of hosiery products in Ludhiana is estimated to be around Rs. 8,000 crore in 2008-09 and the share of domestic sale to exports is to the tune of 75:25 ratio.
Ludhaina Textile industry
The major export markets of Ludhiana today are the EU, US, Africa,Vietnam & Bangladesh.
Ludhiana accounts for nearly 90 per cent of the country’s woolen hosiery industry
Ludhiana Textile Industry serves as the backbone of Indian hosiery industry.
Cont…
42
29
21
8
HOISERY KNITTED
MILLS
HANDLOOMS
POWERLOOMS
Sector wise share in Ludhiana
Percentage share of companies in total exports of textiles in 2008-09 from Ludhaina .
30%
15%
15%
10%
8%
7%
5%
5%3%
2%
%GE SHARE IN EXPORTS
VARDHMAN
OSWAL
MALWA
SHARMAN
YWL
ARTI INTL.
RAGHAV
GANGA
INDO WORTH
OTHERS
Percentage of domestic sales to exports of textiles in Ludhaina(2008-09)
75%
25%
Share of Domestic Sales to Exports
Domestic Sales
Exports
AN ANALYSIS ON EXPORT OF INDIAN TEXTILE INDUSTRY
WITH SPECIAL REFERENCE TO LUDHIANA
Title of the Project
To analyse the export potential of Ludhiana textile industry.
To know the factors affecting exports of textiles.
To know the strengths & weakness of textile industry.
Objectives
RESEARCH METHODOLOGY
Research Design:
Descriptive.
Sampling Technique: Convenience & snowball sampling.
Universe: All the exporters of textiles.
Population: All the exporters of textiles in Ludhiana
Sample Unit: A single textile company in Ludhiana which is into
export business.
Sample Size: 20 Exporters.
Sample Type: Area Sampling : Sample area of the study is
Ludhiana
Data collection: Primary data : Questionnaire.
Secondary data: Journals and websites.
The study is limited to Ludhiana city due to time constraints. The Sample size has been restricted to 20 due to constraints of time . The analysis could have been made much more accurate, if the
project be done in other cities also. The respondents were busy or for some other reasons, did not show
much attention filing the questionnaire; hence the chances of biasness could be possible.
To collect valid data a senior authority was needed to fill the
questionnaire. Most of the time they were having important works to do and questionnaires were filled by other people.
Limitations of the study
Data Interpretation &
Analysis
Table 4.1 Nature Of Company (N = 20)
95%
5%
Nature of Company
Manufacturing
Trading Company
MNC
Others
23%
16%
3%
23%
29%
6%
Specification of Export Products
Woollen Cotton
Fiber Yarn
Garments Other
Table : 4.3 Specification Of Export Products (N= 20)
Table 4.4 Performance Of Export Sales (N = 20)
1-10% 10-25% 25-50% 50-75% >75%0
20
40
60
80
100
120
Export Percentage to Total Sales
%age of Exports
Export %ge
%ag
e
USA; 3.45
Australia; 3.5
S.Africa; 1.55
Europe; 1.85
Others; 4.65
Most Potential Market for Exports
USA Australia
S.Africa Europe
Others
Table 4.5 Potential Market For Exports (N= 20)
48%
4%
12%
36%
Factors affecting Exports
Target Market
More Incentives
No Payment delays
Govt. Policies
Others
Table 4.6 Factor Affecting Exports ( N = 20)
Personnel risk; 2.6
Competition Risk; 1.55
Credit Risk; 2.7
Liquidity Risk; 3.15
Others; 5
Exporters' Risk
Personnel risk
Competition Risk
Credit Risk
Liquidity Risk
Others
Table 4.8: Exporter’s Risk ( N = 20)
12%
53%
12%
6%
18%
Competition faced from differnt countries
Bangladesh
China
Pakistan
Srilanka
Vietnam
Others
Table 4.9: Competition Faced From Different Countries
15%
6%
21%
35%
24%
Nature of Competition
Skilled Labours
Frieght Charges
Quality
Govt. Policies
Better Infrastructure
Others
Table 4.10: Table nature of competition (N = 20)
2.7
1.9
2.3
3.1
Strength
Low Labour CostAbundant raw material Quality productsPotential domestic & international market
Table 4.11.1: Strengths of Textile industry ( N=20 )
2.6
3.2
3.5
2.4
3.3
Weakness
Lack of technologyFragmented industryUnfavourable lawsGovt. PoliciesInfrastructure
Table 4.11.2: Weakness of Textile industry ( N=20 )
65%
30%
5%
Future Potential of textile industry
GrowthStableDecline
Table 4.14: Future potential of textile industry ( N=20 )
Most of the export houses in Ludhiana are dealing in garments, woollen & yarn sector.
Majority of the exporters of Ludhiana find South Africa as their potential export market followed by European countries .
Strength of the textile industry is abundant raw material and the Weakness is govt. policies.
China is the major competitor of Indian textile industry.
Findings
Government . has to extend validity of promotional schemes to promote textile exports.
Ludhiana textile industry should explore new markets for exports .
Government should take steps to provide better infrastructure ,technology, innovations & govt. policies to boost textile industry in near future.
Suggestions
Conclusion
Thank You