textile and apparel industry

8/12/2019 Textile and Apparel Industry

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The Textile and Apparel

Industry.....By ,

GAURAV GOYAL


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The I ndian Texti le and Apparel I ndustry

The Indian Textile and Apparel Industry is one of the largest and oldest sectors in

the country and among the most important in the economy in terms of output,

investment and employment. The sector employs nearly 35 million people and afteragriculture, is the second-highest employer in the country.

Its importance is underlined by the fact that it accounts for around 4% of Gross

Domestic Product, 14% of industrial production, 9% of excise collections, 18% of

employment in the industrial sector, and 16% of the countrys total exports earnings.With direct linkages to the rural economy and the agriculture sector, it has been

estimated that one of every six households in the country depends on this sector,

either directly or indirectly, for its livelihood.


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The Indian textile industry is valued at US$ 36 bn with exports totalling US$ 17 bn

in 2009-2010. At the global level, Indias textile exports account for just 4.72% ofglobal textile and clothing exports. The export basket includes a wide range of items

including cotton yarn and fabrics, man-made yarn and fabrics, wool and silk fabrics,

made-ups and a variety of garments.

Indiaspresence in the international market is significant in the areas of fabrics andyarn.

1.....India is the largest exporter of yarn in the international market and has a share

of 25% in world cotton yarn exports.

2.....India accounts for 12% of the worlds production of textile fibres and yarn.3.....In terms of spindle age, the Indian textile industry is ranked second, after China,

and accounts for 23% of the worlds spindle capacity.

4.....The country has the highest loom capacity, including handlooms, with a share of

61% in world loom age.


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Leading Manufacturers and Exporters......Arvind Mill s L td.....Arvind Mills Limited is the flagship company of the US$550

million Lalbhai Group. It is engaged in the production of the widest range of textiles.

It is the worlds largest exporter of denim and Asias largest denim producer. The

company is also in the garment and men's shirting business under the brand names

of Newport, Flying Machines, Lee, Arrow.

Raymond Ltd....Incorporated in 1925, the Raymond Group is a US$ 300 million plus

conglomerate having businesses in textiles, readymade garments, engineering files &

tools, prophylactics and toiletries. The group is the leader in textiles, apparel, filesand tools in India. Raymond Textile produces pure wool, wool blended and polyester

viscose fabrics and blankets along with furnishing fabrics. The denim division

produces high quality ring denims.


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Alok I ndustries....Established in 1986 as a private limited company, Alok Textiles

began as fabric traders and suppliers to the garment industry. Beginning with

texturising of yarn, the company steadily expanded into weaving, knitting,

processing, home textiles and readymade garments. In less than two decades, it has

grown to become a diversified manufacturer of world-class apparel fabrics selling

directly to garment manufacturers and exporters.

Madura Garments....is Aditya Birla groups most diversified conglomerate. Earlier

it was known as Indian Rayon Ltd. (IRIL), it was rechristened as Aditya Birla

Nuvo in 2005. It is also the largest branded apparel company in India. Its focusareas are viscose filament yarn, carbon black, branded apparels, textiles and

insulators. They own brands like Louis Phillipe, VanHeusen, Allen Solly, Peter

England, Trouser town.


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Centur y Textiles ....Century Textiles & Industries was incorporated in 1897. Till

1951, it had only one industrial unitCotton Textile Mills. It has Asias largest

composite 100 per cent cotton textile mill. At present, Century is not only the trend

setter in cotton textiles, but also a presence in yarn, denim, viscose filament rayon

yarn, tyre cords, caustic soda, sulphuric acid, salt, cement and pulp & paper.

Welspun I ndia ....Beginning with a small texturising unit in 1985, the group has

significantly expanded and diversified its business. It now has interests in terry

towels, LSAW pipes, pipe coating, cotton yarns, bathrobes and buttons. The group

has ties with 12 out of top 20 retailers in the world namely Wal-Mart, K-Mart, JC

Penny and Target to name a few.


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H imatsingka Seide L td....The company commenced its operations on 15 February

1985. It manufactures natural silk fabrics under a 100 per cent export oriented unit

scheme. It produces a wide range of regular and fancy 100 per cent silk and silk

blended yarns. Its weaving division - Himatsingka Seide, offers yarn dyed

decorative, bridal and fashion fabrics. The entire operation of winding, doubling,

twisting, dyeing, weaving and finishing is integrated under one roof.

Bombay Dyeing....Bombay Dyeing is one of Indias largest producers of textiles. The

company is one of the largest and oldest textile companies in the country. It

manufactures cotton and blended textiles. Product mix comprises suiting's, shirting's,sarees, towels and bed linen. The company was formed on 23 August 1879 by

Nowrosjee Wadia, a dye works near Mahim. This was the mill, which first started

dyeing of yarn in India. Bombay Dyeing Mfg. Co. Ltd. was set up in 1895.


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Leading Retailers....

Pantaloon Retail ....It is headquartered in Mumbai with 450 stores across thecountry employing more than 18,000 people. It can boast of launching the first

hypermarket Big Bazaar in India in 2001. It is not only the largest retailer in India

with a turnover of over Rs. 20 billion but is present across most retail segments.

Shoppers Stop....They forayed into retail with K Raheja Group, Indias first

departmental store in 2001. It is the only retailer from India to become a member of

the prestigious Intercontinental Group of Departmental Stores (IGDS). Shoppers

Stop has 7, 52, 00 sq ft of retail space with a turnover of Rs 6.75 billion.

Westside....Established in 1998, Trent - one of the subsidiaries of Tata Group -

operates Westside, a lifestyle retail chain and Star India Bazaar - a hypermarket

with a large assortment of products at the lowest prices. Westside registered a

turnover of Rs 3.58 mn in 2006.


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Lifestyle....were launched in 1998 in India. Landmark group is spread across six

cities, covering 4.6 lakh sq. ft. with a turnover of Rs 3.5 billion in 2005. A new

division named Lifestyle International has emerged for their international brands

business comprising Bossino, Kappa and Springfield in their portfolio.

A Bir la Group....They have a strong presence in apparel retailing through Madura

garments which is subsidiary of Aditya Birla Nuvo Ltd. They own brands like Louis

Phillipe, Van Heusen, Allen Solly, Peter England, Trouser town.


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Scope....

The rising market opportunity for Developing Countries will lead to the decline of

Most Developed countries in their Textile and Apparel Industry and create fresh

opportunity of up to US$ 140 Billion for exports for developing countries but China

will remain the biggest exporter but with rising costs and rising domestic demand, it

may cede some export opportunity wherein Chinas Exports May Be Constrained In

FutureCreating Opportunities For Others ..Hence Opportunity For India To

Reach US$ 80 Billion Exports By 2020....Further, Going Forward.Indian

Economy Has A Very Positive Outlook In the last 10 years India has added $ 930

billion to its economy and will add almost double of that (about $ 1700 Billion) inthe next 10 years.The Indian economy in 2020 is poised to become bigger than the

current size of countries like France, or Italy.


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The Global Texti le and Apparel I ndustry.....

The global fashion apparel industry is one of the most important sectors of the

economy in terms of investment, revenue, trade and employment generation all over

the world. Apparel industry has short product life cycles, tremendous product

variety, volatile and unpredictable demand, long and inflexible supply processes.

The industry has been in a transition over the last 20 years. Some of the its major

contributors are:

1....Significant consolidation in retail,

2....Increasing use of electronic commerce in retail, and

3....Wholesale trade

The global textile and clothing industry is estimated to be worth about US$ 4,395 bn

and currently global trade in textiles and clothing stands at around US$ 360 bn. The

US market is the largest, estimated to be growing at 5% per year, and in

combination with the EU nations, accounts for 64% of clothing consumption.


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Leading Manufacturers and Exporters....

In 2010, the largest apparel manufacturers and exporters were countries from the

Asia-Pacific region which included countries like China, Hong Kong, Phillipines,

Malaysia, Indonesia, Bangladesh, Srilanka, Pakistan, Thailand and India. The othermajor apparel manufacturing nations were USA, Italy, Germany and Mexico.China had captured 65% of the global market share towards the end of 2009 in total

apparel exports.

Despite these developments the apparel industry is estimated to grow at very high

pace and will provide employment to a large number of people all across the world.


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Major Manufacturers and Exporters.


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Leading Retailers....

Tesco .....is a global grocery and general merchandise retailer headquarteredin United Kingdom. It is the third-largest retailer in the world measured by

revenues the second-largest measured by profits .It has stores in 14 countries across

Asia, Europe and North America and is the grocery market leader in the UK .

Wal-Mart....Wal-Mart is the undisputed retail leader in North America and tops the

global list of retailers, but the company's international operations in 15 countries

outside the United States generate just under 25 percent of annual sales.

Carrefour ....is a French international hypermarket chain. Carrefour is one of the

largest hypermarket chains in the world (1395 hypermarkets at the end of 2009, the

second largest retail group in the world in terms of revenue and third largest

in profit after Wal-Mart and Tesco.


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The Gap, I nc.... is an American clothing and accessories retailer based in San

Francisco, California, and founded in 1969 by Donald G. Fisher and Doris F.Fisher. The company has five primary brands: the namesake Gapbanner, Banana

Republic, Old Navy, Piper lime and Athleta. Gap, Inc. remains the largest speciality

apparel retailer in the U.S.

Reebok I nternational L imited...., is a subsidiary of the German sportswear

company Adidas, is a producer of Athletic shoes, apparel, and accessories. The

name comes from the Afrikaans spelling of rhebok. Reebok sponsored kits for Indian

Premier League teams.

Uniqlo....is Japan's most popular apparel retailer and a worldwide leader in casual

wear. The brand's mission is to empower all individuals through the clothing they

choose to wear. Rather than become characterized by a brand, encourages its

customers to integrate its pieces into their own unique style.


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Scope....

The global textile and apparel manufacturing industry is expected to grow more

than ever in times to come. According to an estimate, the global apparel industry

will reach a value of US $ 1,981.7 billion by the end of 2011. The apparelmanufacturers are now adopting new techniques to increase their trade. New

business models and competitive strategies are used to enhance profits and

growth. The consumer is more aware and more demanding with the development

of media like television and Internet. They have more choices in quality, price

and design. This is the reason why apparel chains all over the world are

focussing more on improving the quality of the product and offering in varied

range of fashion designs. Apparel manufacturers are developing methods to keep

up with the pace of change like offering on wholesale prices to survive in the

global competition.


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SWOT Analysis.....

Strength

1....India has rich resources of raw materials of textile industry. It is one of the

largest producers of cotton in the world and is also rich in resources of fibres

like polyester, silk, viscose etc.

2....India is rich in highly trained manpower. The country has a huge advantage

due to lower wage rates. Because of low labor rates the manufacturing cost in

textile automatically comes down to very reasonable rates.

3....India is highly competitive in spinning sector and has presence in almost all

processes of the value chain.4....Indian garment industry is very diverse in size, manufacturing facility, type of

apparel produced, quantity and quality of output, cost, and requirement for

fabric etc. It comprises suppliers of ready-made garments for both, domestic or

exports markets.


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Weakness

1....Knitted garments manufacturing has remained as an extremely fragmented

industry. Global players would prefer to source their entire requirement from two or

three vendors and the Indian garment units find it difficult to meet the capacity

requirements.

2....Labour force giving low productivity as compared to other competing countries.3....Low bargaining power in a customer-ruled market.

Opportunity

1....Low per-capita domestic consumption of textile indicating significant potential

growth.

2....Domestic market extremely sensitive to fashion fads and this has resulted in thedevelopment of a responsive garment industry.

3....Companies need to concentrate on new product developments.

4....Increased use of CAD to develop designing capabilities and for developing

greater options.


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Threats

1....Competition in post-2005 is not just in exports, but is also likely within the

country due to cheaper imports of goods of higher quality at lower costs.2.... China which remains as the biggest exporter capturing 65% of the global

market share .

Thank You.......

textile and apparel industry

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