An Overview of Indian Textile Industry

Presented by- (HR specialization)

Anjali SharmaHiren sawant

Roshni SawaliyaParth Shah

Textile• The term textile is a Latin Word Originating from

the word ‘Texere’ which means To Weave.• A textile is a flexible material consisting of a

network of natural or artificial fibers often referred to as thread or yarn.

• Indian textile industry can be divided into several segments, some of which can be listed as below:

• 1. Cotton Textiles 2.Silk Textiles 3.Woolen Textiles 4.Readymade Garments 5.Hand-crafted Textiles 6. Jute and Coir

Products Manufactured

Introduction1.Industry contributes about…

14% to industrial production ,4% to GDP 17 % to country's export earning, 9% of the Excise collections

25% of world’s cotton export is done through India

2.Largest provider of employment after agriculture 3.Direct employment to over 35 mn people4.50 mn engaged in allied activities.

5.Supports agriculture in over 9.5 million hectares of land where cotton is cultivated.

6. Consumers Japan, Australia and New Zealand

7.Rank second with 8 percent of the total.

8.High production of wool, cotton, jute and silk.

9.Global trade in this industry is now at US$ 350 billion.

10.The ready made garment sector is the biggest segment in the India’s textile export basket contributing over 46% of the total textile exports

11.Largest pool of cheap and skilled labour

Major players Arvind Mills Bombay Dyeing Raymond's Alok Industries Reliance Textiles Lakshmi Mills Fabindia Grasim Industries Welspun India Mysore Silk Factory BSL Limited Wardhman Textiles

In U

S $

Bn

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200

400

600

800

1000

Women'sdresses

Men'sWovenShirts

Women'sWoven Tops

T-Shirts KnittedSkirts

India’s most exported product categories

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5

10

15

20

25

30

35

1991 2001 2005 2009

%

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tile

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Increasing working female population

• Value Chain Analysis• Primary activities

– Spinning department

– Weaving department

– Dyeing department

– Finishing department

• Supportive Activities

– Quality Assurance department

• laboratory

– Cotton laboratory

– Chemical Testing Laboratory

– Colour Quest Laboratory

– Calibration Laboratory

• Inspection Department

• Marketing Department

• Human Resource Department

Mills Ltd- Largest Denim manufacturer in India

Corporate Office – Ahmedabad, Gujarat Turnover – 932 Million Dollar Employees – 2500+ Sector – Public Sector

Brands Provided by Arvind are:-WranglerDenim JeansLeeKillerArrowFlying Machine

Garments Exported are:- Mainly Shirt and Jeans

Raymond : The complete man

Introduction

•Raymond's is one of the India’s leading fabric and garment manufacturers and fashion retailers.•The Raymond group was incorporated in 1925 •The company is led by CEO Gautam Hari Singhania. •Raymond is the largest producer of worsted suiting fabrics commanding over 60% share of the market.• Group also has business interests in readymade garments, designer wear, cosmetics & toiletries, engineering files, tools and prophylactics

• Corporate Office – Mumbai, India Turnover – 250 Million Dollar

Employees – 10000+Sector – Public Sector

• It the largest retail store in the country having 650 stores in prime locations, in over 200 cities in India.

• Apart from India Raymond also serves its garments in Bahrain Bangladesh Kuwait Saudi Arabia Sri Lanka Sultanate Of Oman U.A.E. etc.

In house brands

Bombay Dyeing- Flagship company of Wadia Group

– Products: Bed Sheets,Towels,Blankets,Furnishings, Pillow Cases , Covers

– Chairman:- Nusli wadia

– Founded:- 1879, Mumbai

– HQ:- India

– Corporate Office – Mumbai, Maharashtra

– Turnover – 310 Million Dollar

– Employees – 10000+

– Sector – Public

SLOWDOWN IN GROWTH

•The growth rate in the textile industry became 0.8 % in 2008-09 (April-August).•The growth rate of Wool, Silk & Man-Made Textiles sector became negative (- 1.2%) in the first five month in the year (April-Aug).•The jute textile segment also declined in 2008-09 by 7.4%.

Past scenario of textile industries

Market share in World(2008-09)

Slowdown & Impact on Employment• Current global financial crisis leads to blanket job cut of

• 5 million specially in artificial textile & weaving sector(Source: Economic Times).

Other facts related to employment

• Currently, the textile industry is providing employment to 18% of the India s work force

• Provides indirect employment to another 88 million people in the country.

• Expected to provide employment to an additional 10 million people in the 11th five year plan

Declining in Profitability• Profitability of textile sector has been falling since Sep 2008.

• The profitability declined by 99% in quarter ending Sep 2009.

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Problems in the industry

1. Fragmented industry

2. obsolescence

3. companies need to focus on product development

4. Lower cost Competitiveness

How they Overcome?

Strength 1.Abundant of Raw material Availability.2.Low cost and cheap labour.( India mainly have low labour rates).3. Used updated Technology.

Current Scenario of Textile Industry

• India is the 2nd largest producer of fiber in the world and major fiber produced is Cotton .( 60% of Indian Textile is cotton based)

• Textiles and Apparel Export from India are estimated to increase US$65 billion by 2016-17 from US$40 billion in 2013-14.

• The total Earning is at around US$ 108 Billion.( May cross US$ 223 billion by 2021)(Biggest Revenue Earners)

• 2nd Largest employer after Agriculture providing employment to over 45 million people Directly and 60 Million People indirectly.

• 35% of the textile Companies operating in Cotton Segment Generates 100% result