final textile

8/4/2019 Final Textile

1/22

GROUP- 1

07- AKSHAY RATHOD

17- DISHA KOTHARI

27- LYNETTE RODRIGUES

37- POONAM BANSAL47- SAURABH JOSHI

57- VINAY DIXIT

THE TEXTILE INDUSTRY-

AN OVERVIEW


2/22

INTRODUCTION

The textile industry occupies a vital place in theIndian economy and contributes substantially to itsexport earnings

India is the worlds second largest produceroftextiles after China

The textile industry in India is one of the oldestmanufacturing sectors in the country and currentlyits largest


3/22

This important place is because of the industryscontribution to industrial output, employment

generation and foreign exchange earnings

The textile industry can be broadly classified into 2categories, the organized mill sectorand the

decentralized mill sector

Considering the significance and contribution of

textile sector in national economy, efforts are beingmade to take urgent and adequate steps to attractinvestmentand encourage wide spreaddevelopment and growth in this sector


4/22


5/22

FIGURES!

The Indian textile industry contributes:

It also provides direct employment to over35million people and is the second largest providerof employment after agriculture

14% INDUSTRIAL PRODUCTION

4% GROSS DOMESTIC PRODUCT

17% TOTAL EXPORT EARNINGS


6/22

RAW MATERIAL ADVANTAGE

India possesses a natural advantage in terms ofraw material availability

2nd LARGEST PRODUCER OF COTTON

2ND LARGEST PRODUCER OF SILK

3RD LARGEST PRODUCER OF CELLULOSICYARN

5TH LARGEST PRODUCER OF SYNTHETIC

FIBRESLARGEST PRODUCER JUTE

HOME TO LARGESTPRODUCER OF

POLYESTER


7/22

STRENGTHS Abundant RM availability

Cheap and abundant labor

Presence across Value Chain

Domestic market potential

WEAKNESSESLow productivity, lack oftechnical manpower

Effect of historicalGovernment policiesTechnological ObsolescenceFragmented Industry

OPPORTUNITIESProduct and marketdiversificationLabeling and product up

gradationR&D development

THREATSCompetition from China,Indonesia and ThailandRising cost of inputsEcological and socialawareness


8/22


9/22

IMPORTANT DEVELOPMENTS IN THE INDUSTRY

1. INCREASED COMPETITION FROM SOUTH ASIANCOUNTRIES:

A significant phenomenon that has occurred of late isthe shifting of textile industries from all over the

world to the developing countries, notably the Asiancontinent

Thus China, Hong Kong, Korea, Thailand,Philippines and Indonesia have become majorcompetitors


10/22

2.WORLDWIDE SHIFT IN USAGE FROM COTTONTO MANMADE FIBRES:

Major reasons for this shift include

i. Properties imparted in manmade fibers, e.g. easy

care, durability etc.ii. Low cost of production due to low cost of input

iii. Changing trends in consumer tastes


11/22

3. GOVERNMENT SUPPORT:

Technology Up-gradation Fund Schemeprovides low interest loans for technology up-gradation and setting up of new units with state-of-

the-art technology

100% FDIallowed in textile and apparel industry

Scheme for Integrated Textile Parks (SITP)

to build world-class infrastructural facilities Product specific cluster approach targeting 100

additional clusters in textiles


12/22

4. COST OF PRODUCTION:HIGH

The fastest growing component of cost is labor wages

Real wage rates between 1949 and 1999 increased by as

much as 10 folds. The price of energy, raw material, and

capital rental prices increased between three and five

folds Output prices have remained low due largely to

competition from low-cost imports

Highly labour and material intensive

Switching costs for supplier is less due to low productdifferentiation

Lack economy of scale


13/22

5. GERMAN BAN ON TEXTILES

The German Health Ministry has imposed a banon the import and manufacture of goods dyed

with Azo dyes, Benzidine and other similar

amines considered carcinogenic

The other EU countries, USA and Canada may

also follow suit


14/22

6. ECO-FRIENDLY GARMENTS AND TEXTILES:

A significant and lasting trend in the exports oftextiles to the USA and other European countriesis the increasing concern for environmentalhealth

Ecological issues are becoming primaryconcerns of consumers because of health hazards


15/22

7. MERGERS AND ACQUISITIONS


16/22

COMPETITIVE ANALYSIS

Porters five forces model

Value chain analysis


17/22

PORTERS 5 FORCE MODEL

Industrycompetitors Rivalryamong existingPlayers (MEDIUM)

Threat of newentrants(VERY LESS)Barriers of entry isstrong

Bargainingpower of

buyers(STRONG)

Threat ofsubstitutes(VERY

LESS)

Bargainingpower ofsupplier(WEAK)


18/22

TOP TEN TEXTILE COMPANIES

Bombay Dyeing

Fabindia

Grasim Industries

JCT Limited Lakshmi Mills

Mysore Silk Factory

Arvind Mills Raymonds

Reliance Textiles


19/22

VALUE ANALYSIS

The greatest value addition in the textile chain isgenerated in the apparel segment


20/22

FUTURE OUTLOOK

The Indian Textile industry is estimated to be around

US$ 52 billion and is likely to reach US $ 115 billion by

2012.

The domestic market is likely to increase from US $34.6 billion to US $ 60 billion by 2012

The readymade garment segment will be the principal

driver of growth even in the domestic industry

Investment in the Indian Textile Industry: In order to

achieve the vision, investments of US $ 36 billion will

be needed within the period from 2004-2011


21/22

REFERENCES

www.texmin.nic.in

Annual Industry Report 2010

www.quickmba.com

Dun and Bradstreet Report 2011
http://www.texmin.nic.in/http://www.quickmba.com/http://www.quickmba.com/http://www.texmin.nic.in/


22/22

THANK YOU!!!

final textile

Documents