textile industry (1)
TRANSCRIPT
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INDIAN TEXTILE INDUSTRY
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Introduction
Textile industry in India is widely comprehensive, integrating
whole range of raw material to finished product that includes
fiber manufacturing, spinning, knitting and weaving, and
garment manufacture.
contributes nearly 14 percent to the total industrial
production
claimed to be the biggest revenue earners in terms of foreign
exchange among all other industrial sectors in India
provides direct employment to around 35 million people
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Cont.
Industry provides almost every single aspect i.e. rawmaterials, fabric production, apparel production and made
ups production.
In recent years, the readymade garment segment has seen
vertical growth. Accounting nearly 20000 crores and growing at a rate of 20%
The largest segment for the readymade garment segment
includes the age-group of 16-35
Branded readymade garments account over 21 percent ofthe readymade garment industry.
comparing to the international readymade garment market
of nearly 183mn USD, the Indian readymade garment
market is still in a budding phase.
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Cut throat competition
Siyaram's is venturing into readymade garment to grip thecontinuously changing fashion trends.
The leader in the suiting segment, S. Kumars Nationwide Limited(SKNL) is the newest to join the rat race
The growing strategy major players adapted is Acquisition:Raymond's acquired ColorpIus, Indian Rayon acquired garmentsdivision Madura Garments, Bombay Dyeing also gets hold ofProline.
foreign collaborations:Banswara Syntex shake hands with French
readymade apparels major Carreman Many brands, such as Blackberrys, Freelook, Biba, Essence,
Moustache, Natalia, Shapes, Ruff Kids, Koutons,etc. are performingwell in cut throat competition in the ready made garment.
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Divided into several segments
Cotton textiles Silk textiles Woollen textiles
Readymade garmentsHand-crafted textilesJute and coir
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PESTEL ANALYSIS
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Government is implementing schemes
like Technology Up gradation Fund
Scheme (TUFS),
Scheme for Integrated Textiles Park
(SITP), Mill Gate Price Scheme (MGPS)
and Technology Mission schemes,
namely Technology Mission on Cotton(TMC) and Jute Technology Mission (JTM)
to facilitate Indian textiles industry to
grow at the rate of 16%.
26 Textile Parks were sanctioned
involving a total project cost of Rs 2,428
crore out of which the share of the
Government would be Rs 866 crore
POLITICAL
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Estimated to be around US$ 52 billion,
projected to be around US$ 115 billion by theyear 2012.
The textile sector accounts about 30% in the
total export.
Textile exports are targeted to reach $50 billion
by 2010, $25 billion of which will go to the us.
At present Indian economy is growing at the
rate of about 9.2% but India's textile and clothing
industry contributes about 17 % to total exports.
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ECONOMICAL
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The Indian market for branded
products such as jeans,trousers, shirts, and other
consumer goods is estimated
at no larger than 40 million
consumers.INCOME: Consumers in India
spend approximately 9 % of
their disposable income on
clothing and footwear and 47%
on food, alcohol and tobacco ,
compared with 5% for clothing
and shoes and 36% on food,
alcohol and tobacco in the
United States.
Social
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INCOME DISTRIBUTION: Clothing expenditure
tend to be higher for households with higherincomes
AGE: The largest segment for the readymade
garment segment includes the age-group of 16-35that is very brand conscious and gives priority to
high quality. Branded readymade garments
account over 21 percent of the readymade
garment industry.
LIFESTYLE CHANGES
.
Social coNT.
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TECHNOLOGICAL
New innovations in clothing
production, manufacture anddesign came during the
Industrial Revolution
New machines such as
spinning wheels and
handlooms.
French technology to help
Indian textile.
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Environmental Characterised by the high consumption
of resources like water, fuel and a
variety of chemicals in a long processsequence that generates a significant
amount of waste.
Textile processing generates many
waste streams, including liquid, gaseous
and solid wastes, some of which may be
hazardous
Other environmental issues of equalimportance are Air emission, notably
Volatile Organic Compounds (VOC)s and
excessive noise or odour as well as
workspace safety.
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LEGAL
Incentives for Indias Textiles Industry
Branded garment firms can get the benefit of CENVAT( Central & Value
added tax)
Small-scale companies with a turn-over of less than 1.5 crore will not
be liable to pay excise duty which is 10% as per the existing budget
Done to lower the tax burden and encourage small scale garment firm
Schemes like TUFS & SITP have been implemented by the government
to provide extra impetus to the sector.
TUFS( Technology Upgradation Fund Scheme) SITP ( Scheme for
Integrated Textile Park)
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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.
Readymade garments (RMG) is the largest export segm
ent, accounting for a
considerable 45% of total textile exports.The country has the highest loom capacity, includin
g handlooms, with a share of
61% in world loomage. Cotton dominant fibre;
polyester/ cotton blended yarn and fabrics catching up
Cotton - available abundantly in the country (80%
of market is for cotton garments).
India accounts for about 14per cent of the worlds
production of textile fibres and yarns
STreNgThS coNT.
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Largest organized sector industry in India - has a 20% weight
age in Index of Industrial Production
Second largest employer - > 20 million people.
Large domestic market- population 1.22 billion
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.
Labour cost in India is very cheap; Per hour rates :India : US $0.72; Hong Kong - US$ 3.05, Japan - US$ 13.96, Singapore -
US$ 2.83
STRENGTH CONT. STreNgThS coNT
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Industry still plagued with some historical regulations such
as knitted garments still remaining as a SSI domain.
Extremely fragmented industry. The reservation of
production for very small companies that was imposed with
the intention to help out small scale companies across the
country. Smaller companies do not have the fiscal resources
to enhance technology or invest in the high-end engineering
of processes. Hence they lose in productivity.
Industry is highly dependent on Cotton.
Indian infrastructure is mainly attuned to for cotton casuals
that cater to a very small percentage of the international
market.Labor force giving low productivity as compared to other
competing countries.
Fluctuation in cotton prices (a commodity product) has
affected cost structures.
Weakness
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Technology obsolescence despite measures such as
TUFS.
Unavailability of skilled labor- This industry would
require, about 70,000 supervisors and 1.05mn
operators in the textile sector and at least 112,000
supervisors and 2.8mn operators in the apparelsector.
Labor Laws of India unfavorable for the trade.
WeakNeSS coNT
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Increased demand for luxury brands from growing middle class
consumers
Research and new product development can help companies to move
across their value chain
Increased use of CAD to develop designing capabilities
Potential to attain export of $ 34 billion by 2012
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Opportunities
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THREATS
Heightened competition in the domestic
market
Rising input cost
Cheaper imports
Chinese aggression over the
international market
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