textiles and apparel march 220313
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2013
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Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Raymond, Alok Industries
Opportunities
Useful information
For updated information, please visit www.ibef.org
Textiles and ApparelMARCH
2013
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33
Textiles and Apparel
For updated information, please visit www.ibef.org ADVANTAGE INDIA
Advantage India
MARCH
2013
Advantage
India
• Increased penetration oforganised retail, favourabledemographics ,and risingincome levels to drive textiledemand
•
Growth in building andconstruction will continue todrive demand for non-clothing textiles
• Over USD35 billion ofinvestments have been madein the textile and clothingsector during the last four years, with the cotton textilesegment accounting foraround 75 per cent
• Abundant availability of raw materials such as cotton, wool, silkand jute
• India enjoys a comparativeadvantage in terms of skilledmanpower and in cost of productionrelative to major textile producers
• 100 per cent FDI (automatic route) isallowed in the Indian textile sector
• SITP was approved in July 2005 tofacilitate setting up of textiles parks with world class infrastructure
• Free trade with ASEAN countries• will boost exports
Market
Value:
USD223
billion
2021E
Market
Value:
USD89 billion
2011
Source: Technopak, Aranca Research
Notes: SITP - Scheme for Integrated Textile Park, FDI - Foreign Direct Investment,
2021 E - Estimated figure for 2020; ASEAN - Association of Southeast Asian Nations
Robust demand Increasing investments
Competitive advantage Policy support
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44
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Raymond, Alok Industries
Opportunities
Useful information
For updated information, please visit www.ibef.org
Textiles and ApparelMARCH
2013
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55For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Textiles and Apparel
• NTC started sellingfew mills to private
businesses in 2005
• SITP was
implemented to
facilitate setting upof textile units with
appropriate support
infrastructure
• Post MFA cottonprices are aligned
with global prices
• Technical textileindustry will be a
new growth avenue
• In 1999, TUFS was set
up to provide easy
access to capital fortechnological up-
gradation
• TMC was launched to
address issues relatedto low productivity
and infrastructure
• In 2000, NTP wasannounced for the
overall development
of the textile andapparel industry
• Number of mills
increased from 178
in 1901 to 417 in 1945
• Out of 423 textilemills of the
undivided India,
India received 409after partition and
the remaining 14
went to Pakistan
• The first cotton
textile mill of
Mumbai wasestablished in 1854
• The first cotton mill
of Ahmedabad wasfound in 1861; it
emerged as a rival
centre to Mumbai
2000 onwards
1951-2000
1901-50
1854-1900
Notes: NTP - National Textile Policy, NTC - National Textiles Corporation,
TUFS - Technology Upgradation Fund Scheme, TMC - Technology Mission on Cotton
MARCH
2013
Evolution of the Indian textile sector
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Segments in the textile and apparelsector
MARKET OVERVIEW AND TRENDS
Textiles and Apparel
→ The textile and apparel industry can be broadly divided into two segments:
→ Yarn and fibre (including natural and man-made fibre as well as yarn)
→ Processed fabrics (including woolen textiles, silk textiles, jute textiles, cotton textiles and technical textiles),
readymade garments (RMGs) and apparel
Key segments of the textile industry
Process
Output
Raw
materialGinning Spinning
Weaving/
KnittingProcessing
Garment/
Apparel
production
Cotton,
jute, silk,
woolFibre* Yarn Fabric
Processed
fabric
Final
garment/
Apparel
• Woollen textiles• Silk textiles
• Jute textiles
• Technical textiles
Yarn and fibre segment
Source : Aranca Research
Note: * - Including cotton, jute, silk, wool and manmade fibres
MARCH
2013
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Source: Textile Ministry, Aranca Research
Textiles and Apparel
Key Facts
MARCH
2013
→ The fundamental strength of the textile industry in India is its strong production base of wide range of fibre / yarns
from natural fibres like cotton, jute, silk and wool to synthetic /man-made fibres like polyester, viscose, nylon and
acrylic
→ India is the world’s second largest producer of textiles and garments
→ Indian textile industry accounts for about 24 per cent of the world’s spindle capacity and eight per cent of global
rotor capacity
→ India has the highest loom capacity (including hand looms) with 63 per cent of the world’s market share
→ India accounts for about 14 per cent of the world’s production of textile fibres and yarns (largest producer of jute,
second largest producer of silk and cotton; and third largest in cellulosic fibre)
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The sector has been posting healthy growth over the years
→ Textile plays major role in the Indian economy
→ It accounts for 27 per cent of foreign exchange
inflows
→ It has a share of 14 per cent in industrialproduction
→ It is the largest source of employment
generation in the country
→ The size of the Indian textile market in 2011 was
USD89.0 billion; the market is expected to record a
CAGR of 10.1 per cent over 2009-21
India's textile market size (USD billion)
Source: Technopak, Ministry of Textiles, Aranca Research
Note: CAGR - Compound Annual Growth Rate, E - Estimated
Textiles and Apparel
7078
89
223
2009 2010 2011 2021E
MARCH
2013
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99For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Shares in India’s textile and apparel sector in 2011
Source: Technopak, Aranca Research
Note: NIFT - National Institute of Fashion technology
Textiles and Apparel
69%
31% Apparel
Textile
MARCH
2013
→ Apparel constitute a large share in the overall sector
→ In 2011, apparel had a share of 69 per cent of
the overall market; textiles contributed the
remaining 31 per cent
→ To improve technical skills in Apparel industry
government established 75 Apparel training
and design centre across India
→ National Institute of Fashion Technologies
played pioneering role in growth of Apparel
industry and exports
→ To promote Apparel exports 12 locations has
been approved by the government to set up
Apparel parks for exports
Market share: Apparel has the largershare
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1010For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Cotton production over the past few years has been volatile
Production of raw cotton (million bales)
Source: Ministry of Textiles, Aranca Research
Textiles and Apparel
Note: CAGR - Compounded Annual Growth Rate
one Bale - 217.7 kilo gram
P - Data for FY12 is provisional
28.0
30.729.0
30.5
33.9
35.3
FY07 FY08 FY09 FY10 FY11 FY12P
MARCH
2013
• Raw cotton and man-made fibres are the major segments in this category
• Raw wool and raw silk are the other components - their production levels are much lower
→ Production of raw cotton grew to 35.3 million bales in
FY12, up from about 28.0 million bales in FY07
→ During this period, the CAGR in production was 4.7
per cent; annual growth in FY12 was at 4.1 per cent
→ Of the total amount of raw cotton produced in the
country, 25 million bales were used up in domestic
consumption while 8.5 million bales were exported
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Cotton is the major segment in both yarn and fabric … (1/2)
MARKET OVERVIEW AND TRENDS
Production of yarn (million tonnes)
Source: Ministry of Textiles, Aranca Research
Note: P - Data for FY12 is provisional
Textiles and Apparel
2.8 2.9 2.9 3.13.5
3.1
1.0 1.1 1.01.1
1.21.2
1.4
1.5 1.41.5
1.51.5
FY07 FY08 FY09 FY10 FY11 FY12P
Cotton Yarn Other Spun Yarn Manmade Filament Yarn
MARCH
2013
→ Production of yarn grew to 5.8 million tonnes in FY12
from 5.2 million tonnes in FY07, a CAGR of 2.4 per
cent
→ Cotton yarn accounts for the largest share in total
yarn production; in FY12 the segment’s shareamounted to 53.6 per cent
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Cotton is the major segment in both yarn and fabric … (2/2)
MARKET OVERVIEW AND TRENDS
Fabric production (million sq mtr)
Source: Ministry of Textiles, Aranca Research
Notes: Sq Mtr is Square meter,
P - Data for FY12 is provisional
Textiles and Apparel
26,238 27,196 26,898 28,914 31,718 30,593
19,545 21,173 20,534 23,652 22,563 22,377
6,8826,888 6,766
7,767 8,278 8,394
FY07 FY08 FY09 FY10 FY11 FY12P
Cotton 100% Non Cotton Blended
MARCH
2013
→ Fabric production rose to 61,364 million sq. metres in
FY12 from 52,665 million sq. metres in FY07, a CAGR
of 3.1 per cent
→ The major segment is cotton yarn which accounted for
50 per cent in FY12
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1414For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
India's textile trade (USD billion)
Source: Ministry of Textiles, Aranca Research
Note: P - Data for FY12 is provisional
Exports have posted strong growthover the years
Textiles and Apparel
17.619.1
22.1 21.222.4
27.8
33.2
2.7 2.8
3.3 3.53.4 4.2 5.2
FY06 FY07 FY08 FY09 FY10 FY11 FY12P
Exports Imports
MARCH
2013
→ Exports have been a core feature of India’s textile and
apparel sector, a fact corroborated by trade figures
→ Exports grew to USD33.2 billion in FY12 from USD17.6
billion in FY06, a CAGR of 11.2 per cent
→ FY12 was a particularly good year for the
sector with exports shooting up by an annual
rate of 19.4 per cent
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1515For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Shares in India’s textile exports (FY12)
Source: Ministry of Textiles, Aranca Research
Note: Others include coir & coir manufacturers and jute
Textiles and Apparel
39%
34%
17%
3%3% 4%
Readymade
Garment
Cotton Textiles
Man-made textiles
Handicrafts
Silk & Handloom
Woolen & others
MARCH
2013
Readymade garments and cottontextiles dominate exports
→ Readymade garments was the largest contributor to
total textile and apparel exports from India in FY12*;
the segment had a share of 39 per cent
→ Cotton and man-made textiles were the major
contributors with shares of 34 per cent and 17 percent, respectively
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1616For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Key players in the industry
Textiles and Apparel
Company Business areas
Welspun India Ltd Home textiles, bathrobes, terry towels
Vardhman Group Yarn, fabric, sewing threads, acrylic fiber
Alok Industries LtdHome textiles, woven and knitted apparel
fabric, garments and polyester yarn
Raymond LtdWorsted suiting, tailored clothing, denim,
shirting, woollen outerwear
Arvind Mills Ltd
Spinning, weaving, processing and garment
production (denims, shirting, khakis andknitwear)
Bombay Dyeing &Manufacturing Company
Ltd
Bed linen, towels, furnishings, fabric for suits,shirts, dresses and saris in cotton and
polyester blends
Garden Silk Mills Ltd Dyed and printed fabric
Source:
Annual Reports, Aranca Research
MARCH
2013
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1717For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Notable trends in the Indian textilesector
Textiles and Apparel
Increasing
investment in TUFS
• The Ministry of Textiles is encouraging investments through increasing focus on
schemes such as TUFS and cluster development activities
• Investments under TUFS increased to USD600 million in FY11, with spinning
accounting for the largest share
Multi-Fibre
Arrangement (MFA)
• With the expiry of MFA in January 2005, cotton prices in India are now fully
integrated with international rates
Public-Private
Partnership (PPP)
• The Ministry of Textiles commenced an initiative to establish institutes under the
public-private partnership (PPP) model to encourage private sector participation in
the development of the industry
Technical textiles
• Technical textiles, which has been growing at around twice the rate of textiles for
clothing applications over the past few years, is now expected to post a CAGR of
20 per cent over FY11-17
Source: Ministry of Textiles, Aranca Research
MARCH
2013
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1818
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Raymond, Alok Industries
Opportunities
Useful information
For updated information, please visit www.ibef.org
Textiles and ApparelMARCH
2013
MARCH
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1919For updated information, please visit www.ibef.org GROWTH DRIVERS
Strong
government
support
Inviting Resulting in
Growing demand Policy supportIncreasing
investments
Rising demand in
exports
100 per cent FDI in
textile sector
Growing domesticand foreign
investments
Increasing
demand in
domestic market
Government
setting up SITPs
and Mega Cluster
Zones
Commitment of
USD140 billion of
foreign
investments
Growing
population driving
textile demand
Increasing loans
under TUFS
Textiles and Apparel
Government
investment
schemes (TCIDS
and APES)
Source: Ministry of Textiles, Aranca Research
Note: TCIDS - Textile Center Infrastructure Development Scheme, APES - Apparel Park for Exports Scheme
MARCH
2013
Strong demand and policy supportdriving investments
MARCH
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2020For updated information, please visit www.ibef.org GROWTH DRIVERS
FY13 UnionBudget
Stress onmechanisation
Infrastructuresupport
Financialpackage
• Financial package of
INR38.8 billion (USD809
million) for waiver of loans
for handloom weavers andtheir cooperative societies
• INR5.0 billion (USD100
million) pilot scheme
announced for promotion
and application of geo-
textiles in the North
Eastern Region
• Automatic shuttleless looms
fully exempted from basiccustoms duty of 5 per cent
• Automatic silk reeling and
processing machinery as well
as its parts exempted from
basic customs duty
• Mega handloom clusters to
be set up in Andhra Pradesh
and Jharkhand
• Power loom mega cluster to
be set up in Maharashtra
• Three Weaver’s Service
Centres (one each in
Mizoram, Nagaland and
Jharkhand) to be set up for
providing technical support
to poor handloom weavers
Textiles and ApparelMARCH
2013
Continued support to the textile sectorby the government in the FY13 budget
MARCH
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Changing demographics has alsocontributed significantly to the sector
GROWTH DRIVERS
Textiles and Apparel
Source: IMF, Aranca Research
Note: F - Forecasts
→ By 2010, India’s population had close to doubled
compared to figures 30 years before
→ The IMF expects India’s population to touch 1.31
billion by end-2017
→ India’s growing population has been a key driver of
textile consumption growth in the country
→ It has been complemented by a young population which
is growing and at the same time is exposed to changing
tastes and fashion
→ Complementing this factor is rising femaleworkforce participation in the country
India‘s population in billions
0.68
0.84
1.02
1.19
1.31
1980 1990 2000 2010 2017F
MARCH
2013
MARCH
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2222For updated information, please visit www.ibef.org GROWTH DRIVERS
Textiles and Apparel
Rising incomes and a growing middleclass have been the key demand drivers
Source: IMF, McKinsey Quarterly, Aranca Research
Notes: E - Estimates, F - Forecasts
→ Rising incomes has been a key determinant of domestic demand for the sector; with incomes rising in the
rural economy as well, the upward push on demand from the income side is set to continue
→ A rising middle class has also a ided demand growth for the sector; the size of the middle class is forecasted
to rise to 550 million by 2025 from more than 50 million in 2011
Strivers:
annual
income
INR500,000 -
1,000,000
Seekers:
annual income
INR200,000 -
500,000
Deprived annual
income
<INR90,000
Aspirers:
annual
income
INR90,000 -
200,000
Globals:
annual
income
>INR1,000,00
00
10
20
30
40
50
60
70
2005 2010 2015 2020 2025
million
households
Strivers Seekers Deprived
Trends in per-capita income in India
-5%
0%
5%
10%
15%
20%
25%
30%
0
500
1,000
1,500
2,000
2,500
3,000
2000 2002 2004 2006 2008 2010 2012F 2014F 2016F
Per capita income, USD, LHS Annual growth rate, RHS
MARCH
2013
Changing economic fortunes by income segments
MARCH
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2323For updated information, please visit www.ibef.org GROWTH DRIVERS
Textiles and Apparel
Growing textile exports from India (USD billion)
Source: Ministry of Textiles, Aranca Research
→ Capacity built over years has led to low cost of
production per unit in India’s textile industry; this has
lent a strong competitive advantage to the country’s
textile exporters relative to key global peers
→ The sector has also witnessed increasing outsourcingover the years as Indian players moved up the value
chain from being mere converters to vendor partners
of global retail giants
→ The strong performance of textile exports is reflected
in the value of exports from the sector over the years;
In FY12, textile exports jumped by 19.4 per cent to
USD33.2 billion
→ In the coming decades, Africa and Latin America
could very well turn out to be key markets for Indian
textiles
19.2
22.221.1
22.4
27.8
33.2
FY07 FY08 FY09 FY10 FY11 FY12P
MARCH
2013
Exporters gaining from strong globaldemand
T il d A lMARCH
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2424For updated information, please visit www.ibef.org GROWTH DRIVERS
Textiles and Apparel
Source: Ministry of Textiles, Techtextil , Aranca Research
→ The major service offerings of the technical textile
industry include thermal protection and blood-
absorbing materials, seatbelts and adhesive tapes
→ Technical textile industry market is expected to
expand at a CAGR of 20 per cent during FY11-17 toreach a value of USD31.4 billion in FY17 from USD12.6
in FY11
→ Healthcare and infrastructure sector are the major
drivers of the technical textile industry
→ The government has also supported the technical
textile industry during the Union Budget of FY13 with
an allotment of USD1 billion for the SMEs in the sector
and an exemption in custom duty for raw materials
used by the sector
12.6
31.4
FY11 FY17E
Technical Textile Industry (USD billion)
Note: SME - Small and medium enterprises
MARCH
2013
Technical textile industry - A new arenaof growth
T il d A lMARCH
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2525For updated information, please visit www.ibef.org GROWTH DRIVERS
Textiles and Apparel
Technology
Upgradation Fund
Scheme (TUFS)
• TUFS infused an investment of more than USD43 billion until June 2010; another
USD3.3 billion has been allocated for the 12th Five Year Plan
• Investment was made to promote modernisation and upgradation of the textile
industry by providing credit at reduced rates
National Textile
Policy - 2000
• The policy was introduced for the overall development of textile industry
• Key areas of focus include technological upgrades, enhancement of productivity,
product diversification and financing arrangements
Foreign Direct
Investment
• FDI of up to 100 per cent is allowed in the textile sector through the automatic
route
Scheme for
Integrated Textiles
Parks (SITP)
• SITP was set up in 2005 to provide necessary infrastructure to new textile units;
under SITP, 40 projects (worth USD900 million) have been sanctioned
• The planned outlay for the textiles and apparel sector under the 11th Five Year Plan
(20012-17) was USD2.9 billion
MARCH
2013
Policy support has been a key ingredientto growth
T il d A lMARCH
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2626For updated information, please visit www.ibef.org GROWTH DRIVERS
Textiles and Apparel
Name of SEZ
and statusState
Area
(hectares)Sector Details
Mahindra City
SEZ(Functional)
Tamil Nadu 607.1
Apparel and
fashionaccessories
Mahindra City is India’s first integrated business city, divided into
business and lifestyle zones. It is a cluster of three sector specific SEZs in
Tamil Nadu, for apparels and fashion accessories; IT and hardware; andauto ancillary. The business zone provides plug-n-play working spaces.
This zone comprises a SEZ (primarily for exporters) and domestic tariffarea (DTA) for companies targeting domestic market
Surat Apparel
Park(Functional)
Gujarat 56.0 Textiles
Key industrial units include Safari Exports, Venus Garments, Benchmark
Clothings, P. K. International, Tormal Prints, J.R. Fashion and GangaExport
Brandix IndiaApparel City
(BIAC)(Functional)
Andhra
Pradesh 404.7 Textiles
BIAC is an integrated apparel supply chain city, managed by Brandix
Lanka Ltd. It aims to be a end-to-end apparel solution provider
(KIADB)
(Functional)Karnataka 16129.0 Several sectors
Karnataka Industrial Areas Development Board (KIADB) is a wholly owned infrastructure agency of Government of Karnataka. Till date,
KIADB has formed 132 industrial areas spread all over the state
Source : Aranca Research
Note: KIADB - Karnataka Industrial Areas Development Board, SEZ - Special Economic Zone
MARCH
2013
Textile SEZs in India
T il d A lMARCH
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27
Source: Aranca Research,
Note: All figures as of 2011-12
Major Textile and Apparel zones
NORTH: Kashmir, Ludhiana and
Panipat account for 80 per cent
of woollens in India
EAST: Bihar for jute, parts of
Uttar Pradesh for woollen and
Bengal for cotton and Jute
industry
WEST: Ahmedabad, Mumbai,
Surat, Rajkot, Indore and
Vadodara are the key places
for cotton Industry
Textiles and Apparel
SOUTH: Tirpur,Coimabtore
and Madurai for hosiery.
Bengaluru, Mysore and
Chennai for Silk
MARCH
2013
For updated information, please visit www.ibef.org GROWTH DRIVERS
Key textiles and apparel zones in India
T il d A lMARCH
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2828For updated information, please visit www.ibef.org GROWTH DRIVERS
Textiles and Apparel
→ M&A activity in the sector has been picking up pace over the years; in fact, within January 2000 to June 2011,
482 M&A deals took place and the trend has continued in FY12 as well
→ The six major M&A deals* are listed below
Sources : “M&A,” Thompson ONE Banker, Grant Thornton, CMIE, Aranca Research
Notes: * - The value for 290 deals were not disclosed
MARCH
2013
M&A scenario - details
Period: 1 January 2000 to 1 September 2012
Top 6
dealsAcquirer Name Target Name
Deal size (USD
million)
1 Madura Garments Pantaloon Retail 333.3
2 Himachal Fibres Balmukhi textiles Pvt Ltd. NA
3 BR Machine Tools Pvt Ltd Bombay Rayon Fashions Ltd 721.1
4 Group of investors Provogue (India)Ltd 526.9
5 M C Spinners Pvt. Ltd Maxwell Industries8.47
6 Grasim Industries Terrace Bay Pulp 360
M&A activity up in the sector
T til d A lMARCH
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2929For updated information, please visit www.ibef.org GROWTH DRIVERS
Textiles and Apparel
→ 100 per cent FDI is approved in the sector
→ Cumulative FDI in the sector during April 2000 to
August 2012 stood at USD1.2 billion
→ The textiles industry in India is experiencing asignificant increase in collaboration between global
majors and domestic companies
→ International apparel giants like Hugo Boss, Liz
Claiborne, Diesel, Kanz and many others have
already started operations in India
Source: Ministry of Commerce and Industry, Aranca Research
Trends of FDI in textile industry (USD million)
9
40
90
130
190
160
140129
165
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
MARCH
2013
Foreign investments flowing into thesector
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3030
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Raymond, Alok Industries
Opportunities
Useful information
For updated information, please visit www.ibef.org
Textiles and ApparelMARCH
2013
T til d A lMARCH
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3131
1925 1958 1964 1968 1990 1996 2000 2002 2006 2007 2008 2010 2011 2012
For updated information, please visit www.ibef.org SUCCESS STORIES: RAYMOND, ALOK INDUSTRIES
Raymond: A long journey of success
Textiles and Apparel 2013
Fabrics
Wheel, tyre and
axle plant (railways)
Alloy steel
Iron making and
castings
Organic growth in
textiles
Acquisition of
ColorPlus - 2002
1980
Transformed into
industrial
conglomerate
JV with GAS in
India - 2007
1964Vertical
integrationin multi-fibres
Capacity of 40
MM - 1996 FY06
USD364
million
turnover
FY12
USD758
millionturnover
Apparels
Woollen outerwear
Corporate wear
Furnishings
Retail
670 outlets
currently and plans
to add another 500
outlets by 2015
T til d A lMARCH
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3232
1986 1988 1990 1992 1993 1995 2003 200 4 2006 2007 2008 2010 2011 2012
For updated information, please visit www.ibef.org
Alok Industries: Integrated textilesolutions
Textiles and Apparel
SUCCESS STORIES: RAYMOND, ALOK INDUSTRIES
2013
Cotton and
Blended Yarn
Wheel, tyre and
axle plant (railways)
Alloy steel
Iron making and
castings
Organic growth in
textiles
JV with NTC -
2008
2007
ISO Accreditations
Plans to enter in
technical textilesand special
textiles market
1995*
Financial andtechnical
collaboration
through JV
Acquisition of QS
to gain retailholding in the UK
- 2007
FY04
USD208million
turnover
FY12
USD1.8
billion
turnover
Apparel Fabric
Embroidery
Garments - Woven
& Knitted
Home Textile
Polyester Yarn
Notes: NTC - National Textile Corporation
*In 1995 Alok industries had sets up financial and technical collaboration with Grabal, Albert Grabher GmbH & Co of
Austria to make embroidered products through a joint venture company, Grabal Alok Impex Ltd
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3333
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Raymond, Alok Industries
Opportunities
Useful information
For updated information, please visit www.ibef.org
Textiles and ApparelMARCH
2013
Textiles and ApparelMARCH
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3434For updated information, please visit www.ibef.org OPPORTUNITIES
Opportunities … (1/2)
• The Indian textile industry is
set for strong growth, buoyed
by both strong domesticconsumption as well as
export demand
• For the near term (2012), the
sector is valued at USD110
billion by the Confederation
of Indian Textile Industry
(CITI)
• Estimates by the Alok
Industries Ltd put the sector
market value at USD220
billion by 2020
• The Central Silk Board sets
targets for raw silk
production and encouragesfarmers and private players
to grow silk
• To achieve these targets,
alliances with the private
sector, especially major
agro-based industries in pre-
cocoon and post-cocoon
segments has beenencouraged
• For the textile industry, the
proposed hike in FDI limit in
multi-brand retail will bring inmore players, thereby
providing more options to
consumers
• It will also bring in greater
investments along the entire
value chain - from agricultural
production to final
manufactured goods
• With global retail brands
assured of a domestic
foothold, outsourcing will also
rise significantly
Immense growth potential Private sector participation in
silk production
Textiles and Apparel 2013
Proposed FDI in multi-brand
retail
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3535For updated information, please visit www.ibef.org OPPORTUNITIES
Opportunities … (2/2)
• With consumerism and
disposable income on the rise,
the retail sector has
experienced a rapid growth inthe past decade with several
international players like
Marks & Spencer, Guess and
Next having entered Indian
market
• The organised apparel
segment is expected to grow
at a compound annual growthrate (CAGR) of more than 13
per cent over a 10-year period
• The CoEs are aimed at
creating testing and
evaluation facilities as well as
developing resource centresand training facilities
• Existing four CoEs, BTRA for
Geotech, SITRA for Meditech,
NITRA for Protech and
SASMIRA for Agrotech, would
be upgraded in terms of
development of incubation
centre and support fordevelopment of prototypes
• Fund support would be
provided for appointing
experts to develop these
facilities
• The government is taking
initiatives to attract foreign
investments in the textile
sector through promotional visits to countries such as
Japan, Germany, Italy and
France
Retail sector offers growth
potential
Centers of Excellence (CoE) for
research and technical training Foreign investments
Textiles and Apparel
Notes: BTRA - The Bombay Textile Research Association; SITRA - South India Textile Research Association, NITRA - Northern India Textile ResearchAssociation, SASMIRA - Synthetic & Art Silk Mills Research Association
2013
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3636
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Raymond, Alok Industries
Opportunities
Useful information
For updated information, please visit www.ibef.org
Textiles and ApparelMARCH
2013
Textiles and ApparelMARCH
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3737For updated information, please visit www.ibef.org USEFUL INFORMATION
Industry Associations
Textiles and Apparel
The Textile Association (India) (TAI)
72-A, Santosh, Dr M B Raut Road, Shivaji Park, Dadar, Mumbai - 400 028
Telefax: 91-22-24461145
Website: ww w.textileassociationindia.org
The South India Textile Research Association (SITRA)
13/37, Avanashi Road, Coimbatore - 641 014, Tamil Nadu
Phone: 91-422-2574367, 6544188, 4215333Fax: 91-422-2571896, 4215300
E-mail: [email protected]
Website: www.sitra.org.in
Northern India Textile Mills’ Association (NITMA)
121, Gagandeep Building (First Floor), 12, Rajendra Palace, New Delhi - 110 008
E-mail: [email protected], [email protected]
Website: www.nitma.org
2013
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3838For updated information, please visit www.ibef.org
Glossary … (1/2)
→ BTRA: Bombay Textile Research Association
→ CAGR: Compound Annual Growth Rate
→ FDI: Foreign Direct Investment
→ FY: Indian financial year (April to March)
→ GOI: Government of India
→ INR: Indian Rupee
→ NITRA: Northern India Textile Research Association
→ NTC: National Text iles Corporation
→ NTP: National Textile Policy
→ SASMIRA: Synthetic & Art Silk Mills Research Association
→ SEZ: Special Economic Zone
→ SITP : Scheme for Integrated Textile Park
USEFUL INFORMATION
Textiles and Apparel 2013
Textiles and ApparelMARCH
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3939For updated information, please visit www.ibef.org
Glossary … (2/2)
→ SITRA: South India Textile Research Association
→ TUFS: Technology Upgradation Fund Scheme
→ TMC: Technology Mission on Cotton
→ USD: US Dollar
→ Conversion rate used: USD1= INR48
→ Wherever applicable, numbers have been rounded off to the nearest whole number
USEFUL INFORMATION
Textiles and Apparel 2013
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2013
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