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INTRODUCTION

The garment industry is one of India's largest foreign exchange

earners, accounting for nearly 16% of the country's total exports. It
has been estimated that India has approximately 30,000
readymade garment manufacturing units and around three million
people are working in the industry. Today not only is the garment
export business growing, enthusiasm in the minds of the foreign
buyers is also at a high. Today many leading fashion labels are
being associated with Indian products. India is increasingly being looked upon as a major supplier
of high quality fashion apparels and Indian apparels have come to be appreciated in major markets
internationally. The credit for this goes to our exporter community.

The garments industry in India is one of the best in the world. An extremely well organized sector,
garment manufacturers, exporters, suppliers, stockiest and wholesalers are the gateway to an
extremely enterprising clothing and apparel industry in India. There are numerous garments
exporters, garments manufacturers; readymade garments exporters etc. both in the small scale as
well as large scale.

Indian readymade garments and textiles are extremely popular the world over. In fact, exports of
readymade garments registered a 6.4% increase in dollar terms and an 11.6% increase in rupee
terms during the period April-December 1999-2000, despite a sluggish growth in income both at
home and abroad. Indian Garment export growth during April-June 1998 for woolen readymade
garments was a phenomenal 150%, for readymade garments made of silk it was 58%, and for other
readymade garments it was 39%, in dollar terms.

Today, garments exports from India have made inroads into the international market for their
durability, quality and beauty. One of the reasons for the economical pricing of India's readymade
garments and apparels is the availability of highly skilled, cheap labor in the country. The
superiority of India's Garment Industry has been acknowledged in the National Textile Policy
(NTP) of India 2000. Having realized the tremendous growth potential of this sector there is a
proposal in the NTP for taking the Indian Garment Industry out of the SSI reservation list.
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PRODUCT DESCRIPTION

The industry is highly competitive with many companies

operating in labor-based assembling processes of clothing. The
raw materials used by the garments producers (which actually are
semi-fabrics) are sometimes imported for re-exporting purposes.
The network, quality and their costs are totally under the control
of the suppliers.

MEN’S WEAR

TYPES SPECIFICATIONS

Suits Contemporary, Flat Front, Non-Vented, Traditional, Trios

Pants Cargo pants, bell bottoms, bondage pants, jeans, formal pants

Shirts Casual, French cuffs, point collar, royal oxford, spread collar

Sports coats 2 button coat, 3 button coat, blazer, contemporary, non-vented

T-shirts Bowling t-shirt, classic t-shirt, cool t-shirt, ringer deez t-shirt

LADIES WEAR

TYPES SPECIFICATIONS

Tops Sleeveless t-shirt, double layered t-shirt, girls printed top,

Pants Cargo pants, bell bottoms, bondage pants, jeans

Skirts Ballerina skirt, hobble, jeans, poodle, mini skirt, sport skirt

Suits Academic dress, apron, blazer, pea coat, jacket, shawl

CHILDREN WEAR

TYPES SPECIFICATIONS
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Farfalla frock, smocked frock, twill frock, waist surplice frock, floral
Kids frocks
frock, tea frock

Scoop t-shirt, crew neck t-shirt, mock neck, ringer t-shirt, turtle neck
T-shirt
t-shirt, auto striper t-shirt

Loose fit pant, bib ski pant, cargo ski pant, boys’ action pant, girls
Pant
action pant, maneuver pant, tempest pant

SPORTS WEAR

TYPES SPECIFICATIONS

Eco-heater, fleece straight track, spandex track, terry lounge track,

Tracks
cotton max track, velour lounge track, classic fleece.

Agile jacket, tricot jacket, city safari jacket, lakeshore jacket,

Sports jackets
Montecito jacket, leather jacket, grand street fringe jacket

Cotton deluxe shorts, anvil cheer shorts, lacrosse mesh short, gym
Shorts
shorts, double dry mesh shorts, pocket shorts

Raglan baseball jersey, tonal strip crew, backstage t-shirt, destroyed

T-shirts
t-shirt, crew t-shirt, contrast strip crew t-shirt

Mesh polo shirt, interlock polo shirt, stretch interlock polo shirt,
Sports shirt
stretch pique shirt, mock neck shirt, tech strip shirt

CASUAL WEAR

TYPES SPECIFICATION

Long sleeve tees and shirts, cotton blouses, silk blouses, short
Casual shirts
sleeve tee , sucre tee, crew neck shirt, smoothie tee

Skirts Jasmine swirl skirt, jewel skirt, sarita wrap skirt, country station
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skirt, viviana skirt, Surabaya skirt, English garden skirt

Rivington pants, ripstop crop pants, ripstop cargo, five pocket jeans,
Casual pants
canvas drawcord pants, riverdale pants

Classic jackets, zip front jacket, Lombard jacket, sherling jacket,

Jackets
city safari jacket, lakeshore jacket, Montecito jacket

Gaia velvet dress, Chelsea dress, Sophia dress, vintage voile dress,
Dress
Osaka dress, modern meadow dress, thistle dress

GARMENT EXPORTS

Interestingly, almost ¼ of India's total exports goes to the USA. Exports of readymade garments in
the current fiscal year (2008-09) are likely to fall 24 per cent short of the 11.62 billion dollar target
and may total up to 8.78 billion dollars. The main destinations of textile and garments exports are
US and EU. The UAE are currently negotiating Free Trade Agreements (FTAs) with some of its
major trading partners, including the US.

In 07-08, India exported garments worth 9.69 billion dollars, over nine per cent than in the
previous year. But the current financial meltdown in the United States and Europe is impacting the
Indian industry heavily with lakhs of workers being laid off their jobs. The expected performance
is thus expected to be only 76 per cent (8.78 billion dollars) against the target of 11.62 billion
dollars set for the year 08-09. It will be just 91 per cent of
the actual achievement in 07-08.

There has been about 25 per cent drop in the winter

business during April to September this financial year as
compared to the corresponding period of 07-08. According
to industry estimates, nearly 700,000 workers in the clothing and textile sector have lost their jobs
in the past five months. By March 2009, another 500,000 could lose their work due to falling sales
overseas. The sector generally employs about 33 million people directly and another 55 million
indirectly. Of these, 7 million are involved in readymade garment manufacturing, 3.9 million for
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exports and the rest for domestic market.

PROBLEMS AND ADVANTAGES OF GARMENT EXPORTERS

While other countries are changing fiscal and monetary policies and giving aid packages to
generate new employment opportunities, the Indian government has not reacted so far. If no steps
are taken now, then March 2009 will be too late and there could be a huge unemployment problem
in the sector.

Many buyers like Steeve and Barry's along with Mervyns have filed for bankruptcy and more are
expected. Pacific Sun wear has closed 150 stores while Lane Bryant, Fashion Bug and Catherines
are closing 150 outlets which are under-performing. Many others like Eddie Bauer, Cache,
Talbots, J Jill, Gap Inc, Foot Locker, Goodbye Levitz, Home Depot, Macy's, Pep Boys, J C
Penney, Lowe and Office Depot are scaling down operations as well due to falling sales. Overseas
buyers are now renegotiating contracts due to depreciating rupee. So freight-on-board (FoB)
values are falling.

On the other hand, neighboring countries like China and Pakistan are helping their industries with
export incentives. China's ministry of finance and the state administration of taxation increased
export tax rebate on some textiles and apparels from 11 to 13 per cent. The move was expected to
fetch additional profit of 2.6 billion dollars to the industry. Pakistan has reintroduced research and
development assistance at six per cent for garments to boost exports. The move will ease operating
pressure on companies and enhance their competitiveness.

In India, , the rates have been reduced by 20 per cent in case of cotton garments, 12.5 per cent in
case of blended garments and 8.7 per cent in case of man-made fiber garments. Nearly 78 per cent
of garments exported from India are cotton-based. Almost 80 per cent of inputs required for the
Indian apparel industry are sourced domestically compared to 50 per cent in China. The AEPC
represents over 8,000 small, medium and large exporters in India. Apparel exports contribute four
per cent to the gross domestic product (GDP) and 16 per cent to the country's total exports. India
ranks as the fifth largest exporter of readymade garments globally.
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MAJOR COUNTRIES, INDIA IS EXPORTING TO

Bangladesh and Sri Lanka are major players with 3.12 and 7.43 million pieces respectively in
2006/07. Both Nepal and Bhutan have an agreement with India for nil duty for all products of
Nepal or Bhutan origin as also for foreign products exported by Nepal/Bhutan to India for re-
export from India. Sri Lanka also has another agreement with India limiting imports to 8 million
pieces in a year, of which 6 million pieces should be manufactured out of fabric imported from
India. Despite quantitative restraints on China by EU & USA, imports of Chinese garments by EU
& USA have not materially suffered since China is concentrating on garments, which are outside
quantitative restraint and in which India is not yet a major player. China, as a member of ASEAN
can benefit India by export of silk/silk yarn/silk fabrics.

Indonesia, Thailand & Malaysia have well-developed synthetic industry, which can compete well
with India's own synthetic industry helping to stabilise prices. In the Southern hemisphere, Japan,
Australia & New Zealand are other countries with which a free trade agreement will be of
advantage to India. Imports by Japan were chiefly for ladies dresses, skirts, nightwear and men's
shirts, in all of which India has a significant share. Opportunities also exist for trousers, T-shirts
and foundation wear. Australia is in fact, one of the major markets for garments. India needs to
strike a fine balance to protect exports of her garments, by concentrating in countries in the
Southern hemisphere.

TRENDS

In April 2008, apparel exports jumped to 878.32 million dollars (Rs 3,515 crore), up 26.82 per
cent in dollar terms (20.42 per cent in rupee terms) from 692.53 million dollars (Rs 2,919 crore) in
the same period last year. The upswing fluctuated in next three months. In August this year,
however, exports dropped marginally to 783 million dollars, down 0.63 per cent from 788 million
dollars in August 2007. But September saw a sharp decline of 6.59 per cent with garments worth
651 million dollars being exported compared to 697 million dollars in September 2007.

During April to September 2008, readymade garments worth 4.87 billion dollars were exported
from India, up 7.04 per cent from 4.56 billion dollars in the corresponding period of previous year.
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In rupee terms, the figures work out to Rs 20,760 crore, up 11.47 per cent from Rs 18,631 crore
during April to September 2007.

GARMENT IMPORTS

Garment industry production has been increased progressively, as a result of attractiveness of

cheap labor found by foreign investors for their Outward Processing Productions. Foreign trade of
the sector also reflects the structure of domestic production under OPT (Outward Processing
Trade) regime. Exports and imports are interconnected as a result of re-exportation. Imports
mainly consist of semi-final products, which are re-exported after a few assembling operations.
Garment export and import levels have been characterized by an increasing trend. Export growth
rate for 2003 was 25% towards 2002 and with an absolute value of US$ thousand 155,219. While
imports reached to US$ 203,043 thousand in 2003. Main trade partners are Italy, Greece and
Germany. The industry range of products output is very well mirrored in the exports, due to re-
exporting production as explained above. The main products of this industry are suits, trousers,
jackets, shirts and t-shirts, cotton intimate clothes. Buyers are suppliers of raw materials, that is
garment factories in Italy, Greece, Germany, etc. While,
final purchasers are European consumers, who are very
sophisticated and following reputable brands.
 Page | 8

Germany is the largest importer of outer garments in the EU with roughly 17 billion Euros, of
which 48% are purchased from developing countries through re-import or direct import. Imports
of tricots/pullovers, etc for women along with woven trousers for men and women have increased
significantly. Turkey is the main supplier of the German market of outer garments occupying 14%
of Germany’s total imports, followed by Italy, China, Poland (mainly re-imports), Romania
(mainly re-imports), Netherlands, Greece, Bangladesh, etc.

Great Britain is the second largest European importer. British producers use OPT to cover 78% of
imported knitted garments and 73% of imported woven garments. British imports have recorded
growth vis-à-vis several products: tricots, pullovers for men and women, t-shirts, woven garments
such as trousers, skirts, sport suits, and shawls. On the other hand, woven suit and gloves imports
have dropped. China, Turkey and Hong Kong are the main exporters of garments in the British
market. France is also a large importer in the EU. Developing countries supply 46% of its imports.
Italy, Morocco, Tunisia, etc. are the main exporters in the French market.

Italy has also imported large amounts of outer garments in 2000. They accounted for 5.2 Euros, of
which 74% were re-imported from non-EU countries. 48% of Italian imports came from
developing countries. The import growth rate has been positive recently. Imports of t-shirts,
tricots, pullovers, skirts, and woven blouses for women, stand over the average rate, while trousers
for women and skirts have been the dominant woven garments. Imports of men’s shirts have
dropped. China is the leading exporter in the Italian market, followed by Tunisia, Romania,
France, Belgium, Bangladesh, Croatia and Turkey.

Demand for clothes and footwear has been supplied mainly by imports, consisting of second-hand
clothes that fit consumption needs with affordable prices for the average consumer portfolio. Also,
of less importance are also leather-based or other artificial fibers clothing produced in the
international market. India is out of tariff preference so far as EU is concerned. Dubai’s textile and
garments market is one of the largest and strongest markets in the region. In 2004, Dubai’s direct
exports of the products reached Dh625 million, or 13 per cent of Dubai’s direct exports, while re-
exports reached Dh6 billion; leading to a total share of 10 per cent to the total value of goods
Dubai directly supplied to the rest of the world. Dubai manufacturers are greatly dependent on
imported materials, with 85 per cent of raw materials being imported and only 15 per cent being
sourced from local market. The US garment quota system was eliminated in January 2005. Since
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US is a leading market for Dubai’s exports of garments. India was cited as the most common
supplier of the industry’s imported raw materials with 71 per cent of the respondents citing the
country as their main source. Other sources were Pakistan and China, cited by 57 per cent; EU, by
21 per cent; and Egypt, by 7 per cent.

IMPORTS BY EU (EUROPEAN UNION)

The EU member states imported almost 1.5 million tonnes of body wear with a value of € 25.3
billion in 2007, of which 55% came from DCs. Total imports of body wear increased, while
production in the EU market decreased, which indicates that demand was largely served through
imports.

Germany remained the leading importer despite a fall in imports during the period 2003-2005. It
had an import share of 19% in terms of value, followed by the UK (16%), France (14%), Italy
(10%), Spain (8%) and Belgium (6%). The Netherlands (5%) ranked seventh, followed by Austria
(4%), Denmark (3%) and Sweden (2%). China and Turkey remained the major body wear
suppliers to the EU, before the EU countries Germany and Italy. Imports from China increased
considerably: 122% in the period 2003- 2007 and 26% in the period 2006-2007. In 2003, 10% of
EU imports came from China, 14% in 2005 and 17% in 2007. Imports from Turkey increased 21%
in the period 2003-2007 and 3% in the period 2006-2007.

The role of DCs increased considerably in the period 2003-2007 from an import share of 46% in
2003 to 55% in 2007. Imports from DCs rose by 50% in the period 2003-2007 and intra-EU trade
by 14%. Imports from countries outside the EU (excluding DCs) fell dramatically by 46% during
the same period, mainly caused by Far East countries like Hong Kong and South Korea, which
registered substantial decreases. Growth in imports from DCs can mainly be ascribed to low-price
suppliers in Asia.

With regard to factors like cost levels and distances, the following competitive categories in body
wear can be distinguished:

Low-cost, long-distance countries: these countries specialize in low-priced, high-volume, low

and medium fashion and standard types of products with a fair quality. These products are mainly
 Page | 10

made to buyers' specifications in countries in the Far East (China, Hong Kong and Macao) and
South East Asia (Bangladesh, India, Sri Lanka, Thailand, Indonesia and Pakistan).

Low-cost, medium-distance countries: these countries supply medium fashion products,

sometimes made as OPT. The main sources are Mediterranean countries like Tunisia, Morocco,
Egypt, Croatia and CEECs like Romania, Hungary, Bulgaria, Poland and Slovakia.

Medium-cost, medium-distance countries: these countries supply medium to high fashion

products of high quality and sometimes made of sophisticated fabrics: like Turkey and EU
countries Portugal and Greece.

High-cost countries: these countries supply quality fashion characterized by frequent deliveries,
small quantities and sophisticated fabrics, which are difficult to obtain in low-cost countries.
Western Europe (Italy, Germany, Belgium, Austria and UK), Israel and USA belong to this
category.

OPPORTUNITIES FOR WOOLEN IMPORTS

Australia is the largest supplier of wool to India. Although India’s woolen textile and clothing
industry is relatively small in comparison to the cotton and man-made fiber based industry, India is
still the third largest importer of Australian wool. As a large exporter of textile and apparel
products, imports of wool are crucial to the Indian textile industry in terms of export revenue as
demand continues to rise. In 2006-07 over 99 million kilograms of raw wool (Merino/New
Zealand-Greasy/Scoured) was imported into India compared to almost 73 million kilograms in
2001-02.

India’s textile product portfolio is diverse, ranging from textile intermediates to finished textiles,
garments, knitwear, blankets, carpets, with a growing presence in technical textiles. Most of the
wool produced indigenously (1.8 per cent of the world’s production) caters to civil and defence
requirements for warmer clothing. Close to 85 per cent of this wool is of course quality used
mainly in the manufacture of hand-knotted carpets. Five per cent is apparel grade and 10 per cent
is coarse grade used mainly for production of blankets. India is heavily dependent on imports for
its requirements of good quality wool, including apparel grade wool. A large quantity of wool
from Australia, New Zealand, China, the Middle East and other countries is increasingly being
 Page | 11

imported.

As the Indian textile industry matures and the consumer becomes more brand conscious, a large
number of Indian apparel brands are keen on using wool as a differentiating factor. This has also
led to an interest in fine quality lower micron wool, as against the higher microns that traditionally
constitute the bulk of India’s raw wool imports. Although this is an emerging trend, it is expected
to gather strength over the medium term.

TRENDS

Consumption and imports of European countries on garments show increasing figures, especially
in specific products such as knitted clothing, casual-style clothing for women and sport clothing.
Cheap labor countries are competing in OPT production through quick delivery and management
efficiency of assembling processes. However, two options are for the future of these cheap-labor
sectors in Far East, East Europe and North Africa: either to raise productivity of the processes, or
to embark in efforts for developing new designs and their value-added chain. The second option
can lead to sustainability and economics upgrade for these countries, especially with the entry of
China in WTO.

LEADING EXPORTING & IMPORTING COUNTRIES OF GARMENTS, 2007 (TOP10)

MAJOR EXPORTERS MAJOR IMPORTERS

Share Share
Value Annual Value Annual
in in
Name of the (in Percentage Name of the (in Percentage
World World
Country/EU Billion Change Country/EU Billion Change
Expor Import
$) (%) $) (%)
t (%) (%)

European
China 115.2 33.4 +21 162.8 45.5 +13
Union
 Page | 12

European United
103.4 29.9 +13 84.2 23.7 +2
Union States

Hong Kong 28.8 8.3 +1 Japan 24.0 6.7 +1

Turkey 14.0 4.1 +16 Hong Kong 19.1 5.4 +2

Bangladesh 10.1 2.9 +4 Russia 14.5 4.1 +79

India 9.7 2.8 +2 Canada 7.6 2.1 +12

Viet Nam 7.2 2.1 +29 Switzerland 5.2 1.4 +11

United Arab
Indonesia 5.9 1.7 +2 5.0 1.4 +64
Emirates

Korea
Mexico 5.1 1.5 -19 4.3 1.2 +15
Republic

United Australia 3.7 1.0 +13

4.3 1.2 -12
States

TOTAL 303.7 87.9 TOTAL 330.4 92.5

Source:

http://www.wto.org/english/res_e/statis_e/its2008_e/its2008_e.pdf

PROFILE OF MAJOR COMPANIES AND EXPORTERS

DIAMOND SILKS
MR. TAHIR AHMAD MIR (MANAGING DIRECTOR)
Address: RAM BAGH BALLA, SRINAGAR - 190015, JAMMU AND KASHMIR, INDIA
Phone: 91-194-2430021
Mobile: +919873348428
Fax: 91-11-41720380
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Manufacturer & exporter of shawls, pareos, stoles, scarves, carpets, kashmiri handicrafts,
embroidered ladies suits, hand embroidery sarees, silk fabric, long coats, embroidered fashion bag,
crewel fabric, carved wood items, cloth wall hanging, cushion cover, silk, readymade garments,
embroidered long kurtis, ladies salwar, embroidered stoles, colored stoles, fancy ladies stoles,
designer stoles, pashmina stoles, ladies silk etc

Company Profile

Business Type: Exporter , Manufacturer

Primary Competitive Advantages

• Premium quality

• Timely delivery

• Cost effective solutions

• Beautiful designs

• Regular consultation with leading designers and interior decorators

Year of Establishment: 1956

Export Markets: Europe and Middle East

Production Type: Semi-automatic, Handmade

Product Range

• Embroidered Ladies Suits

• Hand Embroidery Sarees

• Shawls
 Page | 14

• Silk Fabrics

• Long Coats

• Scarves/ Silk Scarves

• Embroidered Fashion Bags

• Stoles

• Crewel Fabrics

• Carved Wood Items

• Cloth Wall Hangings

• Cushion Covers

VISHWAKARMA EXPORTS
MR. VIJAY SHARMA
Address : UB-11/19, KASTURBA GANDHI MARG, NEW DELHI - 110001, INDIA
Phone : 91-11-23852798
Mobile : +919871895601
Fax : 91-11-23852798

Manufacturer & exporter of active wear, baloon skirts, batik printing, beach accessories, beach
bags, beach comforter, beach dresses, bikinis, board shorts, bottoms, casual pants, casual wear,
children’s wear, cover-ups, dupattas, hair-bands, hand painted sarongs, herbal massage cream, knit
tops, linen fabrics, lungies, maternity wear, meditation cds, menswear, mix & match, one-piece
swim wear, open trouser, outerwear, etc.

Company Profile
 Page | 15

Business Type

• Exporter ,
Manufactur
er

Export Percentage

• 100%

Sales Volume

• Rs. 200
crore

Year of
Establishment

• 1989

No of Production
Lines

• 2

Export Markets

• Greece,
Spain,
Mauritius,
Caribbean,
Mexico,
USA and
 Page | 16

K. G. N. CLOTHING

ADDRESS: NO 281, TRIPLICANE HIGH ROAD, TRIPLICANE, CHENNAI - 600 005, INDIA
PHONE: + (91)-(44)-42075600 FAX: + (91)-(44)-42663381
WEBSITE: http://www.indiamart.com/company/510322/

Manufacturers of all types of readymade garments such as shirts, blouses, shorts, pants, dresses,
skirts, boxer shorts, pajama set, dungaree, uniforms, trousers, jeans, pinafore, rompers, frocks, tank
tops, workwear, t-shirts, camisole, pants etc. Manufacturers of shirts, trousers, jacket, blazers,
vests, shorts, bermudas, blouses, dresses, skirts, pants, tank tops, pinafore and dungarees.

Company Profile
Nature of Business
Year of Establishment
Number of Employees
Turnover
• Manufacturer, Exporter
• 1986
• 101 to 500 People
• US$ 5-10 Million (or Rs. 20-40
Crore Approx.)

Product

• Blouses BoxershortsCamisole

• Dresses Dungaree Frocks

• Jeans Pajama Set Pants

• Pinafore Rompers Shirts

• Shorts Skirts T-Shirts

• Tank Tops Trousers Uniform

s

ROYAL INDO FASHION

 Page | 17

ADDRESS: D-95, SECTOR-10, NOIDA - 201 301, INDIA

PHONE: + (91)-(120)-3945744 FAX: + (91)-(120)-2544754
WEBSITE: http://www.indiamart.com/company/479445/
Manufacturers and exporters of cushion covers and made ups. Also supplying knitted garments
such as knitted sweaters and knitted shawls, knitted woolen sweaters and home furnishing articles
like cushion covers made ups, scarves, hand bags etc.

Company Profile

Nature of Business • Manufacturer, Exporter

Year of Establishment • 2000

Number of Employees • 51 to 100 People

Turnover • US$ 3-6 Million (or Rs. 12-24

Crore Approx.)

Products

• Chokers Cushion Covers Handbags

• Hats Home FurnishingsKnitted Garments

• Knitted Made-Ups Scarves

Sweaters

• Shawls Throws Trims

INDUS GARMENTS PVT. LTD.

Location: Bangalore

Contact name: Surendra (Asst. head of Marketing)

 Page | 18

Nature of Business:

Indus garments manufactures garments according to the specifications of their customers. The
major customers are brands, mainly LEVIS.
Suppliers: The company gets its supply of yarn from the producers, located in Tirupur, Salem
& Coimbatore.

The company mainly focuses on exports mainly to Thailand, Singapore and US. The garments are
manufactured according to the specifications given by the suppliers, who are mainly retailers.
Initially, the marketing managers bring the orders from the retailers. The financial negotiations are
also done by these people themselves. Finally, they send the cost sheet to the party. Upon approval
of the cost, they send what is called primary sample to the buyers. Any modifications, if any,
suggested by the buyer are incorporated and a second sample is sent. Upon approval of the design
and various other quality measures, production starts. The company gives a lead time (time to
make payments) of a month to both Suppliers and Buyers.

Turn over: Usually, the monthly turnover is in between 2-2.50 cr. Among this, about 80% is
through exports itself. The domestic market comprises only 20% of its market.

Current situation: The current global financial crisis is showing its impact on INDUS
GARMENTS too. The offshore sales that contributed to about 80% of its sales have now fallen
down. So, the company is planning to focus on domestic market itself.

Profit Margin: The profit margin is usually 10-15%, which is declining currently.

Competitors: Major competitors for INDUS Garments are

• Arvind mills

• Gwalior suitings
 Page | 19

STRENGTHS AND WEAKNESS OF INDIAN GARMENT INDUSTRY

STRENGTHS OF INDIAN GARMENT INDUSTRY

India has rich resources of raw materials of garment industry. It is one of the largest producers of
cotton in the world and is also rich in resources of fibers like polyester, silk, viscose etc.

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 garment automatically comes down to
very reasonable rates.

India is highly competitive in spinning sector and has presence in almost all processes of the value
chain.

Indian garment industry is very diverse in size, manufacturing facility, type of apparel produced,
quantity and quality of output, cost, requirement for fabric etc. It comprises suppliers of ready-
made garment for both, domestic or export markets.

WEAKNESSES OF INDIAN GARMENT INDUSTRY

• Indian garment industry is highly fragmented in industry structure, and is led by small
scale companies. The reservation of production for very small companies that was imposed
with the intention to help out small scale companies across the country, led substantial
fragmentation that distorted the competitiveness of industry. 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.
 Page | 20

• Indian labour laws are relatively unfavorable to the trades and there is an urgent need for
labour reforms in India.

• India seriously lacks in trade pact memberships, which leads to restricted access to the
other major markets.

CURRENT MARKET SCENARIO

Due to recession in Chinese garment industry, the Indian garment industry is expected to grow
about 10% in the fiscal year 2008-09. As per CMAI (Clothing Manufacturers Association of India)
and AAF (Asian Apparel Federation), the garment industry of India is targeting a 10% growth in
2008-09.

During April to May 2008, garment production increased in the country and Indian garment
industry regained its confidence in the international market as it maintained a 15% growth rate in
2007-08. During 2007-08, the garment exports reached US$ 9.1 Billion, a drop of about 10% in
rupee terms, but a 2% rise in dollar terms. Currently, the total garment industry of India stands at
$15 Billion.

Recession in the garment industry of China, the leader in garment business worldwide, is
recognized as the main reason for growth in garment industry of India. Soaring prices of labor,
garments, fabrics and yarn in China lead to decline in its garment industry and encouraged demand
for low-priced Indian garments. Also, reliance of global clothing companies on Asian countries
like India and China, and export prices that stand little higher than domestic prices are also
fuelling growth in the garment industry of India.

Moreover, most of the country’s garments are exported to EU countries and the US. Thus, the
rising prices of the US dollar are encouraging more and more Indian players to forge business ties
with the US, resulting in the further growth of the industry. Further, introduction of automation in
garment industry in near future can help in decreasing the total cost of production by about 10 to
15% with nearly 5 to 7% savings on fabrics only. This is likely to act as a key growth driver for
the country’s garment industry in future.
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FUTURE SCENARIO OF THE GARMENT INDUSTRY

Information revolution promises to bring the world closer to cohesion. In the emerging face of fast
moving information, technological transfer is bound to take place at a higher speed.
As the International borders blur Supply Chain Management and Information Technology take a

crucialrole in Apparel manufacturing. Global partners in the clothing supply chain are exchanging
information electronically, thus the need for Indian Clothing Industry to spruce up.

Upcoming technologies for mass customization such as three dimensional

non-contact body measurement and digital printing ought to be discussed
thoroughly and implemented fast. This mass customization shall be
successful for meeting unpredictable demand levels, for luxury goods,
uncertain customer wants and for heterogeneous demand. It is to be noted
that mass customization is different from mass production.

The future requires generation of real value service for the customers, comprehensive study of
multifaceted and multi-layered supply chain, and global integration of supply system in a cost and
time effective manner. Inventory planning, sales forecasting, manufacturing strategy, distribution
network and transportation management are some of the areas which need improvement. The
economic scene of US and its trade partners need to be eyed carefully if India is to survive in the
faster and throat cut competition of 21st century.
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RECOMMENDATIONS

The industry should employ an integrated framework to analyse industry attractiveness in terms of
its future growth potential, competitive intensity and risk assessment. And a comprehensive
industry analysis with focus on the strategic considerations.

The Indian Technical garment industry has been on a growth trajectory with its market size
expanding from Rs 152 billion in FY02 to Rs 260.8 billion in FY07. The Expert Committee on
Technical Garment further expects this industry to cross Rs 295.8 billion mark in FY08.

Industry experts believe that Automobile and Technical garment industries are expected to
complement each other in the long run. Currently, a large proportion of Technical garment are
imported but with improved R&D and technology upgradation, Indian players can cater to the
domestic market demand in an effective way. Though this industry has tremendous potential in our
country, fact remains that in the absence of a database and inadequate published information,
various stakeholders are unable to invest confidently in the sector thereby hampering its
production and consumption.

There should be comprehensive information on the industry, including analysis of demand supply
dynamics, identification of potential segments, growth forecasts, market opportunities,
competition analysis and identification of risk areas.
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BIBOLIOGRAPHY

1. http://garment.fibre2fashion.com

2. http://www.icrier.org

3. http://www.ieo.org

4. http://www.wto.org

5. http://www.diamondsilks.com

6. www.beachwearexporters.com

7. http://www.indiamart.com

8. http://noida.indiabizclub.com

9. http://www.india-crafts.com

10.http://ezinearticles.com

11.http://apparel.indiamart.com