INDIAN TEXTILE INDUSTRY

FOCUS: HOME TEXTILES

Bhoomica Sheth 2013A29
Bhavna Kaul 2013B11
Synaica Pinto 2013B27
Jayshree Shankar 2013C71
Naman Gupta 2013B33
Akansha Agarwal 2013C03
2
nd
largest producer of textiles after China.
2
nd
largest producer of cotton in the world.
2
nd
largest employer in India after Agriculture; Provides employment to 35 million
people.
Constitutes about 12% of Indias exports. India earns about 27% of its total foreign
exchange through textile exports.
Contributes about 14% to Industrial production.
Contributes about 4% to GDP.
India has the potential to increase its textile share in the world trade from 4.5% currently to 8%
& reach US$80 billion by 2020.
INDUSTRY OVERVIEW - INTRODUCTION
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89
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144
159
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212
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0
50
100
150
200
250
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012
INDIA'S TEXTILE MARKET SIZE (USD BILLION)
69%
31%
Apparel
Home Textile
Source: www.ibef.org
SHARE OF HOME TEXTILE & APPAREL
SECTOR of INDIA
SHARE IN INDIAS TEXTILE EXPORTS
39%
34%
17%
3%
3%
4%
Ready made
Garments
Cotton Textiles
Man-Made Textiles
Handicrafts
Silk & Handloom
Wollen & Others
INDUSTRY OVERVIEW GROWTH, SECTORS
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COMPANY BUSINESS AREAS
Home textiles, bathrobes, terry towels
Yarn, fabric, sewing threads, acrylic fibre
Home textiles, woven and knitted apparel fabric, garments and polyester yarn
Worsted suiting, tailored clothing, denim, shirting, woollen outerwear
Spinning, weaving, processing & garment production (denims, shirting, khakis, knitwear)
Bed linen, towels, furnishings, fabric for suits, shirts, dresses and saris in cotton & polyester blends
Dyed and printed fabric
Shirting, poplins, bottom wear fabrics, voiles
Madura Garments lifestyle market (Louis Philippe, Van Heusen, Allen Solly, The Collective)
Jayashree Textiles domestic linen and worsted yarn
Indian Rayon viscose filament yarn
Lifestyle market
Fabric, formal menswear
INDUSTRY OVERVIEW KEY PLAYERS
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Cotton Textiles
Silk Textiles
Woolen Textiles
Readymade Garments
Hand-crafted Textiles
Jute and Coir
Indian textile industry can be divided into several segments which are:
Yarn & fibre (natural & man made)
Processed fabrics (woollen, cotton, jute, silk & technical textiles), readymade garments & apparels.
The textile industry can be broadly divided into two segments:
INDUSTRY OVERVIEW SEGMENTS
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Home Textile market in India is estimated to be Rs. 17,000 crore which is growing at over 9
per cent annually.
The home textiles and furnishings market is expected to reach Rs. 26,600 crore by
2015.
Key growth drivers: Growth in the no. of households and discretionary incomes,
and growth of end-use sectors like housing, office, hospitality and healthcare.
The unorganised sector dominates this market. Less than 10 per cent of the market is
organised, and hence, a huge opportunity for organised players to grow.
Various segments within home textiles include bed linen, bath linen, kitchen linen, curtains,
upholstery , table linen and rugs/carpets. Bath & Bed linen contribute to two-thirds of the
total market size.
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INTRODUCTION TO HOME TEXTILES
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STATISTICS
55%
13%
3%
10%
11%
8%
Bed Linen
Bath Linen
Kitchen Linen
Curtains
Upholstry
Others
HOME TEXTILE MARKET SEGMENTS
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2011 2016(P) 2021(P)
DOMESTIC TEXTILE MARKET
CATEGORIES 2011 2016(P) 2021(P)
CAGR 2011-
2012
Bed Linen 8965 13170 19350 8%
Towels 3320 4840 7060 8%
Curtains 1850 2975 4790 10%
Blankets 1465 2040 2850 7%
Upholstery 1190 1915 3080 10%
Kitchen Linen 1110 1635 2400 8%
Rugs & Carpets 500 790 1250 9.50%
Total 18,400 27,360 40,800 8%
Source: Technopak
MULTI BRAND SINGLE BRAND
SHOP IN SHOP
The shop in shop retail concept is where a brand owner or retailer takes space in another
retailers' store and fits it out to provide selling space dedicated to that secondary companys
product.
Example: Nilkamal Store in Star Bazar , Ebok in Hypercity
There are benefits to both retailers e.g. shared cost, shared marketing, demand generation etc.
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KEY PLAYERS
COMPETITION
The competition is maximum in the bed and bath linen segment.
Branding Key players are developing and promoting their brands to make a distinct mark in the
market. Bombay dyeing carries greatest recognition in case of bed linen.
Brands like Welspun & Portico are mainly known in the metros where as Bombay dyeing has
presence in rural as well as urban markets.
Buying behaviour of home textiles is mainly governed by attractive designs and patterns. Hence,
companies are actively spending on R&D and design to be abreast with the trends and increase
uniqueness in their products.
With the big players exporting their products to western countries, they have established their
design studios in USA & other European countries to keep abreast with latest trends and
fashions.
Most of these companies have targeted this industry by understanding the purchasing power of
Indian consumer. Companies have launched their products in two-three categories like economy,
premium and super premium segments. Eg : Welspun has Spaces brand for its premium
customers and Welhome for the mass market.
Most large manufacturers in India are vertically integrated which provides greater flexibility, and
reduces the overall operations cost.
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@ HOME
@Home (Private Label)
Portico
Spaces
Tangerine
Obsession
HOMESTOP
HomeStop is part of the Shoppers Stop group.
Stop (Private Label)
Ivy (Private Label)
Sonnet (Private Label)
Esprit
Maishaa
Portico
Bombay Dyeing
BIG BAZAAR
Dreamline (Private Label)
Ceylon
Bombay Dyeing
Serenity of ladak
Heritage
Easy Life

HYPERCITY
Swayam
Stellar
Bombay Dyeing
Ebano (Private Label)
Evok
Portico
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PRIVATE LABEL PROLIFERATION
Projected Market Size: $2,550 million in 2015
Customers: Residents of mini metros & Tier II cities
Range: Rs. 2500 Rs. 17000
UPCOMING BRANDS CURRENT BRANDS
Source: Economic Times- Luxury Home Market
(29
th
Jan, 2012)
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LUXURY BRANDS
Consumers in undeveloped or moderately developed regions will be more price conscious
PRICE
Since consumers are more brand conscious in the home linen industry, a brand that is
easily available will sell more.
AVAILABILITY OF BRAND
Residents of North India would be ready to spend more on woolen clothes than residents
of the south.
REGIONAL CLIMATE
Media and magazines have played a big role in exposing Indians to the western styles of
home dcor, which in turn is causing them to be relatively more conscious about brands
and aesthetics.
WESTERN INFLUENCE
In India, festivals play a large role in influencing purchase decisions of home linen. For
instance, during Diwali, homes are renovated and maximum purchase of home linen
occurs.
FESTIVE SEASONS
CONSUMER BEHAVIOUR
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Roadside Hoardings

Fresh arrivals

Gift Vouchers

Event Sponsorships

Advertisements /
Features in Magazines +
TV & Electronic Media

Window POS Displays

Discount Offers

Celebrity Endorsements

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FACTORS AFFECTING CONSUMER CHOICE
Maharashtra, Gujarat &
Punjab are the hubs of
cotton production
Tamil Nadu & Karnataka
are the hubs for silk
production
North-eastern India is the
hub for production of
handicrafts using
handlooms.
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PRODUCTION CENTRE & RAW MATERIAL



Strengths
1) Expertise in cotton textiles
2) Backward & Forward integrations leading to
reduction of cost
3) Availability of cheap, skilled labour
4) Strong R&D and design capability
5) Government support for textile exports





Weaknesses
1) Industry highly dependent on cotton
2) Low technology levels
3) Infrastructural bottlenecks (lag in
transportation, bumpy roads)
4) Imports of textiles of other Asian textile
industries




Opportunities
1) Booming retail sector
2) Increase in purchasing power
3) Brand conscious customer base
4) Promising prospects for foreign investment








Threats
1) Volatility of currencies and fluctuation of the
rupee with regards to $ and the euro
2) Increase in social awareness worldwide
bringing increased pressure to comply with
labour laws
3) Absence of standardization and an organized
vendor base
4) Increased global competition




SWOT
ANALYSIS
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CHALLENGES FACED
E-tailing in India will grow @ 75% CAGR over the next decade and has the possibility to reach US$ 60-75 Billion by
2020.
Home textiles are very suitable products for E-tailing channel because
No challenge on size fit
Less issues with touch and feel
Easy to pack and ship
E-channel provides abetter medium for stocking a wide range & provide excellent effective product display
Negligible incremental cost in reaching out to customers in small cities and upcoming hot-spots
The growth drivers in India are as follows:
Need to save time
Increasing popularity of Internet
New generation expectations
Rising property cost
The Barriers to growth are as follows:
Less popularity of high margin goods like apparel as touch and feel factor is missing
Fear of using credit card as Indians feel what they see, they might not get
Problem with complaint resolution incase of wrong goods or delayed delivery
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E-TAILING
REFERENCES
http://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landing/351/1
http://www.rediff.com/money/2007/dec/08bed.htm
http://www.hghindia.com/sites/default/files/HGH%20India_Indian%20Market_Home%20Textiles.
pdf
http://www.equitymaster.com/research-it/sector-info/textiles/Textiles-Sector-Analysis-Report.asp
http://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-
fendi-casa-corneliani