INDIAN TEXTILE INDUSTRY

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

Cont.
Industry provides almost every single aspect i.e. raw materials, 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 of the 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.

Cut throat competition

Siyaram's is venturing into readymade garment to grip the continuously 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 garments division Madura Garments, Bombay Dyeing also gets hold of Proline. 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 performing well in cut throat competition in the ready made garment.

Divided into several segments

Cotton textiles Silk textiles Woollen textiles

Jute and coir

Hand-crafted textiles

Readymade garments

PESTEL ANALYSIS

POLITICAL
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

ECONOMICAL
Estimated to be around US$ 52 billion, projected to be around US$ 115 billion by the year 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.

Article Source: http://EzineArticles.com/373841, http://www.indiantextilejournal.com/articles/FAdetails.asp?id=1545

Social
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 coNT.
INCOME DISTRIBUTION: Clothing expenditure tend to be higher for households with higher incomes AGE: The largest segment for the readymade garment segment includes the age-group of 16-35 that is very brand conscious and gives priority to high quality. Branded readymade garments account over 21 percent of the readymade garment industry. LIFESTYLE CHANGES

TECHNOLOGICAL
New innovations in clothing

production, manufacture and design came during the Industrial Revolution

New machines such as spinning wheels and handlooms.

French technology to help Indian textile.

Environmental
Characterised by the high consumption of resources like water, fuel and a variety of chemicals in a long process sequence 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 equal importance are Air emission, notably Volatile Organic Compounds (VOC)s and excessive noise or odour as well as workspace safety.

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 firms

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)

STreNgThS coNT.
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

STRENGTH CONT.

STreNgThS coNT

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

Weakness
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 coNT
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 apparel sector. Labor Laws of India unfavorable for the trade.

Opportunities
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

Article Source: http://EzineArticles.com/373841

THREATS
Heightened competition in the domestic market Rising input cost Cheaper imports

Chinese aggression over the international market

THANK U !!!!