Indian Textile IndustryReady made garments (RMG)

Group 4

Ajay B.S

Guna sekar

Rohan Shinde

Saimin

Ujjwal

Introduction

Key players: Indian RMG industry and

nature of competitionKEY PLAYERS:

Some of the key players in the Indian Readymade Garments are

as follows :-

• Raymond India

• Madura garments and

• Arvind Mills

• Competition in Indian Readymade Garments Industry

Segmentation of RMG 

• Formal Wear & Casual Wear

• Women dresses, Men Wear & Kids Wear

• Suits, Trousers, Jackets & Blazers

• Shirts, Sportswear, T-shirts, Denims &

Neckwear

• Undergarments, Knitwear & Saris.

Men's wear46%

Women's wear36%

Kid's wear17%

Rates(%)

S.W.O.T

• Foreign Players• Trading Blocks• Fashion Cycle

• IT & Web Retail• Removal Of

Quota• Bilateral

Negotiation• Industry Growth

• Technology• Infrastructure• Cotton

Dependent

• Raw Material• Labour• Flexibility• Heritage

Strength Weakness

ThreatOpportunity

P.E.S.T

• Automation & Technology Incentives

• Competitive Edge : NIFT

• Demographics• Consumer

Attitude

• Economic Stability – Value of Rupee

• Monetary Policies• Economic Growth

• Trade & Tariff Regulations

• New Schemes – Textile Parks, TUFS.

• Trade Pacts - NAFTA

Political Forces

Economic Forces

Technological Forces

Socio-Cultural Forces

Porter’s Diamond Framework

• Increasing Rivalry - Gaining competitive advantage.

• Textile Parks

• Fast Growing Market • Continuous Demand• Increase in Export

• Complete Value Chain

• Low Quality Production

• Technical Delays & Ineffective Supply Chain

• Abundant Raw & Labour Resources

• Low Technology• High Operating

Cost

Factor Conditio

ns

Related &

Supporting

Industries

Domestic Rivalry

Demand Conditio

ns

Market consolidation since 1974 and post 2005

• Multi Fiber Agreement, 1974

• 2005- MFA scrapped by WTO

• Top players identified are:

Raymond Group – 11020 Cr

Aditya Birla Nuvo Ltd – 5323 Cr

Arvind Mills – 4660 Cr

Contribution of Readymade Garments to India’s Foreign Trade

• 1991 liberalization of Indian Economy

• Contributors: Electronics (27%), Gems and Jewelry (16%)

and Readymade Garments (6%)

• 39.5 % of total Textile export is contributed by Readymade

Garments which include cotton and manmade fiber

• Top Exports: EU, USA and UAE

• Top Importers: China, Italy and Hong Kong.

Marketing in Indian RMG• The Indian branded garment market is estimated at over

Rs. 185 billion,

• Accounts for over 25% of the 745 billion ready-mades

market.

• This branded industry is growing by 25%.

• Raymond Apparel Ltd., Madura Fashion & Lifestyle, Arvind

Mills.

Source: Khanna, Akanksha (2012).

Technology

• Technology in Indian industries are lagging

• CAD in designing, knitting, grading and more

• Trend forecasting is a developing subject

• Government’s role:

• Textile research associations

• Technology up gradation fund scheme

Global Scenario of Readymade Garments

• China consistently remains the top exporting

country in the decade 2000 to 2010 followed by

Italy and Germany

• India has managed to remain in the top 10

exporters.

• Held 5th position in 2005-06 and 6th and 7th in

2007 and 2008 respectively

Future perspective of RMG

• The competitive market will lead to price fight

especially from countries like Pakistan and similar

cost structured countries

• Reasons for persistent demand:

1. Increase in disposal income

2. Growth of the Economy

3. Aesthetical appeal

Conclusion

• We have the knowledge, resource and market

• Indian garments have a good brand value by

itself.

• The resources to look forward:

Technology, Government and Branding.

Thank you!