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CHAPTER IV
OVERVIEW OF COTTON TEXTILE
INDUSTRY
4.1 INTRODUCTION
4.2 HISTORICAL PERSPECTIVE
4.3 STRUCTURE OF INDIAN TEXTILE INDUSTRY
4.4 TEXTILE SECTOR- ITS IMPORTANCE TO INDIAN
ECONOMY
4.5 SWOT ANALYSIS OF TEXTILE INDUSTRY
4.6 COTTON TEXTILE INDUSTRY IN PUNJAB
4.7 PROFILE OF THE TEXTILE UNITS SELECTED IN
THE STUDY
91
CHAPTER IV
OVERVIEW OF COTTON TEXTILE INDUSTRY
4.1 INTRODUCTION
India is known worldwide for its production of textiles in general, and cotton in
particular, both being major industries for the country. Indian textile industry is the
mother of all industries and is among the world‟s top producers of yarns and fabrics
(Indian Law Offices, n.d.). Textile industry is one of the largest and oldest industry in
India. Chinese first started using water driven mechanical devices for spinning in 12th
century and Industrial Revolution in Britain had its beginning in the textile industry. The
history of economic development in developed countries also reveals that the textile
industry was the foundation of growth of most economies in Western Europe and
America. The textile industry acted as the engine of growth in Japan and Korea and later
on in South East Asian economies (Jain, 2010).
The textile industry plays a crucial role in the Indian economy. It accounts for over 14
percent of industrial production and is closely linked with the agricultural and rural
economy. It is the single largest employer in industrial sector employing about 45 million
people. If employment in allied sectors like ginning, agriculture, pressing, cotton trade,
jute, etc. is taken into consideration then the total employment is estimated at 105 million.
The net foreign exchange earnings in this sector are one of the highest and, together with
carpet and handicrafts, account for over 37 percent of total export earnings at over US $
10 billion. Textiles, alone, account for about 25 percent of India‟s total forex earnings
(Dhanabhakyam & Shanthi, n.d.).
92
India is the world‟s second largest producer of textiles after China. It is the world‟s third
largest producer of cotton-after China and the USA-and the second largest cotton
consumer after China (“Textile and sugar industries”, n.d.). Thus, the growth and all
round development of this industry has a direct bearing on the progress of India‟s
economy.
4.2 HISTORICAL PERSPECTIVE
India is known for its textile products from the days when use of mordant dyes and
printing blocks was in practice around 3000BC. The variety of fibres found in India,
weaving patterns and its organic dyes has fascinated customers from all over the world
for centuries (Chandra, 2006).
Since BC 1500 to AD 150, country was famous for its handiwork on cotton fabrics. The
muslin of Dhaka, Calicos of Calicut and embroidered cotton work of Surat and Vadodara
were famous in the world for their fine quality, design and pattern. But the handmade
cloth of India could not compete with the machine made cloth of UK. The Industrial
Revolution had brought in new methods of fabrication and invented textile machines and
techniques of spinning and weaving. The English inventions revolutionized textile
manufacturing by way of producing cheap cloth and in large quantities (Gupta, n.d.).
The modern textile industry fostered a humble beginning in India in the early nineteenth
century when the first textile mill in the country was established at fort Gloster near
Calcutta in 1818. However, the first cotton textile mill was set up in 1854 in Bombay, by
a Parsi cotton merchant who was engaged in overseas and internal trade. In 1861, a cotton
mill was set up in Ahmedabad, which emerged as a rival centre to Bombay. The spread of
the textile industry to Ahmedabad was largely due to the Gujarati trading class. The
cotton textile industry was in its glory in the second half of the nineteenth century with a
93
total number of 178 cotton textile mills. But, due to great famine in the year 1900 the
cotton textile industry went through a difficult phase and number of mills of Bombay and
Ahmedabad were to be closed down for long periods. The two World Wars and the
Swadeshi Movement provided an impetus to the Indian cotton textile industry. The
Second World War, during which textile import from Japan completely stopped,
accelerated the growth of this industry. The number of mills increased from 178 with 4.05
lakh looms in 1901 to 249 mills with 13.35 lakh looms in 1921 and further to 396 mills
with over 20 lakh looms in 1941. By 1945, there were 417 mills employing 5.10 lakh
workers (Chellasamy and Sumathi, 2010).
The cotton textile industry is labelled as „Swadeshi‟ industry because of its
industrialisation with indigenous entrepreneurship and capital and in Pre-Independence
era the Swadeshi Movement stirred demand for Indian textile in the country. The partition
of the country at the time of independence affected the cotton textile industry badly. The
reason being India got 409 out of the 423 textiles mills of the undivided India while 14
mills and 22 per cent of the land under cotton cultivation went to Pakistan. Under these
compelling circumstances, Indian mills had to import cotton from Pakistan and other
countries for a number of years. After independence, the cotton textile industry made
rapid growth under the various Five Year Plans. Between 1951 and 1982 the total number
of spindles doubled from 11 million to 22 million. It increased further to 26 million by
1989-90 (Jasoliya, n.d.).
At present, the Indian textile industry is second largest after China, in terms of
spindleage, and has share of 23% of the world‟s spindle capacity. India has around 7% of
global rotor capacity. The country has the highest loom capacity, including handlooms,
and has a share of 61% in world loomage (Emerging SME of India-Textile, n.d.).
94
4.3 STRUCTURE OF INDIAN TEXTILE INDUSTRY
The textile sector in India is one of the world largest. The production of textiles is
structured across the organized mill sector and unorganized decentralized sector. The
organized mill sector consists of spinning mills or composite mills. Composite mills are
those where all the activities, i.e., spinning, weaving and processing are performed in the
same building. Weaving is done in unorganised decentralized sector and consists of
powerloom, handloom and hosiery units. Apart from this, readymade garments, khadi and
carpet manufacturing units are also included in the decentralized sector (Balaji, 2008). In
general, the textile industry is classified into three segments: Cotton Textiles, Synthetic
Textiles and others like Wool, Jute, and Silk etc.
All segments of the textile industry have their own significance but cotton textiles lead
with 73% share. Even, the consumption of cotton fibre/yarn in relation to other
fibres/yarn in India is 54: 46 thus making it predominately a cotton based industry. While
the global consumption of fibres/yarn is 40:60 in favour of non-cotton fibres/yarn
(Devaraja, 2011). Cotton yarn production increased by about 10 per cent during February,
2014 and by about 10 per cent during April, 2013-February, 2014. Blended and 100 per
cent non-cotton yarn production increased by 6 per cent during February, 2014 and by 8
per cent during the period April, 2013-February, 2014 (Indian Brand Equity
Foundation,2014).
95
Chart 3-Structure of Indian Textile Industry
Source: Chellasamy & Karuppaiah (n.d.). Retrieved from http:// www. fibre2
fashion. com/industry-\article/1/11/an-analysis-of-growth-and-development-of-
textile-industry-in-india1.asp
The structure of cotton textile industry ranges from hand spinning and hand weaving to
most sophisticated automatic spindles and looms. The textile value chain extends from
raw material (fibres) to finished products (clothing and made-ups) with spinning,
weaving, knitting and processing coming in between as intermediate processes.
Spinning
Spinning is the process of converting cotton or manmade fibre into yarn then to fabrics,
bleaching is done on fabrics to produce textiles and finally clothes are manufactured.
96
These spinning mills are primarily located in North India. This sector is technology
intensive and productivity is affected by the quality of cotton and the cleaning process
used during ginning.
Chart 4-Textile Value Chain
Source: Textiles and Apparel, Aranca Research, p.6. Retrieved from www. Ibef.org
The production process in spinning starts from blow room operations in which impurities
of cotton are cleaned. Carding and drawing is done on the material received from blow
room to produce a thin sheet of uniform thickness called sliver. This process also removes
remaining impurities from the cotton. Roving is performed on slivers to make them thin
to level required for the yarn to be spun. The roving bobbins are passed through the ring
frames where it is drafted to the desired level called count. Then spindle along with the
97
ring traveller mounted on a ring imparts the requisite amount of twist into the yarn. The
yarn is wound over paper cones to make final packages after passing through electronic
yarn cleaners for removal of any defects.
Weaving and Knitting
Weaving and knitting converts cotton, manmade, or blended yarns into woven or knitted
fabrics. The weaving and knits sector lies at the heart of the industry. India has one of the
highest weaving capacities in the world (61.6% of global weaving capacity), with a
presence of 2.2 million powerlooms, 3.5 million handlooms. In 2011-12, of the total cloth
production, about 11 percent was from handloom sector and 61 percent was from
powerloom sector. The share of hosiery sector in total cloth production is 22%.Weaving
and knitting sector is highly fragmented, small-scale, and labour-intensive (Ministry of
Textiles, 2011).
Fabric Finishing
Fabric finishing includes dyeing, printing, and other cloth preparation prior to the
manufacture of clothing, and is dominated by a large number of independent, small-scale
enterprises. Overall, about 2,300 processors are operating in India, including about 2,100
independent units and 200 units that are integrated with spinning, weaving, or knitting
units (Chandra, 2006).
Clothing.
In garment manufacturing, small-scale fabricators dominate and the bulk of apparel is
produced by about 77,000 small-scale units classified as domestic manufacturers,
manufacturer exporters and fabricators (Roy, 2008).
98
Table 3: The Number of Textile Mills in India
YEAR NO. OF MILLS
SPINNING COMPOSITE TOTAL
1997 1438 281 1719
1998 1504 278 1782
1999 1543 281 1824
2000 1565 285 1850
2001 1565 281 1846
2002 1579 281 1860
2003 1599 276 1875
2004 1564 223 1787
2005 1566 223 1789
2006 1570 210 1780
2007 1608 200 1808
2008 1597 176 1773
2009 1653 177 1830
2010 1673 180 1853
2011 1757 183 1940
2012 1761 196 1957
2013 1771 198 1969
2014(P) 1775 199 1974
Source: Office of the Textile Commissioner, Mumbai.
99
Table 4: Installed Capacity in India vis-à-vis Other Major Textile Countries
SPINNING (2009)
Items/Country India China Pakistan Indonesia World Total
Spindles (Mn.No.)
a) Cotton system
b)Woolen system
c)Cotton & Woolen system
Ranking Contribution to the world
(%)
a) Cotton system
b)Woolen system
c) Cotton & Woolen system
41.53
1.04
42.57
2
18.06
7.01
17.39
101.26
3.61
112.87
1
47.52
24.33
46.11
11.38
0.04
11.42
3
4.95
0.27
4.67
8.01
0.10
8.11
4
3.48
0.67
3.31
229.94
14.84
224.78
---
100.00
100.00
100.00
Items/Country India Russia USA China World Total
Rotors ('000 No.)
Ranking
Contribution to the world (%)
668
3
7.70
1235
2
15.14
343
4
4.2
2196
1
26.92
8157.00
---
100.00
WEAVING (2009)
Items/Country India China Pakistan Indonesia World Total
Shuttleless looms (Nos.)
Shuttle looms (including filament
weaving looms & wool weaving
looms)
58489
2219548
527700
911926
28383
575000
51760
226000
1200660
4616779
Total Looms 2278037 1439626 603383 277760 5817439
Ranking
Contribution to the world(%)
Ratio of shuttleless looms to total
loomage (excluding handloom) %
1
39.16
2.57
2
24.75
36.66
3
10.37
4.70
4
4.77
18.63
---
100.00
20.64
Items/Country India Bangla-
desh
Pakistan Nepal World Total
Handlooms (Nos.)
Ranking
Contribution to the world(%)
38,90,000
1
84.79
4,98,000
2
10.85
80,000
3
1.74
70,000
4
1.53
45,88,000
---
100.00
100
KNITTING (2009)
Items/Country India USA China Turkey World
Total
Circular Knitting Machines (000'No.)
a) Single Heater
b) Double Heater
c) Single & Double
Ranking
Contribution to the world (%)
a) Single Heater
b) Double Heater
c) Single & Double
5.6
3.24
8.84
3
4.94
3.78
4.44
2.01
1.43
3.44
4
1.77
1.67
1.73
62.27
58.34
120.61
1
54.98
68.07
60.62
6.02
3.11
9.13
2
5.32
3.63
4.59
113.25
85.71
198.96
---
100.00
100.00
100.00
Source: The International Textile Manufacturers Federation (ITMF).
4.4 TEXTILE SECTOR-ITS IMPORTANCE TO INDIAN ECONOMY
The Indian textile industry has a significant presence in the economic life of our country.
It is the second largest textile industry in the world after China. The textile industry
contributes about 14% to the country's industrial output and about 17% to export
earnings. After agriculture, this industry is the second largest employer in India
employing 45 million people. Besides, another 60 million people are engaged in allied
activities(Ministry of Textiles,2011). The name „white gold‟ given to cotton has
emphasised its significance in Indian economy since a long time. It is the backbone of
Indian economy being the employer of millions of rural workforce and has resulted in the
expansion of manufacturing activities. Jobs in the textile sector are likely to rise by 15.81
million to 121 million by the end of 12th Plan (Press Trust of India, 2012).
101
Table 5: Employment in Textile and Allied Sectors
Sr.
No. Sector / Industry
Employment (In Mn. Nos.)
As on March 2011
Projected for the
terminal year of
the Twelfth Plan
(2017)
Increase
I. Textile sector
1. Cotton/Man-made Fibre/Yarn Textile/Mill
Sector (including SSI spinning & exclusive weaving units)
1.40 1.61 0.21
2. Man-made Fibre/Filament Yarn Industry 0.24 0.28 0.04
3. Decentralised Powerloom Sector 5.08 5.84 0.76
4. Handloom Sector 7.00 8.05 1.05
5. Knitting Sector 0.45 0.52 0.07
6. Processing Sector 0.44 0.51 0.07
7. Woolen Sector 3.20 3.68 0.48
8. Ready Made Garment Sector
(including Knitwear Sector) 11.22 12.90 1.68
9. Sericulture 7.70 8.86 1.16
10. Handicraft Sector 8.00 9.20 1.20
11. Jute Industry
i) Organised Jute Industry
ii) Decentralised Jute Industry
0.26
0.20
0.30
0.23
0.04
0.03
Total (I) 45.19 51.97 6.78
II. Allied Sector
1. Cotton
i) Cotton Agriculture
ii) Cotton Ginning/Pressing
iii) Cotton Trade
20.00
1.3
19.0
23.00
1.50
21.85
3.00
0.20
2.85
Sub - Total 40.3 46.35 6.05
2. Sheep rearing 2.8 3.22 0.42
3. Jute Agriculture 17.0 19.55 2.55
4. Textile machinery industry & accessories 0.1 0.12 0.02
Total (II) 60.2 69.23 9.03
Grand Total (I + II ) 105.4 121.20 15.81
Source: Office of the Textile Commissioner, Mumbai. Retrieved from
http://txcindia.gov.in/html/domestic%20%20sub.htm
102
Table 6: Export of Textiles (2013-2014)
Item 2011-12 2012-13 2013-14
Rs. Crores US$ Mn Rs. Crores US$ Mn Rs. Crores US$ Mn
Readymade
Garment
62686.67 13094.62 67452.48 12398.10 87059.80 14385.84
RMG of cotton
incl. accessories
46,097.93 9,630.97 45,826.50 8,423.05 54870.44 9068.97
RMG of man-
made fibre
10,561.82 2,205.95 13,712.34 2,521.20 18925.70 3128.47
RMG of other
textile material
6,026.92 1,257.70 7,913.64 1,453.85 13263.66 2188.40
Cotton Textiles 54236.17 11139.28 61223.10 11272.29 76162.25 12509.80
Cotton raw
including waste
21,624.20 4,327.93 20,276.51 3,747.73 22248.48 3622.89
Cotton yarn,
fabrics & made
ups
32,611.97 6,811.35 40,946.59 7,524.56 53913.77 8886.91
Man-made
textiles
27047.12 5658.01 27451.16 5045.70 34517.98 5693.89
Manmade staple
fibres
2,752.68 572.74 2,772.55 509.7 3491.40 575.40
Manmade
yarn, fab. &
madeups
24,294.44 5,085.27 24,678.61 4,536.00 31026.58 5118.49
Wool & Woolen
textiles
2379.89 501.23 2266.10 415.35 2573.38 423.59
RMG of Wool 1,654.69 349.98 1,601.81 293.38 1888.67 310.35
Woolen yarn,
fabrics &
madeups
725.2 151.25 664.29 121.97 684.71 113.24
Silk 2270.12 475.67 2197.72 403.63 2409.51 397.49
RMG of Silk 1,270.78 266.65 1,288.80 236.7 1453.85 239.79
Natural silk
yarn, fab.
&madeups
949.57 198.85 845.95 155.35 856.37 141.45
Silk waste 49.77 10.17 62.97 11.58 99.29 16.25
Handloom
Product
2,623.96 551.94 2,812.04 515.31 2232.83 370.15
Carpets 4,071.29 847.54 5,374.22 988.14 6,271.49 1,037.12
Carpets
(excluding silk)
handmade
4,051.21 843.37 5,353.08 984.22 6255.84 1034.55
Silk carpets 20.08 4.17 21.14 3.92 15.65 2.57
Jute 2226.07 464.95 2124.24 390.24 2296.38 378.53
103
Floor covering of
jute
260.71 54.44 289.61 53.23 383.29 63.36
Other jute
manufactures
737.52 155.31 736.79 135.42 926.33 152.68
Jute yarn 282.01 58.36 221.16 40.54 143.58 23.46
Jute hessian 945.83 196.84 876.68 161.05 843.18 139.03
Coir and Coir
Manufacturers
1018.45 211.92 1069.47 196.39 1394.83 229.56
Total Textile &
Clothing
158559.74 32945.16 171970.53 31625.15 214918.45 35425.97
Handicrafts
(EPCH Data)
17970.12 3304.90 23504.42 3884.91
Total T&C
including
Handicrafts
158559.74 32945.16 189940.65 34930.05 238422.87 39310.88
% Textile
Exports
10.82% 10.77% 11.63% 11.63% 12.59% 12.58%
India's overall
exports
1465959.4 305963.92 1633634.81 300400.68 1894181.95 312610.30
Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S
for Export and Department of Commerce.
India is the largest producer of Jute, the 2nd largest producer of Silk, the 3rd
largest
producer of Cotton and Cellulosic Fibre/Yarn and 5th largest producer of Synthetic
Fibres/Yarn. Textile Industry contributes around 4% of GDP, 9% of excise collections,
and has 11 % share in the country‟s export. India is the largest exporter of yarn in the
international market and has a share of 25% in world cotton yarn export market. India
contributes for 12% of the world‟s production of textile fibres and yarn. The Indian textile
industry is an export-oriented industry and about one third of its total production is
exported in some form or the other. Through export friendly government policies and
positive efforts by the exporting community, cotton textiles exports have increased from
US$ 11272.29 million in 2012-13 to US$ 12509.80million in 2013-14with an annual rate
of growth of 11% percent. India‟s textiles products, including handlooms and handicrafts,
are exported to more than a hundred countries. However, the USA and the EU, account
for about two-thirds of India‟s textiles exports. The other major export destinations are
104
China, U.A.E., Sri Lanka, Saudi Arabia, Republic of Korea, Bangladesh, Turkey,
Pakistan, Brazil, Hong-Kong, Canada and Egypt etc.(Ministry of Textiles,2013).The
import intensity of this industry is very low with just 4% increase in 2013-14 from 2012-
13.
Table 7: Import of Textiles (2013-14)
Sr.
No.
ITEMS (VALUE IN RS. Mn.) (VALUE IN Mn US$)
2012-13
2013-14
%
Variation
2012-13
2013-14
%
Variation
1 Raw Jute 1743.86 1281.43 -26.52 32.00 21.54 -32.67
2 Raw Silk 7452.26 5400.26 -27.54 136.74 90.79 -33.60
3 Raw Wool 11504.73 11580.44 0.66 211.10 194.69 -7.77
4
Raw Cotton
15433.61
17994.60
16.59
283.19
302.53
6.83
5
Synthetic&
regenerated fibres
8050.64
11176.88
38.83
147.72
187.91
27.21
Sub Total(A) 44185.10 47433.61 7.35 810.74 797.47 -1.64
6 Silk yarn &fabrics 2697.03 2304.08 -14.57 49.49 38.74 -21.72
7 Woolen yarn &fabrics 1400.76 1466.08 4.66 25.70 24.65 -4.10
8 Cotton yarn &fabrics 8580.70 11024.07 28.48 157.44 185.34 17.72
9
Manmade filament/
spun yarn(including
waste)
32294.36
38366.72
18.80
592.56
645.04
8.86
Sub Total(B) 44972.85 53160.95 18.21 825.19 893.76 8.31
10 Made up textile articles 10419.36 10656.82 2.28 191.18 179.17 -6.28
11
Readymade garments
(Woven & knit.)
10337.59
15179.68
46.84
189.68
255.21
34.55
12
Woolen &cotton rags
etc.
1979.96
1943.47
-1.84
36.33
32.67
-10.06
13
Other textile yarn,
fabs, Made up articles.
58423.83
64889.98
11.07
1072.00
1090.95
1.77
Sub Total(C) 81160.74 92669.95 14.18 1489.19 1558.00 4.62
GRAND TOTAL
(A+B+C)
170318.69
193264.51
13.47
3125.11
3249.24
3.97
Source: Monthly Statistics of the Foreign Trade of India. DGCIS, Kolkata.
105
The textile sector also has a direct relationship with rural economy. India is the third
largest producer of cotton with largest area under cotton cultivation in world. It has an
upper hand in low cost cotton sourcing compared to other countries (Dhanabhakyam &
Shanthi, n.d.). It is the second largest player in the world cotton trade.
Table 8: Leading Producer Countries
Top ten cotton producer-2011
People's Republic of China 33.0 million bales
India 27.0 million bales
United States 18.0 million bales
Pakistan 10.3 million bales
Brazil 9.3 million bales
Uzbekistan 4.6 million bales
Australia 4.2 million bales
Turkey 2.8 million bales
Turkmenistan 1.6 million bales
Greece 1.4 million bales
Source: National Cotton Council of America-Rankings.Cotton.org (2011).
During the year 2013-14, production of cotton yarn increased by 10%, and of blended and
100% non-cotton yarn by 7% in the same year. Cloth production of mill sector increased
by 5% during March, 2014 and increased by 6% during the year 2013-14. Again, during
the year 2013-14, production of handloom, hosiery sectors increased by 2% and 10%,
respectively, but of powerloom sectors decreased by 1%. The total cloth production
increased by 2% during March, 2014 and increased by 2% during the year 2013-14.
106
TABLE 9: PRODUCTION OF MAN-MADE FIBRE, FILAMENT YARN, SPUN YARN AND CLOTH
(Figures in Million)
Period Man-
made
fibre
Man- made
filament
yarn
Cotton yarn Blended &100%
Non- cotton
yarn
Total
Spun
Yarn
Cloth Mill sector Decentralized sector Grand
Total (Exc.
Khadi, Wool&
Silk)
Handloom Power
loom Hosiery Total
Kg
Kg
Kg
Kg
Kg
Sq. mtr.
Sq. mtr.
Sq. mtr.
Sq. mtr.
Sq. mtr
Sq. mtr
2009-10 1268 1523 3079 1114 4193 2016 6806 36997 13702 57505 59521
2010-11 1285 1550 3490 1223 4713 2205 6907 38015 14634 59556 61761
2011-12 1234 1463 3126 1246 4372 2313 6901 37445 12946 57292 59605
2012-13 1263 1371 3583 1285 4868 2418 6952 38038 14541 59531 61949
2013-14 1316 1309 3922 1372 5294 2560 7116 37712 15931 60759 63319
%
Variation
4.2 -4.5 9.5 6.8 8.8 5.9 2.4 -0.9 9.6 2.1 2.2
Mar-2014 110 108 325 108 433 215 557 3091 1272 4920 5135
Mar.2013 105 98 321 114 435 205 595 2912 1326 4833 5038
%
Variation
4.8 10.2 1.2 -4.8 -0.3 4.9 -6.4 6.1 -4.1 1.8 1.9
Source: Office of the Textile Commissioner, Mumbai.
107
Figure 1: India’s Major Textile Hubs
MBER OF COTTON/MAN-MADE FIBRE TEXTILE MILLS (Non-SSI) AND ITS INSTALLED Source- Arun, M.G., Looms in a Tailspin, India Today, April 8,2013(p. 32-33). CAPACITY (STATE-WISE)
108
4.5 SWOT ANALYSIS OF TEXTILE INDUSTRY
Strengths
An independent and self-reliant
industry
Abundant raw material availability
Large and potential domestic and
international market
Low cost labour
large varieties of cotton fibre
Favourable export potential
Largest Foreign revenue contributor
Weaknesses
Unfavourable labour laws
Lower productivity in various
segments
Lack of technological development
Highly fragmented Industry
Low level of training
Higher indirect taxes, power and
interest rates
Opportunities
Technical textiles (thermal
protection and blood-absorbing
materials; seatbelts; adhesive tape)
Product development and
diversification to cater global needs.
Rate of import duties is minimal
Elimination of quota restrictions
leads to greater market access
Greater investment and FDI
opportunities are available
Threats
Competition from other developing
markets
Rising prices of inputs-raw material
Ecological and social awareness
Formation of trading blocks
Elimination of quota system has led
to fluctuations in export demand
109
4.6 COTTON TEXTILE INDUSTRY IN PUNJAB
Partition in 1947 brought about turmoil in Punjab, but was followed by surprising rapid
recovery and progress. Roads and market towns were created in the 1950s, followed by the
Green Revolution of the 1960s making Punjab the „Food Bowl of India‟. Punjab became
the richest state in India in terms of per capita income(Singh, 2013). At present, about 1.18
million people are employed in industrial sector in state. Agro-processing, Textiles,
Hosiery and Woolens, Light Engineering Goodsare key industries of Punjab.
Punjab is a homeland of various leading textile companies in the country such as Trident,
Nahar, Vardhman and SEL & Winsome. The textile industry accounts for 19% of the total
industrial production in Punjab and contributes about 38% of the total exports from the
state. Punjab accounts for 14% of the total cotton yarn production in India and has been
one of the leading exporters of yarn, hosiery and ready-made garments (Punjab: Home to
India‟s textile giants, n.d.).
Table 10: Cotton Textile Mills, Spindles and Looms in Punjab
Year Spinning
Mills
Composite
Mills
Spindles
Installed
Rotors
Installed
Looms
Installed
1980 7 2 270 — 1,240
1999-2000* 7 2 1359 26792 1023
2000-01 93 2 1482 32900 824
2005-06 109 4 1740 43782 1168
2006-07 111 4 1918 51740 1289
2007-08 109 4 1950 54412 1241
2008-09 119 4 2199 61024 1090
2009-10 119 4 2353 61024 1090
2010-11 127 6 3116 72996 1269
2011-12 128 8 3113 78344 1359
Source: Statistical Abstract of Punjab, 2012, p.327
* From 1999-2000 onwards, the data includes, Small Scale Industries
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Punjab has abundant raw material (cotton), several textile and woolens clusters and skilled
labour which are key competitive advantages in the textile industry. Punjab has a US$ 2.34
billion textile industry. Being the second largest producer of cotton and blended yarn its
contribution to the country's total industrial output in 2003-04 was 10%.
Table 11: Textile Sector Highlights for Punjab (2011 – 12)
Production of yarn 655 mn kg
Production of cloth 150 mn sqm
Share of sector in total production in Punjab 19%
Share of sector in exports from Punjab 38%
Export of hosiery and readymade garments INR 3,143 cr
(US$ 630 mn)
Export of yarn and textiles INR 6,520 cr
(US$ 1,300 mn)
2nd largest -Cotton & Blended Yarn producer in the country
Ludhiana is the biggest manufacturing cluster for textiles in North
India
Source: Survey of Punjab, 2012-13, Statistical Abstract, 2012, Government of Punjab.
Punjab is the third largest producer of mill made fabrics in the country with a share of 8.1
percent. In 2003-04, production of mill made fabric increased by 21 per cent over the
previous year to 82.6 million sq mt. 40 per cent of the country's wool units are also located
in Punjab. Punjab has an opportunity to boost its existing strengths to capture a larger share
of the textile market. In addition to this, Punjab has the second highest mill production of
cotton yarn in India (District Industry Centre, Ludhiana, n.d.).
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Table 12: Production in the Textile Industry in Punjab
Unit 2007-08 2008-09 2009-10 2010-11 2011-12
Yarn (Woolen) Kg (million) 484 570 597 675 694
Cotton Towels No. (thousands) 7514 8553 8580 8731 8871
Shawls/Woolen
Hosiery
No. (thousands) 1861 1907 2216 2439 2473
Source: Economic Survey 2012 - 13, Government of Punjab.
Table 13: Production of Cotton Yarn in Punjab.
Sr.No. State/Union Territory 2010-11 (Mn. Kg) 2011-12 (Mn.Kg.)
1. Tamil Nadu 1545 1211
2. Punjab 497 497
3. Andhra Pradesh 194 254
4. Maharashtra 270 254
5. Madhya Pradesh 205 205
6. India 3,490 3,124
Source: Ministry of Textiles, Ministry of Statistics and Programme Implementation.
Retrieved from www.data.gov.in
Punjab comprises a large base of apparel and design professionals from leading design
institutes such as Northern India Institute of Fashion Technology (NIIFT), Mohali and
many others. Integrated Textile Parks developed in the state provide industrial plots with
necessary infrastructure and essential clearances which quickly commission the textile
units. Moreover, the industry has boosted up women empowerment because it is one of the
biggest employers of women.
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Table 14: Textile Parks in Punjab
Name Location Area
(acres)
Key activities
Ludhiana Integrated
Textile Park
Ludhiana 60 Circular knitting, flat knitting-
manual and computerized
garmenting
Rhythm Textile &
Apparel Park
Nawanshahr 20 Garmenting & knitting
Lotus Integrated
Textile park
Barnala 100 Production of towels, mélange
yarn, bathrobes and training center
Punjab Apparel Park Ludhiana 85 Production of readymade garments
Source: Ministry of Textiles, Ministry of Statistics and Programme Implementation.
Retrieved from www.data.gov.in
The South Western region of the State, comprising of the districts of Mansa, Shri Muktsar
Sahib, Bathinda and Faridkot (in the Malwa belt), is the main cotton producing area in
Punjab. Competitive costs of production, easy market access, good infrastructure,
supportive regulatory system and government support are the key advantages which make
a strong base for investment in textile sector in Punjab.
38% of the exports of Punjab are from textiles and clothing sector with yarn and textile,
hosiery and readymade garments as main export items. Punjab exported hosiery and
readymade garments worth INR 3,142 crores (US$ 628 mn) and yarn and textiles worth
INR 6,519 crores (US$ 1.3 bn) in 2011-12 (Statistical Abstract of Punjab,2012).
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Source: Statistical Abstract 2012, Government of Punjab.
Table 15: Opportunities in Textiles in Punjab
Readymade
Garments
and Retail
Export
Potential
Spindleage Technical Textiles
High per
capita income
in the region is
an attractive
market for
readymade
garments
Potential for
yarn exports to
neighbouring
countries -
Bangladesh,
Pakistan and
China
Punjab, Haryana and Rajasthan
together grow over 52 lakh
bales* of cotton annually while
consumption is less than 40 lakh
bales
Opportunities in textile
for Automotive
applications
-Geo textiles
-Medical textiles
-Agro textiles
- Protective clothing etc.
Access to large
domestic
markets
Potential to be a
top exporter to
large markets
such as Europe
Potential for increase in
spindleage (*1 bale = 170 kg)
Source: Government of Punjab
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It can be concluded that textile industry of India plays a vital role in economic life of the
country. It has boosted up the GDP of India and is biggest revenue earner in terms of
foreign exchange among all other industrial sectors in India. It is the backbone of Indian
economy being the second largest employment provider giving employment to millions of
rural workforce. In spite of all these strengths, labour productivity of this sector is low as
compared to other leading countries due to unfavorable and obsolete labour laws. If due
consideration is given to the welfare of these workers their productivity will increase and
will further increase the importance of this sector in boosting Indian economy.
4.7 PROFILE OF THE TEXTILE UNITS SELECTED IN THE STUDY
The following five textile organisations were included in the present study:
1. Vardhman Spinning and General Mills Ltd., Ludhiana.
2. Rishab Spinning Mills Ltd., Jodhan, Ludhiana.
3. Jagatjit Cotton Textile Mills Ltd., Phagwara.
4. Malwa Cotton Spinning Mills Ltd., Barnala.
5. Aarti International Ltd., Ludhiana.
VARDHMAN SPINNING AND GENERAL MILLS LTD., LUDHIANA
Vardhman Spinning and General Mills Ltd., Ludhiana is a yarn manufacturing and fibre
dyeing unit of Vardhman Group of Companies with annual turnover of Rs. 340 Crores. It
has installation capacity of 67744 spindles and the production capacity per day of dyeing
house is 20 tonnes. Vardhman Group is a leading textile player in India and has over 22
manufacturing facilities spread over five states across India. The business portfolio of the
Vardhman Group includes yarn, processed fabric, sewing thread, acrylic fibre and alloy
steel.
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At its inception, entire Vardhman Group had an installed capacity of 14,000 spindles,
which has increased to over 10 lacs spindles. In 1982, this group included the sewing
thread in its business portfolio. Today, Vardhman Threads is the second largest producer of
sewing thread in India. In 1990, this group diversified its business by entering in weaving
market. The grey fabric weaving unit at Baddi (H.P.), commissioned in 1990 with a
capacity of 20,000 meters per day, has already made its mark as a quality producer of grey
poplin, sheeting, and shirting in the domestic as well as foreign market. Further they
entered into fabric processing and set up Auro Textiles at Baddi and Vardhman Fabric at
Budhni, Madhya Pradesh. Today there are 900 shuttleless looms with the group having
processing capacity of 90mn meters fabrics per annum.
In 1999, the group formed a joint venture in acrylic fibre production undertaken with
Marubeni and Exlan of Japan by setting up Vardhman Acrylics Ltd., Bharuch (Gujarat).
The group has earned ISO 9002/ ISO 14002 quality award for its dedication to quality
which is the first in textile industry in India.
The units of Vardhman group in Punjab are at Ludhiana (Vardhman Spinning and General
Mills), Malerkotla (Arihant Spinning Mills Ltd.) and Hosiarpur (Vardhman Yarns and
Threads Ltd.).
The export business of the company commenced in 1990-91 mainly with Spain, UK,
Germany, US, Japan and some African countries. 22% of the group revenues are earned
from exports.
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RISHAB SPINNING MILLS LTD., JODHAN, LUDHIANA
Rishab Spinning Mills, Jodhan is a unit of Nahar Group of Companies and was established
in the year 1991 with 25000 spindles and at present this unit has 91104 spindles producing
55 tons of cotton, blended mélange and other various type of yarn. It has added following
laurels to its credit:
ISO 9001-2000 (Quality Management System) B.I.S., New Delhi.
ISO 14001:2004 (Environmental Management System) B.I.S., New Delhi.
OEKO-TEX STANDARDS 100 Shirley Technologies Ltd. U.K.(Confidence in
Textile, Tested for harmful substances)
SKAL International-Standard, Netherlands.(For sustainable Textile Production)
The entire Nahar Group has 8 Lacs spindles and 7400 Rotors workingin various locations
like Ludhiana, Lalru near Chandigarh, Bhiwadi and at Mandideep near Bhopal with an
annual turnover of more than Rs. 6000 crores.This group is largest manufacturer and
exporter of hosiery/knitwear in India with business associates like IZOD, OLD NAVY,
GAP, Quick Silver, Perry Ellis, Ashworth, CAG and Van-Huesen etc. The high profile
brands of this group are “Monte-Carlo”, “Canterbury” and “Cotton County” covering wide
range of Garments. It adorns “Golden Trading House Status” awarded by Government of
India.60% of its products are exported to several countries like USA, UK, France,
Netherlands, Japan, Canada, Korea, Taiwan, Hong-Kong, Singapore, Egypt, Russia,
Bangladesh and Sri Lanka. The Company's mantra "World is our markets" has made it one
of the largest integrated textile players in India.
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JAGATJIT COTTON TEXTILE MILLS LTD., PHAGWARA
JCT Limited is the flagship company of Thapar group and is one of the leading
manufacturers of textiles and filament yarn with an annual turnover of Rs. 300 crores. It
commenced its production in 1946 and the policy of management to reinvest its profits
year after year led the mill to grow rapidly into country‟s one of the largest textile
manufacturers in India. This unit is now one of the most modern units with the state of art
technology having production capacity of 63 million meters per annum. In the initial years,
it was manufacturing only cotton fabrics, hence was named as Jagatjit Cotton Textile Mills
Ltd. Currently, it operates in product range of cotton, polyester, nylon as well as various
blended textiles such as cotton/polyester, cotton/nylon and polyester/viscose and nylon
filament yarn. JCT Limited is the first textile manufacturer in the country which introduced
eco-friendly fabrics made of organic cotton. The textile division of the company was the
first in the industry which was accredited with an ISO 9001 certification in 1996. Various
other certifications like OEKO-TEX STANDARDS, GOTS/ SKAL are also in its basket
for producing organic cotton. Its product range of finest cotton and blended fabrics is
making a mark in both the domestic and international markets. JCT deals with USA,
Europe, Far East, Middle East, Mauritius, and other countries in the international markets.
The fabric is made for leading international brands complying with their standards.
MALWA COTTON SPINNING MILLS LTD., BARNALA
Malwa Cotton Spinning Mills Ltd. is an ISO 9001:2000 company and was incorporated in
December, 1976 under the chairmanship of Mr. Jangi Lal Oswal. It is among the top ten
textile mills in the Indian sub-continent with an annual turnover of 270 Crores. Its units are
established in Punjab and Himachal Pradesh having Spindleage capacity of 143856.The
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mills are equipped with hi-tech state-of-the-art machineries from world-renowned textile
machinery manufacturers like Rieter, Trutszler, Crossrol, Schlafhorst and Savio. The mill
produces knotless, flawless & high quality yarn confirming to high standards. Its product
range includes Cotton Yarn (45 Tonnes per day), Acrylic Yarn (25 Tonnes per day), and
Polyester Viscose Yarn (10 tonnes per day). They also have share in the sewing threads
market and produce products like Spun Polyester Threads, Cotton Threads, Poly Corespun
Threads, Polycott Corespun Threads, Speciality Threads, and Indigo dyed Cotton Threads.
Malwa Group entered into cotton denims almost a decade ago in 1997. Since then, there
has been no looking back and Malwa's presence in denims has gone from strength to
strength. Being situated in the heart of the cotton producing belt in India, Malwa has access
to a consistent and uninterrupted supply of best quality raw material thereby ensuring
finest cotton denim fabrics to its valued customers. Malwa yarn is well sought after by
domestic & international markets. The mills have a strong export base in America, Europe,
Middle East, and Africa as it follows the strictest international quality standards in
production. It was honoured with the Texprocil award by the Government of India for
outstanding export performance in 2002. The various certification achieved by Malwa
Group are:
OEKO-Tex certification from Testex, Zurich.
GOTS-"Global Organic Textile Standard", Standards for the processing of fibres
from certified organic agriculture.
Textile Certification. Organic Exchange : OE blended and/or OE 100
OHSAS 18001:2007 from BSI. Integrated Management Registration. Occupational
Health & Safety Management System.
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AARTI INTERNATIONAL LTD., LUDHIANA
Aarti International Ltd. is a 100% cotton yarn manufacturing company of Aarti Group with
an annual turnover of Rs. 320 crores. It has an installation capacity of 1,75,000 spindles
including 43,400 spindles of compact yarn.
Aarti Group comprises of Aarti Steels Limited, Aarti Theatre and Deepak Hospital along
with Aarti International Limited. This unit was established in the year 1996 with 27000
spindles and gradually it emerged as a global player in the spinning industry. The products
of the company are 100% combed cotton grey yarn, 100% combed cotton compact grey
yarn, cotton slub yarn (amsler), core spun spandex yarn, organic cotton yarns & OE
blended yarns, single and double yarn. The major export destinations of this company
include Hong Kong, China, South Korea, Taiwan, Bangladesh, and European Union. It has
achieved various certifications like USTERIZED quality certificate for USTER,
Switzerland, OEKO TEX certificate from HOHENSTEIN, Germany, Cotton USA License
from Cotton Council International. Apart from this, „Werne International‟ a management
consultant specialized exclusively in the fiber, textile and fashion industry globally since
1939, has stated that "Globally, Aarti International Ltd is among the best managed and
efficient cotton spinning plant today, anywhere in the world."