Textile Industry Anylisis by Girraj Sharma

8/7/2019 Textile Industry Anylisis by Girraj Sharma

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GIRRAJ SHARMA ( 10018)

VIVEK MISHRA(10049)KOSHLENDRA DUBEY(10075)

Kohinoor Business School &CMR ,Khandala



History :-

The term 'Textile' is a Latin word originating from the word 'texere'which means 'to weave'

The history of textile is almost as old as that of human civilization.

In India the culture of silk was introduced in 400AD .modern textile industry took birth in India in the early nineteenthcentury

The first cotton textile mill of Bombay was established in 1854

during the year 1900 the cotton textile industry was in bad stateAfter independence, the cotton textile industry made rapid stridesunder the Plans

Source: Ernst & Young India



� India Textile Industry is one of the largest textile industries in theworld. Today, Indian economy is largely dependent on textilemanufacturing and exports.

� India earns around 27% of the foreign exchange from exports of textiles.

� India contributes to about 25% share in the world trade of cottonyarn.

� India Textile Industry involves around 35 million workers directlyand it accounts for 21% of the total employment generated in theeconomy.

� continue««.

Source: Confederation of Indian Industry (CII)



� India, the world¶s third-largest producer of cotton and second-largest producer of cotton yarns and textiles, is poised to play anincreasingly important role in global cotton and textile marketsas a result of domestic and multilateral policy reform.

� The Indian Textile Industry contributes approximately 14 percentto industrial production, 15 per cent to the manufacturing sector,4 percent to the GDP and 12 per cent to the country's total exportearnings.

� The sector provides direct employment to over 35 million people,the second largest provider of employment after agriculture. Thisfact makes a call that says that textiles sector is a labor intensiveone.

� There are another 55 million people who are engaged in its alliedservices.




� The Indian textile industry is estimated to be around US$ 52billion and is likely to reach US$ 115 billion by 2012.

� The domestic market is likely to increase from US$ 34.6 billion to

US$ 60 billion by 2012.

� It is expected that India's share of exports to the world wouldalso increase from the current 4 per cent to around 7 per centduring this period.

� India's textile exports have shot up from US$ 19.14 billion in2006-07 to US$ 22.13 billion in 2007-08, registering a growth of over 15 per cent.

Indian Fact File




� Through export friendly government policies and positive efforts

by the exporting community, textile exports increasedsubstantially from USD 7.55 Billion in 1993-94 to USD 17 Billion in2005-06.

� The ready made garment sector is the biggest segment in theIndia¶s textile export basket contributing over 46% of the totaltextile exports.

� Export of cotton based items continue to pre-dominate which isnatural in view that India is the world¶s third-largest producer of cotton

� Exports have grown at an average of 9.47% p.a over the lastdecade.

� Textiles exports (including Jute, Coir & handicraft): USD 13065.24Million (2004-05).

Source: Federation of Indian Chambers of Commerce and Industry (FICCI)



Source: Compendium of Textile Statistics 2006,Office of Textile Commissioner

222.0 304.2

7.8

24.3

3.5

8.0

100.0

200.0

300.0

400.0

2005 P 2010 P

U

D

B

on

1.5

2.5

3.5

4.5

5.5

6.5

7.5

8.5

ercen

Total retail industtry Organised Penetration



Strength

Post 2005, removal of quota restrictions togive a major boost.

Export target in textile at USD 50 Billion by2010.

Low per capita consumption in India (2.8 vs.Global average of 6.8).

Cost competitiveness.

Opportunity

Indian companies need to focus on ProductDevelopment

Increased use of CAD to develop designingcapabilities

Investing in Trend Forecasting to enable thegrowth of industry.

Weakness

Fragmented Industry

Effect of Historical Government Policies

Technological Obsolescence

Threats

Competition in Domestic Market

Need to improve the Working Conditionsof the people who are involved in this

profession.Need to revamp Consumer Consciousness

Tackle Chinese Aggression over theInternational Market

Textile Industry



Global View

Source: Ministry of Textile Govt. of India Website



Major Textile Players:-

� Arvind Mills

� Raymonds

� Reliance Textiles

� Vardhaman Spinning

� Welspun India

Indian Market



Documents

Textile Industry Anylisis by Girraj Sharma