INDIAN TEXTILE INDIAN TEXTILE PROCESSING IN PROCESSING IN

CONTEXT TO CONTEXT TO GLOBALISATIONGLOBALISATION

INDEXINDEX

INTRODUCTIONINTRODUCTION WHERE INDIAN TEXTILE STANDSWHERE INDIAN TEXTILE STANDS INDIA & ITS COMPETITORINDIA & ITS COMPETITOR INDIA’S POTENTIAL TO DOMINATE THE INDIA’S POTENTIAL TO DOMINATE THE

GLOBAL TEXTILE MARKETGLOBAL TEXTILE MARKET ENERGY-THE MOST IMP INGREDIENTENERGY-THE MOST IMP INGREDIENT R&D SECTORR&D SECTOR POLLUTIONPOLLUTION MANAGEMENTMANAGEMENT CONCLUSIONCONCLUSION

INTRODUCTIONINTRODUCTION

Globalization means only one thing, Globalization means only one thing, everyone wins. And consumer everyone wins. And consumer becomes the king.becomes the king.

GLOBALISATION in literal sense is GLOBALISATION in literal sense is INTERNATIONAL INTEGRATION.INTERNATIONAL INTEGRATION.

It can be described as a process by which It can be described as a process by which the people of the world are unified into a the people of the world are unified into a simple society & functioning together.simple society & functioning together.

This process is a combination of This process is a combination of economic, technical, sociocultural & economic, technical, sociocultural & political forces.political forces.

INDIA is a case of successful globalization INDIA is a case of successful globalization & helps to face poverty.& helps to face poverty.

Where Indian textiles standsWhere Indian textiles stands Textile is one of India’s oldest industries and has a Textile is one of India’s oldest industries and has a

formidable presence in the national economy in as much formidable presence in the national economy in as much as it contributes to about 14 per cent of manufacturing as it contributes to about 14 per cent of manufacturing value-addition, accounts for around one-third of our value-addition, accounts for around one-third of our gross export earnings and provides gainful employment gross export earnings and provides gainful employment to millions of people.to millions of people.

India's textile sector is the country's second largest India's textile sector is the country's second largest industry, after agriculture. industry, after agriculture.

In many sectors including textiles, Indian companies are In many sectors including textiles, Indian companies are not just forced to compete with each other, but also with not just forced to compete with each other, but also with foreign multinational companies entering the huge Indian foreign multinational companies entering the huge Indian market in post WTO scenario. market in post WTO scenario.

The point is that the Indian textile The point is that the Indian textile industry should get a long term flow of industry should get a long term flow of technology and modernization instead technology and modernization instead of of ‘technological snap-shots’‘technological snap-shots’

Consequently competition in domestic Consequently competition in domestic and global market has intensified and and global market has intensified and is likely reach the level of the is likely reach the level of the ‘survival of the fittest’‘survival of the fittest’ in the next in the next few years. few years.

INDIAN TEXTILE PROCESSING INDUSTRIES INDIAN TEXTILE PROCESSING INDUSTRIES & ITS COMPETITORS& ITS COMPETITORS

Textile exports to the United States & Textile exports to the United States & Europe have risen 26% & 18% Europe have risen 26% & 18% respectively. China continues to lead in respectively. China continues to lead in terms of textiles & apparel exports.terms of textiles & apparel exports.

China’s global textile & apparel share in China’s global textile & apparel share in 2005 was 24.7% ─ worth US $ 2005 was 24.7% ─ worth US $ 115.1billion in comparison to India’s 115.1billion in comparison to India’s 3.4% share ─ worth US $ 16.1 billions.3.4% share ─ worth US $ 16.1 billions.

TOUGH COMPETITION FOR TEXTILE EXPORT FROM TOUGH COMPETITION FOR TEXTILE EXPORT FROM NEIGHBOURING COUNTRIES (US $ MILLION)NEIGHBOURING COUNTRIES (US $ MILLION)

COUNTRIES 2004 2005 2006

TEXTILE CLOTHING TEXTILE CLOTHING TEXTILE CLOTHING

CHINA 33428 61856 41050 74163 48683 95388

INDIA 7009 6632 8462 9212 4330 10192

PAKISTAN 6125 3026 7087 3604 7469 3907

INDONESIA 2961 4285 3353 4959 3605 5699

VIETNAM 534 4430 - 4863 - -

CAMBODIA - 1981 - 2193 - 2675

BANGLADESH

597 6296 696 7751 - -

SRILANKA 149 2776 136 2874 154 3046

2004 TEXTILE

CHINA

INDIA

PAKISTAN

INDONESIA

VIETNAM

CAMBODIA

BANGLADESH

SRILANKA

2005 TEXTILE

CHINA

INDIA

PAKISTAN

INDONESIA

VIETNAM

CAMBODIA

BANGLADESH

SRILANKA

2006 TEXTILE

CHINA

INDIA

PAKISTAN

INDONESIA

VIETNAM

CAMBODIA

BANGLADESH

SRILANKA

EXPORTS OF T&C INTO USA (US $ Bn)

COUNTRY 2007 TEXTILES

INDIA 5.12

BANGLADESH 3.18

PAKISTAN 3.26

CHINA 32.4

S.KOREA 1.99

SRILANKA 1.7

EXPORTS OF T&C INTO USA (US $ Bn) 2007 TEXTILES

INDIA

BANGLADESH

PAKISTAN

CHINA

S.KOREA

SRILANKA

Indian textile & apparel industry-2006Indian textile & apparel industry-2006

US$52 Bn

ExportUS$18 Bn

DomesticUS$34 Bn

ClothingUS$10 Bn

TextilesUS$24 Bn

TextilesUS$9.4 Bn

ClothingUS$8.6 Bn

Indian textile and apparel industry-2012Indian textile and apparel industry-2012

US$110 Bn

ExportUS$50 Bn

DomesticUS$60 Bn

ClothingUS$34 Bn

TextilesUS$26 Bn

TextilesUS$20 Bn

ClothingUS$30 Bn

INDIAN TEXTILE PROCESSING INDUSTRIES HAS INDIAN TEXTILE PROCESSING INDUSTRIES HAS GR8 POTENTIAL TO DOMINATE GLOBAL GR8 POTENTIAL TO DOMINATE GLOBAL

TEXTILE MARKETTEXTILE MARKET

China’s avg wages have risen more China’s avg wages have risen more than 50% in the past 5 years, while than 50% in the past 5 years, while the yuan currency has gained about the yuan currency has gained about 14% against the dollar since the end 14% against the dollar since the end of a peg in 2005of a peg in 2005

China’s growth in exports of apparel China’s growth in exports of apparel may slower after 2010may slower after 2010

Following table shows India’s Following table shows India’s position w.r.t. China.position w.r.t. China.

CHINA INDIA

Has huge installed capacities and economies of scale with

competitive pricing

Has smaller capacities

Caters for mass market Is good at niche products

Net importer of cotton Is self sufficient in cotton

Has skilled manpower Has skilled workforce

Has high productivity Has lower productivity

Fashion awareness is not so high Fashion awareness is high

Import curbs by US likely Import curbs by US is less likely

Labour is becoming expensive Labour is relatively cheap

Many players believe that Many players believe that India has some inherent India has some inherent advantages. advantages. Indian people can Indian people can handle smallhandle small ordersorders which which will not be possible in china. will not be possible in china. Also, Also, china lacks innovation.china lacks innovation.

According to Indian exporters, it is believed that According to Indian exporters, it is believed that export from India will be increased in the coming export from India will be increased in the coming few years because of some factors affecting China’s few years because of some factors affecting China’s exports like:-exports like:-

1.1. OLYMPIC, 2008 is going to be held in china. So OLYMPIC, 2008 is going to be held in china. So the govt. of china is trying to reduce pollution by the govt. of china is trying to reduce pollution by closing some of the process house.closing some of the process house.

2.2. Increased in wages of labour.Increased in wages of labour.

3.3. Increased in RBM in front of dollars.Increased in RBM in front of dollars.

4.4. Removal of subsidy from banks.Removal of subsidy from banks.

According to McKinsey India can reach the According to McKinsey India can reach the target of US $ 25-30 billion by 2013.target of US $ 25-30 billion by 2013.

Energy - The most Energy - The most important ingredientimportant ingredient

The textile industry retains a record of the The textile industry retains a record of the lowest efficiency in energy utilization and lowest efficiency in energy utilization and is one of the major energy consuming is one of the major energy consuming industries.industries.

About 38% of energy is consumed in About 38% of energy is consumed in chemical wet processing and another 5% chemical wet processing and another 5% for miscellaneous purposes. for miscellaneous purposes.

FOLLOWING ARE THE MAJOR SOURCES FROM FOLLOWING ARE THE MAJOR SOURCES FROM WHERE ENERGY IS LOST IN VARIOUS FORMSWHERE ENERGY IS LOST IN VARIOUS FORMS

ENERGY LOSS THROUGH

HOT VAPOURS & HOT WATER DISCHARGE

LEAKAGES & IMPROPER MAINTAINANCE

LACK OF INSULATION ON PIPELINES & M/C

FLUE GASES & HOT AIR

SINGEING M/C

Calculation of ASIAN T5 tubeCalculation of ASIAN T5 tubelight against local tube lightlight against local tube light

APPLICATIONAPPLICATION LIGHTINGLIGHTING

OLD TUBE LIGHT TYPEOLD TUBE LIGHT TYPE LOCAL MAKELOCAL MAKE

NEW TUBE LIGHT TYPENEW TUBE LIGHT TYPE ASIAN T5 MAKEASIAN T5 MAKE

OLD TUBE LIGHT TYPE (W)OLD TUBE LIGHT TYPE (W) 57 WATT/HR57 WATT/HR

NEW TYBE LIGHT TYPE (W)NEW TYBE LIGHT TYPE (W) 32 WATT / HR32 WATT / HR

POWER SAVING PER HRPOWER SAVING PER HR 57-32=25WATT/HR57-32=25WATT/HR

POWER SAVING PER 24 HRPOWER SAVING PER 24 HR 25*24=600WATT/DAY25*24=600WATT/DAY

NO OF TUBE LIGHT PER UNITNO OF TUBE LIGHT PER UNIT 500500

TOTAL POWER SAVING TOTAL POWER SAVING 500*600=300KW/DAY500*600=300KW/DAY

POWER SAVING PER YEARPOWER SAVING PER YEAR 300*365=109500KW/YEAR300*365=109500KW/YEAR

CONSIDERING 4.3 Rs PER UNITCONSIDERING 4.3 Rs PER UNIT 109500*4.3=4,70,850 Rs109500*4.3=4,70,850 Rs

TOTAL SAVING PER YEARTOTAL SAVING PER YEAR 4,70,850 Rs4,70,850 Rs

APPLICATION WATER DISTRIBUTION FROM U.G. TANK

OLD PUMP TYPE LOCAL MAKE

NEW PUMP TYPE GRUND FOS MAKE

OLD PUMP (KW) 11.5 KW / 15 HP

NEW PUMP 5.5 KW

POWER SAVING PER HOUR 11.5-5.5=6 KW / HR

POWER SAVING PER 24 HR 6*24=144 KW / DAY

POWER SAVING PER YEAR 144*365=52, 560 KW / YEAR

CONSIDERING Rs 5.5 PER UNIT KW

52, 560 * 5.5=2, 89, 080Rs

PRICE OF NEW PUMP 1,09,848 Rs

PAY BACK PERIOD 109848 / 289080 = 4.8 MONTHS

Calculation of GRUND FOS pump against our Calculation of GRUND FOS pump against our existing local pumpexisting local pump

R & D SECTORR & D SECTOR In 2000-01, India is estimated to have spent In 2000-01, India is estimated to have spent US$19 US$19

billionbillion on R&D, which puts it among the on R&D, which puts it among the top 10top 10 worldwide;worldwide;

India is among the first few countries in the India is among the first few countries in the developing worlddeveloping world to have recognized the importance to have recognized the importance of of biotechnologybiotechnology as a tool for advancing growth in as a tool for advancing growth in the the agricultureagriculture and and healthhealth sectors sectors

More than 100 other global companies including More than 100 other global companies including IBM, Motorola, and Intel have established R&D IBM, Motorola, and Intel have established R&D centers in India during the past 5 years.centers in India during the past 5 years.

Textile industry in tenth planTextile industry in tenth plan The aim of the Tenth Plan is to facilitate the The aim of the Tenth Plan is to facilitate the

textile and apparel industry to:textile and apparel industry to: Develop world class state-of the-art production Develop world class state-of the-art production

facility to accomplish and maintain a leading facility to accomplish and maintain a leading global position in production and export of global position in production and export of textiles and clothing.textiles and clothing.

The technology up-gradation scheme (TUFS) The technology up-gradation scheme (TUFS) intended to make investments component intended to make investments component attractive. This scheme has been established to attractive. This scheme has been established to promote modernization and technology up-promote modernization and technology up-gradation in the specified sectors of textile .gradation in the specified sectors of textile .

ADVANTAGES OF R&D OUTPUTADVANTAGES OF R&D OUTPUT

Nanotechnology has been a boon to Nanotechnology has been a boon to processing units.processing units.

Say for example H-ions.Say for example H-ions.It is nanotechnology based product for It is nanotechnology based product for

disperse dyeing in jet. No need of acetic acid, disperse dyeing in jet. No need of acetic acid, leveling agent, dispersing agent & also no leveling agent, dispersing agent & also no need to maintain pH. The product will need to maintain pH. The product will withdraw H-ions from water itself and withdraw H-ions from water itself and disperse the dyes on different temperature.disperse the dyes on different temperature.

Similarly S-200, S-356, nano caustic, nano S- Similarly S-200, S-356, nano caustic, nano S- Na‡ are some of the product which are Na‡ are some of the product which are beneficial to the process houses.beneficial to the process houses.

Also latest inventions in machineries, Also latest inventions in machineries, equipments & plasma technology have equipments & plasma technology have increased the rate of production.increased the rate of production.

By 2020, India is expected to become the By 2020, India is expected to become the world's number-one knowledge production world's number-one knowledge production centre…centre…

POLLUTIONPOLLUTION

CHINA THE LEADING CHINA THE LEADING ONE IN POLLUTION ONE IN POLLUTION

POLLUTION CONTROL POLLUTION CONTROL DEVICESDEVICES

GLOBAL WARMINGGLOBAL WARMING

MANAGEMENTMANAGEMENT

Technological innovation to create a Technological innovation to create a product that would satisfy a “need”product that would satisfy a “need”

Sales into profit by cost-controlSales into profit by cost-control Technology improvement through R&D Technology improvement through R&D

development to maintain technological development to maintain technological superioritysuperiority

Management of human resourceManagement of human resourceThus technology management is the key to Thus technology management is the key to

GLOBAL COMPETITIVENESSGLOBAL COMPETITIVENESS

Chak de industryChak de industry --There is a lot to There is a lot to

fight for.fight for. We cannot depend on old systems of sourcing; they We cannot depend on old systems of sourcing; they are too expensive to survive in global competition.are too expensive to survive in global competition.

New avenues of sourcing that give margins to work New avenues of sourcing that give margins to work are a must.are a must.

The combination of short term govt support & long The combination of short term govt support & long term internal re-working will pull the industry on to a term internal re-working will pull the industry on to a positive growth path.positive growth path.

Consequently competition in domestic and Consequently competition in domestic and global market has intensified and is likely reach global market has intensified and is likely reach the level of the the level of the ‘survival of the fittest’‘survival of the fittest’ in the in the next few years. next few years.

REFERENCESREFERENCES

SURVEY OF PROCESS SURVEY OF PROCESS HOUSESHOUSES

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