TEXTILES AND APPAREL April 2010 TEXTILES AND APPAREL April 2010 Contents Advantage India Market overview Industry infrastructure Investments Policy and regulatory framework Opportunities Industry associations 2 ADVANTAGE INDIA Textiles and Apparel April 2010 Advantage India Raw material production • India has the largest area under cotton cultivation — 9 million hectares — constituting 25 per cent of the world’s total cultivation area. • India is the second-largest producer of silk in the world. Sourcing hub • Several international retail giants such as Favourable government policies Marks & Spencer are leveraging India as a • Initiatives such as the Technology Advantage India key global sourcing destination. Upgradation Fund Scheme (TUFS) and Technology Mission on Cotton (TMC), among several others, aid the development of the domestic industry and attract potential investors. Availability of skilled workforce • The industry is the second-largest employment generator after agriculture. • Several centres of excellence are available for providing an impetus to academics and research in textiles. Sources: Ministry of Textiles 2008–09 annual report; “Note on sericulture and the silk industry,” Ministry of Textiles. 3 TEXTILES AND APPAREL April 2010 Contents Advantage India Market overview Industry infrastructure Investments Policy and regulatory framework Opportunities Industry associations 4 MARKET OVERVIEW Textiles and Apparel April 2010 Market overview • The textiles industry accounts for 14 per cent of the total industrial production in India. • At current prices, it accounts for 4 per cent of the GDP — US$ 51.36 billion. • The textiles segment, comprising cotton, wool, silk, manmade and jute textiles and textile products, has grown by 7.5 per cent between April and November 2009, as compared to 1 per cent in the same period in 2008. • The industry provides direct employment to more than 35 million people and is the second-largest employment generator after agriculture. Sources: Ministry of Textiles 2008–09 annual report; Chapter 9, Socio-Economic Review 2009–2010. 5 MARKET OVERVIEW Textiles and Apparel April 2010 Market segments The textiles and apparel industry can be broadly segmented as • Yarn and fibre (including natural and manmade fibre and yarn) • Processed fabrics (including woollen textiles, silk textiles, jute textiles, cotton textiles and technical textiles), readymade garments (RMGs) and apparel Key segments of the textiles industry Garment/ Weaving/K Process Raw material Ginning Spinning Processing apparel nitting production Cotton, jute, Processed Final garment/ Output Fibre* Yarn Fabric silk, wool fabric apparel * Including cotton, jute, silk, wool and manmade fibres • Woollen textiles Yarn and fibre segment • Silk textiles • Jute textiles • Technical textiles Source: Ernst & Young research 6 MARKET OVERVIEW Textiles and Apparel April 2010 Yarn and fibre segment • Fibre and yarn are of two types — natural and Production of natural fibre manmade. Type Units Production • Natural fibre includes cotton, wool, hemp and flax. 29 Cotton millionbales (2008–09) • India has the largest area under cotton cultivation 45 (9 million hectares), constituting 25 per cent of the Rawwool million kg (2007–08) total area in the world. 18.31 Raw silk million kg (2007–08) • Wool, silk and manmade textiles segments collectively posted 13 per cent growth between April and November 2009. • In 2008–09, the number of non-small scale industry (SSI) spinning and composite mills in the country were 1,828, with a total installed capacity of 41.3 million spindles, 657,000 rotors and 56,000 looms. Sources: Ministry of Textiles 2008–09 annual report; Note on man-made fibre and filament yarn industry, Ministry of Textiles; Textile Industry Overview, Ministry of Textiles; Socio-Economic Review 2009–2010. 7 MARKET OVERVIEW Textiles and Apparel April 2010 Yarn and fibre industry segment • Manmade fibre is synthetically produced using fibre- Production of manmade fibre/filament yarn forming chemical substances. Production Type (million kg) 2008–09 • The total production of manmade staple fibre and manmade filament yarn in 2008–09 was1,042 million Staple fibre kg and 1,425 million kg, respectively. Polyester 733 Viscose 229 • Of the total consumption of 6.33 billion kg of fibre Acrylic 78 (including cotton and manmade), 2.62 billion kg (41 per cent) was manufactured by the manmade Polypropylene 2 fibre/yarn segment in 2008–09. Filament yarn Polyester 1,315 Sources: Ministry of Textiles 2008–09 annual report; Note on man- Viscose 66 made fibre and filament yarn industry, Ministry of Textiles. Nylon 28 Polypropylene 16 8 MARKET OVERVIEW Textiles and Apparel April 2010 Fabric production • 54,966 million sq m of fabric (including khadi, wool and silk) was produced in 2008–09. Fabric production in different segments (2008–09) in million sq m 100% non-cotton Sector Cotton Blended (including khadi, wooland silk) Mill 1,260 426 111 Handloom 5,840 118 719 Decentralised power loom 9,621 4,764 19,263 Decentralised hosiery 10,178 1,458 441 Sources: Ministry of Textiles 2008–09 annual report; “Textile industry overview,” Ministry of Textiles. 9 MARKET OVERVIEW Textiles and Apparel April 2010 Processed fabric, RMG and apparel • The production of RMGs and apparel from processed fabric is the final stage in the production process of textiles. • The textiles produced at this stage after processing include • Woollen textiles • Silk textiles • Jute textiles • Technical textiles • In terms of production, textile products registered high growth of 9.9 per cent between April and November 2009, while cotton textiles registered a growth of 3.2 per cent during the same period. • The production of textile fabrics increased by 10.7 per cent between April and November 2009, with the hosiery segment registering the highest growth of 12.8 per cent during this period. Source: Socio-Economic Review 2009–2010. 10
Description: