textiles and apparel

52 Pages·2017·0.9 MB·English

by  Vipul Tiwari

TEXTILES AND APPAREL
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TEXTILES AND APPAREL
 Executive Summary………………....………..3
 Advantage India……………………..………..5
 Market Overview and Trends………..……...7
 Porters Five Forces Analysis ……...………21
 Strategies Adopted…………………………23
 Growth Drivers……………………………...25
 Opportunities………………………………..38
 Success Stories…………………………..…41
 Useful Information…………………………..47
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TEXTILES AND APPAREL
EXECUTIVE SUMMARY … (1/2)
The domestic textile and
CAGR: 223 apparel industry in India is
Rising per capita income, 18.74% projected to reach USD123
favourable demographics and a billion by 2021. The domestic
108
shift in preference to branded textile industry stood at
67
products to boost demand USD108 billion in 2015,
witnessing growth from USD67
billion in 2014
2014 2015 2021E
Textile and apparel exports
CAGR: 12.06%
82 from India is expected to
Favourable trade policies and
65 increase to USD82 billion by
superior quality to drive textile
40 2021 and to USD65 billion by
exports
2017 from USD40 billion in
2016
2016 2017E 2021E
USD billion
CAGR: 31.9%
Total cloth production in India is
112
expected to grow to 112 billion
Increase in domestic demand
64.3 square metres by FY17 from
set to boost cloth production 38.0
64.3 billion square metres in
FY15
2015 2016⁽¹⁾ 2017E
Billion square metres
Source: Ministry of Textiles, Make in India, Technopak, TechSci Research
Notes: CAGR -Compound Annual Growth Rate, E –Estimate, P –Provisional; ⁽¹⁾-up to Oct’ 15
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TEXTILES AND APPAREL
EXECUTIVE SUMMARY … (2/2)
In the 12th Five Year Plan, the
4.25 Government plans to provide a
Rising government focus and
budgetary support to textiles of
favourable policies to support 4.18
USD 4.25 billion against USD
the industry
4.18 billion in the 11th Five Year
Plan
11th plan outlay Proposed 12th plan
outlay
USD billion
Source: Ministry of Textiles, Technopak, TechSci Research
Note: CAGR -Compound Annual Growth Rate
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TEXTILES AND APPAREL
ADVANTAGE INDIA
TEXTILES AND APPAREL
ADVANTAGE INDIA
Robust demand Increasing investments
2015 Growing demand 2023F
• Increased penetration of organised • Huge investments are being made by
Market retail, favourable demographics, and Government under Scheme for Market
Value: rising income levels to drive textile Integrated Textile Parks (SITP)- Value:
demand (USD184.98 Million) and Technology
USD108.5 USD226
Upgradation Fund Scheme (TUFS)-
billion billion
(term loan sanctioned in Feb, 2015-
• Growth in building and construction
USD2198.45 Million) to encourage
will continue to drive demand for non-
more private equity and to train
clothing textiles
workforce.
Advantage
India
Competitive Policy support
advantage
• 100 per cent FDI (automatic route) is
allowed in theIndiantextile sector
• Abundant availability of raw materials
such as cotton, wool, silk and jute
• Under Union Budget 2015-16,
government has allocated USD39.81
• India enjoys a comparative advantage
million forintegratedparksin India
in terms of skilled manpower and in
cost of production relative to major
textile producers • Free trade with ASEAN countries and
proposed agreement with European
Union will boostexports
Source: PHD Camber of Commerce; Federation of Indian Chambers of Commerce and Industry, TechSci Research
Notes: SITP -Scheme for Integrated Textile Park; FDI -Foreign Direct Investment,
ASEAN -Association of Southeast Asian Nations, E –Estimate; F-Forecasted
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TEXTILES AND APPAREL
MARKET OVERVIEW AND TRENDS
TEXTILES AND APPAREL
EVOLUTION OF THE INDIAN TEXTILE SECTOR
2016-Onwards
2000-15
1951-2000
1901–1950
• Make in India campaign was
• SITP was implemented to launched to attract manufacturers
facilitate setting up of textile andFDI.
• In 1999, TUFS was set units with appropriate support • Technology Mission for Technical
1854-1900 up to provide easy infrastructure Textilehasbeencontinued.
access to capital for
• After MFA cotton prices are • Under Union Budget 2016-17,
technological up
• Number of mills alignedwithglobalprices Government of India allocated
gradation
increased from 178 in • Technical textile industry will around USD701.9 million for
1901to417in1945 • TMC was launched to beanewgrowthavenue textile Industry. Major focus of
address issues related
• Thefirst cottontextile• Out of 423 textile mills • Free trade agreement with this budget is to attract
to low productivity and
of the undivided India, manufacturers, initiate technology
mill of Mumbai was ASEAN countries and
infrastructure
India received 409 after upgradation, andsetupIntegrated
establishedin1854 proposed agreement with EU
partition and the • In 2000, NTP was textilesparks,etc.
underdiscussion
• Thefirst cottonmillof
Ahmedabad was remaining 14 went to announced for the • Restructured TUFS was • Measures were also announced
Pakistan overall development of to be taken to foster faster
found in 1861; it launched attracting a subsidy
the textile and apparel
clearance of import and export
emerged as a rival capofUSD420.65Million
industry
cargo
centretoMumbai
Notes: NTP -National Textile Policy; NTC -National Textiles Corporation; ASEAN -Association of Southeast Asian Nations, TUFS -Technology Upgradation Fund Scheme;
TMC -Technology Mission on Cotton, EU -European Union, Source: Union Budget 2015-16, Make In India
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TEXTILES AND APPAREL
SEGMENTS IN TEXTILE AND APPAREL SECTOR
Thetextile andapparelindustrycanbebroadly divided into twosegments:
Yarnandfibre(include naturalandman-made)
Processed fabrics (including woolen textiles, silk textiles, jute textiles, cotton textiles and technical textiles),
Readymade Garments(RMGs)andapparel
Key segments of the textile industry
Garment/
Raw Weaving/
Process Ginning Spinning Processing apparel
material knitting
production
Cotton, Final
Processed
Output jute, silk, Fibre⁽¹⁾ Yarn Fabric garment/
fabric
wool Apparel
 Woollen textiles
Yarn and fibre segment
 Silk textiles
 Jute textiles
 Technical textiles
Source: TechSci Research
Note: ⁽¹⁾Including cotton, jute, silk, wool and manmade fibres
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TEXTILES AND APPAREL
KEY FACTS
Thefundamentalstrength of thetextile industry inIndia is its strong production baseof wide range offibre/yarnsfrom natural
fibreslike cotton,jute,silk and wool tosynthetic /man-madefibreslike polyester,viscose, nylon andacrylic
Indiaaccounts63 percentofthemarketshareoftextiles andgarments
Withproductionof5,984million kg,Indiawas thelargestproducerofcottonin 2015-16.
Indiantextile industryaccountsforabout 24percentoftheworld’s spindle capacity and8percentofglobal rotorcapacity
Indiahas thehighestloom capacity(including hand looms)with 63percentoftheworld’s marketshare
India accounts for about 14 per cent of the world’s production of textile fibres and yarns (largest producer of jute, second
largestproducerofsilk andcotton;andthirdlargestin cellulosic fibre)
India is the second largest producer of Manmade Fibre and Filament, globally, with production of around 2,511 million kg in
2015-16.
Source: Textile Ministry, Make in India, TechSci Research
Note: Figures are as per latest data available
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