textiles and apparel

52 Pages·2015·1.09 MB·English

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)
CAGR: 11.2%
141
The domestic textile and
100
Rising per capita income, apparel industry in India is
67
favourable demographics and a estimated to reach USD141
shift in preference to branded billion by 2021 and USD100
products to boost demand billion by 2017 from USD67
2014 2017E 2021E billion in 2014
2014 2017E 2021E
CAGR: 10.8% Textile and apparel exports
82
from India is expected to
Favourable trade policies and 65
40 increase to USD82 billion by
superior quality to drive textile
2021 and to USD65 billion by
exports
2017 from USD40 billion in
2014 2017E 2021E 2014
2014 2017E 2021E
CAGR: 20.8% 112
Total cloth production in India is
expected to grow to 112 billion
Increase in domestic demand 63.5
square metres by FY17 from
set to boost cloth production 33
63.5 billion square metres in
FY14
2014 2015(P)* 2017E
Source: Ministry of Textiles, Make in India, Technopak, TechSci Research
Notes: CAGR -Compound Annual Growth Rate, E –Estimate, P –Provisional
* Indicated-2015-up to Sept’ 14
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TEXTILES AND APPAREL
EXECUTIVE SUMMARY … (2/2)
CAGR: 1.7% In the 12th Five Year Plan, the
4.25
Government plans to provide a
Rising government focus and 4.18
budgetary support to textiles of
favourablepolicies to support
USD 4.25 billion against USD
the industry
4.18 billion in the 11th Five Year
11th plan outlay Proposed 12th plan Plan
outlay
USD (billions)
Policy support
Source: Ministry of Textiles, Technopak, TechSci Research
Note: CAGR -Compound Annual Growth Rate
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TEXTILES AND APPAREL
ADVANTAGE INDIA
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TEXTILES AND APPAREL
ADVANTAGE INDIA
Robust demand Increasing investments
2014 Growing demand 2023F
• Increased penetration of organized • Huge investments are being made by
Market retail, favorable 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
USD99 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, TechSciResearch
Notes: SITP -Scheme for Integrated Textile Park; FDI -Foreign Direct Investment,
ASEAN -Association of Southeast Asian Nations, E –Estimate
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TEXTILES AND APPAREL
MARKET OVERVIEW AND TRENDS
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TEXTILES AND APPAREL
EVOLUTION OF THE INDIAN TEXTILE SECTOR
2014-Onwards
2000-14
1951-2000
1901–1950
• Make in India campaign was
• SITP was implemented to launched to attract
facilitate setting up of textile manufacturersandFDI.
• In 1999, TUFS was set units with appropriate support • Technology Mission for
1854-1900 up to provide easy infrastructure Technical Textile has been
access to capital for
• After MFA cotton prices are continued.
technological up
• Number of mills alignedwithglobalprices • Under Union Budget 2015-16,
gradation
increased from 178 in • Technical textile industry will government of India has
1901to417in1945 • TMC was launched to beanewgrowthavenue allocated around USD584.49
address issues related
• Thefirst cottontextile • Out of 423 textile mills • Free trade agreement with millionforTextileIndustry.The
to low productivity and
of the undivided India, majorfocus ofthis budgetis to
mill of Mumbai was ASEAN countries and
infrastructure
India received 409 after attract the manufacturers,
establishedin1854 proposed agreement with EU
partition and the • In 2000, NTP was technology upgradation,
underdiscussion
• Thefirst cottonmillof
remaining 14 went to announced for the Integratedtextilesparks,etc.
Ahmedabad was • Restructured TUFS was
found in 1861; it Pakistan overall development of launched attracting a subsidy • Measures were also
the textile and apparel
announced to be taken to
emerged as a rival capofUSD420.65Million
industry
foster faster clearance of
centretoMumbai
importandexportcargo
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 intotwosegments:
Yarn and fibre(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* Yarn Fabric garment/
fabric
wool Apparel
 Woollen textiles
Yarn and fibre segment
 Silk textiles
 Jute textiles
 Technical textiles
Source: TechSciResearch
Note: * Including cotton, jute, silk, wool and manmade fibres
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TEXTILES AND APPAREL
KEY FACTS
Thefundamentalstrength of thetextile industry inIndia is itsstrong production baseof wide rangeoffibre/yarnsfrom natural
fibreslike cotton,jute,silk and wool tosynthetic /man-madefibreslike polyester,viscose, nylon andacrylic
AccordingtoUN Comtradedatareleasedin June,2014
Indiawas announced astheworld’s secondlargestexporteroftextiles andclothing intheworld
And 6thlargestexporterofclothing only
Indiaaccounts63percentofthemarketshareoftextiles andgarments
Indiais the2nd biggestproducerofsilk andcotton
Indiantextile industryaccountsforabout 24percentoftheworld’s spindle capacity and8percentofglobalrotorcapacity
Indiahas thehighestloom capacity(including handlooms)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)
Source: Textile Ministry, Make in India, TechSciResearch
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