textiles and apparel

52 Pages·2017·0.95 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)
The domestic textile and
223 apparel industry in India is
CAGR:
Rising per capita income, projected to reach USD123
18.74%
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 & apparel exports from
CAGR: 12.06%
82
Favourable trade policies and India is expected to increase to
65
superior quality to drive textile USD82 billion by 2021 & to
40
exports USD65 billion by 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 retail, • Huge investments are being made by
Market favorable demographics & rising income Government under Scheme for Integrated Market
Value: levels to drive textile demand Textile Parks (SITP)-(USD184.98 million) & Value:
USD108.5 Technology Upgradation Fund Scheme USD226
billion • Growth in building and construction will (TUFS)-(term loan sanctioned in Feb, 2015- billion
continue to drive demand for non-clothing
USD2198.45 million) to encourage more
textiles
private equity&totrainworkforce.
Advantage
India
Competitive Policy Support
Advantage
• 100 per cent FDI (automatic route) is
• Abundant availability of raw materials such allowed in theIndiantextile sector
as cotton, wool, silk and jute
• Under Union Budget 2016-17, government
has allocated USD7.43 million for setting
• India enjoys a comparative advantage in
upintegratedparksin India
terms of skilled manpower and in cost of
production relative to major textile producers • Free trade with ASEAN countries &
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 &FDI.
• 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 & setup Integrated
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 & 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:
Yarn and fibre(include naturalandman-made)
Processed fabrics (including woolen textiles, silk textiles, jute textiles, cotton textiles & technical textiles),
Readymade Garments(RMGs)&apparel
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
fibreslikecotton,jute,silk &wool tosynthetic/man-madefibreslikepolyester,viscose, nylon & acrylic
Indiaaccounts63 percentofthemarketshareoftextiles andgarments
Withproductionof6,106million kg,Indiawas thelargestproducerofcottonin 2016-17.
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 & yarns (largest producer of jute, 2nd largest
producerofsilk and cotton;&3rd largestin cellulosic fibre)
India is the 2nd 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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