Textiles and Apparel - India Brand Equity Foundation

37 Pages·2011·0.96 MB·English

Textiles and Apparel NOVEMBER
2011
11
For updated information, please visit www.ibef.org
Textiles and Apparel NOVEMBER
2011
Contents
 Advantage India
 Market overview and trends
 Growth drivers
 Success stories: Raymond, Alok Industries
 Opportunities
 Useful information
For updated information, please visit www.ibef.org
22
NOVEMBER
Textiles and Apparel
2011
Advantage India
2020E
Robust demand Increasing investments
• Increased penetration of • Over USD35 billion of Market
organised retail, favourable investments have been made Value:
demographics and rising income in the textile & clothing sector USD220
level to drive textile demand during the last four years,
billion
with the cotton
• Growth in building and textile segment accounting
construction will continue to for around 75 per cent
drive demand for non-clothing
textiles
Advantage
India
Competitive advantage Policy support
• Abundant availability of raw • 100 per cent FDI through the
materials such as cotton, wool, silk automatic route is allowed in the
and jute and skilled workforce has Indian textile sector
made India a sourcing hub
• SITP was approved in July 2005 to
facilitate setting up of textiles parks
2009
with world class infrastructure
facilities
Market
Value:
USD70 billion Notes: SITP - Scheme for Integrated Textile Park
FDI- Foreign Direct Investment
2020 E – Estimated figure for 2020; Source: Technopak
For updated information, please visit www.ibef.org ADVANTAGE INDIA 33
Textiles and Apparel NOVEMBER
2011
Contents
 Advantage India
 Market overview and trends
 Growth drivers
 Success stories: Raymond, Alok Industries
 Opportunities
 Useful information
For updated information, please visit www.ibef.org
44
NOVEMBER
Textiles and Apparel
2011
Evolution of the Indian textile sector
2000–10
1951-2000
• In 2000, NTP was
1901–50
announced for the
• In 1999, TUFS was set
overall development
up to provide easy
of the textile and
access to capital for
apparel industry
technological
• NTC started selling
• Number of mills upgradation
few mills to private
1854-1900 increased from 178 • TMC was launched
businesses in 2005
in 1901 to 417 in 1945 in February 2000 to
• SITP was
• Out of 423 textile address issues
implemented to
mills of the related to low
facilitate setting up
• The first cotton textile undivided India, productivity, obsolete
of textile units with
mill of Mumbai was India received 409 ginning and pressing
appropriate support
established in 1854 after partition and factories, lack of
infrastructure
• The first cotton mill of the remaining 14 storage facilities and
Notes: NTP – National Textile Policy
Ahmedabad was went to Pakistan marketing
NTC - National Textiles Corporation
found in 1861; it infrastructure
TUFS - Technology Upgradation Fund Scheme
emerged as a rival
TMC - Technology Mission on Cotton
centre to Mumbai
SITP - Scheme for Integrated Textiles Parks
For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 55
NOVEMBER
Textiles and Apparel
2011
Segments in the textile and apparel
sector
→ The textile and apparel industry can be broadly divided into two segments:

→ Yarn and fibre (including natural and man-made fibre as well as yarn)

→ Processed fabrics (including woollen textiles, silk textiles, jute textiles, cotton textiles and technical textiles),
readymade garments (RMGs) and 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* Yarn Fabric garment/
fabric
wool Apparel
• Woollen textiles
Yarn and fibre segment
• Silk textiles
• Jute textiles
• Technical textiles
Note - * Including cotton, jute, silk, wool and manmade fibres
Source: Aranca Research
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NOVEMBER
Textiles and Apparel
2011
Market size recording healthy growth
… (1/2)
→ Indian textile market size grew to USD70 billion in India's textile market size (USD billion)
2009 from USD46 billion in 2005
90

78
80
→ CAGR of the Indian textile market size during the 70
period was 11.1 per cent 70
60
46
Note – CAGR - Compounded Annual Growth Rate 50
40
30
20
10
0
2005 2009 2010(E)
Source: Technopak, Aranca Research
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NOVEMBER
Textiles and Apparel
2011
Market size recording healthy growth
… (2/2)
→ Apparel, the largest contributor to textile market India's textile market share (%) – 2009
share, accounted for 62 per cent of the total market
share in 2009

→ Textile contributed 38 per cent to the total share
38% Apparel
Textile
62%
100% = 70.5 billion
Source: Alok Industries Limited, Aranca Research
For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 88
NOVEMBER
Textiles and Apparel
2011
Production of manmade fibre outpaced
production of cotton … (1/2)
→ Production of raw cotton grew to 325 lakh bales in Production of raw cotton (lakh bales)
FY11 from 280 lakh bales in FY07
330
325
320
→ CAGR of raw cotton production was 3.8 per cent
during the period 310 307
305
300
290
290
280
280
270
260
250
FY07 FY08 FY09 FY10 FY11P
Source: Ministry of Textiles, Aranca Research
• Raw cotton and man-made fibres are the major segments in this category
• Raw wool and raw silk are the other components – their production levels are much lower
For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 99
NOVEMBER
Textiles and Apparel
2011
Production of manmade fibre outpaced
production of cotton … (2/2)
→ Production of man-made fibre rose to 1,281 million Production of man-made fibre (million kgs)
kgs in FY11 from 1139 million kgs in FY07
1400
1244 1268 1281
1139
→ CAGR of production of man-made fibre during the 1200
1066
period was 3 per cent
1000
800
600
400
200
0
FY07 FY08 FY09 FY10 FY11P
Source: Ministry of Textiles, Aranca Research
Note: P = Provisional
For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 1100