TEXTILES AND APPAREL - India Brand Equity Foundation, IBEF

44 Pages·2010·0.43 MB·English

TEXTILES AND APPAREL
November 2010
TEXTILES AND APPAREL November 2010
Contents
 Advantage India
 Market overview
 Industry infrastructure
 Investments
 Policy and regulatory framework
 Opportunities
 Industry associations
2
ADVANTAGE INDIA
Textiles and Apparel November 2010
Advantage India
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.
Several international retail players,
Under the Eleventh Plan (2007–2012),
such as Marks & Spencer, Haggar
the Planning Commission has set a Raw
Clothing, Kellwood, Little Label
growth rate of 16 per cent for the material
garments, technical textiles and production and Boules Trading Company, are
using India as a key global sourcing
processing segments, projecting an
destination.
investment of US$ 31.37 billion (INR High
Sourcing
1,506 billion) during the Plan period. growth
hub • The demographic, economic and
potential
social factors such as high disposable
incomes, more number of working
women, younger population etc.
have contributed to the rise in
• Foreign direct investment (FDI) Advantage Private Final Consumption
of up to 100 per cent is allowed Expenditure (PFCE) on clothing.
in the textiles sector through India • The PFCE on clothing stood at US$
Liberal Rise in
the automatic route. 20,742 million in 2007–08 and had
FDI PFCE on
• The Ministry of Textiles has set grown with a CAGR of 6.8 per cent
regime textiles
up an FDI cell at the Economic over the last five years.
Division to attract FDI in the
sector.
• The National Skill Development Corporation (NSDC)
Availability of skilled
is targeting creation of 150 million skilled workforce in
Initiatives, such as the Technology
Favourablew orkforce Availability India by 2022 for sustaining high economic growth.
Upgradation Fund Scheme (TUFS)
governme- of skilled • There are several centres of excellence in the textile
and Technology Mission on
nt policies workforce industry, which can provide an impetus to academics
Cotton (TMC), among others, aid
and research in the industry.
the development of the domestic
• The industry employs Engineers, Diploma holders, CAs,
industry and attract potential
MBAs and also people who have done basic schooling.
investors.
Sources: Ministry of Textiles 2009–10 annual report; ―Note on sericulture and the silk industry,‖ Ministry of Textiles; ―Human resource and skill
requirements in the textile sector,‖ NSDC India website, http://www.nsdcindia.org/pdf/Textiles-Clothing.pdf, accessed 19 November 2010
3
TEXTILES AND APPAREL November 2010
Contents
 Advantage India
 Market overview
 Industry infrastructure
 Investments
 Policy and regulatory framework
 Opportunities
 Industry associations
4
MARKET OVERVIEW
Textiles and Apparel November 2010
Market overview
• The textiles industry accounts for 14 per cent of the total industrial production in India and 17 per cent
of the country’s export earnings
• At current prices, it accounts for 4 per cent of the country’s 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 with1 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 2009–10 annual report; Chapter 9, Economic Survey 2009–2010; ―Aspects of textile industry for the month of
September 2010,‖ Ministry Of Textiles.
5
MARKET OVERVIEW
Textiles and Apparel November 2010
Market segments
The textiles and apparel industry can be broadly divided into two segments:
• 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/
Process Raw material Ginning Spinning Processing Apparel
Knitting
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
Source: Ernst & Young research • Technical textiles
6
MARKET OVERVIEW
Textiles and Apparel November 2010
Yarn and fibre segment
• There are two types of fibre and yarn — natural Production of natural fibre
and 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
Raw 45.2
(9 million hectares), constituting 25 per cent of the million kg
wool (2007–08)
total area under cotton cultivation in the world.
18.37
Raw silk million kg
(2008–09)
• Wool, silk and manmade textiles segments
collectively posted 13 per cent growth between
April and November 2009.
• As on 31 October 2009, there were a total of
1,834 non-small scale industry (SSI) spinning and
composite mills in the country, with a total installed
capacity of 37.07 million spindles, 489,718 rotors
and 56,526 looms.
Sources: Ministry of Textiles 2009–10 annual report; Note on man-made fibre and filament yarn industry, Ministry of Textiles; Textile Industry
Overview, Ministry of Textiles; Economic Survey 2009–2010.
7
MARKET OVERVIEW
Textiles and Apparel November 2010
Yarn and fibre industry segment
• Manmade fibre is synthetically produced using Production of manmade fibre/filament yarn
fibre-forming chemical substances.
Production
Type (million kg)
• The total production of manmade staple fibre and 2009–2010
manmade filament yarn in 2009–2010 was 1,270
Staple fibre
million kg* and 1,524 million kg*, respectively.
Polyester 871
Viscose 301
• Of the total consumption of 6.60 billion kg of
Acrylic 95
fibre (including cotton and manmade) in 2009–
2010, 2.84 billion kg (43 per cent) was Polypropylene 3
manufactured by the manmade fibre/yarn segment.
Filament yarn
Polyester 1,436
Sources: Ministry of Textiles 2009–10 annual report; Note on man-
Viscose 43
made fibre and filament yarn industry, Ministry of Textiles.
Nylon 30
* Provisional estimates
Polypropylene 15
8
MARKET OVERVIEW
Textiles and Apparel November 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 per cent non-cotton
Sector Cotton Blended (including khadi,
wooland silk)
Mill 1,259 426 111
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 2009–10 annual report; ―Textile industry overview,‖ Ministry of Textiles.
* Provisional estimates
9
MARKET OVERVIEW
Textiles and Apparel November 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 3.2 per cent growth 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: Economic Survey 2009–2010.
10