TEXTILE & APPAREL

INDUSTRY
AGENDA
◦ Industry introduction
◦ Border classification of industry
◦ Industry Scenario
◦ Key facts
◦ Industry forces
◦ SWOT Analysis
◦ Conclusion
INTRODUCTION
◦ The domestic textiles and apparel industry contributes 2.3% to India’s GDP and accounts for
13% of industrial production, and 12% of the country’s export earnings.
◦ The textiles and apparel industry in India is the second-largest employer in the
country providing employment to 45 million people. It is expected that this number will
increase to 55 million by 2020.
◦ FDI in the textiles and apparel industry has reached up to $3.1 bn during 2018-19
◦ Exports in the textiles and apparel industry are expected to reach $300 bn by 2024-25 resulting
in a tripling of Indian market share from 5% to 15%
INDUSTRY SCENERIO
◦ Textile & garments industry in India is expected to reach $ 223 bn by 2021 from $ 137 bn in
2016.
◦ The textiles and apparel industry in India has strengths across the entire value chain from fiber,
yarn, fabric to apparel. It is highly diversified with a wide range of segments ranging from
products of traditional handloom, handicrafts, wool and silk products to the organized textile
industry.
◦ The organized textile industry is characterized by the use of capital-intensive technology for
mass production of textile products and includes spinning, weaving, processing, and apparel
manufacturing.
KEY FACTS
INDUSTRY FORCES
New Entrants Substitute products & services
◦ Low barriers in the domestic market ◦ Low cost of manufacturing
◦ Economies of scale are high ◦ No substitute products for garments
◦ Brand identity of a company is high
◦ Capital requirements are high both
regional and national
◦ Less lucrative industry
◦ National level operating companies
manage to make economic profits but
entry barriers are very high
◦ Foreign players are inevitable as high
capital requirements is not an issue
Competitors Stakeholders

Advantages ◦ Sub-sectors of textile industry

associations like wool, cotton, silk ,jute ,
◦ High young population man-made fibre etc.,
◦ High abundance of raw materials ◦ Workers, mill owners , labour union
◦ Cost of manufacturing is lower ◦ Government agencies and non-
than other competing countries government organisations

◦ Increase penetration of internet

◦ Demand for aspirational clothing
Suppliers and other value chain
factors ◦ v
Buyer-driven, value chain- it is
relatively easier for large retailers with
established brand name

◦ Efficient distribution channel to design the

product and outsource the production to
manufacturers
◦ Garment manufacturers do not have brand
or distribution channel to access the end
market directly
◦ Large retailers dominate the value chain
◦ Leveraging digital tools
SWOT
Strengths
◦ Availability of low cost and skilled
manpower provides competitive
advantage
◦ Availability of large varieties of cotton
fibre and has a fast growing synthetic
fibre industry
◦ India is largest exporters of yarn in
international market
◦ Potential domestic and international
market
◦ Large and diversified segments that
provide a wide variety of products
Opportunities
◦ Emerging retail industry and malls
◦ Elimination of quota restriction leads to
greater market development
◦ Growth rate of domestic textile industry
6-8% per annum
◦ Shifting towards branded ready made
garment
◦ High cost of textile production in china to
grab the market share in exports
◦ Greater investment and FDI opportunities
can be found
Weakness
◦ Highly fragmented industry
◦ Highly reliant on cotton
◦ Lower productivity in various segments
◦ Declining in mill section
◦ Lack of technological developments
◦ Infrastructural bottlenecks and efficiency
such as purchase tome slots and travel
time
◦ Unfavourable labour laws and regulations
◦ Higher indirect taxes
Threats
◦ Competition from other producing
countries
◦ Continuous quality improvement
◦ Elimination of quota system will lead to
fluctuations in export demand
◦ Traditional market for vitality loom and
handloom products and forcing them for
product diversification
◦ International labour and environmental
laws
◦ To balance the demand and offer
◦ To make balance between price and
quality
Conclusion
◦ The Indian textile industry has a significant presence in the Indian economy as well as in the
international textile economy.
◦ Its contribution to the Indian economy is manifested in terms of its contribution to the industrial
production, employment generation and foreign exchange earnings.
◦ The industry also contributes significantly to the world production of textile fibers and yarns
including jute.
◦ In the world textile scenario, it is the largest producer of jute, second largest producer of silk, third
largest producer of cotton and cellulosic fiber\yarn and fifth largest producer of synthetic
fiber\yarn.
◦ Textile Industry is providing one of the most basic needs of people and the holds importance;
maintaining sustained growth for improving quality of life.