TRANSNATIONAL STRATEGIC MANAGEMENT

TEXTILE
INDUSTRY
U n d e r G u i d a n c e of : Dr . H.P.
M a t h u r P r e se n t e d By : N i d a
Ali
Industry
Overview

Largest p r o d u c e r of c o t t o n a n d ju t e i n t h e w o r l d
S e c on d largest m a n u f a c t u r e r of PPE a n d p r o d u c e r
of polyester , silk a n d fibre i n t h e w o r l d
S e c on d largest e m p l o y m e n t provider i n India
after agric ulture Source:
Fifth largest ex porter of r e a d y m a d e garments . Ministry of
Con tributes t o 2.3% of t h e GDP Textiles and
Invest In India
Con tributes t o 13% of t h e countries e x p o r t
earnings .
The d o m e s t i c textiles a n d ap parel industry s t o o d a t
$ 140 b n i n 2018 ( in c l u d i n g handicrafts ) of w h i c h $ 100
b n was d o m es t ic ally c o n s u m e d w h i l e t h e r e m a i n i n g
p o r t i o n w o r t h $ 4 0 b n was e x p o r t e d t o t h e w o r l d
market .

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Domestic
Market Size
India ’ s d o m e s t i c textile a n d app arel
m a r k e t is w o r t h over $ 100 B n as of
2018 - 19 a n d is e x p e c t e d t o g r o w a t a
CAGR of 12 p e r c e n t t o reach t o a
size of $ 223 B n b y 2021.
Domestic
Market Growth
A p p a r e l d e m a n d i n I ndia currently stands a t $ 78
Bn , d o m i n a t e d b y t h e d o m e s t i c w i t h a share
close t o 74 p e r c e n t of India ’ s t o t a l textile a n d
a pparel ma rk et . Technical textiles , o n e of t h e
fastest g r o w i n g sub - seg ments a t CAGR of 12 p e r
c e n t is also w itnessing a substantial increase i n
its m a r k e t size i n India 2
Exports
India is t h e 5 t h largest textiles a n d apparel
exp orter globally , w i t h its exports w o r t h $ 40 . 4
B n i n 2018-19.
India ’ s textiles a n d app arel exports are
e x p e c t e d t o reach $ 7 0 B n b y 2025 - 26 ,
g r o w i n g a t a CAGR of 12 p e r cent . The
exports have g r o w n a t a five p e r c e n t CAGR
since t h e year 2005 - 06 .
Imports
India ‘ s textile a n d apparel i m p o r t s i n 2018 -19
r e a c h e d a r o u n d $ 7.3 Bn . The i m p o r t s of textile
a n d appa rel have b e e n g r o w i n g a t a CAGR
of e i g h t p e r c e n t over t h e last 13 years f r o m
2 0 0 5 - 0 6 t o 2018-19.
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 PORTER ' S FIVE FORCES

BARGAINING
THREAT OF BARGAINING POWER OF
NEW POWER OF
EN TRA N TS BUYERS SUPPLIERS
LOW
H i g h availability
LOW HIGH of r a w m a t e r i a l
B r a nd i den ti ty of a Major c l o t h i n g brands Differentiation of i n p u t
c o m p a n y in this have b e tt e r is p r e t t y low.
industry is high. bargaining p o w e r Presence of
Capital r eq u i re me n ts t o over textile input
establish a regional or a manufacturers. sub sti tut e .
national level op erati on P r o d u c t differentiation is .
is high. low.
Entry of international
players because of
100% FDI t h r o u g h
a u t o m a t i c route.

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 PORTER ' S FIVE FORCES

THREAT OF COM PETITIVE

SUBSTITUTES RIVALRY

MODERATE HIGH
N o internal th reat of Intense c o m p e t i t i o n
substi tution because a m o n g established
there are n o alternatives brands.
present t o t h e
industry.. Talking a b o u t
external threats,
Pakistan a n d
Bangladesh also provide
c h e a p labour costs
thus their exports are
also competitive.

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PESTEL ANALYSIS

POLITICAL ECONOMIC SOCIAL

National Technical Textiles Mission 23.1% d r o p i n Q1 GDP.. Cultural differences..
Export p r o m o ti o n . Decline in exports. cost of t h e labor also d e p e n d s o n t h e society.
100 per c e n t FDI. India b e c a m e 2 n d p r o d u ce r of PPE Change i n fashion trends.
S c h e m e for Capacity B u i l d i n g i n Textile largest
Sector (SCBTS)

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PESTEL ANALYSIS

TECHNOLOGICAL ENVIRONMENTAL LEGAL

Structural weaknesses in w eavi ng h i g h volumes of w at er a n d creates highly Unfavorable labor laws a n d regulations
a n d processing c o n t a m i n a t e d w a te r t h a t discharge i n large
F r a g m e n t e d a n d technologically amounts.
b a c k w a r d In a d e qu a te training facilities S c h e m e for Integrated Textile Parks (SITP)

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 SWOT
Analysis

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

A b u n d a n c e of r a w mate ri a l
Presence of entire value
chains M a n p o w e r availability
F r a g m e n t e d infrastructure
Technology obsolescence
In ad e q u ate p r o d u c t
diversification
Lack of scale
H i g h labor costs a broad Covid-19
Free Trade Ag re ements Rigid labor laws
Large a n d g r o w i n g
domestic market

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Uncertainty i n d e m a n d , supply chain disruptions , decline i n r a w m at er ial prices
having i m p l i c a t i o n o n livelihood of workers as well .
As estimates suggest , for t h e I ndian textile a n d apparel industry , there is a 12-15
m o n t h s ' s l o w d o w n causing at least a 30 per c e n t shrinkage i n t h e FY21 m a r k e t size
globally .
To s u p p o r t t h e industry , t h e g o v e r n m e n t of India has l a u n c h e d several measures
i n c l u d i n g INR 3 lak h crore ($ 39.7 Bn ) collateral - free loans for businesses , i n c l u d i n g
Micro , Small a n d M e d i u m Enterprises (MSMEs), infusing m o r e l i q u i d i t y i n t o
b a n k i n g a n d n o n - b a n k i n g institutions

IMPACT OF COVID - 19
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 WAY F O RWA RD FOR INDUSTRY

Technology Upgradation INFRA STRUCTUR

Technically superior machinery at reasonable costs
E DEVELOPMENT
Mega textile parks

SKILLED MANPOWER DIVERSIFICATION

Few individuals attend any kind of formal training
in India as compared to other nations
OF EXPORT
MARKETS
country specific export strategies should 10
REFERENCES

https://www.investindia.gov.in/siru/textile-apparel-industry-change-agent-india
https://www.ibef.org/industry/textiles
https://
www.financialexpress.com/industry/new-textiles-policy-to-help-india-emerge-as-
manufacturing-and-exporting-hub-govt/1799103/
https://pib.gov.in/PressReleseDetail.aspx?PRID=1606094
http://texmin.nic.in/ https://
www.investindia.gov.in/sector/textiles-apparel