Textile industry

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1. 1 Background
India Textile Industry is one of the taking fabric industries in the universe. Though was preponderantly unorganised industry even a few old ages back. but the scenario started altering after the economic liberalisation of Indian economic system in 1991. The opening up of economic system gave the much-needed push to the Indian fabric industry. which has now successfully go one of the largest in the universe.

India fabric industry mostly depends upon the fabric fabrication and export. It besides plays a major function in the economic system of the state. India earns approximately 27 % of its entire foreign exchange through fabric exports. Further. the fabric industry of India besides contributes about 14 % of the entire industrial production of the state. It besides contributes around 3 % to the GDP of the state. India fabric industry is besides the largest in the state in footings of employment coevals. It non merely generates occupations in its ain industry. but besides opens up Scopess for the other accessory sectors. India fabric industry presently generates employment to more than 35 million people.

Indian fabric industry can be divided into several sections. some of which can be listed as below:
? Cotton Textiles
? Silk Textiles
? Woolen Textiles
? Readymade Garments
? Handmade Fabrics
? Jute and Coir





1. 2

Current Scenario
The Indian Textiles Industry has an overpowering presence in the economic life of the state. Apart from supplying one of the basic necessities of life. the fabrics industry besides plays a critical function through its part to industrial end product. employment coevals. and the export net incomes of the state.

The sector contributes about 14 per cent to industrial production. 4 per cent to the gross domestic merchandise ( GDP ) . and 17 per cent to the country’s export net incomes. It provides direct employment to over 35 million people. The fabrics sector is the 2nd largest supplier of employment after agribusiness. Therefore. the growing and all unit of ammunition development of this industry has a direct bearing on the betterment of the economic system of the state. India has the possible to increase its fabric and dress portion in the universe trade from the current degree of 4. 5 per cent to 8 per cent and make US $ 80 billion by 2020.

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A brief study on Textile Industry in India

1. 3

Export Scenario
The Indian fabrics and vesture industry is one of the largest subscribers to the country’s exports. The fabric merchandises continue to keep an of import function in the Indian exports. The latest position of exports of fabrics from the state is given in the Table below: –

Beginning: Foreign Trade Statistics of India ( Principal Commodities & A ; Countries ) . * as per latest figures available

1. 4

Technical Textile Section
Technical fabrics are an of import portion of the fabric industry. The Working Group for the Eleventh Five Year Plan has estimated the market size of proficient fabrics to increase from US $ 5. 29 billion in 2006-07 to US $ 10. 6 billion in 2011-12. without any regulative model and to US $ 15. 16 billion with regulative model. The Scheme for Growth and Development of Technical Textiles aims to advance autochthonal industry of proficient fabric to leverage planetary chances and cater to the domestic demand.

Further. the authorities is set to establish US $ 44. 21 million mission for publicity of proficient fabrics. while the Finance Ministry has cleared puting up of four new research centres for the industry. which include merchandises like mosquito and fishing cyberspaces. shoe lacings and medical baseball mitts. The planetary proficient industry is estimated at US $ 127 billion and its size in India is pegged at US $ 11 billion.

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A brief study on Textile Industry in India

2. Major Players IN TEXTILE INDUSTRY
2. 1

Major Players in the industry
Company

Business countries

Welspun India Ltd
Vardhman Group
Alok Industries Ltd

Home fabrics. bathrobes. Terry towels
Yarn. cloth. run uping togss. acrylic fiber
Home fabrics. woven and knitted dress cloth.
garments and polyester narration


Raymond Ltd

Worsted suiting. tailored vesture. jean. shirting.
woolen overclothes

Arvind Mills Ltd

Spining. weaving. processing and garment
production ( jeans. shirting. khakis. knitwear )

Bombay Dyeing & A ;
Manufacturing Company Ltd

Bed linen. towels. trappingss. fabricfor suits. shirts.
frocks and saree in cotton and polyester blends

Garden Silk Mills Ltd
Mafatlal Industries Ltd
Aditya Birla Nuvo. a
diversified pudding stone of
the Aditya Birla Group.
consisting three divisions —
Madura Garments. Jayashree
Fabrics and Indian Rayon
ITC Lifestyle
Reliance Industries Ltd








Dyed and printed cloth
Shirting. poplins. bottomwear cloths. voiles
Madura Garments —lifestyle market ( Louis
Philippe. Van Heusen. Allen Solly. The Collective )
Jayashree Textiles —domestic linen and worsted
narration
Indian Rayon —viscose fibril narration
Lifestyle market
Fabric. formal menswear







2. 2

Profile of Major Players in India

2. 2. 1

Welspun India Ltd
Welspun India Limited ( WIL ) is the Flagship Company of Welspun Group with anenterprise value of U. S. $ 3 billion. WIL is ISO 9001:2000. 14001 and SA 8000certified company. WIL is a composite fabric factory bring forthing Cotton Yarn. TerryTowels and Rugs for international market. Welspun India Ltd. is one of the largestHome Textiles manufacturers in Asia and amongst the top 4 manufacturers of Terry Towelsin the universe. WIL is located at small town Morai in Valsad territory. Gujarat State. WILannual gross revenues turnover for twelvemonth 2009-2010 was Rs. 681. 881 crores. They have presence over 50 States. over 24. 000 employees & A ; 100. 000+ stockholders. Welspun is one of India’s fastest turning pudding stones.

2. 2. 2

Vardhman Group
Vardhman Group was established in 1965 and is a taking fabric pudding stone in India holding a turnover of $ 700 manganese. They have over 24 fabrication installations in five provinces across India. the

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Group concern portfolio includes Yarn. Greige and Processed Fabric. Sewing Thread. Acrylic Fibre and Alloy Steel.
Vardhman Group fabrication installations include over 8. 00. 000 spindles. 65 dozenss per twenty-four hours narration and fiber dyeing. 900 shuttleless looms. 90 mn metres per annum processed cloth. 33 dozenss per twenty-four hours run uping yarn. 18000 metric dozenss per annum acrylic fiber and 100. 000 dozenss per annum particular and alloy steel.

Merchandises
Cotton Narration
Particular Blended Narration
Organic Cotton
Yarn Core Spun Yarn
Fair Trade cotton
Narration Odds and endss
Organic Fair Trade Cotton Yarn
Gassed Mercerised Yarn
Ellitwist Narration
Modal Yarn
Vortex Yarn
Tencel Yarn
Slub Yarn
Viscose Yarn
Acrylic Yarn
Hand Knitting Yarn
Poly – Cotton Yarn
Forte Narration
Acrylic – Cotton Yarn


















Alok Industries Ltd
Alok Industries Ltd. is an India-based fabric fabrication company and was established in 1986. Alok Industries is a private fabric fabrication
company and has fabrication bases spread over 6 locations in Navi Mumbai in Vapi and Silvassa. situated in Maharashtra. Its concern sphere involves weaving. knitting. processing. place fabrics and ready-made garments and its a diversified maker of world-class place fabrics. dress cloths. garments and polyester narrations. Its purchasers include makers. exporters. importers. retail merchants. and branded dress makers of the universe. Further. it operates its embellishment concern through its sister concern. GrabalAlokImpex Ltd. Today. Alok Industries is one of the largest private exporters of fabrics in India. Its concern operations are spread across all the continents. Furthermore. the fabrication lab has been certified for ISO 9001:2000 quality criterions. Alok Industries became a populace limited company in 1993 and their portions are listed in Bombay

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A brief study on Textile Industry in India

Stock Exchange and National Stock Exchange. They has posted a net turnover of USD 13 billion for the FY 2011as compared to USD 208 million turnover in 2004. ?
2. 2. 4

Alok Industries merchandise lines include Apparel Fabric ( Woven ) Apparel Fabric ( Knitted )
Garments
Home Fabrics
Polyester Narration
Embroidered Fabric
Retailing




Raymond Ltd
Raymond was incorporated in 1925 and has over 60 % market portion in worsted suiting in India The company has a diverse merchandise scope of about 20. 000 design and colors of accommodating cloth. They export their merchandises to over 55 states including USA. Canada. Europe. Japan and the Middle East. The company has registered a turnover of USD 636. 7 million for the FY 2011 as compared to USD 364 million turnover in 2006.

Theirsuiting’s are available in India in over 400 towns through 3. 000 retail merchants every bit good as over 500 sole retail stores.
Raymond is among the largest incorporate makers of worsted cloths in the universe. Raymond Ltd. owns some of the most extremely respected dress trade names in its portfolio like Raymond. Manzoni. Park Avenue. ColorPlus. Parx. Park Avenue. Beryllium: . Zapp! andNotting Hill and GAS. Raymond industries and markets trade names like KamaSutra rubbers and even surgical baseball mitts. The Raymond Group besides has an expansive retail presence. Raymond’s broad scope of merchandises and services are as follows:

Entire fabric solutions.
Fabrics ( Worsted. Denim and Shirting ) .
Apparels ( Tailored Clothing. Jeanswear and Dress Shirts ) .
Trade names ( Raymonds. Manzoni. Park Avenue. ColorPlus. Parx. Beryllium: . Zapp! . Notting Hill and The Raymond Shop ) .
Woolen Outerwear.
Furnishings.




Retail ( The Raymond Shop and Brand Store ) .
Engineering ( Files. Cutting Wools. Hand Tools and Agri tools and Auto Components ) . Personal Care ( Park Avenue and Kamasutra ) .
Prophylactic ( Kamasutra and Surgical Gloves ) .
International Business.
Corporate Wear



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2. 2. 5

Bombay Dyeing
Bombay Dyeing is one of the taking companies in the fabric concern. In fact. India has made a place in the universe fabric sector keeping the custodies of Bombay Dyeing. The fabric merchandises of the company are exported to different states all across the universe like the United States. European
Union Countries. Australia and New Zealand.

2. 3

Merchandises of Bombay Dyeing:
Bombay Dyeing by utilizing advanced engineering has brought about a alteration in the fabric concern. The full production is divided into two wide watercourses. weaving and spinning and twist. The production degree on a day-to-day footing is over 300. 000 metres of cloths. Some of the of import merchandises of the company that have already become important in both. domestic and export markets are:

Cotton Sheeting
Polyester Cotton Sheeting
Poly Cotton Drills
Shoe Lining and Duck Fabrics
Satin Furnishings
Yarn dyed cloths
Flannel Sheeting
Dobby and Fine Count made-ups
Downproof Shells and Comforters
Towels. Table Tops and Napkins








Bombay Dyeing at nowadays is the largest exporter of sophisticated made-up
points and besides of merchandises made of cotton and poly cotton. Bombay Dyeing has created a ample market in the production of a broad scope of cloths and ready-mades. This includes both formal and insouciant wear. The ready-made aggregation of the Bombay Dyeing has been altering its production form with the germinating manner tendencies. The consumer subdivision of Bombay Dyeing comprise of bed linen. towels. trappingss. suiting and shirting cloths. and cotton and polyester blended frocks and saree.

Technology used in Bombay Dyeing:
The engineering applied in the production procedure in Bombay Dyeing is of international criterions. Sing the weaving installations. the engineering used is from one of the most technologically advanced company of the universe. Sulzer. The mechanizations used in weaving. spinning and twist by Bombay Dyeing are like Sulzer Projectile Machines. SulzerAirjet Machines. SchlafhorstAutocore Rotors. Auto Corner Winding Spindles and Schweiter CA – 11 Spindles.

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3. GOVERNMENT INITIATIVES AND REGULATORY
Model
3. 1

Government Enterprises
The Government of India has promoted a figure of export publicity policies for the Textile sector in the Union Budget 2011-12 and the Foreign Trade Policy 2009-14. This besides includes the assorted inducements under Focus Market
Scheme and Focus Product Scheme ; wide establishing the coverage of Market Linked Focus Product Scheme for fabric merchandises and extension of Market Linked Focus Product Scheme etc. to increase the Indian portions in the planetary trade of fabrics and vesture. The assorted strategies and publicities by the Government of India are as follows It has allowed 100 per cent Foreign Direct Investment ( FDI ) in fabrics under the automatic path.

3. 1. 1

Welfare Schemes: The Government has offered wellness insurance coverage and life insurance coverage to 161. 10 million weavers and accessory workers under the Handloom Weavers’ Comprehensive Welfare Scheme. while 733. 000 craftsmans were provided wellness coverage under the Rajiv Gandhi Shilpi Swasthya BimaYojna.

3. 1. 2

E-Marketing: The Central Cottage Industries Corporation of India ( CCIC ) . and the Handicrafts and Handlooms Export Corporation of India ( HHEC ) have developed a figure of e-marketing platforms to simplify selling issues. Besides. a figure of marketing enterprises have been taken up to advance niche handloom and handcraft merchandises with the aid of 600 events all over the state.

3. 1. 3

Skill Development: As per the 12th Five Year Plan. the Integrated Skill Development Scheme purposes to develop over 2. 675. 000 people within the following 5 old ages ( this would cover over 270. 000 people during the first two old ages and the remainder during the staying three old ages ) . This strategy would cover all sub sectors of the fabric sector such as Fabrics and Apparel ; Handicrafts ; Handlooms ; Jute ; and Sericulture.

3. 1. 4

Recognition Linkages: As per the Credit Guarantee plan. over 25. 000 Artisan Credit Card games have been supplied to craftsmans. and 16. 50 million extra applications for publishing up recognition cards have been forwarded to Bankss for farther consideration with respects to the Credit Linkage strategy.

3. 1. 5

Fiscal bundle for release of overdues: The Government of India has announced a bundle of US $ 604. 56 million to waive of delinquent loans in the handloom sector. This besides includes the release of delinquent loans and involvement boulder clay 31st March. 2010. for loans disbursed to handloom sector. This is expected to profit at least 300. 000 handloom weavers of the industry and 15. 000 concerted societies.

3. 1. 6

Fabrics Parks: The Indian Government has given blessing to 40 new Textiles Parks to be set up and this would be executed over a period of 36 months. The new Textiles Parks would leverage

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A brief study on Textile Industry in India

employment to 400. 000 fabrics workers. The merchandise mix in these Parkss would include dresss and garments Parkss. hose Parks. silk Parkss. processing Parkss. proficient fabrics including medical fabrics. rug and power loom Parkss.

3. 2

Recent Developments
Along with the increasing export figures in the Indian Apparel sector in the state. Bangladesh is be aftering to put up two Particular Economic Zones ( SEZ ) for pulling Indian companies. and duty free trade between the two states. The two SEZs are intended to come up on 100-acre secret plans of land in Kishoreganj and Chattak. in Bangladesh.

Italian luxury major Canali has entered into a 51:49 Joint Venture with Genesis Luxury Fashion. which presently has distribution rights of Canali-branded merchandises in India. The company will now sell Canali branded merchandises in India entirely.

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Detailss
Mahindra City is India’s foremost integrated concern metropolis. divided into concern and lifestyle zones. The concern zone provides plug-n-play working infinites. This zone comprises an SEZ ( chiefly for exporters ) and domestic duty country ( DTA ) for companies aiming the domestic market. The lifestyle zone offers residential units. schools. medical Centres. promenades. concern hotels and diversion installations. Keyindustrial units include Safari Exports. Venus Garments. Benchmark Clothings. International. Tormal Prints. J. R. Fashion and Ganga Export.

Integrated apparel supply concatenation metropolis programs to house first dress concatenation spouses. 60 million liters of H2O per twenty-four hours is available. Has one of the most advanced outflowing intervention systems in the part. BIAC has a dedicated 200 MW power
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A brief study on Textile Industry in India

In add-on to the four functional SEZs. there are 13 in-principle approved. 19 officially approved and 12 notified SEZs in India
>From

January 2000 to June 2011. 482 Amalgamations and Acquisitions ( M & A ; A ) trades have taken topographic point.

>The top five M & A ; A deals* are listed below

Top 5
trades
M & A ; A scenario — inside informations
Time period: 1 January 2000 to 30 June 2011
Acquirer Name
Target Name
Krishnaa Glass Pvt Ltd





AAA United BV

BR Machine Tools Pvt Ltd

Group of investors

Spentex Industries Ltd

Soma Textiles & A ; Indus
Ltd
Bombay Rayon
Manners Ltd
Bombay Rayon
Manners Ltd
Provogue ( India ) Ltd
Indo Rama Textiles
Ltd







Largest trade
( USD million )

Other authorities initiativesScheme for Integrated Textile Parks. 2005 The strategy was introduced to neutralize the failing of atomization in the assorted subsegments of the fabrics value concatenation and the inaccessibility of
quality substructure. The Eleventh Five Year Plan ( 2007–2012 ) spending for the fabrics and dress sector has been fixed at US $ 2. 91 billion ( INR 140 billion ) . which is about four times the spending fixed during the Tenth Plan —US $ 0. 74 billion ( INR 35. 8 billion ) .

3. 3

Policy and regulative model
The Ministry of Textiles is responsible for policy preparation. planning. development. export publicities and trade ordinance in the fabric sector. This includes all natural and manmade Private & A ; Confidential

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cellulosic fibre used to do fabrics. vesture. and handcrafts. National Fabric Policy. 2000 -the policy was introduced for the overall development of the fabrics industry. The cardinal countries of focal point include

Technology Mission on Cotton ( TMC ) . 2000—the strategy was introduced to turn to concerns around cotton production and processing sectors and to put the cotton economic system on a sound terms. It was ab initio to be phased out at the terminal of the Tenth Five Year Plan ( 2002–07 ) . However. the scheme’s Mini Mission was extended into the Eleventh Plan for two old ages to carry through marks.

Jute Technology Mission ( JTM ) . 2006. The aims of this programmeinclude

Technological ascents
Enhancement of productiveness
Quality consciousness
Strengthening of natural stuff base
Merchandise variegation



Addition in exports and advanced selling schemes
Financing agreements
Increasing employment chances
Integrated human resource development


Bettering the output and quality of jute fibre
Strengthening bing substructure for the development and supply of quality seeds Bettering the quality of fiberthrough better methods of retting and extraction engineerings Increasing the supply of quality natural stuff to the jute industry at sensible monetary values and developing efficient market linkages for natural jute.

Overhauling. upgrading engineering. bettering productiveness. diversifying and developing human resource for the jute industry
Developing and commercializing advanced engineering for the diversified usage of jute and allied fibre

Development of mega bunch strategies

Comprehensive Powerlooms Cluster Development Scheme ( CPCDS )
To help enterprisers to put up first units with modern substructure. latest engineering andadequate preparation and human resource development ( HRD ) inputs along with appropriate market linkages.

Comprehensive Handloom Cluster Development Scheme ( CHCDS )
Formulated to turn to the challenges faced by weavers within the concerted sector and outside. due to hapless substructure in some bunchs.
Comprehensive Handicrafts Cluster Development Scheme ( CHCDS )

The fabric industry sections eligible to avail concessional loans for engineering upgrade demands include
Spining. cotton ginning and pressure

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Silk reeling and distortion
Wool scouring and combing
Man-made fibril narration texturising. crimping and distortion
Fabrication of viscose fibril narration ( VFY ) or viscose staple fibre ( VSF ) Weaving or knitting including non-woven’s and proficient fabrics Garments. made-up fabrication
Processing of fibre. narration. cloth. garments and made-ups
Jute




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4. INVESTMENTS AND OPPORTUNTIES
4. 1

Investing
The fabrics sector has witnessed a jet in investing during the last five old ages. The industry ( including dyed and printed ) attracted foreign direct investings ( FDI ) worth US $ 1. 04 billion during April 2000 to November 2012.

Some of the major investings in Indian Textile Industry are: ?

4. 2

British vesture trade name Superdry plans to open 20 shops in India over the following five old ages. as per Mr James Holder. Founder. Superdry
The Export Promotion Council for Handicrafts ( EPCH ) is puting up an international lacing trade Centre at Narsapuram in Andhra Pradesh ( AP ) with an spending of Rs 15. 33 crore ( US $ 2. 82 million ) The Aditya Birla Group has signed an in-principle understanding to purchase the assets of Ontariobased Terrace Bay Pulp Mill for Rs 605 crore ( US $ 111. 62 million ) . The acquisition would be carried out through AV Terrace Bay ( Canada ) . a particular intent vehicle ( SPV ) in which two group companies. Grasim Industries and Thailand-based Thai Rayon Public. would keep interest

American apparel-maker. Tommy Hilfiger plans to add 500 shops in India over the following five old ages as portion of their enlargement fling. Currently. Tommy Hilfiger operates 58 franchisee mercantile establishments and over 60 shop-in-shops in other section shops Italian luxury dress shaper. CancliniTessile is binding up with Tirupur-based Emperor Textiles to sew its shirts in India. The equal articulation venture ( JV ) with Emperor Textiles will put up a separate fabrication unit in Tirupur to fabricate Italian cloth for domestic ingestion

Opportunities
The possible size of the Indian fabrics industry is expected to make US $ 220 billion by 2020.

4. 2. 1

Private sector engagement in silk production
The Central Silk Board has set a mark of 26. 000 metric tons of natural silk production by 2011–12. It has besides proposed to enlarge the country under mulberry silkworm nutrient workss to 0. 25 million hectares. which is expected to bring forth an extra 6. 400 MT of mulberry natural silk and increase employment. To accomplish these marks. confederations with the private sector. particularly major agrobased industries in both pre-cocoon and post-cocoon sections. is being encouraged.

4. 2. 2

Technical fabrics
The fabrics industry complements the growing of several industries and establishments such as the defense mechanism forces. railroads and authorities infirmaries. which are the cardinal institutional purchasers of proficient fabrics. The market is likely to turn to USD31 billion by 2020. connoting a CAGR of 10 per cent. This industry includes the production of flexible packaging stuff for industrial.

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4. 2. 3

agricultural and consumer goods. Among the other sections. protech. oekotech. sportech and geotech have important growing potency. India’s proficient fabric industry is chiefly dominated by unorganised participants. However. it is an emerging country for investing with good growing chances.

Retail sector
With consumerism and disposable income on the slope. the retail sector has witnessed rapid growing in the past decennary. Several international retail merchants are besides concentrating on India due to its outgrowth as a possible sourcing finish.

4. 2. 4

Centres of Excellence ( CoE ) for research and proficient developing The Government of India has proposed the constitution of several CoEs for developing the work force in the fabrics sector. Four CoEs have been identified for four thrust sections of proficient fabrics —geotech. meditech. protech and agrotech. These CoEs. with national and international accreditation. are aimed at making installations for proving and rating and developing resource Centres and installations for preparation.

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