w


c Second largest market in the world

c Exports last year US$ 14 Bn
c Domestic market is US$ 28 Bn
c Consists of
c 20% of industrial production
c 9% of excise collection
c 18% of employment in industrial sector
%
‘
 
c Competitive Advantage
c Changing consumer behavior
c Increasing purchasing power
c New product development
c Reduced import duties
 À
 
c Jextile Value Chain
%%w%
STRENGTHS
×
××× 
×××




 Allows the industry to reduce costs and lead times
 India is one of the largest producers of natural and man
made fibres

 × 

Grovides a competitive advantage for the industry
¦
 
  
India Ȃ 0.69
England Ȃ 14.24
Italy Ȃ 15
Japan Ȃ 26
Spain - 8
‘
‘ 
× 
xow per capita consumption of textiles so lots of scope
for growth.
Global average-6.8
U.S Ȃ 20
Japan Ȃ 12
India Ȃ 2.8

It is extremely sensitive to fashion trends and fads

Cases :
Arvind mills: increasing its cotton shirting production from 27 million meters to
34 million meters, thus making excellent use of abundant raw materials.
Madura garments: small cities are also getting fashion conscious so MADURA
GARMENJS have started setting up exclusive retail outlets in second rung
cities like thanjavur and trichy
 3EAKNESS
-
 
 
Reduces the ability to expand as few sectors influence the
whole industry.
In fabric, large section of the industry is in the power loom
And handloom sector.
Power loom sector- 63%
Handloom sector -19%
Mill sector -14%
Hosiery sector- 11%
 
 

 
Absence of a viable exit option for industry players.
Certain sectors are reserved for SSI·s like garmenting and
knitting.
   
xabor force have a low productivity
Interest rates and tax rates are high
xabor problems
 
Investments in modern technology is low
Degree of modernization
3orld ² 30.2%
India ² 4%
Europe ² 77%
Pakistan ² 70%
America - 60%

Case:Abhishek industry whose major business comes from exports

has tied up with foreign firms like Gruppo Zambiati and Nautika
to share their technology and R&D information
 
  

 Global textile industry is likely to grow from US$ 309

billion to US$ 856 billion by 2014

 Market share of India now is only 4% , so huge scope of

expansion is present

 Indian companies need to increase focus on new products

 Increase usage of CAD and Trends forecasting to improve

efficiency
Case: 3elspun India has ties with 12 of the top 20 retailers
in the world namely 3al-Mart,JC Penny, Target thereby
exploiting the opportunities
 

 
  
Increase in competition due to entry of lower priced
imports , who have a better brand name.

 






Issues such as polluting dyes, child labor, unhealthy

3orking conditions are in the firing line of the industry.

Standards like SA 8000 are being implemented in the

industry, resulting in increased pressure on the industry.
G  



   
  


c Retailing not allowed for foreign players

c Huge investments in infrastructure is required

c Availability of skilled labors and technical know-how

is low
 

 
c Unorganized retailing

c E-retailing

c Catalogue sales
ñ    
 

 
c Individually, customers have very little bargaining
power within the organized retail stores
c xots of various shopping formats available to shop
from
c xots of brand choices available for similar qualities
with different price
ñ    
 




c Being bulk purchases done by organized retailerǯs
suppliers have very little bargaining power in
organized retailing.

c Many retailers are doing backward integration and

coming out with private labels, thus decreasing
dependence on traditional suppliers.
 

 
c Very few national level players
c Growth rate
c Gresence of regional and local players
c High competition between the national brands and
retailerǯs own