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1 INDUSTRIAL STRUCTURE 2

2 MAJOR PLAYERS 7

3 COMMODITY DEVELOPMENT IN INDUSTRY 9

4 TEXTILE EXPORT 14

5 THE APPAREL INDUSTRY 16

6 SUPPLY CHAIN 19

7 INDIAN TEXTILE POLICY 30

8 INTERNATIONALISATION AND NEED FOR 33

IMPROVEMENT
9 SPECIAL FOCUS ON TIRPUR 36

10 ANNEXURE-1 EXPORT PROMOTION 47

COUNCILS,INDUSTRY ASSOCIATIONS AND
GOVERNMENT AGENCIES
11 ANNEXURE-2 LIST OF EXHITIONS 52

12 ANNEXURE-3 STASTISTICAL INFORMATION 54

PROJECT REPORT ON

SCNERIO OF TEXTILE
INDUSTRY IN INDIA WITH
SPECIAL FOCUS ON
TIRPUR

INDEX
INTRODUCTION

The textile industry, which is the single largest industry in India and
accounts for 31.1 per cent of the total value of exports, is not able to
meet its full potential because of fragmentation of the industry and
the use of obsolete and old technologies. This erosion of
competitiveness has been overcome by a few players and groups by
organising themselves along modern lines.

In this study, which gives an outline of the structure of the Indian

textile industry, its contribution to exports, major players, problems
of the supply chain, the textile policy of the government, spells out
steps needed for internationalisation, it becomes evident that the
Indian textile industry needs technical and financial support from
outside.
In Tirupur which has become the knitwear capital of India, much of
the industry in the cluster propelled by SMEs, has modernised but
much remains to be upgraded.

TEXTILE INDUSTRY

INDUSTRIAL STRUCTURE

Textiles is the largest single industry in India accounting for about 20

per cent of the total industrial production. It provides direct
employment to around 35 million people. Textile and clothing exports
account for about 31.1 per cent of the total value of exports from the
country and 19 per cent of the total share of exports. There are 1,850
textile mills with a spinning capacity of about 37 million spindles.
While yarn is mostly produced in the organised mills, fabrics are
produced in the decentralised power loom and handloom sectors as
well. The Indian textile industry continues to be predominantly based
on cotton, with about 65 per cent of raw materials consumed being
cotton.

Mill Sector

There are 1850 mills in the country of which 284 are composite mills
(where the whole cycle of production from yarn manufacture, to
processing to fabric production takes place) and 1438 spinning mills.
The installed capacity is 37 million spindles, 450,000 rotors and
1,40,000 looms.
There are approximately 1200 medium and large scale textile units in
the mill sector and 20 per cent of these mills are located in
Coimbatore (Tamil Nadu).

The De-Centralised Power loom Sector

Decentralised power loom sector is characterised by mechanised

production of fabrics but with no yarn production at the factory. The
decentralised power loom sector plays an important role in meeting
the clothing needs of the country by manufacturing varieties of cloth
for the masses. It produces 68% of the total cloth production in the
country, as against16% by the hosiery sector, 5% by the mills and 9%
by the handloom sector. The fast growth of the power looms has
been due to certain advantages which they have enjoyed, viz. low
wages, low overheads, low requirement of working capital vis-à-vis
the composite mills.

There are approximately 165,0000 power looms operating. The

concentration and distribution of power looms has not changed much
over the years with Maharashtra, Gujarat and Tamil Nadu dominating
the scene as in the past.

About 75% of the looms operating in the country require

modernisation. While 64% of these require modernisation from
scratch, the remaining 36 per cent require modernisation to a lesser
extent.

Handloom Sector

The handloom industry is the largest decentralised economic activity

providing large-scale rural employment to nearly 12 million people. It
is also the biggest cottage industry after agriculture. The handloom
sector contributes more than 20 per cent of the country’s fabric
requirement. The bulk consumption of the handloom sector is by the
domestic market while about 15 per cent of the total production is
exported presently in the form of fabrics and made-ups.

The technology employed in the handloom industry is simple and

environment friendly. The loom itself is operated solely by human
metabolic energy and requires space of barely 10 sq metres. The 4
million handlooms scattered throughout the country involve the
efforts of some 15 million men and women predominantly in the
villages.

Spinning, Weaving and Processing in Indian Industry

Spinning Capacity

Currently, India has the second highest spindleage in the world, after
China, accounting for about 20 per cent of the world spindleage and 3
per cent of the world rotorage. The total capacity in the country in
terms of spindle equivalent is about 37 million as against 46 million in
China. However, in terms of quality and technology, only about 15
million spindles can be considered to be state-of-the-art, while
another 10-11 million spindles need upgradation within the next 5-7
years

Weaving Capacity

Since India’s weaving capacity is predominantly concentrated in the

decentralised sector, it has a limited ability to absorb technology
upgradation. Only the few export driven and niche market oriented
mills went in for strategic weaving modernisation. In fact, there are a
mere 200 exclusive weaving mills with barely 17,000 looms.

Processing and Finishing Capacity

As in weaving, the processing operation in India, particularly woven

and knitted fabric processing takes place both in the organised and
unorganised sectors. In the organised sector, in addition to the
composite mills, processing is done in independent processing
houses organised on a factory basis. In the decentralised sector,
there are small scale power processors as well as hand-processors
using traditional techniques.

While the composite mills have the ability to upgrade technically

because of optimal scale of operation and economies of scale the
smaller units use obsolete technology and need to also improve
quality.
 Textile Industry - Overview

Item Unit 95-96 96-97 97-98 98-99 1999-

2000
(A)

Cotton/ Man-Made No. 1569 1719 1782 1824 1850

Fibre

Textile Mills

Spinning Mills (Non- No. 1294 1438 1504 1543 1566

SSI)

Composite Mills (Non- No. 275 281 278 281 284

SSI)

Spinning Mills (SSI) No. 750 795 861 901 920

Exclusive Weaving No. 172 176 187 199 200

Mills (Non-SSI)

Power loom Units No. 3330 3493 3579 3932 400,00

(Year end) 17 80 43 02 0

Capacity Installed

Spindles (SSI + Non Million No 31.75 34.59 35.39 36.67 37

SSI)

Rotors (SSI + Non Thousand 226 300 339 434 450

SSI) No.

Looms (Organised Thousand 148 140 140 140 140

Sector) No.

Power loom Thousand 1412 1523 1595 1620 1650

No.

Handloom Thousand 3891 3891 3891 3891 3891

No.

Man-Made Fibre Million Kg 602 792 1008 1064 1225

Man-made Filament Million Kg 620 680 888 1033 1188

Worsted Spindles Thousand 518 518 563 575 583
(Woolen) No.

Non-Worsted Spindles Thousand 317 317 406 412 417

(Woolen) No.

Production of Fibers

Raw Cotton * Lakh bales 170.2 177.9 158 163 175

Manmade Fibre Million Kg 498 588 708 782 848

Raw Wool Million Kg 41.41 43.29 44.74 45.46 46

Raw Silk Million Kg 13.91 14.13 15.24 15.54 15.84

Production of Yarn

Cotton Yarn Million Kg 1894 2148 2213 2022 2205

Other Spun Yarn Million Kg 591 646 760 786 815

Manmade Filament Million Kg 493 602 769 850 861

Yarn

Fabric Production

Cotton Million 1890 1984 1999 1794

Sqr.Mtr. 0 1 2 8 18390

Blended Million 4025 4888 5751 5700

Sqr.Mtr. 5624

100% Non-Cotton Million 9033 1010 1169 1245 14420

(Including Khadi, Wool Sqr.Mtr. 9 8 4
& Silk)

TOTAL 3195 3483 3744 3610 38434

8 8 1 2

Per Capita availability Sqr.Mtr. 27.99 29.3 30.92 28.19 30.55

of Cloth
Production of Textile Million US 450.9 365.3 404.2 269.9
Machinery $ 5 9 9 4 223.9

Textile Exports &

Imports

Exports (Including Million US 1067 1183 1234 1255 13325

Jute, Coir & $ 6 9 2 9
Handicraft)

Imports Million US
$ 952 765 824 840 1052

Source: 1. Textiles Commissioner Office

2. Export Promotion Councils
MAJOR PLAYERS

Some of the major industrialists in textiles are the Mafatlals, the

Wadias, the Piramals, the Birlas, Lalbhai’s, Kasliwals and Parikhs.
Some of the leading mills in India are Arvind Mills for denim in
Ahmedabad, Lakshmi Mills in Coimbatore, Madura Coates and GTN
Textiles.

Mafatlals: The Arvind Mafatlal Group’s textiles and apparel business

total about U.S. $ 90-100 million in annual sales. Its flagship company
Mafatlal Industries Ltd., has international customers including Marks
and Spencer, Philip Van Heusen, GAP, JC Penney, Klopman, Haam &
Al Ghanemi among others and is one of the largest exporters of
fabrics in the country. In the domestic market, it has a distribution
network of 200 plus Mafatlal Family shops spread across the country.

AMG also has garmenting facilities ( in a joint venture with Gruppo La

Perla, Italy) and a joint venture with Burlington Industries, U.S. for a
denim manufacturing facility in Navsari, Gujarat.

Wadias: The Wadias own The Bombay Dyeing & Mfg. Co. Ltd., their
flagship company, with 5 units covering spinning, weaving and
processing, with production exceeding 300,000 meters of fabrics per
day and a turnover of approximately U.S. $ 90 million. The company
which pioneered the export of textiles in 1940 has a unique India-
wide distribution network of over 550 exclusive franchised retail
shops covering more than 300 towns. In fact, Bombay Dyeing is one
of India’s foremost brands producing sheets, towels, furnishings,
suitings, shirtings and is among the country’s foremost producers of
cotton, synthetic fabrics and readymades.

Piramals: The Morarjee Goculdas Spinning & Weaving Company Ltd.

( with a turnover of U.S. $ 60 million) is a Piramal group enterprise –
part of the $ 400 million Piramal Enterprises Ltd. Morarjee has
entered into a 50:50 joint venture with Manifattura di Valle Brembana
Spa of Italy for manufacturing high count shirting fabrics. It also has a
50:50 joint venture with Manifattura Castiglioni Spa of Italy for
marketing of home furnishing products . It has also entered into a
technical collaboration with Ms/ AG Cilander of Switzerland for
offering different types of finishes for its fine count voiles.

Birlas: The Aditya Birla group which is India’s third largest industrial
house has a major textiles operation, with its flagship company,
Indian Rayons Ltd. producing a range of products from viscose
filament yarn and flax yarns to worsted yarn and fire fighting
hosepipes. In fact, the Aditya Birla group is the world’s largest
producer of viscose staple fibre. It is also in the garments business
with Madura Garments in India being a leader in the branded apparel
market in India

The Birla compay - Grasim Industries which has a turnover in excess

of U.S. $ 100 million is also in the fibre business. In fabrics, the Birla
group has two major brands namely, Grasim and Graviera suitings.

The Aditya Birla group also has textiles mills overseas in Thailand,
the Philippines and Indonesia.

The Lalbhais: The Arvind Mills Ltd. is the flagship company of the
U.S. $ 550 million Lalbhai group. It is one of the top ten
manufacturers of denim in the world. The group companies include
Arvind Products Ltd., Arvind Worldwide (M) Inc, Mauritius, Arvind
Worldwide Inc, U.S.A., Arvind Clothing Ltd. ( which has a collaboration
with Cluett International Ltd. of the U.S.), Arvind Fashions Ltd. ( which
has a tie-up with VF Corporation of the U.S.A), and Arvind Overseas
(Mauritius) Ltd., Mauritius.

Kasliwals: The S. Kumar Group of the Kasliwals with a turnover of

approximately
U.S. $ 200 million is in the business of blended suitings, home
textiles, worseted fabrics and read to wear items. In the uniform and
work wear segment, S. Kumars is the dominant brand in India. The
group has a 100 per cent EOU in home textiles and manufactures
polyester and wool blended and 100 per cent worsted fine and
superfine fabrics.

Parikhs: The Ashima Group owned by C.N. Parikh with its flagship
company, Ashima Ltd. is one of India’s leading 100 per cent cotton
fabric manufacturers. The Ashima Group turnover is U.S. $ 153
million. It has a marketing arrangement with Cone of the U.S.A. With
an annual capacity of 65 million metres of woven and circular knitted
cotton fabrics and on account of its qualitative supremacy it
commands a base of discerning customers in more than 45 countries
around the world. Its products include denim, suiting, shirtings,
interlining fabrics and circular knitted grey fabrics.
COMMODITY DEVELOPMENTS IN INDUSTRY

Indian Cotton Textile Industry

Today, the Indian cotton textile industry is large with over 1566
spinning units, over 284 composite mills and around 1.54 million
registered looms.The industry’s installed capacity includes over 33.93
million ring spindles and around 317 thousand OE rotors. This large
installation coupled with wide varieties of locally available cotton
enables the industry to produce yarn to match any specification and
count range.

In 1999-2000, of an estimated yarn production of 3881 million kg,

cotton accounted for approximately 2205 million kg, i.e. is around
65.21 per cent.

The industry’s production of piecegoods was estimated at 38,434

million square meters in 1996-97. Of this 100 per cent cotton
accounted for about 48 per cent.

With over 9 million hectares under cotton cultivation and an annual

crop of around 2720 million kgs, India is amongst the world’s largest
reservoirs of this popular fibre. In addition the 80 odd cotton varieties
of different descriptions being grown in India enables the industry’s
produce cover almost every conceivable count and construction of
fabrics in a width of choice.

Genetically Modified Cotton

The Indian Government has recently allowed commercial cultivation

of the country’s first ever genetically engineered crop – the
controversial BT cotton developed by the Maharashtra Hybrid Seed
Company ( Mahyco) in collaboration with the U.S. based life sciences
major, Monsanto.

The Genetic Engineering Approval Committee (GEAC) under the

Ministry of Environment and Forests, while giving approval for three
out of four of Mahyco’s transgenic hybrid cottons, for which the
company sought approval has also laid down certain conditions for
the company to comply with. These include information on the
quantity of seeds produced, names of individual distributors/dealers,
quantities sold and also reports on any resistance built up, second
generation susceptibility of the crop to the target insect pest
(American Bollworm), and the possible negative impact of pollen
transfer to the neighbouring fields.

In the meanwhile, BT cotton is being grown also in the states of

Gujarat and Andhra Pradesh.

Man-Made Textile Industry

The Man-Made textile industry in India has expanded from a capacity

of 291.93 million kg in 1984-85 to 914.33 million kg in 1993-94 and
2096.54 million kg in 1998-99..

Man-Made fibres include synthetic fibres, viz. nylon filament yarn,

polyester filaments yarn, polypropylene filament yarn, polyester
staple fibre, polypropylene staple fibre and acrylic staple fibre as well
as cellulose fibres such as viscose filament yarn and viscose staple
fibre.

Analysis of the share of synthetic yarn in the total yarn production

reveals the supplementary and substitution role played by this sector
in the country. The share of cotton yarn in the total yarn production
has declined from 77.12% in 1983 to 65. 21 per cent in 1999-2000,
while the share of man-made fibres has gone up from around 11.77
per cent in 1983-83 to 34.79 per cent in 1999-2000.

Synthetic fabrics are made in the mill sector, handloom sector and
power loom sector. The powerloom sector accounts for about 98 per
cent of synthetic fibre fabrics in the country. The handloom sector
accounts for a share of 1.9 per cent, The mill sector accounts for 0.1
per cent.

Silk Production

India produces 14,000 tonnes of raw silk and imports 3,000 tonnes of
the raw material. Present production of silk fabrics is 190 million
metres. India ranks second among the mulberry silk producing
countries, accounting for 16% of the total world raw silk production.

Production of mulberry raw silk is mainly confined to the traditional

states of Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal; and
Jammu and Kashmir which together account for about 99% of the
country’s total mulberry raw silk production. Mulberry sericulture has
been introduced in the states of Assam, Bihar, Gujarat, Haryana,
Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Orissa,
Punjab, Rajasthan, and Uttar Pradesh where a vast potential exists.

Indian silk is essentially woven on handlooms. About 65 per cent of

the Indian silk is woven on handlooms and 30% on traditional
powerlooms. The powerlooms are also organised on a small-scale
cottage industry pattern. The modern silk weaving factories having
better powerlooms account for about 5 per cent of silk production.

There are about 182,000 silk handlooms and 27,000 silk powerlooms
in India. Indian silk fabrics, mainly saree materials are produced in
places such as Kancheepuram, Kumbakonam and Arni in Tamil Nadu,
Mysore and Bangalore in Karnataka., Dharmavaram and Pochampalli
in Andhra Pradesh, Varanasi in Uttar Pradesh and Murshidabad in
West Bengal. About 80 per cent of silk powerlooms are located in
Karnataka alone.

World production dominated by China has been falling, while Indian

production, about 19 per cent of the world figure, has been
rising.

Falling world production has also created an unmet global demand,

raising prices and improving Indian silk export earnings. Domestic
demand itself, now calculated at 25,00 tonnes outstrips supply by
approximately one-third.

The constant search for variety and exclusivity in the global haute
couture markets gives an edge to Indian products, with their variety
of silks.
Woollen Industry

In India the woollen industry is mostly dependent on imported wool. It

is also rural, defence ( supplying clothing for the Indian armed
forces) and export oriented. It is an industry, where the organized
sector, de-centralised sector and the rural sector run
complementary to each other. It is also small in size and
scattered.

The woollen industry in India is mainly located in the states of Punjab,

Haryana, Rajasthan, Uttar Pradesh, Maharahstra and Gujarat.

The installed capacity of the industry consists of 583,000 worsted

spindles and 417,000 non-worsted spindles. It employs about
1,200,000 people in the country.

Exports of woolen/acrylic knitwear go to Russia, North America and

Europe.

After liberalization of the industry, foreign companies have entered

into agreements with Indian woolen textile mills such as the
consultancy services provided by Marzotto, Loropiana and
Piacenza from Italy to Raymond Ltd. and by Samsung of
Korea to Samtex.

India’s production of wool, though a tiny percentage of world

production has some strengths in the knitwear sector and the ability
to give consumers an exclusive product based on traditional designs
and colours. It is in the hand embroidered garment sector in wool
that India can be competitive in the world market.
Clusters
If we look at the organization of the textile industry according to
clusters we find that the large clusters aggregating business of
around U.S. $ 204.08 million in the hosiery sector are found in
Tirupur, Ludhiana and Kolkatta. In the powerloom sector, major
clusters are in Burhanpur in Madhya Pradesh and Bhiwandi in
Maharahstra with ready made garment clusters in Delhi, Chennai
and Bangalore. Silk clusters are found in Bangalore and Mysore
in Karnataka state and woollen clusters for shawls in Kullu in
Himachal Pradesh and Amristsar in Punjab.
TEXTILE EXPORTS:

The textile industry occupies a position of prime national importance

accounting for over one third of India’s total merchandise export.
India produces and exports textiles of all kinds from a wide variety of
fibres-natural fibres, regenerated celluloses fibres and synthetic
fibres. India’s production base includes the basic textile raw material,
intermediates upto the final finished product and the finished textile
products themselves. The cotton sector constitutes the backbone of
the Indian textile industry.

Massive investments are being made in the Indian textile industry

today. A large number of 100 % Export Oriented Units have come up
in the sector and many more are in the pipeline. These units produce
only for the export market. The Indian cotton textile exports have
registered a mark in the global cotton textiles trade scenario by
capitalising on the following benefits viz, home grown raw material,
wide variety of cotton fibre for spinning, a large variety of yarns,
availability of relatively inexpensive and skilled labour, abundant
availability of technical and managerial manpower, access to the
latest equipment and machinery through various export friendly
schemes of the Government and above all the willingness to succeed.

India is the 10th largest exporter of textiles and clothing in the world
and exported U.S. $ 11.31 billion worth of these two items in 2001-
2002.

The industry’s produce is exported to over 185 countries

spread over five continents with Asia accounting for about 45
per cent of the total exports followed by Europe at about 29
per cent, America about 14 per cent, Africa at about 10 per
cent and Oceania at about 1.5 percent of the total exports.

Indo- EU market access agreements

Considering the importance of the European market it is interesting

to note that in December 1994, India had signed two separate market
access textile agreements (called MoUs) with European Union and
United States. Under the Indo-EU MOU, market access was to be
facilitated through tariff bindings and removal of Quantitative
Restrictions. EU was to remove all restrictions on India's exports of
handloom products and cottage industries products. In addition India
was to be given exceptional flexibilities in addition to the existing
flexibilities. The quantum of flexibilities was 7,000 tonnes per year for
1995-97 and 8,000 tonnes per year for 1998-2004.

However, a number of differences had been persisting over the

actual implementation of the MoU, particularly in regard to the grant
of exceptional flexibilities by EU and the tariff binding notification by
India. The EU denied exceptional flexibilities during 1997 and fully
during 1998 and 1999 on the ground that India had not bound its
tariffs as per the MoU. Consultations were held with EU in July 2000,
in which the long-standing differences over implementation issues
have been successfully resolved. Pursuant to the consultations, India
has notified the revised tariff bindings to WTO. On the other hand, the
EU released 8,000 tonnes of exceptional flexibilities for the year
2000. EU has also agreed to release 8,000 tonnes of exceptional
flexibilities during the remaining years till 2004, that is, till the end of
the textile quota regime.
THE APPAREL INDUSTRY

The Apparel Industry in India is largely concentrated in the

decentralised sector and started mainly as an export-oriented
industry. It has made rapid progress during the last one decade.
Apart from contributing the highest net export earnings (15 per cent
of the total), it produces about 3 times as much for the domestic
market also.

A peacock revolution happened in India during the late 80’s. While

the women continued with their six yards sarees and ethnic fashions,
men were pushed into discarding the street corner tailor with the
advent of low priced men’s ready to wear shirts. Stencil was a leader
in this concept and it offered a wearable shirt at Rs.99 in 1990. This
good value for money shirt brand opened up a revolution. Brass
Tacks, Cambridge and several others came onto the scene. The
men’s shirts overnight became an across-the counter product. Later
the value for money positioning changed considerably and the
subsequent foray of brands like Louis Philippe, Van Heusen, Park
Avenue etc upgraded the market.

The ready to wear revolution did not usher in a retail revolution. The
multi-brand stores which sold all types of products were the prime
distribution channel for clothing. The early 90s saw the setting up of
solo shops focussed on one brand and in this context the pioneering
efforts of Madura Garments and Zodiac helped the evolution of
fashion retailing.

During the mid 70’s and mid 80’s a silent revolution was also taking
place in women’s sartorial preferences. These periods witnessed an
unprecedented growth in the ladies outer wear/inner wear markets.
The growth in what is termed as Pujabi suits, or Salwar Khameez
sector was up by leaps and bounds.

In the men’s formal wear segment, Madura Garments and Raymonds

set the trend.

Thus the garment industry in India has been evolving over the years.
In this process, its profile has undergone considerable changes.
Technology has been gradually upgraded and there is a qualitative
improvement in the garments produced in the country. Many leading
fashion labels are now associated with Indian products.

The product matrix today has a repertoire of synthetics, cotton

blends and knitwear items. The industry is shaping itself to meet the
demands of product specialisation in a highly segmented buyers
market.

India has also been exporting garments for a number of years and
now in the last few years has established a distinct presence in the
world clothing market. From a country traditionally known to be
producing low cost products, its is now slowly also being increasingly
looked upon as a major supplier of high quality fashion garments.
Indian garments have now reached all the leading markets in Europe,
North America, the Nordic countries, Australia and Japan.

India exports more than one hundred garment product categories,

mainly falling in cotton, semi-fashion, middle price segment of casual
wear, with the main product categories being T-shirts, men’s shirts,
ladies blouses, ladies dresses and skirts. Member states of EU, U.S.A.,
Canada, U.A.E, Japan, Switzerland and Australia are the major
markets for India’s clothing exports. The share of knitted garments in
value terms is about 35 per cent while in quantum terms it is 55per
cent. There is no doubt that the knitted sector is emerging as the
faster growing sector of the two and over a period of time has
succeeded in overtaking the woven garment sector.

The exports of garments have surged both in quantity and value

terms in both rupee and hard currency. The average unit export
prices have also gone up considerably.

In the domestic sector, there is also the entry of foreign brands, most
of them in tie-us with Indian textile houses. Indus Clothing and Arvind
Mills/ Arvind Fashions are outstanding examples, the former with Lee
Cooper and the latter with V.F. Corporation of U.S.A. for Lee jeans and
with Arrow of U.S.A. for shirts.

Foreign brands have also themselves set up shop in India in prime

consumer locations. Some of the well known foreign departmental
stores also see a growing market in India.

Indian manufacturers are also seeking avenues in foreign markets

such as Raymond, who are planning to acquire a fabric manufacturer
as well as a garment manufacturer in Europe.

As regards marketing efforts in the domestic market, a study shows

that the retail chains in India are very weak owing to the disorganized
form of retailing. At the lower end of the market, there does not
appear to be any serious marketing efforts. As one approaches the
higher end of the market, real marketing efforts are undertaken
either by the producers or by the retailers. At the higher end of the
market, there are franchises, with various types of retail formats
available to big players such as exclusive showrooms, franchised
show rooms etc. Such show rooms are normally multi-product outlets,
the reason perhaps being the commercial non-viability of exclusive
apparel outlets. Serious marketing efforts also include brand
promotion, attractive sales offers etc.

As regards marketing efforts by middle level makers of garments, the

concentration seems to be on exports rather than on retail sales.
With the retailers, marketing efforts are again limited with the
concept of store brands still new in India.
SUPPLY CHAIN

In the export market, composite mills sell either directly or through

exporters such as a star trading house, super trading house etc. In
the domestic market, the mills sell their products to wholesalers
through an agent or a broker. The wholesale package is uniform and
does not provide for assortments. The wholesaler passes it on to the
semi-wholesaler in assortments and they in turn pass it on to the
dealer. Some mills are now scrapping the wholesaler and passing the
assortments on directly to the semi-wholesalers. Some mills such as
Raymonds, Gwalior Rayon, Reliance and Bombay Dyeing also have
their own retail shops.

The smaller players which consist of the power looms operate

through merchants. The merchants give them the design and other
specifications, which they manufacture and hand over to the
merchants for sale.

In the handloom sector, there is marketing support given by the

government and there are handloom houses and co-operative society
owned shops through which the sales are made.

For knitted garments too, the supply chain is through merchants. The
merchants give the manufacturers the specifications and they
manufacture and hand over their products to the merchants for sale.

For many years, the textile industry has been one of India’s most
closely regulated sectors. This is because the industry provides
livelihoods for very many households. The major raw material
consumed by the industry is cotton, and almost all of this is
domestically grown. Also, most of India’s cotton crop is consumed
domestically. The whole of the cotton-growing community is
therefore heavily dependent on the country’s textile industry. In
addition, there are many small-scale producers in the handloom
sector—each hand-operated loom produces around 5-6 meters per
day—and in hand processing (dyeing and finishing) who derive their
livelihood from the textile industry. The future of industry regulation
is a highly contentious issue. On the one hand, there are pressures to
adapt to the new world dynamics. But on the other, there are calls for
social benefits to be granted to the masses that are dependent on
this sector. Seldom is a middle path found. As a result, sectors fight
among themselves rather than collaborating to promote and enhance
India’s competitive advantages. For the industry to thrive, ways and
means of coordinating efforts need to be found.
Lack of Organised Retail Sector

The final user of the bulk of the textile chain’s products is the
consumer. Each component in the textile supply chain should
therefore aim to maximize the consumer’s satisfaction. However, the
system in India is not well adapted to that end. The system is “push”
driven by the industry rather than being “pull” driven, by consumers
and retailers. A chain like this suffers from the following problems.
Retailers, as the members of the chain who are closest to consumers,
have the greatest influence on what consumers purchase. However,
retailers in India also represent the most fragmented sector. They are
seldom aware of improvements in styling, packaging and product
features, and of worldwide developments. Even those who are aware
of such developments are too small to be able to influence their
suppliers, and to persuade them to make extensive changes or
introduce innovation. The least fragmented sector—and the one
which probably also has the most “clout”—is the spinning sector.
However, this sector is distanced from the consumer. Having always
been a commodity player, the spinning sector is production driven
and has little appreciation of innovative marketing. Because the front
(or retail) end of the chain is small and the back end comparatively
large and better organised, the result is an inefficient “push” system
with a high build-up of inventories at each stage in the chain and a
high level of mark-downs (products whose prices have been reduced
in order to clear surplus stocks).

In contrast, the front end of the supply chain in most developed

economies is strong. The chain is driven either by the consumer or by
retailers. In these situations, retail-driven growth has led to a much
more efficiency-conscious supply chain. These situations also foster
innovation, because retailers are nearest to the consumer market.

Retailing in India

In India there are an estimated 5 mn retail shops. These outlets can

range from 50 ft2 to 25,000 ft2, with an average close to 500 ft2.
Most are independents. But retailing is one link in the chain which
promises tremendous growth. Major business houses in India—such
as the Tatas, the Piramals and the Rahejas—have shown interest in
this area, and have already ventured into the business with a few
large format stores (upwards of 25,000 ft2). Most of the new entrants
—recognizing that economies of scale represent a major factor in
their success—have chalked out ambitious growth plans with the aim
of spreading their operations in all the major metropolitan areas.
This consolidation at the front end has already started to have a
positive effect on the supply system. Larger retailers have been
successful in generating interest at the consumer level, and have
established a more efficient and responsive supply network for
themselves. They have started to collaborate with their vendors and
to build supply relationships.

Changes in the Garment Sector

Garment making stands a better chance than fabric making of

creating impulse-driven demand in India’s stagnant domestic market.
However, because of the vast spread of the country, and the wide
disparity of disposable income in India, it is difficult for organised
retailers to span the entire country. This will only happen in the long
term. In the meantime, these retailers are expected to limit their
operations to around 15-20 cities for the next five to seven years.

Meanwhile, the sector which is expected to stimulate demand in the

textile supply chain is branded garment marketing. In line with the
expansion in retail sales, branded garments are growing at an
estimated rate of around 25% per annum.

In fact, fashion is now driving the retail boom in India and brands in
clothing, textiles, are among the segments that lent the necessary
push to get the retail activities to get some organized formats. Textile
mill showrooms, Khadi Bhawans and BATA outlets across the nation
were in fact the first phase of structuring retail businesses.

For those producers who sell in the international market, garment

making has been able to flourish on the basis of India’s competitive
strengths—namely, cheap and skilled labour, coupled with a large
fabric manufacturing base. However, faced with global competition,
growth in this sector has started to level off.

For further growth to be achieved, the industry will need to be

unshackled from government regulation, and fresh investment made
in state-of-the-art production systems. To attract such investments,
however, larger facilities will have to be set up in order to benefit
from economies of scale. Larger players would need to step in, but
first the right environment would have to be created to facilitate their
entry.
The same applies to export markets—particularly as many buyers
want, increasingly, to source “full packages” rather than sourcing
yarn from one place, getting it converted into fabric at another and
then getting the fabric made up into garments at a third location. A
more efficient and more capable front end is therefore a must.

Value Added Dyeing and Finishing Sector

India’s fabric processing sector lacks state-of-the-art technology. This

helps to explain the high share of grey fabrics in India’s textile
exports. World trade in processed fabric is worth double that of grey
fabric in value terms. However, India exports only half as much
processed fabric as grey fabric in value terms.

Furthermore, even those processed fabrics which India does export

achieve much lower average unit values than the average for the
market as a whole.

Low unit values can be partly attributed to the fact that the garment
sector until recently has been undemanding as far as quality is
concerned. Since there is little perceived need for high quality
fabrics, there has been little demand for them. Also, Indian garment
makers use mainly low value fabrics produced by the power loom
sector, or stock lots sold off by the mills after the best qualities have
been exported. Even garments destined for export are, typically, low
value products.

Investment in fabric

Because of the lack of demand for high quality fabrics, investment in

the fabric processing sector has also been low.

In addition to the lack of demand for better-processed fabrics,

taxation policies favour low technology hand-processing and
standalone process houses—these enterprises are either not required
to pay excise duties or have only a low tax burden.

However, because of this differential taxation policy, the sector is

witness to rampant excise duty evasion. Such practices are a major
deterrent to investment in this sector. For example:
some process houses under-invoice their products in order to benefit
from lower excise rates; and
some process houses declare power processed fabrics as hand
processed because the latter enjoy more favorable tax treatment.
Such evasion is difficult to spot. After a fabric has been processed, it
is difficult to ascertain whether it has been printed using hand
processing machines or on power machines.

Demand Stimulation

In the absence of a demanding retail sector, textile and clothing

manufacturers in India have enjoyed a seller’s market until quite
recently. Before the early 1990s, the stimulation of demand had
never been an issue. Thus the chain had lots of intermediaries—
wholesalers and distributors—who were, in effect, responsible for the
marketing of companies’ products.

But, as a consequence of trade liberalisation in the early 1990s—

coupled with the media boom—consumers have become much more
aware of what is available. As a result, there is a wide gap between
consumers’ expectations and what producers are supplying to the
market. In fact the transition from a seller’s to a buyer’s market has
been very rapid, and many companies have failed to adjust to the
new market conditions.

Even in foreign markets, many Indian products tend to be at the

bottom end of the market. For example, unit values of Indian yarn
and fabric exports are generally lower than world average prices.

Some of the main reasons are as follows. Within India, competition

among the various players in each sector is strong, and sellers are
often willing to discount the prices of their products in order to get
business. Buyers who visit India therefore tend to negotiate with
several parties before finalizing their orders.

Quality can not always be guaranteed. Hence most foreign buyers

lack the confidence to buy products in India which are aimed at the
upper-middle segment and premium end of the market.

India supplies products mostly at the “mass” end of the market

where there are many-often cheaper-supply bases such as China and
Mexico. Where comparable products are available from alternative
supply sources, competition limits the ability of Indian producers to
increase their unit values.

Steps Being Taken to Address the Situation

India’s disadvantages are certainly recognized by the industry, as
well as by the government. Indeed, a sense of urgency is gradually
building up as December 31, 2004-the day when all textile and
apparel quotas are due to be eliminated-draws closer.

A committee of experts has therefore been set up by the

government. Many industrial bodies and quasi-government bodies
have also joined forces with a view to finding new directions and
initiatives in order to boost growth in the industry.

Quality Improvement -Textiles Committee

The Government of India has set up a Textiles Committee as a

statutory body, under the Ministry of Textiles with the basic objective
of ensuring quality in textiles. The management is vested in a 29-
member committee representing the Government, textile research
associations, export promotion councils and the textile industry and
trade. The committee has played a leading role in developing textile
testing facilities, generating awareness about eco-friendly textiles
and implementation of Quality Management Systems ( ISO-9000).

The Committee has 18 laboratories for testing of textiles, dyes,

chemicals and effluents in major textiles centers in India. It has a
large clientele of around 30,000 textile exporters located in major
textile centers in India to avail of its services. It is the largest
organization providing consultancy in the area of ISO 9000, QMS, ISO
14000 EMS and social accountability standards.

The 18 laboratories meet national and international standards of

Indian, American, British and Japanese standard associations. The
Committee has also launched comprehensive programmes for
capacity building of textile SMEs in 23 clusters and for training of
industry personnel.

Modernization of Production Equipment- TUFS

One area of major concern has been a dearth of state-of-the-art

production equipment in the Indian textile industry.

The spinning sector has, perhaps, the most modern equipment. But
even in this sector, around 65% of capacity is more than ten years
old. Out of a total of 33.3 mn ring spindles, it is estimated that 5 mn
have been rendered completely useless by poor maintenance and
made obsolete by changes in technology. Another 5 mn spindles are
very old and suffer from extremely low productivity.

Scrapping and replacement of old machinery has been minimal.

These old machines are fully depreciated, and producers use this as
an opportunity to charge low prices for their products. Few see the
need to provide for the capital costs of new machinery in their
costing. This policy, according to most of the major players, has been
spoiling the market.

Productivity in the Indian spinning sector is poor relative to

competitors such as Mexico, Turkey and the USA.

Moreover, all three of these countries have made gains in recent

years, whereas India has seen little improvement. Mexico, Turkey and
the USA improved their production per spindle by over 50% between
1993 and 1996 by retiring old machinery and installing new spindles
with higher productivity. Meanwhile, production per spindle in India
rose by only 8.3% over this period—despite a fall in the average
count produced.

The need for modernization in spinning is especially important from

an export viewpoint. In international markets buyers demand mainly
defect-free fabrics and yarns. However, it is not possible to produce
long runs of defect-free fabrics unless the yarn used is also
standardized and defect-free. To modernize the industry properly, it
is important that government measures provide for the scrapping of
old machinery as well as investment in new machinery. In addition,
workforces need to be rationalized.

The situation in weaving is similar. Despite a huge stock of weaving

equipment available to producers in India, relatively few machines
are of recent design. India has fewer shuttle less looms-in both the
organised mill sector and the fragmented sector-than many of its
competitors.

As in the spinning sector, weaving suffers from excess capacity. The

bulk of Indian fabric production comes from a fragmented base of
about 1.5 mn (mostly conventional) power looms. Total capacity in
this sector is estimated at 28,000 mn meters per year.

However, actual production is only around 20,000 mn meters-based

on the assumption that one running meter is almost 1 m2 (as few
power loom weavers have shifted to wider width machines). Capacity
utilization in the power loom sector is therefore only about 70%.
To support and encourage the process of change, the government
has recently announced the launch of its Technological Up gradation
Fund (TUF).

The aim is to bring about an improvement in production, productivity

and quality by introducing state-of-the-art technology. The fund is to
be disbursed at an “internationally competitive” interest rate—which
will be 5% lower than the interest rate prevailing in India. The TUF is
targeting all segments in the chain, from cotton ginning, spinning,
weaving and processing to garment manufacture.

As well as modernizing plant and machinery, the TUF is also

promoting investment in: the renovation of factory buildings and
electrical installations; energy saving devices; effluent treatment
plants; water treatment plants for captive industrial use; captive
power generation; in-house R&D, including design studios;
information technology, including enterprise resource planning
packages; and total quality management.

The introduction of state-of-the-art equipment and systems is

expected to result in a major jump in productivity and quality.
However, it is also expected to reduce labour requirements
substantially in situations. The TUF is therefore addressing the issue
of voluntary retirement schemes for restructuring manpower.

So far the initial capital sum has been set at about US$ 6 bn for the
period April 1, 1999, to March 31, 2004-although the government is
prepared to increase this amount. However, the initial take-up of
funds has been low because of rigid conditions imposed by the banks.
This could slow down the industry’s modernisation.

Technology Mission on Cotton

The Government has also taken steps to improve the quality of raw
materials, mainly cotton by launching the Technology Mission on
Cotton in order to improve production, the productivity and quality of
cotton in an integrated manner. This covers all aspects of cotton
development from research to transfer of technology to farmers,
improvement of marketing infrastructure, and improvement of the
processing of cotton. This involves development of high yielding
varieties, technology transfer through demonstration and training,
modernization and technological Upgradation of ginning and pressing
factories and streamlining marketing infrastructure.
Human Resource Development

While at the top end of the industry there are technical institutes like
the Indian Institutes of Technology and other such institutes which
offer postgraduate, undergraduate and diploma courses in textile
technology, there are not many opportunities for training in the
decentralized sectors of weaving, knitting, processing and
manufacture of low cost garments..

To remedy this Government has recently set up a “Nodal Centre for

Upgradation of Textile Education” which will identify specific areas of
technology where manpower modernization is needed. This Centre is
to prepare educational softwares for use by teaching institutes,
prepare uniform syllabi, conduct training programmes, organize
workshops for existing industrial manpower, create an internet
network to uplink training institutes with the industry and create a
library of reference material which would be accessible for users.

National Institute of Fashion Technology

In 1986, the Government also set up the National Institute of Fashion

Technology to assist the apparel and fashion industry to meet
industrial competitiveness on a global plane. The first institute of its
kind in Asia, the institute has centers at Mumbai, Calcutta,
Hyderabad, Gandhinagar, Chennai and Bangalore.. The curricula of
this institute patterned after the courses offered abroad has been
worked out by entering into Mous with the Fashion Institute of
Technology, New York and Nottingham Trent University in the U.K..
But the courses have been adapted to the Indian ethos and Indian
needs.

Integration and Linkages in the Supply System

The world textile and apparel market is undergoing a major

transition. Many buyers no longer want to move around from country
to country—purchasing yarn, arranging for fabric to be produced and
finished, and then having the fabric converted into garments. This
used to happen in the 1980s and 1990s, when the philosophy was
mainly one of “low cost”. At that time India saw a mushrooming of
agencies representing key retailers and buyers. Manufacturers would
obtain orders merely on the basis that they had their own
manufacturing capacity. But today, buyers increasingly prefer to deal
with just one entity.
Manufacturers in India therefore need to venture out in order to find
buyers themselves. It is expected that agents will gradually move out
of the business, as every single percentage point in the structure of
the final cost is questioned.

Many of the key players in the organised mill sector realise this, and
some are pursuing major initiatives in order to build up supply
relationships with some of their buyers. These relationships take the
form of either joint ventures or marketing/sourcing arrangements.

For the manufacturer, such relationships help to assure order

quantities from buyers. Further, the buyer assists in technological
and design development.

The advantage for the buyer is that he secures a regular, “no-hassle”

and reputable supply source for some of his mass market and “low-
to-middle” segment end products-thereby saving him the trouble of
hopping to various locations.

Responses of Indian Corporate Groups and building up of

supply relations

Leading Indian corporate groups are responding to these changes in

the marketplace with a number of initiatives, including:
• building up strong supply relationships in order to increase their
market access
• exploiting India’s variety of production systems, or formats, as
part of a move towards becoming a “one-stop shop window”
• and making conscious decisions to promote value addition.

India’s mill sector is starting to build up strong supply partnerships

with the aim of establishing an international supply network.

Diversity of Production Formats

The diversity of India’s production formats-which include hand

spinning, hand weaving, power loom weaving and the mill sector-
could be turned to advantage by many producers. By combining
different kinds of fibers, fabric formation methods and technology
levels, those producers could widen their product range and increase
added value.
In fact this trend is already happening. Individual suppliers who have
been able to gain the confidence of their principals are no longer
limiting themselves merely to what they produce themselves, but are
starting to trade in products which are made by other manufacturers.
In effect, they are moving towards becoming a “one-stop shop
window”. This trend is apparent in the case of goods for export as
well as for the domestic market.

Promoting Added Value

In the mill sector, where most enterprises have only yarn and fabric
manufacturing operations, a number of players are looking to
increase their added value by becoming more involved in
downstream manufacturing operations. For example, many firms are
now keen to arrange for the supply of finished apparel products to
retail buyers in accordance with those buyers’ specific requirements.
Although most of these mills do not have garment making operations,
they are adding value to their own products by coordinating their
operations with those in downstream sectors. This move is evident in
the case of exports as well as domestic sales.

Many players are also keen on establishing linkages with garment

making centers-such as North Africa and Eastern Europe-which offer
location, quota and tariff advantages in the EU market. Indian
producers are considering either establishing their own
manufacturing presence in such regions, or building up supply
relationships with key producers who are already there.
INDIAN TEXTILE POLICY

VISION
Endowed as the Indian Textile Industry is with multifaceted
advantages, it shall be the policy of the Government to develop a
strong and vibrant industry that can
• Produce cloth of good quality at acceptable prices to meet the
growing needs of the people;

• Increasingly contribute to the provision of sustainable

employment and the economic growth of the nation; and

• Compete with confidence for an increasing share of the global

market.
OBJECTIVES
The objectives of the policy are to-
• Facilitate the Textile Industry to attain and sustain a pre-
eminent global standing in the manufacture and export of
clothing;

• Equip the Industry to withstand pressures of import penetration

and maintain a dominant presence in the domestic market;

• Liberalise controls and regulations so that the different

segments of the textile industry are enabled to perform in a
greater competitive environment;

• Enable the industry to build world class state-of-the-art

manufacturing capabilities in conformity with environmental
standards, and for this purpose to encourage both Foreign
Direct Investment as well as research and development in the
sector;

• Develop a strong multi-fibre base with thrust of product

upgradation and diversification;

• Sustain and strengthen the traditional knowledge, skills and

capabilities of our weavers and craftspeople;
 • Enrich human resource skills and capabilities, with special
emphasis on those working in the decentralised sectors of the
Industry; and for this purpose to revitalise the Institutional
structure;

• Expand productive employment by enabling the growth of the

industry, with particular effort directed to enhancing the
benefits to the north east region;

• Make Information Technology (IT), an integral part of the entire

value chain of textile production and thereby facilitate the
industry to achieve international standards in terms of quality,
design and marketing and;

• Involve and ensure the active co-operation and partnership of

the State Governments, Financial Institutions, Entrepreneurs,
Farmers and Non-Governmental Organisations in the fulfillment
of these objectives.
THRUST AREAS
In furtherance of the objectives, the strategic thrust will be on:

• Technological upgradation

• Enhancement of Productivity

• Quality Consciousness

• Strengthening of the raw material base

• Product Diversification

• Increase in exports and innovative marketing strategies

• Financing arrangements

• Maximising employment opportunities

• Integrated Human Resource Development

IMPORTANT TARGETS AND OUTPUTS
The endeavour will be to -
• Achieve the target of textile and apparel exports from the
present level of US $ 11 billion to US $ 50 billion by 2010 of
which the share of garments will be US $ 25 billion.
• Implement vigorously, in a time bound manner, the Technology
Upgradation Fund Scheme (TUFS) covering all manufacturing
segments of the industry;

• Achieve increase in cotton productivity by at least 50% and

upgrade its quality to international standards, through effective
implementation of the Technology Mission on Cotton;

• Launch the Technology Mission on Jute to increase productivity

and diversify the use of this environment-friendly fibre;

• Assist the private sector to set up specialised financial

arrangements to fund the diverse needs of the textile industry;

• Set up a Venture Capital Fund for tapping knowledge based

entrepreneurs of the industry;

• Encourage the private sector to set up world class,

environment-friendly, integrated textile complexes and textile
processing units in different parts of the country;

• De-reserve the Garment industry from the Small Scale Industry

sector;

• Strengthen and encourage the handloom industry to produce

value added items and assist the industry to forge joint
ventures to secure global markets;

• Re-design and revamp, during the 10th Five Year Plan, the
Schemes and Programmes initiated in the handloom,
sericulture, handicrafts and jute sector to ensure better returns
for those belonging to the disadvantaged categories, and the
North East and other backward regions of the country;

• Facilitate the growth and strengthen HRD Institutions including

NIFT (National Institute of Fashion Technology)on innovative
lines;

• Review and revitalise the working of the TRAs (Textile Research

Associations) to focus research on industry needs; and

• Transform, right size and professionalism all field organisations

under the Ministry of Textiles to enable them to play the role of
facilitators of change and growth.
INTERNATIONALISATION AND NEED FOR IMPROVEMENT

Many textile firms in India still continue to serve, profitably the lower
end of the market. As a result, these firms have not graduated to
producing and serving the higher value added market segment and
they have not made efforts to introduce better products at the same
cost to replace the low quality offerings. While there exist islands of
excellence in firms like Arvind or Coats or Bombay Dyeing, in many
plants enhancement of productivity is limited.

Studies show that there is low investment in Indian firms and most of
the investments in the textile industry in India in recent times have
been in spinning units. However, 65 percent of the spinning
machinery is still more than 10 years old the picture in weaving and
dyeing and finishing processes in much worse. China invested in
68,000 shuttles-less looms between 1987-1996 as compared to 8,000
in India or 30,000 in Indonesia or 81,000 in Korea.

There is a noticeable absence of adequate capacity in good quality

dyeing and finishing processes. These two processes limit the entry
of Indian textiles into
higher value added products despite a modern spinning sector.

In fact, the Indian processing sector appears to be the weakest link in

the entire textile production chain, which results in a loss of potential
value addition and reduction in foreign exchange earnings.
Technologically, chemical processing appears to be weak in terms of
its production capabilities, assurance of quality, containing
environment related issues and the current demand of design inputs.
Thus, there is an urgent need for upgradation of the textile
processing sector, with particular reference to environmental
parameters

Furthermore, production run sizes are longer in Indian plants across

the three processes, resulting in higher waiting times for a lot and
higher working process inventory. The average manufacturing and
delivery lead times from procurement of yarn to shipment (receipt by
customer) for India’s apparel exports is between 144 to 182 days,
which is often longer than an entire fashion season.

Most firms also do not follow any scientific approach to shop floor
planning and control, thereby leading to poor co-ordination between
processes. Again, most quality control problems stem from weak
quality measurement and control systems. Improving quality
practices at ginneries should be one of the most crucial items on the
agenda of the Indian textile industry.

There is also poor co-ordination between different entities that

comprise the supply chain, like the cotton producers, ginners,
spinners, weavers, dyers and finishers, knitters and apparel
producers. There is still no recognition of the fact that they are
interdependent in their growth.

Another problem is that there appears to be too much conflict

between the small, medium and large players in the industry.
Composite or large mills lack the flexibility to produce variety or small
orders at low costs. Power looms/small plants have the flexibility due
to low overheads but have outdated technologies and work practices
to produce high quality products.

The second issue is that decisions on product mix choice and product
markets are very local and short-term oriented which result in short-
term gain at the cost of long-term effectiveness.

In fact, in the Indian textile industry there appears to be an over

dependence on low wages and raw material costs as a source of
competitive advantage.

Benchmark studies have revealed that the Indian textile industry

which has islands of excellence has distinct weaknesses in processes
like ginning and dyeing and to some extent in weaving. It suffers
from a lack of product or process innovation, poor shop floor
practices, poor use of modern management practices, and
inadequate plant and equipment maintenance. Given that the trading
regime is going to change drastically in the next few years, the Indian
textile industry as well as the textile policy will have to be
reorganised and reworked.

Industry analysts also note that textile prices are increasingly

competitive worldwide as more and more developing countries enter
the global textile trade. To maintain, if not increase, its global market
share, the Indian textile industry must procure modern, low-cost,
textile machinery so that it can produce high quality textiles and
garments for export at competitive prices. It is in this context that the
market for used textile machinery is viewed as very promising. Used
textile machinery would permit India to incorporate new technology
at low cost.
Areas where assistance is needed

There are several areas where the Indian textile industry needs
assistance from abroad. The first area is that of textile machinery,
where better machines with better specifications are needed. Better
weaving machines, knitting machines and processing machines are
needed since India does not have an indigenous manufacturing base
for textile machinery and has to be dependent on imports from
abroad.

Secondly, the textile industry in India needs cleaner production

technologies. Presently, large sections of the industry are still using
outdated technologies that create pollution.

The third area where India needs assistance is in the area of systems
or actual methods of manufacturing. The experience of
manufacturers abroad, who have a higher productivity rate, needs to
be shared with the Indian industry. This includes quality monitoring,
manufacturing methods and work practices.

The fourth area of assistance would be the setting up of joint

ventures between Indian manufacturers and foreign manufacturers,
where the Indian industry could benefit from financial inputs from
abroad. These financial inputs would be especially welcome in the
apparel and garments industry.

The fifth area of assistance could be in a cluster development

programme. Here too, foreign manufacturers. The Textiles
Committee under the Government of India can be an ideal partner
institution for this initiative.

The sixth area of assistance would be in technology up gradation of

the entire industry from cotton ginning and processing to apparel
manufacturing.

Another area of assistance required is in design and marketing

support. Assistance is also needed in brand building so that
the Indian industry can promote its brands in the European
market.
A Special Focus – Tirupur

Background

Tirupur, in Tamil Nadu, (located 55 km to the east of Coimbatore City)

accounts for 56 % of India’s cotton knitwear exports valued at Rs
5000 crores.

The state of Tamil Nadu in fact occupies a prime position in the

textile map of India. With its strong base of handloom, power loom,
spinning mills and knitwear and woven garments industry, Tamil
Nadu accounts for more than one-third of the country’s total exports
of textiles.

Tamil Nadu produces 40 per cent of the country’s cotton yarn

production, with 35 per cent of the country’s total spindle age spread
over 776 mills. The power loom sector, which has been playing an
increasingly important role in textile production accounts for 50 per
cent of the total fabric production of the country.

The cotton knitwear industry in Tirupur consists of 2,500 knitting and

stitching units, 750 dyeing and bleaching units, 300 printing units,
235 embroidery units and 200 others. Besides knitwear units catering
for exports and local markets, there are a large number of other
ancillary units, and supporting industrial units operating

History of the Industry

Till 1924 Tirupur was not known for its knitting factories. The cotton
hosiery industry first made its appearance in India in 1893 in Calcutta
and after the first world war more cotton, woollen, synthetic hosiery
units came into existence in Bengal, Ludhiana, Mumbai, Kerala and
Madras province. The first banian factory in Tirupur was started in
1925. With the advent of electricity in Tirupur in 1931 more knitting
and weaving factories came into existence. Initially, all the knitting
machines were imported from Germany, Japan and New York. By
1942, there were 34 hosiery factories in Tirupur. After the second
world war, thanks to financial assistance from the banks, availability
of relatively cheap labour, hosiery yarn and electric power, more
factories came into existence in Tirupur. Today Tirupur has become
an important and active cluster of the knitwear industry in India.

For over 30 years, until the early 60’s the hosiery industry in Tirupur
was producing mainly grey and bleached banians. It was in the late
60s that the industry slowly diversified towards manufacture of other
inner garments.

The strength of the hosiery industry in Tirupur in 1961 was 200 units.
In the 70s, export of small quantities of banians and other inner
garments were made from Tirupur. Early in the 80's export of
knitwear, mainly basic T-shirts were made in small quantities. Exports
of other knitwear items gained momentum after 1985.

In the late 80's the knitwear industry diversified very quickly and took
up manufacture and export of other outer garments, viz, cardigans,
jerseys, pullovers, ladies blouses, dresses and skirts, trousers,
nightwear, sportswear etc.

With the commendable interest shown by entrepreneurs and with the

support from the government in the form of higher investment limit
allowed for ancillary industrial undertakings and with the hosiery
industry allowed to avail of facilities earmarked for small scale units,
the hosiery industry in Tirupur transformed itself into the knitwear
capital of India in less than three decades.

Production of cotton in Tamil Nadu was 6 lakh bales (170 kg per

bale) against the all Indian production of 175 lakh bales in the year
1999-2000. As there are mills manufacturing hosiery yarn located
near Tirupur, there is virtually no problem in sourcing raw material
without having to block funds in large inventories.

Industrial Structure

The majority of the units belong to the proprietorship/partnership

form of organization and are directed by family management.
Secondly, there are a limited number of vertically integrated
production units from the knitting stage through processing, printing,
stitching and finishing stages. Thirdly, there are a large number of
units involved in doing cutting, making and trimming (CMT) using
knitted fabrics in pieces.

The knitwear industry in Tirupur has concentrated mainly on the

production of garments for the spring and summer seasons. Of late,
the industry has diversified its production range to include winter
garments, using polar fleece and blended fabrics. At present, winter
garments have come to hold a share of 20 per cent in the total
production of knitwear in Tirupur. As cotton garments are meant for
only the spring and summer seasons, which are short-lived in Europe
and Western countries, the industry perforce has to take up
production of winter garments which have year-round demand in
international markets.

Buying Houses and Agents

A noticeable feature in recent years has been the influence exerted

by buying houses and buying agents of foreign organizations who
have pitched their tents in Tirupur. The buying houses and agents
constantly interact with the manufacturers and help them decide on
quality specifications, type of fabric to be used and the garment
patterns, and styling.

Though knitted garment exports from Tirupur touched U.S. $ 1.02

billion in the year 2001-2002, the domestic market accounted for
only U.S. $ 306.12 million of consumption. Of this domestic
consumption the retail business in the organised sector accounted for
U.S. $ 102.04 million. It is estimated that the total requirement of
trained manpower in the industry is 50,000 per year for the next five
years against the availability of a few thousand retail trade trained
personnel every year. The sector is in fact expected to recruit
2,50,000 trained hands directly and 8-10 times more indirectly in the
related supply chains by 2005. In fact, the foremost task of the
industry is to pool its resources to raise an inland supply chain to
release the goods in the inland market. Hence, inland retailing is
going to play an important part in the knitwear industry in future.

Technological Upgradation Fund

The industry is also addressing itself to the need for technological

upgradation of manufacturing processes. The Government has
introduced the Technology Upgradation Fund Scheme (TUFS) to
reduce the cost of capital funds. The scheme envisages
reimbursement of 5 per cent interest charges to eligible investors in
the benchmarked technology in any of the identified textile
manufacturing activities, including garment making. Investment in
the industry was of the order of U.S. $ 108.69 million. In the next 10
years, the industry expects to witness investment expansion of the
order of U.S.$ 217.39 million.

The Tirupur industry also requires better quality and more

competitive rates of hosiery yarn because in the knitting process,
yarn has to be converted into loops and while a defect in woven
fabric is rectifiable, a defect in knitted fabric is not rectifiable and
yarn costs contribute to 60 per cent of the cost of the fabric.
It is also a fact that in the last few years, the technological gap
between the Indian knitting industry and that in advanced countries
has widened. Though imported technology is available at all
manufacturing stages, it is very costly even though many
entrepreneurs are also importing high tech knitting and processing
machines.

In the past few years, however, over 200 units have taken up to
modernisation of their production processes with fresh investments.
About 800 new knitting machines have been imported from abroad.
According to the UNIDO report, soft flowing dyeing machines,
compacting machines for minimising residual shrinkage, dyeing
machines, computerised colour matching systems and stenter
machines for removing deformity in knitwear are some of the many
new machines that have been bought by the industry.

Customers

The Tirupur knitwear industry’s exports are directed to customers in

the following percentages: 10 per cent to departmental stores, 60 per
cent to importers, 10 per cent to catalogue stores, 5 per cent to
retailers and 5 per cent to established consumer brands.

Among major customers of Tirupur’s exports are Kitaso, Savanbee,

Texman, Marine Prod, Norwigs Clipper, Green Knitwear, Roy Watsan,
Lotto, Arrow, Roytex, Wal-Mart, KDAB, Auchan, Primark, Ether Austin,
Clothesline, Ether, Norpo-Tex, Dan-Do, Vroom, Alians Dominos, Oneil
and Wibra.

Supply Chain

At the center of the Tirupur Hosiery cluster are the cotton knitwear
garment exporters who may be either manufacturer exporters or
merchant exporters. According to a UNIDO report, the non-exporting
manufacturers undertake sub-contracting tasks mainly for the
exporters of both the categories mentioned above and in addition
they market the knitwear for the domestic market. There are a
number of different types of agents and traders who facilitate the
marketing activity. These actors are selling agents, depot sales
agents, commission agents and general merchants. In Tirupur, the
marketing agents have a strong role to play. They have developed
specialization in different geographical market segments, domestic
and overseas, as also in product based segments.. Further
specialization has developed to the extent that there are agents who
market only the rejected goods and the export surplus material.
In terms of employment generation, the direct employment
generated is estimated to be 100,000 skilled, semiskilled and
unskilled workers and another 100,000 persons are estimated to be
earning their livelihood due to this industry. These indirect activities
relate to the forward and backward linkages within the industry such
as cotton ginning, yarn spinning, and specialist tailoring, calendaring,
packaging and other related service activities.

The main raw material in the form of cotton yarn of different

thickness is supplied
by the agents of hundreds of spinning mills located in Coimbatore,
Salem, Erode and other adjoining cities. Several mills have set up
their sales depots at Tirupur to provide raw material on ex-stock
basis. Besides, there are also several cotton yarn merchants in
Tirupur and Coimbatore. Speciality stores selling accessories, such as
buttons, zips, laces and sewing threads are there in a large number in
Tirupur itself. Similarly, the dyes and chemicals that are
manufactured mainly in Gujarat and Maharashtra are available
through companies sales depots and through merchants dealers in
Tirupur itself.

The manufacturers of circular knitting machines and dyeing

machinery are mainly located in Punjab, especially in Ludhiana and
Amritsar. With the introduction of new technology, imported
machinery has been in widespread use in Tirupur. The commission
agents and dealers for both indigenous and imported machinery are
based in Tirupur providing access to the latest models available
worldwide. An important agent, among others providing imported
machines, is “Mehala group of companies”, with a total employees
strength of 350 persons and a dozen individual enterprises. Besides
supplying machinery, they undertake servicing of the machines, and
provide training to the industry workers in machines working,
servicing and maintenance.

Conducive to the need of the export market, innovative service

enterprises have been set up by private entrepreneurs. These
services are targeted at exporters, suppliers, manufacturers, buyers,
importers and the retailers that help their customers to reduce their
risk, improve efficiency, provide inputs for cost control, implement
and ensure compliance of the mutually agreed quality systems. For
instance, the range of services provided to importers may comprise
pre-production checks of exporting enterprises, initial production
checks, during- production checks, random inspection, status
reporting, container loading supervision, damage survey, product
consultancy, sourcing assistance, factory assessment and laboratory
testing.

Active Associations

There are as many as seven sub-sectoral industry associations in

Tirupur. For example, the dyeing and bleaching units have their
separate association. The importance of these associations can be
gauged from the fact that all these bodies act as quasi-judicial
institutions which help to resolve the inter-firm and within firms
commercial disputes. Some of the associations such as “Tirupur
Exporters and Knitwear Manufacturers Association (TEKMA) also get
the long standing inter-firm payments cleared among the members.

The South India Hosiery Manufacturers Association also assists its

members to get financial assistance from the banks and financial
institutions. On the procedural front, assistance is also provided in
getting the registration certificate of small scale industry, Reserve
bank of India code and export import licence issued. It also files legal
suits in courts and represents on behalf of their members.

The Tirupur Dyers Associations conducts workshops and seminars to

educate members on the latest trends. It has also taken up an active
role on the issue of pollution control by representing the case to the
authorities concerned.

The associations are also involved in collection and dissemination of

information to their members through their regularly printed bulletins
which are published periodically ranging from fortnightly to quarterly
basis. The bulletins are published both in English and Tamil
languages.

Among the associations, the most dynamic is the Tirupur Exporters

Association or TEA, a frontline Association. The voice of this
Association is heard in the corridors of power. Unlike other
Associations, TEA has been spearheading investment in infrastructure
projects, which directly act as a catalyst to aid and promote exports.
Other key agencies are the South India Textiles Research Association
(SITRA), Apparel Export Promotion Council (AEPC), Textile Committee,
National Small Industries Corporation.

Strengths and Weaknesses

The Tirupur industry has certain strengths like the ability to take up
small orders at short notice. The industry is also able to produce the
entire range of knitwear at low cost and reasonably good quality.

However, among the weaknesses of the industry are the occasional

delays in delivery, the inability of many firms to match the quality
standards demanded at higher price points and the inability of the
industry at the lower end of the market to compete with the Chinese
and exports form Bangladesh and Sri Lanka.

It is perceived that among the major threats faced by the industry are
the phase out of quotas, non-tariff barriers on account of the
environment and social issues like child labour and personal safety
norms and the inability to reap benefits of economies of scale due to
fragmented holding of the manufacturing capacity.

In a paper on the "Knitwear Industry / Vision 2010" prepared by the

President of the Tirupur Exporters Association, Mr. A. Sakthivel, he
says, the core strength of the Tirupur knitwear industry lies in the rich
raw material base and skilled manpower resources.Vision 2010, is to
be focused on achieving for knitwear garments exports at least 10
per cent of the world market share. He says this is entirely
achievable. Sustainability of knitwear exports in the context of
globalisation will entail industry restructuring and moving up the
value chain in terms of production of sophisticated fashion apparel.
The enterprises most likely to benefit from the post 2004
dispensation will include large sized firms, both because they will be
relatively more competent to create the required resources for
creative marketing and to accept larger orders as well as invest in
the necessary R & D facilities.

Lack of Infrastructure

Tirupur has a unique significant presence at the lower end of the

international hosiery and knitwear market. The slow process of
infrastructure development is also coming in the way of this town
acquiring the image of a prestigious and mature international
knitwear centre.

Most Tirupur entrepreneurs are satisfied with catering to the lower

end of the market on a contract manufacturing basis. Tirupur is
basically a traditional centre for cotton ginning. It's export boom
began in the late 1980s, and the entire populace now depends on its
viability as an export centre. Almost every household in the town
undertakes some activity directly linked to the knitwear industry. The
town’s dusty and narrow bylanes, like Surat, are lined with residence-
factories (most houses have dedicated at least one room to these
activities) spinning cotton into yarns, or knitting yarn into fabric, or
simply separating and dividing the waste and scrap fabrics back into
yarn for reprocessing. A whole range of industrial units catering to
ancillary functions such as manufacture of cartons, polythene bags,
zips, buttons, tapes and other packing material, has also spawned in
a big way.

Yet, at first glance, nothing about Tirupur can make one believe that
this town earns an annual $720 million in foreign exchange. This is
because the state government and local municipal authorities have
been too slow to cope with this dynamic growth. The variance
between the town’s infrastructure and the actual requirements has
led to a sharp rise in the cost of almost every basic social input. The
present export-driven prosperity is letting Tirupur’s entrepreneurs
meet these costs, but the paucity of adequate infrastructure could
soon thwart its growth.

Water-Scarcity

Water scarcity is the biggest problem in Tirupur. This is further

aggravated by a 50% growth in population in the past ten years,
presently pegged at five lakhs.
Most of the present supply of industrial water is sourced from tankers
that draw it from wells and natural reservoirs from the neighboring
villages. The only commercial vehicle that can be easily spotted in
Tirupur, besides the cotton bale-carrying trucks, is the 12,000 litre
water tanker. Farmers in these villages draw water from their wells
using the wholly state-subsidised power provided by the Tamil Nadu
State Electricity Board and supply it to the tanker operators at a price
of about Rs 80 for every 12,000 litres.

Although this has been the route of participation in the export boom
for many farmers, most farmers are now getting tough. They are
badly hit by the depletion of ground water resources and because of
pollution of the water table. The entire town of 500-odd dyeing and
bleaching units dumps their effluents into the Noyyal River or throw
them on the open wasteland. The Noyyal runs all across the 27 sq km
town, virtually dividing it into two halves. According to reports from
Tirupur, about 12 lakh liters of waste water containing bleaching
powder, sulphonic dyes and inorganic catalysts and other chemicals
are discharged daily, 80 % of which are drained into Noyyal.
The processing section of the industry (dyeing, bleaching etc) has
lagged behind in modernization because of the absence of assured
water supply of acceptable quality standards. At present, there are
around 700 processing units in Tirupur which source their water
requirements from agricultural wells within a radius of about 50 kms.
Consequent to the diverse sourcing of water, there are substantial
variations in the quality of water used, leading to deficiencies in the
processing such as inability to achieve the exact shades, appearance
of spots and lack of uniformity while dyeing, resulting in frequent
rejections.
Earlier, tankers fetched water from a radius of seven kilometres
around Tirupur; now they have to go to villages located even outside
a 45-kilometre radius to get quality water. But farmers of these
villages have reportedly started physically preventing these tankers
from getting into their villages. Processors are required to go to
villages much beyond the traditional sources of water which involves
additional expenditure on petrol, and on maintenance of tankers,
resulting in a price of Rs 300-350 for every 12,000 litres of water.

However, the needs of the Tirupur industry which are for 105 million
litres of water per day are to be met by a project undertaken by the
New Tirupur Area Development Corporation Ltd., which will supply
180 million litres of water per day by the year end 2003. This will
also meet the need of residents of the area for 75 million litres of
water.

Industrial Pollution

Another problem identified is the issue of industrial pollution. The

textile processing units discharge around 60 million litres of effluents
per day. Responding to the challenges of pollution control, nearly 700
major processing industries in Tirupur have set up 8 common effluent
treatment plants at an estimated cost of U.S. $ 10.86 million. These
plants can treat around 30 to 40 million litres of effluents.

According to newspaper reports from Tirupur, Noyyal is now so

terribly polluted that it easily gets mistaken for a huge multi-
coloured, half-dry gutter. On the other hand, direct discharge of
effluents on the ground too has badly polluted and coloured the
ground water table in Tirupur. It is not uncommon to see long queues
of large plastic buckets and pots at any time of the day, lined in front
of public hand pumps and borewells, from which tired but persistent
women pump out coloured water of varying shades. According to
these reports, the pollution of Noyyal has badly hit even Cauvery and
its tributary Bhawani.

In 1995, the Madras high court had come down heavily on Tirupur’s
dyeing units, after which the Tamil Nadu Pollution Control Board drew
up plans to set up a few common effluent treatment plants.

It is said that the problem of effluent treatment is dependent on

adequate water supply and this problem is to be met by the
authorities by the end of year 2003. .
Many units are also going in for in-built pollution control measures
which will reduce the problem of pollution tremendously.

In the meanwhile, the Tirupur Exporters Association (TEA) is

preparing an integrated water supply, sewerage, effluent treatment
and road development project estimated to cost Rs 5.80 billion . The
public of Tirupur, the Government of Tamil Nadu, and the Central
Government and the Infrastructure Leasing & Financial Services Ltd.
will all be financially involved with the project.

The Textiles Committee of the Government of India has also drawn

up a cluster based programme for capacity building of SMEs in the
Tirupur cluster aimed at facilitating the local industry in improving
quality, upgrading technology and adoption of systems management,
design and product innovation , adoption of cleaner production
technologies and skill upgradation of industry personnel etc.
ASSOCIATIONS IN TIRPUR AREA

Banian Cloth Mfrs. Assn. (BCMA)

Coimbatore District Power Loom Cloth Dealer
Assn.
South India Hosiery Mfrs. Assn. (SIHMA)
`Tirupur Export Knitwear Mfrs. Assn. (TEKMA)
Tirupur Dyers Assn.
Tirupur Bleachers Assn.
Tirupur Steam Calendring Assn.
Tirupur Screen Printing Assn.
Tirupur Narrow Tape Mfrs. Assn.
Indian Hosiery Yarn Mill Assn.
Tirupur Cotton Merchant Assn.
Tirupur Merchant Assn.
Tirupur Power Loom Assn.
Tirupur Hosiery Yarn Merchant Assn.
Tirupur Exporters Association
ANNEXURE I

EXPORT PROMOTION COUNCILS

The Cotton Textiles Export Promotion Council

Engineering Centre
5th floor
9 Mathew Road
Mumbai 400004
Tel: 0091-22-3632910
Fax: 0091-22-3632914

Apparel Export Promotion Council

Bajaj Bhavan
Nariman Point
Mumbai 400021
Tel: 0091-22-2853419

Powerloom Development and Export Promotion Council

Cecil Court, B Wing
4th floor
Mahakavi Bhushan Marh
Behind Regal Cinema
Mumbai 400039
Tel: 0091-22-2846518/ 19
Fax: 0091-22-2846517

The Handloom Export Promotion Council

18 Cathedral Garden Road
Nungambakkam
Chennai 600034
Tel:0091-44-8276043/ 8278879
Fax: 0091-22-8271761

The Indian Silk Export Promotion Council

62 Mittal Chambers
Nariman Point
Mumbai 400021
Tel: 0091-22-2049113/ 2027662
Fax: 0091-22=2874606

The Synthetic & Rayon Textile Export Promotion Council

Reshan Bhavan
78, Veer Nariman Road
Mumbai – 400 020
Tel: 0091.22.204 8797 / 204 0168
Fax: 0091.22.204 8358

Wool & Wollen Export Promotion Council

612/714 Ashoka Estate
24, Barakhamba Road
New Delhi – 110 001
Tel: 0091.11.331 5512/ 331 5205
Fax: 0091.11.331 4626

Mumbai office-
Churchgate Chambers
5, New Marine Lines
Mumbai – 400 020
Tel: 0091.22.262 4680/ 262 4651

INDUSTRY ASSOCIATIONS

The Millowners Association, Mumbai]

Elphinstone Building
Veer Nariman Road
Fort
Mumbai 400023
Tel: 0091-22-2040411

Clothing Manufacturers Association of India

Mahalaxmi Chambers
Near Mahalaxmi Temple
Haji Ali
Mumbai 400026
Tel : 0091-22-4928245/4945908

Association of Synthetic Fibre Industry

Raj Mahal
84 Veer Nariman Road
Mumbai 400020
Tel: 0091-22-2048878/ 2048075
Fax: 009122-2835838

All India Manufacturers Organization

Assam State Board
Udyognagar Makum Road
Tinsukia - 786 125
Ph: 20450

Ahmedabad Textile Mills Association

Ashram Road, Navrangpura,
P.B. No. 4056
Ahmedabad 380009
Ph: 658 2273/ 74
Fax: 658 8574

Haryana Textile Manufacturers Association

77 Model Town
Panipat 130103
Ph: 2667

Karnataka Textile Mills Association

64, 4th Main NR 18 Cross
Malleswaram
Bangalore - 560 055

M.P. Importers and Exporters Association

207, Silver Arc Plaza, 20/1-C
New Palasia
POB 591
Indore - 452 001

Northern India Textile Mills Association

PHD House
Opp Asian Games Village
New Delhi - 110 016
Tel: 686 3276/ 626 3801-04
Textile Machinery Manufacturers Association
53, Mittal Chambers, 5th Floor
Nariman Point
Mumbai – 400 021
Tel: 202 3766/ 202 4238
Fax: 202 8017

GOVERNMENT AGENCIES

Office of the Textile Commissioner

New CGO Building
48 Marine Lines
Mumbai 400020
Tel: 0091-22-20001050
Fax: 0091-22- 2004693

Central Silk Board

No. 39, United Mans
MG Road
Bangalore - 560 001

Chief Controller of Imports and Exports

Udyog Bhawan
Maulana Azad Road
New Delhi - 110 001

National Textile Corporation Ltd.

Surya Kiran, 8th Floor
19, K. G. Marg
New Delhi- 110 001

Indian Trade Promotion Organisation

Pragati Maidan
New Delhi - 110 001
TEXTILE RESEARCH ASSOCIATIONS

The Bombay Textile Research Association

Lal Bahadur Shasrti Marg
Ghatkopar (W)
Mumbai –400 086
Tel: 500 3651/ 500 2652/ 500 2117
Fax: 500 0459

ANNEXURE II

List of Exhibitions
Event Name - Tex-Styles India 2002
Venue - Pragati Maidan-New Delhi-India
Display Range - Home Textiles,
Contact Details - Senior General Manager (TDMD)
India Trade Promotion Organisation
Pragati Maidan, New Delhi-110 001

Event Name - Garmentech International 2002

Display Range - garment machinery, technology
Contact Detail - ANZ International Trade & Marketing Associates,
34, Cathedral Road,
Chennai- 600086

Event Name - Carpet Expo India 2003

Venue - Pragati Maidan-New Delhi-India
Display Range - Carpet and Floor Coverings
Contact Detail - All India Carpet Trade Fair Committee
Taj Mahal Building,
Chauri Road, Bhadohi,
Uttar Pradesh - 221 401

Event Name - Hemitextile India 2002

Venue - Pragati Maidan-New Delhi-India
Display Range - window decoration, furniture fabrics, curtain,
towelling,kitchen textiles, design studios, fabrics
Contact Detail - Event Manager
Messe Frankfurt Trade Fairs India Pvt. Ltd.
605 Ansal Bhawan, 16 K.G. Marg,
New Delhi-110001

Event Name - Jute India-2003

Venue - Pragati Maidan-New Delhi-India
Display Range - Products, Technolgy and Equipments related to Jute /
Hesian
Contact Detail - Event Manager
Jute Manufacturers Developemnt Council
3-A, Park Plaza, 71, Park Street,
Calcutta - 700 016
Event Name: ITME Exhibition 2004
Venue: Bombay Exhibition Centre, Goregaon
Display Range: Textile Machinery ( Parts and Accessories)
Contact Details: Event Manager: India ITME Society
76 Mittal Towers
Nariman Point
Mumbai 400021
ANNEXURE-3- STASTICAL DATA

EMPLOYMENT IN TEXTILE AND ALLIED SECTORS

 Employment
Sr. (In Mn. Nos.)
N
Sector / Industry Increase
o As on Projectedfor the
. March 2001 terminal year of the
(Estimated) Tenth Plan

I. Textile sector
1. Cotton/Man-made Fibre/Yarn Textile/Mill Sector 1.07 1.10 0.03
(including SSI spinning & exclusive weaving
units)
2. Man-made Fibre/Filament Yarn Industry 0.11 0.20 0.09
(including texturising industry)

3. Decentralised Powerlooms Sector 4.15 4.25 0.10

4. Handloom Sector 12.00 12.40 0.40
5. Knitting Sector 0.30 0.50 0.20
6. Processing Sector 0.24 0.30 0.06
7. Woollen Sector 1.20 1.30 0.10
8. Ready Made Garment Sector 3.54 6.80 3.26
(including Knitwear Sector)

9. Sericulture 5.57 6.03 0.46

10. Handicraft Sector 5.84 6.77 0.93
11. Jute Industry
i) Organised Jute Industry 0.20 0.20 0.00
ii) Decentralised Jute Industry 0.20 0.30 0.10

Total (I) 34.42 40.15 5.73

II. Allied Sector
1. Cotton
i) Cotton Agriculture 16.60 17.45 0.85
ii) Cotton Ginning/Pressing 0.70 0.85 0.15
iii) Cotton Trade 17.00 18.00 1.00

Sub - Total 34.30 36.30 2.00

2. Sheep rearing 1.20 1.40 0.20
3. Jute Agriculture 12.00 13.00 1.00
4. Textile machinery industry & accessories 0.03 0.05 0.02

Total (II) 47.53 50.75 3.22

Grand Total (I + II ) 81.95 90.90 8.95
 INTERNATIONAL COST COMPARISONS

Total Costs of Ring-Yarn 2001

(In US$ per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.16 0.16 0.17 0.17 0.18 0.14 0.11
6% 6% 6% 5% 7% 5% 4%
Labour 0.10 0.05 0.01 0.78 0.16 0.16 0.54
4% 2% 1% 22% 7% 6% 20%
Power 0.14 0.31 0.10 0.31 0.15 0.28 0.16
6% 12% 3% 10% 6% 10% 6%
Auxiliary material 0.10 0.09 0.09 0.10 0.10 0.09 0.10
4% 3% 3% 3% 4% 3% 4%
Capital (depreciation & interest) 0.84 0.90 1.27 0.65 0.59 1.09 0.72
34% 33% 44% 21% 25% 37% 27%
Raw Material 1.17 1.18 1.22 1.21 1.23 1.12 1.04
46% 44% 43% 39% 51% 39% 39%
Total Yarn costs (US$ per kg of 2.51 2.69 2.86 3.14 2.41 2.88 2.67
yarn) 100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 80 86 91 100 77 92 85

Manufacturing Costs of Ring Spinning - 2001

(In national currency per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.31 7.41 1637 354 226 94683 0.11
12% 11% 10% 9% 15% 8% 7%
Labour 0.19 2.28 102 1474 210 109834 0.54
7% 3% 1% 36% 14% 9% 33%
Power 0.29 14.49 916 652 197 187436 0.16
11% 21% 6% 16% 13% 16% 10%
Auxiliary material 0.19 4.32 869 209 122 63806 0.10
7% 6% 6% 5% 8% 5% 6%
Depreciation 0.95 21.11 4361 916 479 412851 0.48
36% 30% 28% 23% 32% 35% 30%
Interest 0.71 20.68 7664 432 267 321494 0.24
27% 29% 49% 11% 18% 27% 14%
Total manufacturing costs (national 2.64 70.29 15549 4037 1501 1190104 1.63
currency per kg. yarn) 100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ 1.34 1.51 1.64 1.93 1.18 1.76 1.63
per kg. yarn)
Index (Italy:100) 69 78 85 100 61 91 84

Manufacturing Costs of O-E Spinning - 2001

(In national currency per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.22 5.48 1167 252 161 106959 0.14
11% 9% 8% 9% 14% 10% 12%
Labour 0.07 0.80 38 524 75 39828 0.19
3% 1% 0% 20% 7% 4% 16%
Power 0.22 11.37 717 512 155 147157 0.13
11% 19% 5% 19% 13% 14% 11%
Auxiliary material 0.21 4.90 991 232 137 72182 0.11
10% 8% 7% 9% 12% 7% 10%
Depreciation 0.78 19.44 3964 791 406 394251 0.40
37% 32% 29% 29% 35% 37% 34%
Interest 0.58 18.92 6945 367 224 303592 0.19
28% 31% 51% 14% 19% 28% 17%
2.08 60.91 13822 2678 1158 1063969 1.16
Total manufacturing costs (national
100% 100% 100% 100% 100% 100% 100%
currency per kg. yarn)
Total manufacturing costs (US $ 1.06 1.31 1.46 1.28 0.91 1.57 1.16
per kg. yarn)
Index (Italy:100) 83 102 114 100 71 123 91

Total Costs of O-E Yarn - 2001

(In US $ per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.11 0.12 0.12 0.12 0.13 0.16 0.14
5% 5% 5% 5% 6% 6% 6%
Labour 0.04 0.02 0.01 0.25 0.06 0.06 0.19
2% 1% 0% 10% 3% 2% 9%
Power 0.11 0.24 0.08 0.25 0.12 0.22 0.13
5% 10% 3% 10% 6% 8% 6%
Auxiliary material 0.11 0.11 0.10 0.11 0.11 0.11 0.11
5% 4% 4% 4% 5% 4% 5%
Capital (depriciation & interest) 0.69 0.83 1.15 0.55 0.49 1.03 0.59
31% 33% 43% 22% 23% 38% 27%
Raw Material 1.17 1.18 1.22 1.21 1.23 1.12 1.04
52% 47% 45% 49% 57% 42% 47%
Total yarn costs (US $ per kg. 2.23 2.50 2.68 2.49 2.14 2.70 2.20
yarn) 100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 90 100 108 100 86 108 88

Manufacturing Costs of Texturing - 2001

(In national currency per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Packing 0.08 1.86 379 84 51 27097 0.04
9% 7% 10% 7% 10% 8% 8%
Labour 0.10 1.57 365 338 124 46608 0.15
12% 6% 9% 29% 23% 14% 30%
Power 0.12 6.92 487 282 79 60224 0.07
14% 27% 12% 24% 15% 18% 13%
Auxiliary material 0.02 0.50 107 25 16 8129 0.01
2% 2% 3% 2% 3% 2% 2%
Depreciation 0.24 5.01 928 229 135 83189 0.12
27% 20% 24% 20% 25% 25% 25%
Interest 0.31 9.61 1646 197 131 110219 0.11
36% 38% 42% 18% 24% 33% 22%
Total manufacturing costs (national 0.87 25.47 3912 1155 536 335466 0.50
currency per kg. yarn) 100% 100% 100% 100% 100% 100% 100%
0.44 0.55 0.41 0.55 0.42 0.5 0.5
Total manufacturing costs (US $
per kg. yarn)
Index (Italy:100) 80 100 75 100 76 91 91

Total Costs of Textured Yarn - 2001

(In US $ per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Packing 0.04 0.04 0.04 0.04 0.04 0.04 0.04
2% 2% 3% 2% 2% 2% 2%
Labour 0.05 0.03 0.04 0.17 0.10 0.07 0.15
3% 1% 3% 8% 5% 4% 7%
Power 0.06 0.15 0.05 0.13 0.06 0.09 0.07
3% 7% 4% 6% 3% 5% 3%
Auxiliary material 0.01 0.01 0.01 0.01 0.01 0.01 0.01
1% 0% 1% 0% 1% 1% 0%
Capital (depriciation & interest) 0.28 0.32 0.27 0.20 0.21 0.29 0.23
14% 14% 21% 10% 11% 17% 11%
Raw Material 1.48 1.70 0.90 1.54 1.44 1.20 1.65
77% 76% 68% 74% 78% 71% 77%
Total yarn costs (US $ per kg. 1.92 2.25 1.31 2.09 1.86 1.70 2.15
yarn) 100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 92 108 63 100 89 81 103

Manufacturing Costs of Ring/ O-E Yarn Weaving - 2001

(In national currency per yard of
fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Labour 0.071 1.115 85.2 389 80.5 23033 0.159
16% 11% 5% 46% 25% 13% 47%
Power 0.063 2.881 208.2 144 46.0 42001 0.040
15% 27% 14% 17% 14% 24% 12%
Auxiliary material 0.097 2.509 416.4 115 121.3 39291 0.048
22% 24% 27% 14% 37% 22% 14%
Depreciation 0.120 2.138 406.9 134 51.1 42678 0.063
28% 20% 27% 16% 16% 24% 18%
Interest 0.083 1.859 406.9 61 28.1 29807 0.030
19% 18% 27% 7% 8% 17% 9%
Total manufacturing costs (national 0.434 10.502 1523.6 843 327.0 176810 0.340
currency per yard of fabric) 100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ -0.220 0.226 0.161 0.403 0.256 0.261 0.340
per yard of fabric)
Index (Italy:100) 55 56 40 100 64 65 84

Total Costs of Woven Ring-Yarn Fabric - 2001

 (In US $ per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.027 0.028 0.030 0.030 0.031 0.025 0.019
4% 4% 4% 3% 5% 3% 3%
Labour 0.053 0.033 0.011 0.309 0.092 0.062 0.253
8% 5% 2% 32% 14% 8% 31%
Power 0.057 0.116 0.039 0.123 0.063 0.110 0.068
9% 17% 6% 13% 9% 14% 8%
Auxiliary material 0.066 0.070 0.060 0.072 0.112 0.074 0.065
10% 10% 9% 8% 16% 10% 8%
Capital (depriciation & interest) 0.250 0.243 0.308 0.206 0.164 0.296 0.219
38% 35% 47% 22% 24% 39% 27%
Raw Material 0.204 0.206 0.213 0.211 0.215 0.195 0.182
31% 29% 32% 22% 32% 26% 23%
Total fabric costs (In US $ per yard 0.657 0.696 0.661 0.951 0.677 0.762 0.806
of fabric) 100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 69 73 70 100 71 80 85

Total Costs of Woven O-E Yarn Fabric - 2001

(In US $ per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.019 0.021 0.022 0.021 0.022 0.028 0.024
3% 3% 3% 3% 3% 4% 3%
Labour 0.042 0.027 0.010 0.230 0.073 0.044 0.192
7% 4% 1% 27% 12% 6% 27%
Power 0.051 0.105 0.035 0.112 0.057 0.100 0.063
8% 16% 6% 13% 9% 14% 9%
Auxiliary material 0.068 0.072 0.062 0.074 0.114 0.077 0.067
11% 11% 10% 9% 18% 10% 9%
Capital (depriciation & interest) 0.223 0.230 0.287 0.190 0.148 0.287 0.196
37% 35% 46% 23% 24% 39% 27%
Raw Material 0.204 0.206 0.213 0.211 0.215 0.195 0.182
34% 31% 34% 25% 34% 27% 25%
Total fabric costs (In US $ per yard 0.607 0.661 0.629 0.838 0.629 0.731 0.724
of fabric) 100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 72 79 75 100 75 87 86

Mnufacturing Costs of Ring Yarn Knitting - 2001

(In national currency per yard of
fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Labour 0.035 0.307 43 232 52.5 18538 0.11
16% 6% 5% 53% 35% 20% 57%
Power 0.022 1.149 84 55 15.5 14867 0.013
10% 23% 10% 13% 10% 16% 7%
Auxiliary material 0.030 0.586 120 35 17.9 10375 0.014
14% 12% 15% 8% 12% 11% 7%
Depriciation 0.066 1.467 258 80 43.4 26851 0.038
31% 30% 31% 18% 29% 30% 20%
Interest 0.061 1.464 318 35 20.2 20666 0.017
29% 29% 39% 8% 14% 23% 9%
Total manufacturing costs (national 0.214 4.973 823 437 149.5 91297 0.192
currency per yard of fabric) 100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ 0.109 0.107 0.087 0.209 0.117 0.135 0.192
per yard of fabric)
Index (Italy:100) 52 51 42 100 56 64 92

Total Costs of Knitted Ring-Yarn Fabric-2001

(In US $ per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.063 0.065 0.071 0.069 0.072 0.057 0.045
6% 5% 6% 5% 6% 5% 4%
Labour 0.057 0.027 0.009 0.399 0.108 0.094 0.331
5% 2% 1% 27% 10% 7% 26%
Power 0.070 0.152 0.048 0.153 0.075 0.135 0.078
6% 13% 4% 10% 7% 10% 6%
Auxiliary material 0.054 0.051 0.050 0.058 0.053 0.054 0.055
5% 4% 4% 4% 5% 4% 4%
Capital (depriciation & interest) 0.409 0.430 0.580 0.318 0.288 0.513 0.349
36% 36% 46% 21% 26% 39% 27%
Raw Material 0.478 0.482 0.498 0.494 0.502 0.457 0.424
42% 40% 39% 33% 46% 35% 33%
Total fabric costs (US $ per yard of 1.131 1.207 1.256 1.491 1.098 1.310 1.282
fabric) 100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 76 81 84 100 74 88 86

Manufacturing Costs of O-E Yarn Knitting – 2001

(In national currency per yard of
fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Labour 0.016 0.144 20 109 24.7 8714 0.052
17% 6% 5% 53% 36% 21% 58%
Power 0.012 0.634 46 30 8.6 8203 0.007
12% 27% 12% 15% 12% 19% 8%
Auxiliary material 0.011 0.224 46 13 6.8 3963 0.005
12% 9% 12% 7% 10% 9% 6%
Depriciation 0.031 0.686 120 37 20.3 12529 0.018
31% 29% 32% 18% 29% 29% 20%
Interest 0.028 0.679 147 15 9.2 9373 0.007
28% 29% 39% 7% 13% 22% 8%
Total manufacturing costs (national 0.098 2.367 379 204 69.6 42782 0.089
currency per yard of fabric) 100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ 0.050 0.051 0.040 0.098 0.054 0.063 0.089
per yard of fabric)
Index (Italy:100) 51 52 41 100 56 64 91

Total Costs of Knitted O-E Yarn Fabric - 2001

(In US $ per yard fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.024 0.025 0.026 0.025 0.027 0.0340 0.030
5% 4% 4% 4% 5% 5% 5%
Labour 0.016 0.007 0.003 0.105 0.032 0.025 0.092
3% 1% 1% 17% 6% 4% 17%
Power 0.030 0.065 0.021 0.066 0.032 0.058 0.035
6% 11% 3% 10% 6% 9% 6%
Auxiliary material 0.028 0.027 0.027 0.030 0.028 0.028 0.029
5% 5% 4% 5% 6% 5% 5%
Capital (depriciation & interest) 0.176 0.204 0.272 0.142 0.127 0.250 0.149
34% 36% 45% 23% 25% 40% 27%
Raw Material 0.247 0.249 0.258 0.257 0.260 0.237 0.220
47% 43% 43% 41% 52% 37% 40%
Total fabric costs (US $ per yard 0.521 0.577 0.607 0.625 0.506 0.632 0.555
fabric) 100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 83 92 97 100 81 101 89

Total Costs of Knitted Textured Yarn Fabric - 2001

(In US $ per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Packing 0.003 0.003 0.003 0.003 0.003 0.003 0.003
2% 1% 2% 1% 2% 1% 1%
Labour 0.011 0.005 0.005 0.055 0.023 0.016 0.054
6% 3% 4% 23% 12% 9% 23%
Power 0.010 0.024 0.008 0.023 0.011 0.018 0.012
5% 11% 6% 10% 6% 10% 5%
Auxiliary material 0.006 0.005 0.005 0.006 0.005 0.006 0.005
3% 2% 4% 3% 3% 3% 2%
Capital (depriciation & interest) 0.046 0.048 0.044 0.037 0.035 0.049 0.039
24% 23% 33% 15% 19% 27% 16%
Raw Material 0.112 0.128 0.068 0.116 0.109 0.090 0.124
 60% 60% 51% 48% 58% 50% 53%
Total fabric costs (US $ per yard of 0.188 0.213 0.133 0.240 0.186 0.182 0.237
fabric) 100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 78 89 55 100 78 76 99

Manufacturing Costs of Textured Yarn Weaving - 2001

(In national currency per yard of
fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Labour 0.092 1.533 107.9 499 104.1 30301 0.207
13% 9% 4% 34% 25% 12% 31%
Power 0.070 3.679 264.2 465 54.1 48137 0.221
10% 22% 10% 32% 13% 18% 33%
Auxiliary material 0.140 3.411 556.5 126 96.1 39386 0.058
20% 21% 22% 8% 23% 15% 8%
Depreciation 0.239 4.251 805.8 263 100.9 83674 0.125
34% 26% 32% 18% 25% 32% 19%
Interest 0.167 3.675 810.1 121 56.1 59442 0.060
23% 22% 32% 8% 14% 23% 9%
Total manufacturing costs (national 0.708 16.549 2544.5 1474 411.3 260940 0.671
currency per yard of fabric) 100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ 0.359 0.356 0.269 0.704 0.322 0.385 0.671
per yard of fabric)
Index (Italy:100) 51 51 38 100 46 55 95

Manufacturing Costs of Textured Yarn Knitting - 2001

(In national currency per yard of
fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Labour 0.013 0.118 17 90 20.3 7177 0.043
16% 6% 5% 51% 34% 19% 56%
Power 0.011 0.586 43 28 7.9 7583 0.007
13% 29% 13% 16% 14% 21% 9%
Auxiliary material 0.011 0.0213 43 13 6.5 3779 0.005
13% 10% 13% 7% 11% 10% 7%
Depreciation 0.026 0.568 100 31 16.8 10381 0.015
30% 27% 31% 18% 28% 28% 20%
Interest 0.024 0.565 123 13 7.8 7949 0.006
28% 28% 38% 8% 13% 22% 8%
Total manufacturing costs (national 0.085 2.050 326 175 59 36869 0.076
currency per yard of fabric) 100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ 0.043 0.044 0.034 0.084 0.046 0.054 0.076
per yard of fabric)
Index (Italy:100) 51 53 41 100 56 65 90
Total Costs of Woven Textured Yarn Fabric - 2001
(In US $ per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Packing 0.004 0.004 0.004 0.004 0.004 0.004 0.004
1% 1% 1% 1% 1% 1% 1%
Labour 0.051 0.036 0.015 0.254 0.091 0.051 0.222
9% 6% 4% 28% 18% 9% 25%
Power 0.041 0.094 0.033 0.235 0.048 0.080 0.227
8% 16% 8% 26% 10% 14% 26%
Auxiliary material 0.071 0.073 0.059 0.060 0.075 0.058 0.058
13% 13% 15% 7% 15% 11% 7%
Capital (depriciation & interest) 0.232 0.201 0.197 0.023 0.143 0.239 0.207
43% 35% 50% 22% 28% 44% 23%
Raw Material 0.143 0.164 0.087 0.149 0.139 0.116 0.159
26% 29% 22% 16% 28% 21% 18%
Tota fabric costs (US $ per yard of 0.542 0.572 0.395 0.905 0.500 0.548 0.877
fabric) 100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 60 63 44 100 55 61 97

Source : ITMF (International Production cost Comparison) '2001 &

Compendium of International Textile Statistics, 2002
published by the Office of the Textile Commissioner, Mumbai

Textiles Exports from 1996-97 to April-Jan.'2003

 Rs.Million

April-Jan.' 01- April-Jan.' 02-

Item 1999-00 2000-01 2001-02 (P) % variation
02 03(P)
Cotton Raw Incl. Waste 770.70 2210.65 437.23 243.64 268.31 10.13
Floor Covering of Jute 476.49 646.78 739.51 610.75 990.57 62.19
Other Jute Manufactures 1212.56 1606.12 1344.43 1119.90 1782.77 59.19
Jute Yarn 1839.78 2601.00 2156.37 1868.63 1719.51 -7.98
Jute Hessian 1917.05 2055.12 1861.14 1592.12 2948.01 85.16
Manmade Staple Fibres 1893.94 1674.08 1118.47 931.42 1646.47 76.77
Cotton Yarn, Fabrics &
133882.44 158099.56 144555.25 122207.66 131331.04 7.47
Madeups
Natural Silk Yarn, Fabrics &
10300.63 14019.77 13094.68 11113.41 12099.61 8.87
Madeups
Manmade Yarn, Fabrics &
35158.76 48356.49 50517.01 42047.65 52358.77 24.52
Madeups
Woollen Yarn, Fabrics &
2166.13 2851.69 2479.22 2062.90 1985.77 -3.74
Madeups
RMG of Cotton including
143966.62 179407.19 175674.61 142507.67 167745.56 17.71
Accessories
RMG Silk 5383.23 8462.77 7208.81 6072.85 4846.26 -20.20
RMG Wool 7655.69 13570.48 11308.18 10377.39 9258.87 -10.78
RMG Manmade Fibre 43670.16 44542.65 36793.21 31705.29 28351.19 -10.58
RMG of Other Textile
5809.07 8448.34 6871.75 5559.35 6104.52 9.81
Material
Coir & Coir Manufactures 1999.66 2208.50 2940.06 2506.18 2871.01 14.56
Carpets (Excluding silk)
21607.53 20417.29 17612.57 15537.68 16059.22 3.36
Handmade
Handicrafts (Excluding
28973.71 30220.70 26130.87 22166.05 29146.35 31.49
Handmade Carpets)
Carpets (Excluding Silk) Mill
4891.77 5047.76 4709.44 4068.40 4324.86 6.30
Made
Silk Carpets 1454.30 1108.82 1684.51 1561.65 685.21 -56.12
Silk Waste 331.85 442.67 365.79 332.22 134.02 -59.66
Total Textiles Exports 455362.05 547998.43 509603.11 426192.81 476657.88 11.84
% Textile Exports 28.62 27.22 24.53 24.92 22.98
Total Exports 1590951.99 2013564.52 2077455.62 1710097.56 2074207.67 21.29

(P) Provisional
Source: Foreign Trade Statistics of India (Principal Commodities & Countries) DGCIS,
Kolkata
Textile Imports from 1996-97 to April-Jan.'2003
 April- Jan. 01- April-Jan.' 02-
1999-2000 2000-01 Item % variation
02 03(P)
Woollen Yarn & Fabrics 102.88 139.97 172.43 149.61 881.58 489.24
Cotton Yarn & Fabrics 1074.77 1395.68 2278.23 1815.55 3481.48 91.76
Man made filament/
9669.06 9843.74 13871.97 11852.99 16068.14 35.56
spun yarn (inc. waste)
Madeup Textiles Articles1144.52 1910.46 1717.35 1485.36 1598.31 7.60
Other Textile Yarn,
Fabrics & Madeup 10022.03 12084.64 14059.48 11754.72 13754.96 17.02
Articles
Readymade Garments
699.38 978.30 1724.89 1539.23 899.24 -41.58
(Wovn & Knit)
Raw Jute 1393.09 795.01 956.78 760.49 888.17 16.79
Raw Silk 4127.44 4732.61 6207.81 4778.37 5552.74 16.21
Raw Wool 4919.27 4578.13 6190.84 5177.94 6846.73 32.23
Synthetic &
1842.99 2711.92 2721.35 2371.74 3105.80 30.95
Regenerated Fibres
Silk yarn & fabrics 619.75 910.21 1711.62 1300.99 2391.65 83.83
Woollen and Cotton
1016.78 1440.93 1070.85 949.08 750.51 -20.92
Rags etc.
Cotton Raw & Waste 12539.28 11847.27 20515.79 18146.36 9324.24 -48.62
Textile Yarn, Fabrics &
0.00 0.00 0.00 0.00 0.00 0.00
Madeup Articles
Total Textiles imports 49171.229 53368.864 73199.39 62082.44 65543.54 5.58
Ovarall Imports 2155285.31 2283066.42 2436448.42 2028576.98 2420068.48 19.30

Source Foreign Trade Statistics of India (Principal Commodities & Countries) DGCIS,
Calcutta.

Production of Cloth
(In Mn. Sq.Mtrs)
100%
Khadi,
Blended Non Grand
Year Cotton Total Wool
yarn Cotton Total
& Silk
Yarn
1997-98 19992 5751 11153 36896 545 37441
1998-99 17948 5700 11895 35543 584 36127
 1999-00 18989 5913 13725 38627 581 39207
2000-01 19718 6351 13606 39675 558 40233
2001-02 19769 6287 15334 41390 644 42034

2002-03 (P)
Apr 1675 504 1322 3501 48 3549
May 1609 519 1388 3516 48 3564
June 1658 470 1090 3218 55 3273
July 1744 488 1270 3502 55 3557
August 1623 520 1586 3729 54 3783
September 1588 498 1365 3451 54 3505
October 1628 528 1501 3657 54 3711
November 1530 526 1393 3449 54 3503
December 1663 561 1329 3553 54 3607
January 1631 537 1512 3680 54 3734
February 1462 502 1228 3192 54 3246
March 1635 523 1123 3282 54 3336

Apr - March
2002-03 (P) 19496 6020 16381 41897 644 42541
2001-02 19769 6287 15334 16381 644 42034

Cloth Price Trend - Powerloom Sector

Values are in
Rs./Mtr.

Item Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Filament
(MKT) Avg.
2002-2003 9.34 9.59 10.05
Nil Nil 2 -3 1 Nil 13 Nil -1 Nil 2 3
 -23 -23 -36 -18 -3 2 17 15 15 13 5 4
2001-2002 NA 8.81 8.81 8.38 8.14 7.85 7.88 8.19 8.22 8.59 8.71 8.78
Nil Nil 2 -3 1 Nil 13 Nil -1 Nil 2 3
-23 -23 -36 -18 -3 2 17 15 15 13 5 4
2000-2001 NA NA NA NA NA NA NA NA NA 9.01 9.03 8.91
Nil Nil 2 -3 1 Nil 13 Nil -1 Nil 2 3
-23 -23 -36 -18 -3 2 17 15 15 13 5 4
1999-2000 7.46 7.46 7.61 7.41 7.46 7.46 8.41 8.44 8.38 8.38 8.53 8.78
PV(M) Nil Nil 2 -3 1 Nil 13 Nil -1 Nil 2 3
PV(Y) -23 -23 -36 -18 -3 2 17 15 15 13 5 4
1998-1999 9.66 9.66 11.97 9.02 7.68 7.29 7.16 7.32 7.28 7.44 8.1 7.49
PV(M) : % Variation w.r.t. previous month.
PV(Y) : % Variation w.r.t. same month of previous year.
N.A : Not Available, n.a : Not Applicable

Financial Year-wise, Variety-wise Production of Yarn

( Qty. in Million Kgs. )

100%
Financial Cotton Blended Non Total Growth
. . . . . .
Year Yarn Yarn Cotton Qty. rate
Yarn
Growth % Growth % Growth %
. Qty. Qty. Qty. . .
rate Share rate Share rate Share
1995-
1788 13% 75% 395 14% 17% 195 23% 8% 2378 14%
1996
1996-
2148 20% 77% 484 22% 17% 162 -17% 6% 2794 17%
1997
1997-
2213 3% 74% 583 20% 20% 178 10% 6% 2973 6%
1998
1998- 2022 -9% 72% 595 2% 21% 191 7% 7% 2808 -6%
1999
1999-
2204 9% 72% 621 4% 20% 221 16% 7% 3046 8%
2000
2000-
2268 3% 72% 644 4% 20% 246 11% 8% 3158 4%
2001
2001-
2212 -2% 71% 609 -5% 20% 280 14% 9% 3101 -2%
2002
2001-
2002 2029 -2% 71% 560 -5% 20% 254 13% 9% 2843 -2%
(Apr-Feb)
2002-
2003 1987 -2% 71% 535 -4% 19% 289 14% 10% 2811 -1%
(Apr-Feb)

Note : Growth Rate is calculated w.r.t. same period last year

Data Source : O/o Textile Commissioner, Mumbai

PRODUCTION OF FABRICS IN DIFFERENT SECTORS

(Mn. Sq. Mtrs.)

MILL SECTOR
1994-95 1995-96 1996-97 1997-98 1998-99 99-2000 2000-2001 2001- 2002-03 (P)
(Revised) 2002

Cotton 1262 1159 1222 1238 1111 1105 1106 1036 1023
Blended 746 602 488 466 444 379 332 296 262
100% Non 263 258 247 244 230 230 232 214 214
Cotton
Total 2271 2019 1957 1948 1785 1714 1670 1546 1499

HANDLOOM SECTOR
Cotton 5429 6239 6441 6699 5861 6376 6577 6698 5160
Blended 13 18 52 69 111 119 111 95 122)
100% Non 738 945 963 835 820 857 818 792 791
Cotton
Total 6180 7202 7456 7603 6792 7352 7506 7585 6073

DECENTRALISED POWERLOOM SECTOR

Cotton 7021 7014 7238 6652 5855 6291 6584 6473 6846
Blended 2640 3137 3948 4481 4356 4613 5071 5025 4797
100% Non 6315 7050 8166 9818 10478 12283 12148 13694 14729
Cotton
Total 15976 17201 19352 20951 20689 23187 23803 25192 26372

DECENTRALISED HOSIERY SECTOR

Cotton 3307 4488 4940 5403 5121 5217 5451 5562 6467
Blended 262 268 400 735 789 802 837 871 840
100% Non 179 282 193 256 367 355 408 634 647
Cotton
Total 3748 5038 5533 6394 6277 6374 6696 7067 7954

ALL SECTORS
Cotton 17019 18900 19841 19992 17948 18989 19718 19769 19496
Blended 3661 4025 4888 5751 5700 5913 6351 6287 6020
100% Non 7495 8535 9569 11153 11895 13725 13606 15334 16381
Cotton
Total 28175 31460 34298 36896 35543 38627 39675 41390 41897
Khadi, 431 498 540 545 584 581 558 644 644
Wool & Silk

Grand 28606 31958 34838 37441 36127 39208 40233 42034 42541
Total
Figures in bracket indicates the corresponding period of the previous year
O/o the Textile Commissioner

INDIA'S EXPORTS OF SILK TEXTILES

FROM 1991-92 TO 1999-2000

Year Silk Textiles Total Textile Exports Share as % of Total

Rs. Crore US $ Rs. Crore US $ Million Rs. Crore US $ Million
Million
1991-92 670.98 270.78 14409.50 5796.80 4.7 4.7
1992-93 734.20 253.51 19114.20 6599.60 3.8 3.8
1993-94 789.26 251.63 25010.70 7973.90 3.2 3.2
1994-95 937.31 298.52 31336.30 9980.20 3.0 3.0
1995-96 846.07 253.58 35526.10 10685.10 2.4 2.4
1996-97 880.62 248.06 41828.20 11839.10 2.1 2.1
1997-98 926.29 245.30 46092.50 12342.10 2.0 2.0
1998-99 1036.28 246.20 52814.80 12558.80 2.0 2.0
1999-2000 1274.53 294.00 57736.70 13324.80 2.2 2.2

Source : Central Silk Board

 World Cotton Production
(millions of 480-lb. bales)

Country 1997/ % 1998/ % 1999/ % 2000/ % 2001 / % 2001/ %

98 Share 99 Share 00 Share 01 Share 02 Share 02 Share
April May
China 21.1 23.0 20.7 24.4 17.6 20.2 20.3 22.9 24.4 25.0 24.4 24.9
United States 18.8 20.5 13.9 16.4 17 19.5 17.2 19.4 20.3 20.8 20.3 20.7
India 12.3 13.4 12.9 15.2 12.2 14.0 10.9 12.3 11.8 12.1 11.8 12.0
Pakistan 7.2 7.8 6.3 7.4 8.6 9.9 8.2 9.2 8 8.2 8.2 8.4
Uzbekistan 5.2 5.7 4.6 5.4 5.2 6.0 4.4 5.0 4.9 5.0 4.9 5.0
Brazil 1.7 1.9 2.1 2.5 3.1 3.6 4.3 4.8 3.4 3.5 3.6 3.7
Turkey 3.7 4.0 3.9 4.6 3.6 4.1 3.6 4.1 3.9 4.0 3.9 4.0
Australia 3.2 3.5 3.3 3.9 3.5 4.0 3.7 4.2 3 3.1 3.1 3.2
African Franc 4.3 4.7 4 4.7 3.9 4.5 3.2 3.6 4.6 4.7 4.6 4.7
Zone
Greece 1.7 1.9 1.8 2.1 2 2.3 2 2.3 2.1 2.2 2.1 2.1
Syria 1.6 1.7 1.6 1.9 1.5 1.7 1.7 1.9 1.6 1.6 1.6 1.6
Egypt 1.5 1.6 1.1 1.3 1.1 1.3 0.9 1.0 1.4 1.4 1.4 1.4
Turkmenistan 0.9 1.0 0.9 1.1 1.1 1.3 0.9 1.0 0.9 0.9 0.9 0.9
Argentina 1.4 1.5 0.9 1.1 0.6 0.7 0.7 0.8 0.3 0.3 0.3 0.3
Iran 0.6 0.7 0.6 0.7 0.6 0.7 0.7 0.8 0.6 0.6 0.6 0.6
Paraguay 0.3 0.3 0.3 0.4 0.4 0.5 0.5 0.6 0.3 0.3 0.3 0.3
Others 6.2 6.8 6.1 7.2 5.6 6.4 5.5 6.2 6.1 6.3 6.1 6.2
World Total 91.8 85 87.3 88.7 97.6 98

Source : US Cotton Market Monthly Economic letter 10 May'2002

 World Cotton Consumption
(millions of 480-lb. bales)

Country 1997/ % 1998/ % 1999/ % 2000/ % 2001 /02 % 2001/ 02 %

98 Share 99 Share 00 Share 01 Share April Share May Share

China 19.6 22.5 19.2 22.5 22.2 24.2 23.5 25.5 24.3 26.2 24.5 26.2
India 12.7 14.5 12.6 14.8 13.5 14.7 13.6 14.8 13.2 14.2 13.2 14.1
United States 11.3 12.9 10.4 12.2 10.2 11.1 8.9 9.7 7.5 8.1 7.6 8.1
Pakistan 7.2 8.2 7 8.2 7.6 8.3 8.1 8.8 8.5 9.2 8.5 9.1
Turkey 5 5.7 4.6 5.4 5.6 6.1 5.1 5.5 5.9 6.4 6 6.4
Brazil 3.4 3.9 3.9 4.6 4.1 4.5 4.3 4.7 4.2 4.5 4.3 4.6
European Union 5.3 6.1 4.8 5.6 4.8 5.2 4.7 5.1 4.7 5.1 4.7 5.0
Indonesia 1.8 2.1 2.2 2.6 2 2.2 2.4 2.6 2.4 2.6 2.4 2.6
Mexico 2 2.3 2.2 2.6 2.4 2.6 2.1 2.3 2 2.2 2.1 2.2
Thailand 1.3 1.5 1.3 1.5 1.6 1.7 1.6 1.7 1.8 1.9 1.8 1.9
Russia 1.2 1.4 0.9 1.1 1.5 1.6 1.6 1.7 1.8 1.9 1.8 1.9
South Korea 1.4 1.6 1.5 1.8 1.5 1.6 1.5 1.6 1.6 1.7 1.6 1.7
Taiwan 1.3 1.5 1.4 1.6 1.3 1.4 1.2 1.3 1.2 1.3 1.2 1.3
Japan 1.4 1.6 1.2 1.4 1.3 1.4 1.2 1.3 1.1 1.2 1.1 1.2
Uzbekistan 0.9 1.0 0.8 0.9 0.9 1.0 1.1 1.2 1.2 1.3 1.2 1.3
Other 11.6 13.3 11.2 13.1 11.2 12.2 11.5 12.5 11.5 12.4 11.6 12.4
World Total 87.3 85.3 91.8 92.1 92.7 93.5

Source : US Cotton Market Monthly Economic letter 10 May'2002