With China leading the global textile trade, India ranks second with 8%.

Indias share of the world trade in textiles (3.9%) and apparel (3%) is increasing Exports grew by 8% in 2006-07 over the last year Textiles is the second largest employer after agriculture, with about 35 million people directly employed

The global textiles and apparel trade estimated at US$ 450 billion. Expected to touch US$ 700 billion by 2010. For textiles, the European Union is the biggest exporter Asia accounted for 45.1% of world textiles exports. The EU and the US are the biggest importers of textiles. Clothing provided more than 40% of total merchandise exports for Cambodia, El Salvador, Bangladesh, Sri Lanka, Mauritius and Lesotho.

Production of textile yarn witnessed a compounded annual growth rate (CAGR) of 3.6 per cent between 1996 and 2006. Finished cloth has witnessed a higher CAGR of 4.1 per cent during the same period. This growth outperforms the global production, which experienced a CAGR of 2.25 per cent (both yarn and cloth).

India has the highest number of looms. India ranks 1st in jute production (at 1,900 million kilograms) 2nd in silk production (at 15 million kilograms of raw silk) 2nd in cotton exports (at 2,000 million kilograms) 2nd in cotton production (at 2,700 million kilograms of cotton fibre) 5th in man-made fibres(at 2,000 million kilograms) Ranks 8th in the total production of wool (at 51 million kilograms) in the world.

Indian textile industry can be divided into several segments, some of which can be listed as below:

Cotton Textiles
Silk Textiles Woollen Textiles

Readymade Garments
Hand-crafted Textiles Jute and Coir

Facts of Indian Textile Industry

India, the worlds third-largest producer of cotton and second-largest producer of cotton yarns and textiles, is poised to play an increasingly important role in global cotton and textile markets as a result of domestic and multilateral policy reform. India has second highest spindle age in the world after China with an installed capacity of 38.60 Million Indian textile industry contributes about 14 % to industrial production. 4% to countrys gross domestic product. 17% to countrys export earnings Provides direct employment to over 35 million people India earns about 27% of its total foreign exchange through textile exports. The textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country It is the largest provider of employment after agriculture.

STRENGTH

Indias biggest strength lies in its big pool of cheap and talented workforce. However, apart from it there are few other important factors which contributes to its strength like Huge Domestic Market consumption (due to its own population). Tremendous Export Potential (Indian products are in great demand among the western importers) The new age creative and risk taking entrepreneurs. Use of latest technology which produces high quality multi-fiber raw material. Supportive government policies.

Weakness
The Indian Textile Industry has its fair share of weakness like:

The increased global competition due to WTO policies. Use of outdated manufacturing technology from the low end suppliers. Inefficient supply chain management. Additionally, this sector is still unorganized at many levels and needs a lot of government reforms for further improvisation.

Opportunity

Low per-capita domestic consumption of textile indicating significant potential growth.

Domestic market extremely sensitive to fashion fads and this has resulted in the
development of a responsive garment industry.

India's global share is just 3% while China controls about 15%. In post-2005, China is expected to capture 43% of global textile trade.

Companies need to concentrate on new product developments. Increased use of CAD to develop designing capabilities and for developing greater options.

Threats

Competition in post-2005 is not just in exports, but is also likely within the country due to cheaper imports of goods of higher quality at lower costs.

Standards such as SA-8000 or WARP have resulted in increased pressure on

companies for improvement of their working practices.

Alternative competitive advantages would continue to be a barrier

Indian economy is more constrained to service sector rather than industrial

sector.

Diversified cultures in India also alters the growth of textile industry.

Rivalry

Government Regulation Policy

Textile Industry

Demand Conditions

Cost & Location

The industry which was growing at 3-4 percent during the last six decades has now accelerated to the annual growth rate of 9-10 percent but various factors have effecting annual growth rate of textile Industry, Global recession is one of them. The impact of the global and domestic economic slow down directly affect the performance of the industry.

Index of industrial production (IIP) data has been released by the central statistical organization (CSO) shows a dismal picture of textile production . PERCENTAGE GROWTH IN TEXTILES

Developed countries' exports declined from 52.2% share in 1990 to 37.8 % in 2002.
And that of developing countries increased from 47.8% to 62.2 % in the same period.

In 2003 the exports figures in percentage of the world trade in Textiles Group (for select countries) were:

Financial year 2004-2005

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Textile exports US$ Millions 14026.72

17520.07 19146.04 19558.53 18519.96 22418.00

Total exports US$ Percentage of Millions textile exports 83538.95

103090.53 126262.68 143567.86 153018.22 178751.43

16.79%
16.99% 15.16% 13.62% 12.10% 12.54%

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ARVIND MILLS- It is the flagship company of the LALBHAI GROUP. Established in the year 1931 by Kasturbhai Lalbhai with a share capital of Rs. 25,25,000. Sanjay Lalbhai is the CEO & MD of the company. It generates a revenue of $451million. It enjoys a share of 72% of the total denim market. It is listed in both NSE & BSE.

RAYMONDS INDIA- It is the flagship company of the SINGHANIA GROUP. It was incorporated in the year 1925 as a producer of wool. Mr. Gautam.H.Singhania is the Chairman & MD. It is a $318 million company with a very good market share in premium branding. It is being quoted as THE FUTURE OF TEXTILE INDUSTRY. It is listed in the BSE.

WELSPUN GROUP- It is one of the fastest growing companies in India. Established in the year 1985 as a small scale unit. Mr. B.K.Goenka is the Vice Chairman & MD. It has a strong client base with companies such as Wal-Mart, Chevron, Exxon etc. It is listed in BSE. It is a US $ 300 million company with 20000 employees & 50000 shareholders with presence in about 50 countries.

1400 1200 1000 800 600 400 200 771.98 545.42 284.31 277.78 235.72 1202.83 MARKET CAP. SALES

0
ARVIND WELSPUN

RAYMOND

COMPARISON (in Crores)

25

The government has offered health insurance coverage to 161.10 million weavers and ancillary workers under handloom weavers comprehensive scheme.
The CENTRAL COTTAGE INDUSTRIES CORPORATION OF INDIA and THE HANDICRAFTS AND HANDLOOMS EXPORT CORPORATION OF INDIA have developed a number of e- marketing platforms to simplify marketing issues. As per the 12th year five year plan, the integrated skill development scheme aims to train over 2675,000 people within next 5 years. As per the credit guarantee program, over 25000 artisans credit cards have been supplied to artisans and 16.50 million additional applications for issuing credit cards have been forwarded to banks . The Indian government has given approval to 40 new textiles parks to be set up and this would be executed over a period of 36 months. The new textiles park would leverage employment to 400,000 textile workers

Highest incidence of sickness The plant and machinery and technology by a number of units are absolute. Government regulations like the obligation to produce controlled cloth are against the interest of the industry. The cotton yield per hectare of land is very low in India. Competition from the man made fabrics and synthetics. India has been facing severe competition from other countries like Taiwan, South Korea, China and Japan. The cotton textile industry is frequently plagued by labour problems. The industry faces number of other problems like power cuts, infrastructural problems, lack of finance, exorbitant rise in raw material prices and production costs etc.

Points of consideration: Type of approach Business Expansion Specialization Expenditure Fashion Institutes Terms & Policies

Growth of Chinese textile industry Can India weave the same magic?
An analysis of the growth of China's textile industry reveals some interesting points, which may be used by Indian planners in policy formulation.

Building capacities: The size-does-matter approach Speed: The multiplier force Choosing suitable policy mix Embracing WTO: The timing factor Other Supporting factors

Imbibing global best practices Adopting rapidly changing technologies and efficient processes Innovation Networking and better supply chain management Ability to link up to global value chains.