TEXTILE INDUSTRY

Ravikumar
Richie Kuruvilla
Ritu Pareek
Sabir Babu
Sachin Bino

HISTORY

English inventors in the 18th century began to automate textile cottage industry processes
including carding, spinning and weaving.

James Hargreaves developed the Spinning Jenny, a device which replaced eight
hand spinners in one operation. Richard Arkwright assembled these processes and started
the first factory on the Derwent River in Cromford, England in 1771.

In 1792, Samuel Slater opened a yarn spinning mill in Pawtucket, Rhode

Island, the first successful automated yarn spinning in the US.

In the early 1800s, cotton was raised in the southern United States and exported to mills in
England and the north. .

In 1814, James Cabot Lowell of Boston built a factory in Waltham, up the Charles River from
Boston.

Later, the Boston Associates built an entire mill town on the Merrimack River, and later
named it "Lowell" in memory of James Cabot Lowell.

In the 1990s, a new world order began to replace. Buying from the lowest cost producer
drove many textile manufacturers out of the production side and into imports.
Manufacturing companies changed to marketing companies

INDIAN TEXTILE INDUSTRY

Indias textile industry is one of the economys largest.

The industry scenario started changing after the liberalization of Indian
economy in 1991.
It has now become the largest industries in the world.
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.

STRUCTURE OF TEXTILE INDUSTRY

Textile Industry
Organized/ Centralized Sector
(Mill Sector)
a. Spinning Mills
b. Composite Mills
(Spinning and Weaving)

Unorganized / Decentralized
Sector
a.
b.
c.
d.

Hand Looms
Power Looms
Hosiery & Khadhi Units
Processing Units

Indian textile industry can be divided into the

following segments:

Cotton Textiles
Silk Textiles
Woollen Textiles
Readymade Garments
Hand-crafted Textiles
Jute and Coir

FACTS OF INDIAN TEXTILE INDUSTRY

India is the second largest producer of cotton yarn.

4% contribution to GDP

2nd largest producer of cotton

14% contribution to industrial production

17% contribution to export earning

Direct employment to more than 35 million people

India is the largest in loom age Concluding handloom in the world and contributes
about 61 percent to the world loom age.

Strong and Diverse raw material base

Second largest exporter of yam.

Globally competitive spinning industries.

Strong presence in entire textile value chain.

FACTORS AFFECTING TEXTILE INDUSTRY

Rivalry

Government
Regulation
Policy

Textile
Industry

Cost &
Location

Demand
Conditions

Recent developments
Bangladesh is planning to set up two special economic zones (SEZ) for attracting
Indian companies in view of the duty free trade between the two countries.

Italian luxury major Canali has entered into a 51:49 joint venture with genesis
luxury fashion, which currently has distribution rights of Canali branded products
in India . The company will now sell Canali branded products in India exclusively.

Performance of the Textile Industry

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

Export scenario

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:

INDIAN TEXTILE EXPORTS 2010

ready garment
cotton textile
16%

2%2%
39%

4%

Man-made
textiles
handi crafts

16%

silk & handloom

22%

Wool & Woolen

textiles
others

Textile export statistics

Financial year

Textile
exports US$
Millions

Total exports
US$ Millions

Percentage of
textile
exports

2004-2005

14026.72

83538.95

16.79%

2005-2006

17520.07

103090.53

16.99%

2006-2007

19146.04

126262.68

15.16%

2007-2008

19558.53

143567.86

13.62%

2008-2009

18519.96

153018.22

12.10%

2009-2010

22418.00

178751.43

12.54%

MAJOR PLAYERS IN TEXTILE

INDUSTRY
Company

Business area

Welspun India LTD

Home textile, bathrobes, terry towels

Vardhman group

Yarn , fabric, sewing threads, acrylic fibre

Raymond Ltd.

Tailored clothing,denim,shirting, woolen

outerwear

Bombay dyeing &

manufacturing
ltd.compqny

Bed linen, towels, shirts, dresses, and saris in

cotton and polyester blend

ITC lifestyle

Lifestyle market

Reliance industries
Ltd.

Fabric, formal men's wear

Problems Of Textile Industry in

India

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
Koria, 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.

Government initiates and regulatory

framework

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 emarketing 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