Shahina

INDIAN TEXTILE
INDUSTRY
BY,
SHAHINA KURASHI
INTRODUCTION
 Global trade in this industry is now at US$ 350 billion.
 Among the countries, Japan, Australia and New Zealand

are the significant consumers of Indian textiles.
 India ranks second with 8 percent of the total.
 Industry is worth over US$ 4395 billion .
 High production of wool, cotton and silk over the world

has boosted the industry in recent years.
HISTORY
 The term 'Textile' is a Latin word originating from the
word 'texere' which means 'to weave'
 The history of textile is almost as old as that of human
civilization.
 In India the culture of silk was introduced in 400AD .
 Modern textile industry took birth in India in the early
nineteenth century.
 The first cotton textile mill of Bombay was established in
1854.
 After independence, the cotton textile industry made
rapid strides under the Plans.
INDIAN FACT FILE
 The global textile & apparel industry generated total
revenue of USD 1467.5 Billion.
 The global textile sector was worth USD 214.7 Billion in

2005, which represented 14.6% of the Industry value share.
 The global textile & apparel industry is expected to reach

a value of USD 1,781.7 Billion by the end of 2011.
INDIAN FACT FILE
 India contributes to about 25% share in the world trade of
cotton yarn.
 India, the world’s 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.
 It contributes about 12% to the world production of textile

fibers and yarns.
INDIAN FACT FILE
 India is one of the largest consumers of cotton in the

world, ranking second to China in production of
cotton yarn and fabrics and first in installed spinning
and weaving capacity
 Total consumption of cotton/ man-made fibers and

filament yarns is 5155 Million Kg (2008-09)
SWOT ANALYSIS
Strengths:
 Indian Textile Industry is an Independent & Self-
Reliant industry.
 Abundant Raw Material availability that helps
industry to control costs and reduces the lead-time
across the operation.
 Availability of Low Cost and Skilled Manpower
provides competitive advantage to industry.
 Availability of large varieties of cotton fiber and has
a fast growing synthetic fiber industry.
 India has great advantage in Spinning Sector and has
a presence in all process of operation and value
chain.
SWOT ANALYSIS
Weaknesses:
 Indian Textile Industry is highly Fragmented Industry.
 Industry is highly dependent on Cotton.
 Lower Productivity in various segments.
 Lack of Technological Development that affect the
productivity and other activities in whole value chain.
 Unfavorable labor Laws.
 Lack of Trade Membership, which restrict to tap other
potential market.
 Lacking to generate Economies of Scale.
 Higher Indirect Taxes, Power and Interest Rates.
SWOT ANALYSIS
Opportunities:
 Growth rate of Domestic Textile Industry is 6-8% per
annum.
 Large, Potential Domestic and International Market.
 Product development and Diversification to cater global
needs.
 Market is gradually shifting towards Branded Readymade
Garment.
 Emerging Retail Industry and Malls provide huge
opportunities for the Apparel, Handicraft and other
segments of the industry.
 Greater Investment and FDI opportunities are available.
SWOT ANALYSIS
Threats:
 Competition from other developing countries, especially
China.
 Continuous Quality Improvement is need of the hour as
there are different demand patterns all over the world.
 Geographical Disadvantages.
 International labor and Environmental Laws.
 To balance the demand and supply.
 To make balance between price and quality.
INDIA’S EXPORT OF TEXTILES
Commodities 2008-2009 (Million USD)

Readymade garments 6038.69
Cotton textiles 3290.31
Man-made textiles 1948.72
Wool & woolen textiles 66.57
Silk textile 406.82
Total 11751.11
PRODUCTION STATISTICS
PRODUCTION OF FIBRES India
(Million Kg)
Raw cotton 4122
Man-made fibre 1023
PRODUCTION OF YARN
Cotton yarn 2272
Total spun yarn 3223
Man-made filament yarn 1109
MARKET SHARE IN TEXTILE
INDUSTRY
MAJOR PLAYERS
Arvind Mills
 Arvind Mills is one of the fully vertically integrated players
in India.
 It has large capacities in denim, shirting and knitted
garments.
 Adding value by manufacturing denim apparel.
 Its sales are around US$ 300 millions with little less than
9% profitability
RAYMOND
 Raymond has the large integrated business model, across
the value chain from yarn to retail.
 It already supplies to some US retailers.
 it second largest denim player in India.
 Its annual sales are around US$ 300 millions with little less
than 7 % profitability.
VARDHAMAN SPINNING
 Vardhman has capacities in spinning, weaving and
processing.
 It is planning to double its fabric processing capacity to 50
million meters.
 It is an approved supplier to global retailers like Gap,
Target and Tommy Hilfiger.
 Its sales are little over US$ 120 millions with 6.5%
profitability.
WELSPUN INDIA
 Welspun is among the top five manufacturers of terry
towels in the world
 It sells its products in 24 countries
 It is supplier to retailers such as Wal-Mart, J C Penny, and
Shopko.
 Its revenues are little over US$ 100 millions with little less
than 8%profitability.
CONCLUSION
 A huge window of opportunity has opened up for the
Indian textile industry.
 Various players need to get act together.
 Government is playing the role of facilitator by taking

various majors.
 It’s now for players to make investments in building
the capacities and making them integrated
manufacturers.
 The industry enjoys significant strength and
advantages, such as availability of raw materials,
labour, domestic market and supportive government
policies.

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INDIAN TEXTILE

 Among the countries, Japan, Australia and New Zealand

 High production of wool, cotton and silk over the world

 The global textile sector was worth USD 214.7 Billion in

 The global textile & apparel industry is expected to reach

 India, the world’s third-largest producer of cotton and

 It contributes about 12% to the world production of textile

 India is one of the largest consumers of cotton in the

 Total consumption of cotton/ man-made fibers and

Commodities 2008-2009 (Million USD)

 It already supplies to some US retailers.

 it second largest denim player in India.

 Government is playing the role of facilitator by taking

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