Indian Textile & Apparel Industry Brightest Future Ever
Transcript of Indian Textile & Apparel Industry Brightest Future Ever
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BrightestFutureEver
ArvindSinghal3rd September2010
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Contents
1. Changingfaceofglobaltrade
2. OpportunitiesforIndia
3. MilestoneyearsofIndiantextilehistory
4. Acallforthenextdisruption
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3
Chan in FaceOfGlobalTrade
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OverTheYears,ProductionHasConverged
Production
Hubs
US,Canada Europe
China
ASEANCAFTA/CBI
SouthAsia
Source:TechnopakAnalysisConsumption
Centres
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..LeadingToIncreaseInGlobalTextile&Apparel
800
1000GlobalTextile&ApparelTrade(USDBn)
500
650530586 612
510
350198
309 346 362 310
157
2000 2006 2007 2008 2009 2015 2020
Textiles Apparel Total
Source:WTO,UNComtrade &Technopak Analysis
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AndResultingInContinuingShiftOfExport
.
Western/DevelopedCountries AsianCountries
Country
in2000
(US$mn)
CAGR
since2000Country
in2000
(US$mn)
CAGR
since2000
Korea
Republic5027 12% Vietnam 1821 22%
Cambodia 970 18%
Republic2555 10%
USA 8629 8%
China 36071 16%
Bangladesh 5067 10%
Mexico 8631 7%
Canada 328 6%
India 5960 8%
Pakistan 2144 8%
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AsWellAsForRawMaterials..
Countries Countries
2.2 21%
3.4 79%
Growth
1.8India 30.7 242%
2.6
2.7.
China
Italy
9.0
.
2.6 1.7
2.2Germany
14%
37% 5.3 4.7
. 6.9
11%
2000 2009 2000 2009
Source:UNComtrade
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RisingMarketOpportunityForDevelopingCountries
Mostdevelopedcountries willseecontinueddeclineof
theirtextileandapparelindustryandcreatefresh
opportunityofuptoUS$140Billionforexportsfor
Inaddition,anopportunityofapproxUS$360370Billion
likelytobecreatedduetoriseindemand
Henceana t ona mar etopportun tyo ~US 500B on
likely
to
be
created
by
2020
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ChinasExportsMayBeConstrainedInFutureCreating
OpportunitiesForOthers
800
US$
350
Billion C naw rema n
thebiggest
exporterbutwith
236292
rising
costs
and
risingdomestic
demand,itma Chinawilladd
135260
450157 cedesomeexport
opportunity
toitsdomestic
apparel
2009 2015(E) 2020(E)
Domestic Ex orts Total
2020
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HenceOpportunityForIndiaToReachUS$80
Growingworldtrade1990 2020
US$billion 1990 2000 2005 2008 2009 2015 2020
WorldGDP 23,000 32,000 45,400 61,000 57,000 82,000 111,027
WorldTrade 4,338 7,902 12,752 19,344 15,341 24,600 33,308
,
ChinaT&AExports 16 52 104 175 157 236 350
IndiaT&AExports 4.6 11.4 15 21 23 45 80
IndiasShareInGlobal
T&A Trade 2.1% 3.2% 3.1% 3.4% 4.5% 5.6% 8.0%
PotentialForIndiaToAlmostDouble
GlobalExportShare..
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Further,GoingForward.IndianEconomyHasA
IndianEconomyIsExpectedToTouch
GDP$
Trillion
2000 2010 2020Inthelast10yearsIndia
hasadded$930billionto
.
USA 10.8 15.7 18.0
China 1.3 5.6 13.2
almostdoubleofthat
(about$1700Billion) in. . .
Germany 2.1 3.6 4.3
France 1.5 2.9 3.3
enex years
The Indian econom in
UK 1.6 2.4 2.8
Italy 1.2 2.3 2.5
2020ispoisedtobecome
bigger
than
the
current
size
Brazil 0.7 1.9 3.1
India 0.5 1.4 3.1
,
orItaly
. . .
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TextileAndApparelIndustryWillGrowSubstantiallyToo
Indias US$70Billion TextileandApparelindustryhasthepotentialtogrow@
220
toreac on y
80
134US$Billion
45
70 78
30 47 52
891623
2005 2009 2010(E) 2015(E) 2020(E)
Domestic Exports Total(US$Bn)
*Allnumbersareroundedoff
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MilestoneYearsInIndianTextileIndustry
ExceptionalentrepreneurswhoputIndiaontheglobaltextilemap
1869
r ams e ata: tarte s rstventure yacqu r nga an rupto
millinChinchpopkliconverteditintoacottonmillandrenameditto
Alexandra
Mill
19001960s ShriGDBirla,LalaShriram(DCM),ShriMafatlalGaganbhai(Mafatlal), ShriPiramalChaturbhuj(Morarjee),Singhanias(JK/Raymond),Wadia BombayDyeing,others
1970s
1980s
ShriDhirubhaiAmbani(RelianceIndustries)
ShriS.POswal (Vardhman),others
1990S
Shri
Sanjay
Lalbhai
(Arvind),
others
2000s Jiwarajkafamily,otherse.g.SKNL,BRFL,Welspun,Abhishek each
alreadyorpoisedtosoonbecomeabillionUS$integratedtextile
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14
TheNextDisru tion
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BeyondFactorDrivenIndustry
(Before 2005)
FACTOR DRIVEN
(2005- 2015)
EFFICIENCY DRIVEN
(2015 onw ards)
INNOVATION DRIVEN
Raw Mater ial Avai labi l i ty
Labor avai labi l i ty
Vert ical / Virt ual Integrat i on
Manufactur ing excellence
Product
Design / Brand
Government pol icy inf luenced
Diversi ty in pr oduct m ix Business Processes
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CreateNewMegaClusters
DevelopingtheNext Amritsars &Ahmedabads &
AmbalaLudhiana
Mundraan pa
Ahmedabad
Surat
Madurai
Mangalore Bengaluru
M soreKarur
CoimbatoreTirupur
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ReInventTheEntireIndustry
divest)
Attractthebestmanagementandoperationaltalent
Rebrandtheentireindustry/companies/products
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ThoughtLeadership.
CII,FICCI,PrimeMinistersIndustryLeadersCouncil
platformssuchasWEF,IndiaTodayConclave,HT
.
partnerofdesire
18
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Conclusion
alreadyavailabletoprovideinspirationtomany
,
theIndianTextileandApparelindustry
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an you