PRESENTATION ON TRAINING PROJECT

PRESENTED BY : AMANDEEP SINGH MBA IB ROLL.NO. 94972238256

INTRODUCATION OF THE COMPANYCOMPANY PROFILE:y Charley knitwear Pvt.Ltd. established in 1991 by Mr.

Charanjit Arora as Proprietor.y In the year 1996 the promoter of the Unit surveyed

International Market and with his persistent efforts successfully penetrated in the overseas market.

OBJECTIVES OF THE COMPANYy For Export y For Domestic and Industrial Use. y For Army, Navy and Air Force Use. y Every knit of wearing apparels for Gents, Ladies and

Kids T-shirts, Sweat Shirts, Trousers, Jackets and pants including Sweaters , Pullovers, Coats, Vests, Underpants, Panties, dresses, Nightgowns, Gloves, Mittens and foundation garments for ladies.

TURNOVER300 250 200 150Turnover

100 50 0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03

TITLE OF PROJECT

STUDY ON EXPORT COMPETITION OF GARMENT INDUSTRY WITH RESPECT TO LUDHIANA CITY.

NEED OF THE STUDYy To know the competition level between various

garment industries in Ludhiana.y To know the success ratio of garment exports to

various countries.y To know the company s position in the garment

market.

OBJECTIVES OF THE STUDY

To evaluate the export competition of Ludhiana garment sectors. wise of Ludhiana garment sectors.

Recent performance region wise & business type To know factor affecting the competitiveness of

Indian garment industry. industry.

To indentify the problem faced by Indian garment

OVERVIEW OF GARMENT INDUSTRY The Garment Industry of India is Rs 1 trillion industry. The Industry covers over one lac units and employs about 6 million workers. Organized sector of the garment industry is roughly 20% of the total industry. 80% of the production is of cotton garments, 15% of synthetic/mixed garments and the rest of silk and wool garments.

TYPES OF GARMENTS Men s wear. Women s wear. Kid s wear.

GARMENT MARKETThe Global Textile Industry, particularly the Garment Industry has seen remarkable changes in the past few years. The Garment Manufacturing Industry and the Garment Companies in developed countries are now always on a lookout for cheap source of garment production. The days are gone when textile garment industry was concentrated in the consumption hubs of US, EU and other developed countries of the world

MAJOR TRENDS IN APPAREL AND CLOTHING Global garment exports are valued at more than US$310 billion a year, of which the world's top 15 clothing exporters account for more than 80%. Developing countries in Asia continue expanding their Textile Garment Industry due to their very-low-cost production. India s Apparel Industry is likely to achieve an export target of US$ 25 billion by 2010-11

INDIAN GARMENT MARKET SCENARIO

India s textile and garment is strong its share in

GDP is 4%. Indian textile and garment s contribution total export is 25%.

HISTORY OF INDIAN GARMENT INDUSTRYThe foundations of the Indian textile trade with other countries began as early as the second century BC.

MARKET SIZE OF GARMENT INDUSTRY2008-09 Textile Garments Undergarments 1,487 6.80% 0.01% 0.001% Clothing & 20,219 93% % Share

Home Textile Furnishings 2.16 Accessories Total 0.29 21,708.45

TEXTILES APPAREL AND CLOTHING India s domestic market for apparel & clothing is

currently worth Euro 20,219 million in 2008-09.It has registered a steady compounded annual growth rate (CAGR) of 13.6% in the past 5 Years. Volume wise, apparel market has grown from 4.8

billion units in 2004 to 5.9 billion units in 2008-09 at a CAGR of 5.3%.

INDIA'S APPAREL & CLOTHING MARKET2004-05Vol e Value ( uro Millions) 4450 Volume (million units) 1,443

2006-07Value ( uro Millions) 5605 Volume (million Units) 1600

2008-09Value ( uro Million) 6938

( illion units) Menswear 1328

Womens wear

1368

3856

1523

5106

1676

6414

Unisex apparel

466

1014

519

1461

589

1816

Kids wear

1222

1836

1323

2333

1468

2975

Uniforms

423

991

498

1461

581

2077

Total

4807

12147

5306

15966

5905

20219

ASSESSMENT OF MARKET POTENTIAL VALUE (MILLION EUROS)2008-09 Textile Clothing & 20,219 Garments 2009-10 22342 2010-11 24688 2011-12 27280

Undergarments

1,487

1673

1882

2117

Total

21706

25015

26570

29397

PRODUCTION SCENARIO IN INDIA Apparel production has been growing at a CAGR of

little more than 5% in the past 3 years (Menswear 5.3%; Women s wear 5%; Unisex Apparel 5.5%).

The production of undergarments in India increased

from 914 million units in 2006-07 to 1050 million units in 2008-09.

The Garment market has been growing at around 9

to10% per year in the past 4 years and will continue to grow unabated in the next 3- 4 years

MAJOR PRODUCTION HUBS IN INDIATextile Apparels / Clothing and Undergarments Mumbai & sholapur Power loom weaving export hub Tirupur & adjoining cities Cotton knit wear export hub

udhiana &

anpur

oolen knit wear export

MAJOR PLAYER IN INDIAN GARMENT SECTOR Pantaloon retail (india) limited Shopper s Stop Tata Tent Globus stores Pvt. Ltd Piramyd Retail Ltd Arvind Brands ltd The Raymond Group Madura Garment Reliance retail Ltd. Murjani Group Landmark Group Zodiac Clothing

GARMENTS: THE MAIN EXPORT MARKET AMONG ALL TEXTILE PRODUCTS

SWOT ANALYSIS STRENGTHHigh capacity produce. The company with a excellent track report of high profits. A well developed an efficient marketing network. A highly experience and dedicated staff. The product they produced has low production cost as there competitor.

WEAKNESS They don t have Labour as according there

requirement. They have not get any certification. There is not proper departmentation in the firm. It doesn t have proper machinery for doing the production. Increase in power tariff, indirect tax and interest rate resulting in higher production cost.

OPPORTUNITIES Good prospect for more foreign investment in view of the increasing market presence of international giants. Large potential domestic and international market. Increase the demand for luxury brand by the middle claass. Product development and diversification to cater global needs. Emerging retail industry and malls provide huge opportunities for the garment industry.

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. Cheaper imports. Tough competition in domestic market. To make the balance between price and quality.

INITIATIVES TAKEN BY THE INDIAN GOVERNMENT FOR GARMENT INDUSTRY Setting up of US $6 billion technology up gradation found for modernizing the entire value chain of the industry. Launching of the technology mission on cotton to improve the quality & productivity of raw cotton. Liberalized the labour low, taxes other benefits of a special economic zone need to the implemented. Progressive reduction import duty on garment machinery and products.

FUTURE PROSPECTS Garment industry looking at achieving an export

target of $ 25 billion by 2010-11, an garment Export production council official said. people.

The industry would need an additional 1.5 million An investment of Rs 35000 cr. in terms of related

infrastructure.

AEPC plans set up 50 training centers, beside the 22

centers it has present across the country.

RESEARCH METHODOLOGYy Research methodology to be adopted for the research

topic, export competition of Indian garment industry with respect to Ludhiana city . y It includes the selection of sample, collection of data; the choice of statistical tools that were used for analyzed the data.

RESEARCH DESIGNy The research design for present in descriptive design

and was carried out by survey.y The research design comprises of means of obtaining

information i.e. through questionnaires filled from the garment exporter s.

SAMPLE DESIGN

y Sample unit. y Sample size. y Sampling technique.

DATA ANALYSIS AND INTERPRETATIONSTable1. State form of ownership of business

Options

No. of responses

Percentage

Private limited

14

70

Public limited

0

0

Partnership

4

20

Sole proprietorship

2

10

Table2. Type of garment products exporting.

Options No. of responses Percentage

Knitting Garment

11

55

Woven Garment

1

5

Both knitting & woven Garment

8

40

Table3. Country preffered for export

Options

No. of responses

Percentage

USA

9

45

Europe

10

50

Middle East Countries

5

25

Others specify

7

35

Table 4. Major factors while selecting a country for export.

Options

No. of responses

Overall ranking

Overall demand

35

1

Export formalities

49

2

Economic Stability

49

2

Political environment

67

3

Table 5. Annual turnover (approx. in INR) for the year 2009-2010.

Options

No. of responses

Percentage

1-10 million

15

75

10-99 million

3

15

100-499 million

2

10

500-999 million

0

0

Above 1 billion

0

0

Table6. Competitive advantage of Ludhiana Garment Industry as compared to other countries.Options No. of responses Overall ranking

Cost

38

2

Quality

34

1

Technology

60

3

Timely elivery of or er

68

4

Table7. Tough competition in garment industry

Options No. of responses Percentage

Yes

18

90

No

2

10

Table 8 Factors which are playing major role in competition.

Options

No. of responses

Percentage

Product availability

5

25

Product features\ Quality

5

25

Price of the product

5

25

Competitors position in market

5

25

Table9. labor availability and skills affecting the productivity while manufacturing the products.

Options

No. of responses

Percentage

Yes

20

100

No

0

0

Table10. Foreign exchange rate fluctuations affecting the business.

Options

No. of responses

Percentage 50

Highly agree

10 40

Agree

8 10

Natural

2 0

Disagree

0 0

Highly disagree

0

Table11. Risk involved in exporting.

Options

No. of responses

Percentage

Yes

10

50

No

10

50

Table12. Type of risk involved in exporting goods.

Options

No. of responses

Percentage

Payment risk

8

40

Goods in transit No Barrier

3 5

15 25

Any other

2

10

Table13. Satisfaction with the government policies.

Options

No. of responses

Percentage

Yes

12

60

No

8

40

Table15. Trade barriers while exporting.

Options

No. of responses

Percentage

Certification

8

40

Free trade agreement

2

10

Non trade barrier

2

10

Any other

8

40

Table16. Future of Ludhiana Garment industry: Bright

Options

No. of responses

Percentage 35

Strongly Agree

7 50

Agree

10 5

Neutral

1 5

Disagree

1 5

Strongly Disagree

1

CONCLUSIONS

SUGGESTIONS

THANK YOU..