TEXTILE INDUSTRY ININDIA

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PROJECT REPORT

ON

EVALUATION AND FUTURE OPPORTUNITIES OF INDIANS TEXTILE INDUSTRY.

SUBMITTED TO SUBMITTED BY

Mrs. PARUL PURI Manisha Singh

Roll No.11051


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STUDENT UNDERTAKING

The project is submitted to institute of management studies, Noida, as a Project for

Partial fulfillment of PGDM program.

ByPROJECT GUIDES: (PARUL PURI) Manisha Singh.


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ACKNOWLEDGEMENT

We would like to express our sincere gratitude to all those who have been instrumental in the preparationof this project report.

We would like to thank Mrs . . . . PARUL PURI, for his guidance and support in our project.

We wish to place on record our deep sense of gratitude to Mrs .VANDANA MATHUR for imparting usan opportunity to observe the real marketing conditions of textile inustry as well as the peculiar andunpredictable consumer buying behavior.

We are deeply obliged to IMS B-School and its Management for its support in the project.


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EXECUTIVE SUMMARY

The project EVALUATION AND FUTURE OPPORTUNITIES OFINDIANTEXTILE INDUSTRY provides a deep knowledge of various industry which produces thereadymade garments.

It also provides a comparative study of different textile production and marketingcompanies like ARVIND MILLS, RELIANCE TEXTILES, BIRLA GROUP, RAYMONDS,and BOMBAY DEYING AND OTHERS with similar profile to discuss about their products,offers, policies, services and providing suggestion to them.

On the basis of feedback through questionnaire and observation method, I fond that thereis close competition between the companies. As each of them are increasing their products

,qualities , looks and providing better services every day. The entry of the MNCs are also themajor opportunity for the industry and it enlarge the competition of the industry.

The Indian textile industry is the one of the biggest industry of India. It is a total marketsize of $55 billion. It contains at least 4% of GDP, 17% of total industrial production,19% of Thedomestic market is likely to increase from US$ 34.6 billion to US$ 60 billion by2012. It isexpected that India's share of exports to the world would also increase from the current 4 per centto around 7 per cent during this period. India's textile exports have shot up from US$ 19.14billion in 2006-07 to US$ 22.13 billion in 2007-08, registering a growth of over 15 per cent .

My analysis is based on sample results. It was a difficult task to gather the informationfrom respondents by meeting them personally in order to get questionnaire filled. There was a lotof time pressure and sometimes unwillingness of respondents to respond.


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CONTENTS:-

Page No.

Chapter 1- INTRODUCTION------------------------------- 06

Chapter 2- LITERATURE REVIEW----------------------- 10

Chapter 3- RESEARCH METHODOLOGY-------------- 13

Chapter 4- OVERVIEW OF INDIAN TEXTILE INDUSTRY15

Chapter 5- DATA ANALYSIS ----------------------------------------30Chapter 6- SUGGESTIONS AND CONCLUSION---------------- 40


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INTRODUCTION

Textile is the core business of India from the ling time. It is major business for our short term andcottage industries. Indian textile industry is as old as the word textile itself . This industry holds asignificant position in India by providing the most basic need of Indians. Starting from theprocurement of raw materials to the final production stage of the actual textile , the Indian textileindustry works on an independent basis.

BACKGROUND OF THE STUDY:-

Textile is the oldest business of Indians. Mainer places in India accounting for its remarkableachievement in the field of textiles. It is a major source of the earning of their venue generationfor the country. From the last 50 years after the independence, this sector continuously is a part

of the revenue generation of the countries. It is a major industry in employment generation of thecountry. From the last couple of years, it accounting for a leading role in the GDP of the country.It accounts for around 4 per cent of the gross domestic product (GDP), 14 per cent of industrialproduction and over 13 per cent of the country's total export earnings . Moreover, it providesemployment to over 35 million people .The Indian textile industry is estimated to be around US$52 billion and is likely to reach US$ 115 billion by 2012. The domestic market is likely toincrease from US$34.6 billion to US$ 60 billion by 2012. It is expected that India's share ofexports to the world would also increase from the current 4 per cent to around 7 per cent duringthis period. India's textile exports have shot up from US$ 19.14 billion in 2006-07 to US$ 22.13billion in2007-08, registering a growth of over 15 per cent.

HISTORY OF INDIAN TEXTILE INDUSTRY:-

India has a diverse and rich textile tradition. It is the second largest producer of textile andclothing in the world with its products being exported to over 120 countries. Recent estimatesindicate that the country's textile sector will grow faster in the coming years and contribute a lotto the our overall economy. There are different time per time revolution has been taken place inthe Indian textile industry. The textile sector has been thriving in India for decades. Thetraditional textile industry of India had virtually decayed during the colonial regime. However, inthe nineteenth century, the industry was revived with the establishment of textile mills inCalcutta(now Kolkata) in 1818. Cotton textile industry had begun functioning in Bombay (nowMumbai)in 1850s and the first cotton textile mill in the city was established in 1854 by a Parsicotton merchant. These growth expectations run contrary to the perceived vied, a decade back orso ,that textile was a sunset industry. Till 1985, India has no specialized policies to promote thetextile industry. It is is 1985 that the government announced a separate policy statement withregard to development of textile sector. In the year 2000, National Textile Policy was announcedand since then the Indian textile industry has been exhibiting a distinguished performanceopening up new opportunities for the small and medium scale industries (SMEs) in the country


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Parallel to these developments the Indian textile industry has witnessed over the last few years,textile exports of the country have also grown exponentially despite stiff competition from Asianrivals like Vietnam, China, Pakistan and Indonesia. During 2006-07,India's textile exports were

valued at $18.73 billion (Rs 84,752 crore) and they are estimated to be at $22 billion in the yearto March 2009.

SCOPE OF THE STUDY:-

The study will cover the brief description of Indian textile sector, its current situation, position,future prospect, SWOT, and its international competitiveness. The brief scopes of the study hasbeen given as follows.-

The export competitiveness of Indian textile industry.

The brief overview of Indian textile industry.

Evaluation of Textile policy 2000. Future prospect of Indian textile industry. Analysis of Quality control and logistic of Indian textile industry.

NEED OF THE STUDY:-

The study will provide a clear and brief view about the current situation and future prospect of

the Indian Textile sector. As it is said that the Indian Textile sector is the one of the old andmore profit earning sector from many years. The study will give the perfect overview and actualanalysis of the relevant datas for the clear picture of the industry .There are following need forthe study of the report.;-

Increase in the international demand of the apparels and clothes. Entry of multinational companies in the India. Implementation of different promotion policies of govt. Providing fruitful information to the major companies of Indias textile sector.


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OBJECTIVE OF THE STUDY:-

To determine the exact position of Indian Textile Industry. To know about the areas where it is lacing. To know the opportunities of the industry in future. To know the effect of the current competitive environment on the Indian Textile Industry. To determining the demand of Indian textile products in international market.

Rationale of the study

The main focus of the study is to understand textile industry of india and find out the

EVALUATIONAND FUTURE OPPORTUNITIES OF INDIAS TEXTILE

INDUSTRY.


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CHAPTER2

LITERATURE REVIEW


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LITERATURE REVIEW

The study has been take into implementation of the different research surveys of many famousnational and national researchers. ASSOCHAM study on textile in India.

AC Nielsens surveys are the major ones which takes into implementation and theresuggestions has been deeply implemented .

According to the report given by ASSOCHAM, the textile sector registered 50 per cent increasein investment during 2008-09 to US$ 10.46 billion from US$ 6.57 billion in 2007-08. The textileindustry has attracted foreign direct investment (FDI) worth US$ 677 million from April 2000 toMarch 2009.According to the Textiles and Apparel Report 2007, by the Confederation of IndianIndustry and Ernst & Young, the Indian sourcing market is estimated to grow at an annualaverage rate of 12 per cent from an expected market size of US$ 22 billion-US$ 25 billionin2008 to US$ 35 billion-US$ 37 billion by 2011.Simultaneously, world's cutting edge fashionbrands such as Hugo Boss, Diesel and Liz Claiborne are stepping up their sourcing from India

.According to the ICRA Information, Grading and Research Service, Indias textile and apparelexports to US during January-April 2005 have37%grown by 27 per cent as compared to thecorresponding period in the previous year. However ,this has been at a slower rate as comparedto China (59 per cent) during the same period. India needs to shift its focus to exports of textileand clothing based on manmade fibres , which accounted a meager 16 per centof the total textilesand apparel exports in 2004, while 37 percent of US textile and apparel imports constituted

imports of manmade fibre in 2004. Thus, it is necessary to leverage our cost advantage in termsof labour costs to boost overall textiles and apparel sector in the future.

Chandra (1998) in his article wrote on challenges ahead of Indian textile and clothingindustry in post quota regime. It put special emphasis on production capabilities andefficiencies as most essential elements to fight global competition. It suggests variousstrategic decisions Indian textile manufacturers have to make to survive thecompetitiveness in post quota regime.

Bagchi (1997) critically examined the removal of quota between 1995-2005 in fourphases is not as beneficial as it is projected by developed world. The first two phases are

composed of goods which are not of high importance and already almost free. These twophases are not of high importance. The other two phases are of high importance.


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Simpson and Shetty (2001) did a vast study on Indias textile industry. The purpose ofstudy is to analyze Indias textile and apparel industry, its structural problems, marketaccess barriers, and measurements taken by government of India to enhance theindustrys competitiveness in the post Multi fibre Agreement (MFA) era. The study alsoassesses Indias textile and apparel market potential and trade and investment

opportunities for U.S. firms as India steps into a more free and transparent trade regime.For the purpose of study exploratory study is done in which in-depth interviews are donewith various government officials in Textile Export Promotion Council, Ministry of. 101 textile, Cotton Council of India, Apparel Export Promotion Council (AEPC), Federationof Karnataka Chamber of Commerce and Industry, Handloom Export Promotion Council,Madras Chamber of Commerce and Industry, The South India Textile and ResearchAssociation, and almost all top executives of Indias large textile mills.

Verma (2002) did a comprehensive study with objective to evaluate the exportcompetitiveness of Indian textile and clothing sector. Because Indian textile and clothingsector is predominantly cotton based, the study is focused on cotton textile and clothing

and look at the entire value chain from fiber to garment and retail distribution. The scopeof study covers the products in Indian export basket which have shown a promisinggrowth in value. The Study concludes that Indian exports to US and EU are exportcompetitive as a whole. Sector wise analysis of export performance of Indian textile andclothing sectors to US and EU reveal that so far apparel or clothing and made-up isconcerned; quota is the major constraint in the growth, while it is not true in case of yarnexports. Indian textile and clothing sector has tremendous potential and only a portion ofwhich is explored till now and this shortcoming is due to policy constraints.. 102

Meenakshi (2003) did a comprehensive study on the opportunities that would beprovided by WTO to Indian Textile industry. This paper gives a lot emphasis on newcapacity installation to take the benefits to the fullest extent in India has to be a truegainer in competition to other nations. Since Indias own consumption per capita is alsoon the rise with the rise of income and consumption habits, the profit margins available toIndian textile and clothing producers will be more. But in export market, the prices willbe driven by international factors and profits will be under pressure. So the exportersmight have to go for strategy of partial exports and partial domestic sale.

Pandey (2003) in his article expected that Indian textile exporter would be benefited withquota elimination. It discusses on various sectors of textile and clothing. Also he expectsthat hosiery industry will be one of the gainer and small scale exporters will be morecompetitive due to small size and controlled cost and lower overheads.


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Uraiwan (2004) had worked extensively on the knitwear/hosiery products developmentprocess to understand the complexities underlying in it; because a well defineddevelopment process assist the organization to determine its future direction, plan for

rapid changes, create new product line with profits and plan for technology adaptationand implementation. The goal of this research was to propose an optimal productdevelopment process for a knitwear/hosiery company by examining the process used bymajor US Sweater Company and comparing its process to established processes.. 103

Vivek (2004) in his article had said that JC Penny a leading retail chain of US looks Indiafor sourcing its garments in woven and hosiery. He is of opinion that India will befulfilling its major need of Hosiery and woven garments in cotton while China will begood for synthetic fabrics and its garments.

Chugan (2005) emphasized that Indian textile Industry has to change to be morecompetitive in the long run. This paper emphasis that merely cost competence is notenough to maintain the lead while Indian companied has to have a global competitiveview.


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CHAPTER3

RESEARCH METHODOLOGY


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RESEARCH METHODOLOGY

The different primary and secondary datas has been used in the research project report. For theaspects, the secondary data analysis has been takes into consideration, but maximum areas and

parts of the project has been covered by primary datas..PRIMARY DATA:Primary data was collected .

SECONDARY DATA:Secondary data was collected through magazines, research papers, internet etc.

SAMPLE SIZE : 200

RESEARCH INTRUMENTS QUESTIONNAIRE DESIGN:

As the questionnaire is self administrated one.Words used in questionnaire are readilyunderstandable to all respondent. Also technical jargons are avoided to ensure that there is noconfusion for respondents


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CHAPTER4

OVERVIEW OF INDIAN TEXTILE INDUSTRY


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OVERVIEW OF INDIAN TEXTILE INDUSTRY

Indian textile industry is the countrys leading profit gainer industry. It is a very old andtraditional business of India. This industry holds a significant position in India by providing themost basic need of Indians. Starting from the procurement of raw materials to thefinal production stage of the actual textile, the Indian textile industry works on an independentbasis. Until the economic liberalization of Indian economy, the Indian Textile Industrywas predominantly unorganized industry. The opening up of Indian economy post 1990s led tostupendous growth of this industry. Indian Textile Industry is one of the largest textile industriesin the world. Today ,Indian economy is largely dependent on textile manufacturing and exports.India earns around27% of the foreign exchange from exports of textiles. Further, Indian TextileIndustry contributes about 14% of the total industrial production of India. Furthermore, its

contribution to the gross domestic product of India is around 3% and the numbers are steadilyincreasing. Indian Textile Industry involves around 35 million workers directly and it accountsfor 21% of the total employment generated in the economy. Indian textile industry concludes ofvarious segments like:

1 . W o o l e n T e x t i l e s .2 . C o t t o n T e x t i l e s .3 . S i l k T e x t i l e s .4 . R e a d y m a d e G a r m e n t s .5 . J u t e A n d C o i r .

6 . Hand-Cra f t ed Tex t i l e L i ke Carpe t s7 . M a n M a d e T e x t i l e s

Indian textile industry in a very short span had made a distinct position globally, alluringthe globe towards the World of Indian textiles. This has happened mainly because highavailability of raw materials.

8 . Hi gh l y sk i l l ed economi ca l l abo r , an added advan t age9. Largest producer of cotton yarn contributing 25% towards worlds cotton.10. Availability of all kinds of fibers like silk, cotton, wool and even high quality synthetic

fibers.


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11. Flexibility of the readymade garment industry in terms of sizes, fabric variety, quantity ,quality and cost .Its not just the present that is shinning like a bright start but also thefuture, as the textile export market of India is expected to reach a high of $50 billion by2010. This will eventually make a profit by 300%. In order to attain this target Indian

textile industry has already started improving their design skills, including a combinationof various fibers. Indian textile industry is all set to meet international standards and isplanning to invest $5 billion in machineries very soon .Most of the international brandslike Marks & Spencer, JC penny, Gap have started procuring most of their fabrics fromIndia. In fact, Walmart , who had procured textile worth $ 200 million last year, intendsto procure $ 3 billion worth of textile this year. The golden phase of the Indian textileindustry has just begun where the world is chasing it from all nooks and corners.

MAJOR TEXTILE COMPANIES OF INDIA :-

The major textile companies of India are as follows :-

Arvind Mills:-Arvind Mills is Indias largest Textile Mill. It has large production in denims, shirtingand knitted garments. It is now adding value by manufacturing denim apparel . Its salesare around US$ 300millions.

Raymonds :-It is a brand name of Textiles all over the world. It specialized in the diversified woolengarments. It is expanding its products through the organized retail stores and

showrooms. It also looking to also expanding denim capacity and to become secondlargest denim player in India. Its presence in retail will be big positive in future .Itsannual sales are around US$ 300 millions

Reliance Textiles:-Reliance Textiles is one of the major Textile Company that is in business of fullyintegrated manmade fiber. It has capacity of more than 6 million tones per year. Ithas joint venture partners like, DuPont, Stone & Webster, Sinco (Italy) etc.

Vardhaman Spinning:-Vardhman deals in spinning, weaving and processing segment of the industry. It isplanning to double its fabric processing capacity to 50 million meters. It is an approvedsupplier to global retailers like GaP, Target and Tommy Hilfiger. Its sales are little overUS$ 120 millions


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Welspun India(Manufactures terry towels)

Century Textiles(Composite mill, cotton & Man-made)

Morarjee Mills(Fully integrated Composite Mill)

Indo Rama(Cotton and Man-made)

GTN Textiles(Cotton Yarn and Knit Fabrics)

Ginni Filaments Ltd.(Yarn and Fabrics) LNJ Bhilwara Group

(Diversified and vertically integrated denim producer with spinning and weavingcapacity)

Mafatlal Textiles(Fully integrated Composite Mill)

Modern Group(Diversified, producer of denim, syntax and thread)

Ashima Syntex(Man-made Fiber)

KG Denim(Fabrics)

Sanghi Polyesters Ltd.(Manmade Fiber)

Nova Petrochemicals(Man-made Fiber)

S. Kumar Synfabs Ltd.(Home furnishing and Suit Fabrics)


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Bombay Dyeing Ltd.(Composite and fully integrated)

Rajasthan Petro synthetics National Rayon Corp.

(Man-made fiber)

GSL India Ltd.(Threads)

Indian Rayon(Man-Made Fiber)

Alok Textiles(Cotton and Man-made Fiber Textiles)

Sharda Textile Mills(Man-made Fiber)

Birla Group Dormeuil Birla VXL Ltd.(Fully integrated woolen textiles)

Gokuldas Images(Diversified)

Hanil Era Textiles(Yarn, Cotton & Man-made Fiber)

Oswal Knit India(Woolen Wear)

Niryat Sam Apparels(Apparel)

Filaments India Ltd.(Manmade Textiles)

The industry has several segments such as hosiery and ready-made garments an divided into theorganised and the un-organised sector, with players from both sectors often grouped together inexport oriented clusters. Some of the important textile clusters are based in places such asBhilwara, Sanganer, Panipat, Palli, Jetpur, Jodhpur, Surat, Sambhalpur, Mysore and Bhiwandi.


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THE TOTAL PRODUCTION OF YARN IN INDIA:-

The production of yarn shows a increasing tend from last decade. In the year 2003-04 the totalproduction of yarn in India was 2900 million kg. which has been continuously increasing to3100(2004-05), 3300, 3600, 3800 and 4200 million kg.

EXPORTS :-


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Some Facts :

India is the largest exporter of yarn in the international market and has a share of 25 per cent in

world cotton yarn exports. India accounts for 12 per cent of the world's production of textile fibres and yarn. In terms of spindle age, the Indian textile industry is ranked second, after China, and

accounts for 23 per cent of the world's spindle capacity. The country has the highest loom capacity, including handlooms, with a share of 61

per cent in world loomage. India is the largest producer of jute in the world. It is the second largest producer of silk and the only country to produce all four

varieties of silk mulberry, tusar, eri and muga.

India is the fifth largest producer of synthetic fibres/yarn.


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Indian textiles, handlooms and handicrafts are exported to more than a 100 countries, Europecontinues to be India's major export market with 22 per cent share in textiles and 43 per cent inapparel, the US is the single largest buyer of Indian textiles and apparel with 19 per cent and32.6 per cent share, respectively. Other significant countries in the export list include the UAE,Saudi Arabia , Canada, Bangladesh, China, Turkey and Japan. Readymade garments (RMG) are

the largest export segment, accounting for almost 45 per cent of total textile exports and 8.2 percent of India's total exports. This segment has benefitted significantly with the termination of theMulti-Fibre Arrangement (MFA) in January 2005. RMG exports from India were worth US$8.51billion in FY 2008. They are expected to touch US$ 14.5 billion by 200910 with accumulativeannual growth of 18 to 20 per cent, according to the Apparel Export Promotion Council. Anothersegment in which India has excelled in the export market is carpets. Exports of carpets haveincreased from US$ 654.32 million in 200405 to US$ 806.71 million in 200708.Significantly,apparel is the second largest retail category in India. It accounts for about 10 per cent of the US$37 billion Indian retail market, and with the continuing boom in consumer demand is estimated

to grow at the rate of 1215 per cent annually. In fact, reflecting the huge opportunity in thissegment, AT Kearney's 'Retail Apparel Index' ranks India as the third most attractive marketdestinations for apparel retailers.

MAJOR TEXTILE EXPOT PROMOTION COUNCILS OF INDIA

The major export promotion councils of India are given as follows :-

A) Apparel Export Promotion Council.B) Cotton Textile Export Promotion Council

.C) Handloom Export Promotion Council.D) Indian Silk Export Promotion Council.


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Apparel Export Promotion Council :-

APEC is a nodal agency sponsored by the ministry of Textile, Govt. of India. It performsthe following functions :-

Monitors garment exports quotas and promotions of exports of readymade garmentsof India.

Continuously involves in the task of promoting exports by organizing buyer-seller meets, Leads trade delegations to potential markets globally. Participates in specialized international fairs. Organized the Indian International Garment Fair biannually.

Cotton Textile Export Promotion Council :-

Cotton Textile Export Promotion council is an autonomous, non-profit export promotion body.Its activities includes :-

Acting as an international face of Indian Textile Exports. Collection and dissemination of information.

Handloom Export Promotion Council :-

It is a statutory body. Its function is to promote the exports of all handloom products like fabrics,home furnishings, carpets and floor covering etc.

Indian Silk Export Promotion Council :- It is the nodal agency for promotion of silk exports fromIndia. Consist of more than 1200 silk exporters as members


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INDIAN TEXTILE POLICY 2000.

Highlights of the National Textile Policy 2000

The Government of India recently announced the new National Textile Policy(NTP) 2000, withthe objective of facilitating the industry to attain and sustain a pre-eminent global standing in themanufacture and export of clothing. In furtherance of these objectives, the strategic thrust is to beplaced on technological upgradation , enhancement of productivity and quality, productdiversification, and strengthening the raw material base in the country .Through NTP 2000, theGovernment would endeavor to achieve the target of textile and apparel exports from the presentlevel of U.S. $11 billion to U.S. $50 billion by 2010.Of this, the share of garments would be U.S.$25 billion. The policy provides for setting up a venture capital fund for tapping knowledge-based entrepreneurs and assisting the private sector to set up specialized financial arrangementsto fund the diverse needs of the textile industry .The new policy would also encourage theprivate sector to set up world class, environment-friendly, integrated textile complexes and

textile processing units in different parts of the country and would review and revitalise theworking of the TRAs (Textile Research Associations) to focus research on industry needs.Sect oral Initiatives.

Within the framework of the new Policy, the following sector specific initiatives will be

taken:

RAW MATERIALS

The thrust will be on improving the availability, productivity and quality of raw materials atreasonable prices for the industry. Though cotton is expected to continue to be the dominantfiber, special attention will be given to bring the balance between cotton and non-cotton fiberscloser to international levels.

COTTON

The primary aim of the policy for this segment will be to improve production, productivity andquality, and stabilize prices. The Technology Mission on Cotton will be the instrumentfor achieving these parameters. Ministry of Textiles, Ministry of Agriculture, Cotton growingStates, farmers and industry associations will be actively involved in the implementation of thisMission .


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SILK

Focus will be on achieving international standards in all varieties of silk. Steps will include:

Improving Research & Development and effective transfer of technology at all stages. Increasing the production of non-mulberry varieties of silk. Encouraging clustering of activities of reeling and weaving and strengthening linkagesbetween producers and industry. Reviewing the import policy periodically for raw silk, taking into account the balanced interestsof the seri -culturists as well as the export manufacturers .

WOOL

In order to augment availability of quality wool, the following measures will be initiated:

Take up collaborative research projects with the leading wool producing countries of the world. Encourage private breeding farms to increase productivity. Promote private sector linkages for marketing of wool. Take up an integrated development program for angora wool.

JUTE

A Technology Mission on Jute will be launched to achieve the following objectives:

Develop high yielding seeds to improve productivity and acceptability in markets. Improve retting practices to get better quality fiber. Transfer cost effective technologies to the farmers and create strong market linkages.

CLOTHING

The role of this sector is poised for radical change in view of the transformation in theinternational trading environment brought about by the rules and regulations of the WTO. Theindustry will be restructured as follows:

Garment industry will be taken out of the SSI reservation list. Joint ventures and strategic alliances with leading world manufacturers will be promoted. Schemes with necessary infrastructural facilities for the establishment of textile/apparel parkswill be designed with the active involvement of state governments, financial institutions andthe private sector.

JUTE INDUSTY

In the jute sector, attempts would be made to revive the jute economy through supportivemeasures covering research and development, technology up gradation, creation of infrastructure


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for storage and marketing of raw jute, and product and market development activities for jute anddiversified jute products.SPINNING SECTOR

The NTP seeks to continue efforts to modernize and upgrade technology to international levels

,and proposes to take the following steps, in cotton spinning as well as in the worsted woolensectors:

Encourage the spinning sector to continue to modernize. Liberalize and encourage export of cotton yarn.

ORGANIZED MILLS INDUSTRY

Efforts will be made to restore the organized mill industry to its position of pre-eminence to meetinternational demand for high value and large volume products. For this purpose, the followingmeasures will be initiated:

Integration of production efforts on technology driven lines Encouragement for setting up large integrated textile complexes Strategic alliances with international textile majors, with focus on new products and retailingstrategies Creation of awareness and supportive measures for application of IT for up gradationof technology, enhancement of efficiency, productivity and quality, better working environmentand HRD. The earlier policy of not nationalizing sick units will be continued. As regards theunviable Public Sector Undertakings (PSUs), various options for strategic partnerships orprivatization will be explored. Non-viable mills will be closed down with provision for anadequate safety-net for workers and employees.

POWER LOOM INDUSTRY

The power loom sector occupies a pivotal position in the Indian textile industry. However, itsgrowth has been stunted by technological obsolescence, fragmented structure, low productivityand low-end quality products. The focus will therefore be on modernization of power loomservice Centres and testing facilities, and clustering of facilities to achieve optimum levelsof production.

HAND LOOMS INDUSTRY

The handloom sector is known for its heritage and the tradition of excellent craftsmanship.Itprovides livelihood to Indias millions of weavers and crafts-persons. The industry has notonly survived but also grown over the decades due to its inherent strengths like flexibilityof production in small quantities, openness to innovation, low level of capital investment andimmense possibilities for fabric design. The Government will continue to accord priority to thissector. Steps would be taken to promote and develop its exclusiveness for the global market.Measures will include the following:


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Training modules for weavers engaged in the production of low value added items with theobjective of upgrading their skills to enable them to find alternate employment in the textile orother allied sector

Comprehensive welfare measures in close cooperation with the State Governments, for

better working environment and social security of weavers Effective support systems in R&D,design inputs, skill up gradation Review of the Hank Yarn Obligation Order and the Reservation Orders issued under theHandloom (Reservation of Articles for Production) Act 1985, keeping in mind the needs ofhandloom weavers Merchandising and marketing will be central to the success of the handloomsector, the present package of schemes for production of value added fabrics will be streamlined, innovative market oriented schemes will be introduced, and joint ventures will been

couraged both at the domestic and international levels. Brand equity of handlooms will also becommercially exploited to the extent possible.

KNITTING

Hosiery knitting, the growth of which has accelerated during the last decade primarily because ofexpansion of hosiery into global fashion knitwear, is expected to expand into the apparel andhome furnishing sectors. In this segment, the following measures will be taken.

Review of the Policy of SSI Reservation for this sector Encouraging technology up gradation and expansion of capacity Introduction of support systems for commercial intelligence, design and fashion inputsCarpets ,While machine-made carpet manufacturing in the mill sector will be guided by the policyframework for the organized industry, the policy for the hand knotted carpet sector will focus onsustained growth of exports and welfare of weavers and their children. Encouragement will begiven to the manufacture of products that conform to and bear the KALEEN mark of standards,with insistence on compliance with the provisions of the Child Labor (Prohibition andRegulation) Act, 1986. Government intervention will be in technology up gradation, includingindigenization of machines, development of testing facilities, and use of natural dyes. Adaptationof traditional motifs and promotion of brand image would also constitute thrust areas.


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SWOT ANALYSIS OF INDIAN TEXTILE INDUSTRY :

-Indian Textile Industry has done a remarkable achievement in terms of growth and earningforeign exchange. The SWOT analysis of the industry is given as follows :-

STRENGTH :-

A large organized sector. A big production of yarn and silk. Govt. initiatives. A healthy foreign market share of 25%. There are well-established production bases for made-ups export as well as for domestic

market.

There are adequate processing facility for yarn dyeing and production of yarn dyedFabrics.

Availability of well engineering industries. There are a large number of power loom owners and looms that are expanding in size

over the recent period.

WEAKNESS :-

Poor supply chain management. Unavailability of skilled labours . Poor Transport facility. The most serious problem of the industry is the lack of adequate processing facilities ;

there is over-dependence on hand processors and traditional items.

The majority of the SMEs are tiny and cottage type units without sufficient capitalback-up.

The quality of wider-width fabrics for meeting the export demand is lacking in manyrespects, which is acting as a disadvantage to the growth of the industry.


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OPPORTUNITIES :-

Avast rural market in the country and European market. Upcoming commonwealth games in the country. Grey fabric export is continuing to grow and will show increasing trends. Nearly 40 textiles parks are being set up throughout the country under the Scheme

for Integrated Textile Parks (SITP), which is stated to attract an investment of Rs21.502crore (US$ 4.42 million) and create employment, both direct and indirect for 9.08lakh workers and produce goods worth Rs 38.115 crore (US$ 7.82 million) annually.

THREATS :-

Abolition of quota system will lead to fluctuations in the export demand Increasing competition from other states/centres (like Surat) will be a major problem

where the industries have come up afresh and are well developed and technologicallymore advanced.

Entry of global competitors.


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CHAPTER5

DATA ANALYSIS


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DATA ANALYSIS

Data of the duration of purchasing habits of peoples :-

Table 1:- Duration of Purchase

Interpretation ;-

The above data shows the purchasing durations of the customer for ready made garments.According to that data, more than 35%(39 %) peoples goes once a month for purchasingreadymade garments. 21% peoples goes occasionally like- during festive season, during going

for important parties, during going to tour etc. 17% people goes at an interval of every twomonths gap, 15% goes twice a month and at last 8% peoples purchases once a year.


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Table 2:- Buying Habits of peoples.:-

Interpretation :-

Day per day the buying habits of customers are changing. At the present time more than 40%people are looking for a fashionable verity of products, 35% looking for a good brand they are

the working class and higher class peoples, 18% customers goes for verity of colors, ex-different color verity of formal shirts for offices or occasions, at last 6% customers looking forcheaper products.


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Table 3 :-Buying Destinations of customers :-

Interpretation :-

The present customers have change their favorable place for buying products from traditionalretails to modern malls. Approx 50 % customers goes local stores for purchasing of readymadegarments. 30% goes to organized retail stores like, Big Bazaar, Vishal Mega Mart, TNG, Cotton

County etc. 10% customers are looking foe the authorized showrooms of the company and 12%customers are looking for malls.


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Table 4:- Purchasing Limit of Customers :-

Interpretation:-

At the present time, the average customer wish to pay Rs. 1500 to 3000 for a readymadegarment. 28% customers are those whose purchasing limit is between 1000to 1500 .the 19%peoples have a purchasing limit of below 1000 they are the people of semi urban areas.


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Table 5 :- Purpose of purchasing of readymade garments

Interpretation :-

Basically, the main purpose of purchasing of readymade garments are for occasions or generalpurpose but from the last decade, it is found that more than 35% customers are purchasinggarments for office use, it is only due to the corporate dress code. 30% garments are sell for

general purpose, 20% for daily use, and 15% for party wear.


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Table 6:- References for purchase:-

Interpretation :-

41% customers influenced by their friends and other relatives. 35% customers influenced by advertisements. 20% customers influenced by other source of reference. 4% customers influenced by their family members


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Table 7:-Companies with most festival offers

Interpretation :-

At the modern time the main promotion strategy of maximum companies are offering attractiveschemes and free offers like.. buy one get two free, etc. in this field Arvind Mills leads with 32%of market share, Reliance textiles follow with 18%, Raymonds with 15%and Birla Groupsoccupies 11% market share in offering attractive schemes. The other MNCs and some localcompanies maintain a healthy share of 20% in issuing attractive schemes


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Table 8:- Market Share of Major Textile Companies

Interpretation :-

Arvind mills leads the market with a capitalization of 39%, it followed by Reliance Textiles with20%, Raymonds occupied third place with a market share of 18% of shares. Birla Groups has

also occupies a healthy market share of 16% with the entry of some international brands like VanHusain. Other players like Bombay Dyeing, Mafatlal Shutting etc occupied the rest of 7% ofmarket


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Table 9:- DATA ANALYSIS OF RATE PROVIDED BY THE PEOPLE ON THEBASIS OFFOLLOWING FACTORS

We have asked the people to give rates to the product on the basis of following factors :-

PRICE QUALITY LOOKS on the basis of their choices we have got the following data:

Bar Chart for analysis

Conclusion :

In this analysis, we found that majority of people want quality product as the people has givenhighest rating to quality where as looks and price are some how rated equally by the people.


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CHAPTER6

FINDINGS, SUGGESTIONS AND CONCLUSION


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KEY FINDINGS

After going through the whole study I found the following key findings :-1. The Indian Textile Sector is an emerging sector of India.2. The organized textile sector is more develop than the unorganized sector.3. The growth rate of this sector is increasing much higher with a healthy rate

of 20%.

4. It contains a major part in industrial production and export of country.

5.

The increasing income level of people s upports the growth of the industry.6. Low level of technology and poor supply chain management are major

resistance in the development of the industry. So the major companies and the govt.has to do a hard work on it

.7. There i s a h i gh ava i l ab i l i t y o f r aw ma t e r i a l s . 8. 8.Highly skilled economical labor, an added advantage. 9.Largest producer of cotton yarn contributing 25% towards worlds cotton.

10.Availability of all kinds of fibers like silk, cotton, wool and even high quality syntheticfibers.

11.Flexibility of the readymade garment industry in terms of sizes, fabric variety, quantity,quality and cost.


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SUGGESTIONS :-

After the basis of above facts and findings I comes to the following suggestions :-

1. There is a need to improve our supply chain or logistic management.2. There is a need to some more liberalization of export tariffs.3. Need of import and implement of high quality technology.4. Govt. has to provide s ome more financial assistance to the domestic textile

companies.

5. The all promotion councils has to provide technical and managementass ist ance to the domestic industries.

6. Need to improve the quality of raw materials like cotton, yarn, synthetic etc.

7 . Prope r i mp l emen t a t i on o f e l even t h f i ve yea r p l an.

8. Build up world class state of the art manufacturing capacities to attain andsustain predominant global standing in manufacture and export of textiles and clothing

CONCLUSION :-As we analyzed the various data based on questionnaire, a fact has came into light that ArvindMills is the most known and popular Brand in context of major Textile gaint followed byReliance and Birla Group. Because of applying innovative ideas such as providing variousfacilities, launching new schemes & offers Arvind Mills garments are more used by people ascompared to other one. Except it, people firstly prefer for good quality and comparatively lowprices Textile garments then they emphasized on qualities and durability.


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BIBILOGRAPHY

Some books helped us to have an idea about research methodology and preparing questionnaire

.These reference books are:

RESEARCH METHODLOGY- NARESH K MALHOTRA RESEARCH METHODLOGY- C R KOTHARI WEBSITE ADDRESS:

-www.wikipedia.com

-

www.moneycontrol.com

-www.google.com

-

www.hepcindia.com

-

www.indiancarpet.com

-

www.aepcindia.com.--

MAGAZINETextile policy 2000

ANNEXURES
http://www.wikipedia.com/http://www.moneycontrol.com/http://www.google.com/http://www.hepcindia.com/http://www.indiancarpet.com/http://www.aepcindia.com/http://www.aepcindia.com/http://www.indiancarpet.com/http://www.hepcindia.com/http://www.google.com/http://www.moneycontrol.com/http://www.wikipedia.com/


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QUESTIONNAIRE:-

Name:-Age:-Address :-Occupation:-Contract No.:-

1 .W ha t i s your t o t a l mon t h l y i ncom e?Ans. A) below 5000p.m _______ B)5000 to 10000_______ C) 10000 to 20000 p.m_______ D)Above 25000 p.m_______

2.How many times you go to store for purchase readymade garments?

Ans. A) Once a month______ B) Twice a month____C) Every two months gap______ C) Oncea year _______ D) Occasionally _______.

3 .W hi ch k i nd o f ga rmen t s you l i ke t o p re fe r?

Ans. A) Branded______. B) Cheaper _______ C) Color Varity ______ C) Fashionable ______.

4 .W here you goes fo r shopp i ng o f ga rmen t s?

Ans. A) Malls _______ B) Retail stores ______ C) Company Showrooms_______ C) Localstores ______.

5.What is your minimum purchasing limit of a readymade garment?

Ans. A) below Rs. 1000 _____ B) Between 1000 to 1500.______ C) Rs. 1500 to Rs. 3000._____D) Above 3000 _______.

6 .W ha t i s t he pu rpose o f your pu rchas i ng o f ga rmen t s?

Ans. A) For Party wear______ B) For office purpose______.C) For daily use ______ D) Generalporpose.


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7.Which factor mostly affects your decision while purchasing any readymadegarments ?

Ans. A) FRIENDS ______ B) ADVERTISEMENT _______ C) PARENTS ______ D)OTHERS ______ .

8.Which company provides you most festival offers?

Ans. A) Arvind Mills______ B) Reliance ______C) Raymonds______ C) Pape Jeans_______

9.Which brand you prefer much more?

Ans. A) Arvind mills______ B) Reliance Textiles _______ C) Raymonds_______ D) BirlaGroup ______ E) Others______ .

Suggestion:

TEXTILE INDUSTRY ININDIA

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