7th International Conference, Indian Polyester 2020

Strategies to Boost Garment Exports of India

3rd March, 2020

3

Presentation Flow

1

2

Apparel Market Opportunity

Innovative Models to Increase Garment Exports

Apparel Market Opportunity

5

Global Apparel Trade is Growing

348

444 429 444 470

2010 2015 2016 2017 2018

CAGR: 4%

Values in US$ Billion

The global apparel trade has grown at 4% CAGR since 2010

EU-28 is the largest importer of apparel, followed by USA

Markets 2010 2015 2018 CAGR

EU-28 152 166 196 3%

USA 73 86 83 2%

Japan 23 25 28 2%

China & HK 10 15 19 8%

Canada 7 9 10 5%

Others 83 143 134 6%

Total 348 444 470 4%

Values in US$ Billion

Data Source: UN Comtrade

6

Synthetic Apparel is Witnessing Faster Growth

Global Apparel Trade US$ 470 Billion

Knitted Apparel US$ 236 Billion (50.2%)

Woven Apparel US$ 234 Billion (49.8%)

Cotton Synthetic Others

Trade US$ 109 Bn. US$ 99 Bn. US$ 28 Bn.

Share 46% 42% 12%

CAGR (2010-2018)

-3% 6% 6%

Cotton Synthetic Others

Trade US$ 92 Bn. US$ 120 Bn. US$ 22 Bn.

Share 39% 51.5% 9.5%

CAGR (2010-2018)

3% 8% 2%

Data Source: UN Comtrade

Other Apparel 10% Cotton Apparel 43% Synthetic Apparel 47%

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Key Product Categories in Knitted Apparel

S.No.

Category Global Trade (US$ Billion) Fibre Share India’s

Share 2010 2015 2018 CAGR Cotton Synthetic Others

1. Outerwear 56 67 75 4% 0.7%

2. Tops & T-Shirts 48 60 66 4% 6%

3. Women’s Bottoms

11 18 19 7% 1%

4. Dresses 14 18 18 3% 6%

5. Lingerie & Innerwear

14 17 18 3% 3%

6. Active wear 9 11 13 5% 2%

7. Men’s Bottoms 5 8 9 7% 3%

Data Source: UN Comtrade

4… 4… 1…

7… 3% 2…

4… 5… 1%

4… 3%

4… 5… 2%

2% 9… 0%

5… 4… 1%

4…

Outerwear, Women’s Bottoms, Activewear are high potential new knitted categories for India

8

Key Product Categories in Woven Apparel

S.No. Category Global Trade (US$ Billion) Fibre Share India’s

Share 2010 2015 2018 CAGR Cotton Synthetic Others

1. Women’s Bottoms

27 35 39 4% 2%

2. Men’s Bottoms

26 35 38 5% 2%

3. Outerwear 17 29 33 9% 0.8%

4. Tops & Shirts

23 30 31 4% 8%

5. Dresses 13 18 22 7% 7%

6. Lingerie 8 11 12 5% 1%

Data Source: UN Comtrade

6… 3… 2%

7… 2… 3%

2… 5… 2…

5… 8%

4… 5… 1%

0% 9… 5%

3…

Women’s & Men’s Bottoms, Outerwear and Lingerie are high potential new woven categories for India

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Opportunity in Product Categories in Global Market

Category India’s Share in

Global Trade

Outerwear 0.7%

Women’s Bottoms 1%

Active wear 2%

Tops & T-Shirts 6%

Dresses 6%

Lingerie & Innerwear

3%

Men’s Bottoms 3%

Category India’s Share in

Global Trade

Women’s Bottoms 2%

Men’s Bottoms 2%

Outerwear 0.8%

Lingerie 1%

Tops & Shirts 8%

Dresses 7%

Knitted Apparel Woven Apparel

New categories for expansion

Growth through manufacturing excellence

New categories for expansion

Growth through manufacturing excellence

Innovative Models to Increase Garment Exports

11

Anchor Led Model to Support Small Manufacturers

Large industry players can act as anchors and support small manufacturers in the clusters by providing assistance in manufacturing infrastructure and marketing.

Anchor Led Model

Own factories

Partner factories

Global marketing

offices

Assistance to small manufacturers by anchor:

• Small manufacturing units will get support in terms of quality, technology and cost competitiveness.

• Enable partner factories to work with global buyers and support in marketing initiatives

Benefits

Layout planning

Technology identification

Organization structure

Training facilities

SOPs

Quality system

12

Case Study of Chinese Garment Company GTIG - Growth through Virtual Integration

GTIG is a major garment exporter in China practicing the anchor led model

GTIG Factories

Business size – US$ 1.5 billion

Partner Factories

Business size – US$ 3 billion

Virtual Integration through supply partnerships

Offices in markets like USA and Europe Services offered: • Product Development • Quick Response • Shorter Lead Time

Global offices in Key Markets

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Virtually Integrated Supply Chain Clusters

The industry is in need of a conducive manufacturing environment with “plug and play” facilities that will help manufacturers to set up world class and competitive manufacturing facilities.

Conventional manufacturing should convert into cluster manufacturing

• Attract local and foreign investments

• Ability to cater to bulk orders • Better quality products

conforming to industry standards & compliances

• Reduced lead time because of integrated supply chain

Facilities in Integrated Clusters

Ready to Move in

Sheds

Centralized Washing

& ETP

Common Infra-

structure

Dormitories for Labour

Retention

Improved Logistics

Benefits

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Focus on Polyester - Centre of Excellence (CoE)

A state-of-art Centre of Excellence (CoE) should be created for enhancing product capabilities and quality levels to meet global standards.

CoE

• High product and design capabilities

• Better quality levels conforming to industry standards

• More visibility and accessibility in domestic and export market

• Information awareness about new technologies, policy matters, etc.

Funding from the government

Design Centre

Conference Hall

Space for Buyer-Seller

Meets

Testing Facility

Training Centre

R&D and Product

Development

Nominal fees for using the facilities of CoE for the small/local manufacturers

Investor Facilitation

Benefits Facilities

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Focus on Polyester - Joint Ventures & FDI

Identification of global leaders for tie-ups to provide technical know-how in product and technology

Areas where investment is required

Product Technology

Benefits

• Industry will become globally

competitive

• Attracting global buyers for

large volumes

• Access to newer technologies

Potential partner countries: • Korea • China • Taiwan

Potential partner countries: • Italy • Germany

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Focus on Smart & Efficient Factories

Continuous Improvement

3. Smart Factories: • Automatic planning • Order tracking and traceability • Improve productivity • Timely tracking of mistakes

2. Market Intelligence: • Marketing strategies to adapt to the

needs of the customer • Exploring new markets and

competition analysis

Continuous Improvement: • Processes • Product • People

1. Manufacturing Excellence: • Streamline manufacturing operations • Quality, process and capacity improvement • Information systems for Operations and

Control

Thank you!

Mr. Prashant Agarwal,

Joint Managing Director

Wazir Advisors

prashant@wazir.in

98711 95008