Facts
India’s textile industry contributed seven percent of the industry output (in value terms) in FY19. It contributed two percent to the GDP of India and employed more than 45 million people in FY19. The sector contributed 15 percent to India’s export earnings in FY19.
The Indian government has come up with a number of export promotion policies for the textile sector. It has also allowed 100 percent FDI in the sector under the automatic route.
The textiles and apparel industry can be broadly divided into two segments - yarn and fiber and processed fabrics and apparel.
Growth in demand is expected to continue at 12 percent CAGR to reach US$ 220 billion by 2025.
India is the world's second-largest exporter of textiles and clothing. Increased penetration of organized retail, favorable demographics, and rising income levels is likely to drive demand for textiles.
Post COVID-19 Scenario
Due to the pandemic, businesses and supply chains are witnessing a drastic shift from traditional products to new ones such as PPEs, N-95 masks, technical textiles, synthetic material, etc. Before the outbreak of the pandemic, the PPE requirement in India was approximately 50,000 [units] per year. However, since the outbreak, India has become self-reliant in these segments with the production capacity of PPE coveralls reaching 450,000 [units] per day, from zero production capacity.
The pandemic has not only affected the demand for textile and apparel but also it supplies. India is one of the major textiles and apparel exporters (around 60 percent of the country's exports) to the United States and the European Union (EU) and these markets are hit hard by the virus. Buyers from these markets have either canceled orders or put them on hold because consumers are locked inside, shopping malls are closed and access to online marketing is restricted.
Retail prices now will see a jump because sanitization and social distancing measures are going to add to the costs. This will make deficient demand a perennial phenomenon for the industry. The virus has shattered the supply chain at each level.
The anti-Chinese sentiment that has grown due to the virus has brought fresh opportunities for Indian textile and apparel producers.
China exports 4 billion textiles to India. Of these India imports US $ 460 million worth synthetic yarn and the US $ 360 million worth synthetic fabric from China every year. Add to it, it imports the US $ 140 million worth accessories like zippers, buttons, and hangers, among others. India does not have a local supply base to meet these increasing demands of these raw materials.
Industry Structure
India is one of the few textile manufacturing countries in the world which has a presence of a complete textile value chain – that is from fiber/filament to garment manufacturing.
Cost of manufacturing is still competitive and even lower than China and Vietnam
Structure Of India’s Textile Industry
• Composite Mills-account for about only 3 percent of output in the textile sector.
• Spinning. The average plant size remains small, however, and technology outdated, relative to other major producers.
• Weaving and Knitting
• Fabric Finishing.
• Clothing.
Major Players
Arvind Ltd.-Big brands-Tommy Hilfiger, Aeropostal, Sephora, CelvinKlen, Arrow, US Polo. Arvind owns 22 global patents for environmental solutions, and is the largest fire protection fabric producer in the country; Also managing 15 global apparel brands
Vardhaman Textile-Louis Philip, Van Heusen, Colour Plus, Wills Lifestyle, Benetton, Leading manufacturer and exporter of cotton yarn and fabric in India
Welspun India Ltd.-Presently over 70% of the business for advanced textiles comes from exports. In sector of home linen, Towels and decor, brands like Spaces, Welspun, spun, Welspun health, carpets
Raymond Ltd.-Raymond has also been a leading player in Shirting fabrics and is the No.1 brand in the OTC space. A formidable player in the Denim space, Raymond is also the top producer & preferred supplier of high-quality Ring Denim to world’s leading Jeanswear brands.
Trident ltd.-Trident has evolved over the years into one of the world’s largest integrated home textile manufacturer. The Company is one of the largest exporters of home textile products with significant market share.
KPR Ltd.-KPR Mill Limited is one of the largest vertically integrated Apparel manufacturing companies in India producing Yarn, Knitted Grey & Dyed Fabric and Readymade Garments.
Page Industries-JOCKEY, Speedo International Ltd
Nitin Spinners-Nitin Spinners has emerged as a leading manufacturer of 100% cotton yarn and knitted fabrics in India
Rupa and Company-Rupa is today the unquestioned No.1 knitwear brand in India, covering the entire range of knitted garments from innerwear to casual wear.
Himtasingka Seide Ltd.-Home Textile products
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