kshitij industry

8/8/2019 kshitij industry

1/26

INDIAN TEXTILE

INDUSTRY

Made by Kshitij Agarwal


2/26


3/26

Indian Textile Industry} Textile Industry in India is the second largest

employment generator after agriculture. It

holds significant status in India as it providesone of the most fundamental necessities ofthe people.

} Textile industry was one of the earliestindustries to come into existence in India andit accounts for more than 30% of the total

exports.} In fact Indian textile industry is the second

largest in the world, second only to China.


4/26


5/26

Factors of Industrial Location} Raw materials The factory needs to be close to these if

they are heavy and bulky to transport. Labour A largecheap labour force is required for labour-intensivemanufacturing industries. High-tech industries have tolocate where suitable skilled workers are available.

} Energy supply This is needed to work the machines in afactory. Early industries were near to coalfields. Today,electricity allows more freedom.

} Market An accessible place to sell the products is

essential for many industries:- those that produce bulky, heavy goods that areexpensive to transport- those that produce perishable or fragile goods- those that provide services to people


6/26

} Site and land Most industries require large accessible areas of

cheap, flat land on which to build their factories. Cost of land

Greenfield sites in rural areas are usually cheaper than brownfield

sites in the city.

} Capital This is the money that is invested to start the business. The

amount of capital will determine the size and location of the

factory.

} Government policies Industrial development is encourages in someareas and restricted in others. Industries that locate in depressed

('Development') areas may receive financial incentives from the

government and assistance from the EU in the form of low rent and

rates.


7/26


8/26

Development of Indian TextileIndustry

} Till the year 1985, development of textile sector in India took placein terms of general policies. In 1985, for the first time the

importance of textile sector was recognized and a separate policystatement was announced with regard to development of textilesector.

} In the year 2000, National Textile Policy was announced. Its mainobjective was: to provide cloth of acceptable quality at reasonableprices for the vast majority of the population of the country, to

increasingly contribute to the provision of sustainable employmentand the economic growth of the nation; and to compete withconfidence for an increasing share of the global market.

} The policy also aimed at achieving the target of textile and apparelexports of US $ 50 billion by 2010 of which the share of garmentswill be US $ 25 billion.


9/26

} The outlook for textile industry in India is veryoptimistic. It is expected that Indian textileindustry would continue to grow at animpressive rate.

}

Textile in

dustry is bein

g modern

ized by an

exclusive scheme, which has set aside $5bnfor investment in improvisation of machinery.

} India can also grab opportunities in theexport market. The textile industry isanticipated to generate 12mn new jobs in

various sectors.


10/26

} Union Ministry of Textiles certified Apparel

Export Promotion Council (AEPC) has takenthe responsibility to motivate the foreigninvestors to invest in Indian Textile industry byexhibiting it massive unexplored domesticmarket.

} It has also formulated and endorsed the

motto of come, invest, produce and sell inIndia. Under this the ministry has decided tosend it representatives to Germany,Switzerland, France, Italy and US.

} The objective is to trigger the foreigninvestment towards instituting textile units in

India by offering numerous allowances toglobal investor like low-priced workforce andintellectual right fortification.


11/26

Textile Industry


12/26

Strengths of Indian Textile

Industry

} India has rich resources of raw materials of textile industry. It is oneof the largest producers of cotton in the world and is also rich in

resources of fibres like polyester, silk, viscose etc.} India is rich in highly trained manpower. The country has a huge

advantage due to lower wage rates. Because of low labour rates themanufacturing cost in textile automatically comes down to veryreasonable rates.

} India is highly competitive in spinning sector and has presence in

almost all processes of the value chain.} Indian garment industry is very diverse in size, manufacturing

facility, type of apparel produced, quantity and quality of output,cost, requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or export markets.


13/26

Weaknesses of Indian textileIndustry

} Indian textile industry is highly fragmented in industrystructure, and is led by small scale companies. The

reservation

of production

for very small compan

ies thatwas imposed with the intention to help out small scalecompanies across the country, led substantialfragmentation that distorted the competitiveness ofindustry.

} Smaller companies do not have the fiscal resources toenhance technology or invest in the high-end engineeringof processes. Hence they lose in productivity.

} Indian labour laws are relatively unfavourable to the tradesand there is an urgent need for labour reforms in India.

} India seriously lacks in trade pact memberships, whichleads to restricted access to the other major markets.


14/26

Processes involved in Textile Industry


15/26

The Aditya Birla Group is a multinational conglomeratecorporation headquartered in Mumbai,[4] India with operationsin 25 countries including Thailand, Dubai, Singapore, Myanmar,Laos, Indonesia, Philippines, Egypt, Canada, Australia, China,USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg,Switzerland, Bangladesh, Malaysia, Vietnam and Korea.[5]

The Aditya Birla group is US$ 29 billion conglomerate which gets60% of its revenues from outside India.[2] The group is a majorplayer in all the industry sectors it operates in. The Aditya Birla

Group has been adjudged the best employer in India andamong the top 20 in Asia by the Hewitt-Economic Times and WallStreet Journal Study 2007.[6] The origins of the group lie in theconglomerate once held by one of India's foremost industrialistsMr Ghanshyam Das Birla.

Aditya Birla Group


16/26

Aditya Birla Group in TextileIndustry

} The Aditya Birla Group is the world's largest player in theViscose Staple Fibre industry.

} It operates out of India, Laos, Thailand, Malaysia andChina.

} It owns the Birla Cellulose brand.} Apart from viscose staple fibre, the group also owns

acrylic fibre businesses in Egypt and Thailand, viscosefilament yarn businesses and spinning mills at severallocations all overIndia and South East Asia.

} The group has pulp and plantation interests in Canadaand has recently invested in plantations in Laos.

} The Aditya Birla group is also a major player in thebranded garments market in India.


17/26


18/26

Aditya Birla Group & theMarket

Products :-} Aluminium,

} Copper,} Cement,} Fertilizer,} Textile,} Fibre,} Telecoms,} IT Service,} Retail,} Insurance etc.


19/26

Exports of Indian Textile} Textile industry plays a significant role in the growth of

Indian economy and it is an important component of

global trade.} Textile industry accounts for about one third of India's

total export earnings. It is regarded as the secondlargest industry of India and is the largest foreign exportearner, accounting for35% of the gross export earningsin trade.

} During 1992-93 and 2001-02, textile exports recorded anincrease at a compound annual growth rate of 14.01%.} Handloom and cotton are the two most significant

sectors in textile industry. These two sectors togethercontribute the major portion of total textile export inIndia.


20/26

India's export to Malaysia

Malaysia imports various types of textileproducts from India to meet therequirements of raw materials for it'semerging garment industry. Malaysia's totaltextile imports are estimated to exceed US$1.5 billion annually.


21/26


22/26

India's export to Australia

Australia is considered as one of the mostopen textile markets in the world. Majortextile imports include apparels and made-ups under chapter 62, 61 and 63,specifically polyester-cotton and polyester-viscose types. Bulk of cotton and hand-

made fibres are also imported fromcountries like India.


23/26


24/26

Indian exports of textiles to EU

EU overpowered USA as becoming thelargest market for textiles and clothing in the

world. Asia predominates the EU market inboth clothing and textiles, with 30% (US $ 30bn) and 17 % (US $ 8 bn) share, respectively.India is one of the leading suppliers of textileproducts to the EU market and ranked

fourth, ahead of other textile exporters likeMexico, Bangladesh and Turkey, with amarket share of 5.2% (US $ 0.45 bn).


25/26


26/26

THANK YOU

kshitij industry

Documents

Transcript of kshitij industry