Textile Industry

Presented by

Prafulla Rahate-45

Kaushik Solank-58

Spotlight On

1. Objective & Problem2. Profile3. Current facts 4. Categories5. Major players6. Factors7. Expectations from Union Budget 2009-108. Budget Impact9. Opportunities and Threats 10. Findings

Objective

• To examine the nature of relationship between “Rising value of Rupee against Dollar” & “Indian Textile Industry”

Problem

• Margins of textile firm shrinking

Profile of Indian Textile Industry

• 26% manufacturing sector

• 20% of industrial production

• 18% of industrial employment

• 4% GDP

Current Facts

• Worlds Second largest cotton producer

• Cotton exports couldn't pick up owing to disparity in domestic and international cotton prices.

• Second largest employment provider : 35 million

Categories

• Cotton Textiles

• Silk Textiles

• Woolen Textiles

• Readymade Garments

• Hand-Crafted Textiles

• Jute

Major Players

• Arvind Mills

• Raymond

• Reliance Textiles

• Bombay Dyeing Ltd.

• Grasim Industries

Factors affecting Indian Textile Industry

Expectations from Union Budget 2009-10

• Revival of sector depends on government support – Cheslind Textiles

• Flexible Labour Norms – GEA

• Investment led Budgets – FICCI

• Expects relief to export sector – FIEO

Budget Impact

• Higher allocation for TUFS

• Continuation of interest subvention of 2%

• Allocation towards handloom & handicraft sector.

Opportunities and Threats

Environmental Factors Opportunity Threats

Political Factor National textile policy 2000

Unfavorable labour law

Economic Environment Income increases

Purchasing power

Branded cloths

Readymade garment

Technology Environment

Government support to technology upgradation

Traditional Market for Powerloom & Handloom Products & forcing them for product diversification

Economic Environment

Growing Economy

Growth rate of Domestic Textile Industry is 6-8% per annum.

Largest exporter of Yarn

contributes around 25% share

The Apparel Industry

Higher Indirect Taxes

State Taxes-VAT

Entry tax

Luxury tax

Mandi tax

Electricity duty

Octroi

Natural Environment

Independent & Self- Reliant

Raw Material availability

Low Cost and Skilled Manpower

Availability of large varieties of cotton fiber

Fragmented Industry

Dependent on Cotton

Lower Productivity

Industrial Competition

Retail Industry and Malls

Product development

Greater Investment & FDI opportunities

Competition from other developing countries

Continuous Quality Improvement

Price and Quality.

FINDINGS

Rising value of Rupee against Dollar• Small textile companies into losses

• Big brands struggling with high interest rates

• Higher cost of raw material and labour

THANK YOU