Embed Size (px)
Citation preview
PROJECT REPORT ON
SCNERIO OF TEXTILE INDUSTRY IN INDIA WITH SPECIAL FOCUS ON TIRPUR
INDEX
SEREIOL NO
CONTENT PAGE NO
1 INDUSTRIAL STRUCTURE 2
2 MAJOR PLAYERS 7
3 COMMODITY DEVELOPMENT IN INDUSTRY 9
4 TEXTILE EXPORT 14
5 THE APPAREL INDUSTRY 16
6 SUPPLY CHAIN 19
7 INDIAN TEXTILE POLICY 30
8 INTERNATIONALISATION AND NEED FOR IMPROVEMENT
33
9 SPECIAL FOCUS ON TIRPUR 36
10 ANNEXURE-1 EXPORT PROMOTION COUNCILS,INDUSTRY ASSOCIATIONS AND GOVERNMENT AGENCIES
47
11 ANNEXURE-2 LIST OF EXHITIONS 52
12 ANNEXURE-3 STASTISTICAL INFORMATION 54
INTRODUCTION
The textile industry, which is the single largest industry in India and accounts for 31.1 per cent of the total value of exports, is not able to meet its full potential because of fragmentation of the industry and the use of obsolete and old technologies. This erosion of competitiveness has been overcome by a few players and groups by organising themselves along modern lines.
In this study, which gives an outline of the structure of the Indian textile industry, its contribution to exports, major players, problems of the supply chain, the textile policy of the government, spells out steps needed for internationalisation, it becomes evident that the Indian textile industry needs technical and financial support from outside.
In Tirupur which has become the knitwear capital of India, much of the industry in the cluster propelled by SMEs, has modernised but much remains to be upgraded.
TEXTILE INDUSTRY
INDUSTRIAL STRUCTURE
Textiles is the largest single industry in India accounting for about 20 per cent of the total industrial production. It provides direct employment to around 35 million people. Textile and clothing exports account for about 31.1 per cent of the total value of exports from the country and 19 per cent of the total share of exports. There are 1,850 textile mills with a spinning capacity of about 37 million spindles. While yarn is mostly produced in the organised mills, fabrics are produced in the decentralised power loom and handloom sectors as well. The Indian textile industry continues to be predominantly based on cotton, with about 65 per cent of raw materials consumed being cotton.
Mill Sector
There are 1850 mills in the country of which 284 are composite mills (where the whole cycle of production from yarn manufacture, to processing to fabric production takes place) and 1438 spinning mills. The installed capacity is 37 million spindles, 450,000 rotors and 1,40,000 looms.
There are approximately 1200 medium and large scale textile units in the mill sector and 20 per cent of these mills are located in Coimbatore (Tamil Nadu).
The De-Centralised Power loom Sector
Decentralised power loom sector is characterised by mechanised production of fabrics but with no yarn production at the factory. The decentralised power loom sector plays an important role in meeting the clothing needs of the country by manufacturing varieties of cloth for the masses. It produces 68% of the total cloth production in the country, as against16% by the hosiery sector, 5% by the mills and 9% by the handloom sector. The fast growth of the power looms has been due to certain advantages which they have enjoyed, viz. low wages, low overheads, low requirement of working capital vis-à-vis the composite mills.
There are approximately 165,0000 power looms operating. The concentration and distribution of power looms has not changed much over the years with Maharashtra, Gujarat and Tamil Nadu dominating the scene as in the past.
About 75% of the looms operating in the country require modernisation. While 64% of these require modernisation from scratch, the remaining 36 per cent require modernisation to a lesser extent.
Handloom Sector
The handloom industry is the largest decentralised economic activity providing large-scale rural employment to nearly 12 million people. It is also the biggest cottage industry after agriculture. The handloom sector contributes more than 20 per cent of the country’s fabric requirement. The bulk consumption of the handloom sector is by the domestic market while about 15 per cent of the total production is exported presently in the form of fabrics and made-ups.
The technology employed in the handloom industry is simple and environment friendly. The loom itself is operated solely by human metabolic energy and requires space of barely 10 sq metres. The 4 million handlooms scattered throughout the country involve the efforts of some 15 million men and women predominantly in the villages.
Spinning, Weaving and Processing in Indian Industry
Spinning Capacity
Currently, India has the second highest spindleage in the world, after China, accounting for about 20 per cent of the world spindleage and 3 per cent of the world rotorage. The total capacity in the country in terms of spindle equivalent is about 37 million as against 46 million in China. However, in terms of quality and technology, only about 15 million spindles can be considered to be state-of-the-art, while another 10-11 million spindles need upgradation within the next 5-7 years
Weaving Capacity
Since India’s weaving capacity is predominantly concentrated in the decentralised sector, it has a limited ability to absorb technology upgradation. Only the few export driven and niche market oriented
mills went in for strategic weaving modernisation. In fact, there are a mere 200 exclusive weaving mills with barely 17,000 looms.
Processing and Finishing Capacity
As in weaving, the processing operation in India, particularly woven and knitted fabric processing takes place both in the organised and unorganised sectors. In the organised sector, in addition to the composite mills, processing is done in independent processing houses organised on a factory basis. In the decentralised sector, there are small scale power processors as well as hand-processors using traditional techniques.
While the composite mills have the ability to upgrade technically because of optimal scale of operation and economies of scale the smaller units use obsolete technology and need to also improve quality.
Textile Industry - Overview
Item Unit 95-96 96-97 97-98 98-99 1999-2000
(A)
Cotton/ Man-Made Fibre
No. 1569 1719 1782 1824 1850
Textile Mills
Spinning Mills (Non-SSI)
No. 1294 1438 1504 1543 1566
Composite Mills (Non-SSI)
No. 275 281 278 281 284
Spinning Mills (SSI) No. 750 795 861 901 920
Exclusive Weaving Mills (Non-SSI)
No. 172 176 187 199 200
Power loom Units (Year end)
No. 333017
349380
357943
393202
400,000
Capacity Installed
Spindles (SSI + Non SSI)
Million No 31.75 34.59 35.39 36.67 37
Rotors (SSI + Non SSI)
Thousand No.
226 300 339 434 450
Looms (Organised Sector)
Thousand No.
148 140 140 140 140
Power loom Thousand No.
1412 1523 1595 1620 1650
Handloom Thousand No.
3891 3891 3891 3891 3891
Man-Made Fibre Million Kg 602 792 1008 1064 1225
Man-made Filament Million Kg 620 680 888 1033 1188
Worsted Spindles (Woolen)
Thousand No.
518 518 563 575 583
Non-Worsted Spindles (Woolen)
Thousand No.
317 317 406 412 417
Production of Fibers
Raw Cotton * Lakh bales 170.2 177.9 158 163 175
Manmade Fibre Million Kg 498 588 708 782 848
Raw Wool Million Kg 41.41 43.29 44.74 45.46 46
Raw Silk Million Kg 13.91 14.13 15.24 15.54 15.84
Production of Yarn
Cotton Yarn Million Kg 1894 2148 2213 2022 2205
Other Spun Yarn Million Kg 591 646 760 786 815
Manmade Filament Yarn
Million Kg 493 602 769 850 861
Fabric Production
Cotton Million Sqr.Mtr.
18900
19841
19992
17948 18390
Blended Million Sqr.Mtr.
4025 4888 5751 57005624
100% Non-Cotton (Including Khadi, Wool & Silk)
Million Sqr.Mtr.
9033 10109
11698
12454
14420
TOTAL 31958
34838
37441
36102
38434
Per Capita availability of Cloth
Sqr.Mtr. 27.99 29.3 30.92 28.19 30.55
Production of Textile Machinery
Million US $
450.95
365.39
404.29
269.94 223.9
Textile Exports & Imports
Exports (Including Jute, Coir & Handicraft)
Million US $
10676
11839
12342
12559
13325
Imports Million US $ 952 765 824 840 1052
Source: 1. Textiles Commissioner Office 2. Export Promotion Councils
MAJOR PLAYERS
Some of the major industrialists in textiles are the Mafatlals, the Wadias, the Piramals, the Birlas, Lalbhai’s, Kasliwals and Parikhs. Some of the leading mills in India are Arvind Mills for denim in Ahmedabad, Lakshmi Mills in Coimbatore, Madura Coates and GTN Textiles.
Mafatlals: The Arvind Mafatlal Group’s textiles and apparel business total about U.S. $ 90-100 million in annual sales. Its flagship company Mafatlal Industries Ltd., has international customers including Marks and Spencer, Philip Van Heusen, GAP, JC Penney, Klopman, Haam & Al Ghanemi among others and is one of the largest exporters of fabrics in the country. In the domestic market, it has a distribution network of 200 plus Mafatlal Family shops spread across the country.
AMG also has garmenting facilities ( in a joint venture with Gruppo La Perla, Italy) and a joint venture with Burlington Industries, U.S. for a denim manufacturing facility in Navsari, Gujarat.
Wadias: The Wadias own The Bombay Dyeing & Mfg. Co. Ltd., their flagship company, with 5 units covering spinning, weaving and processing, with production exceeding 300,000 meters of fabrics per day and a turnover of approximately U.S. $ 90 million. The company which pioneered the export of textiles in 1940 has a unique India-wide distribution network of over 550 exclusive franchised retail shops covering more than 300 towns. In fact, Bombay Dyeing is one of India’s foremost brands producing sheets, towels, furnishings, suitings, shirtings and is among the country’s foremost producers of cotton, synthetic fabrics and readymades.
Piramals: The Morarjee Goculdas Spinning & Weaving Company Ltd. ( with a turnover of U.S. $ 60 million) is a Piramal group enterprise – part of the $ 400 million Piramal Enterprises Ltd. Morarjee has entered into a 50:50 joint venture with Manifattura di Valle Brembana Spa of Italy for manufacturing high count shirting fabrics. It also has a 50:50 joint venture with Manifattura Castiglioni Spa of Italy for marketing of home furnishing products . It has also entered into a technical collaboration with Ms/ AG Cilander of Switzerland for offering different types of finishes for its fine count voiles.
Birlas: The Aditya Birla group which is India’s third largest industrial house has a major textiles operation, with its flagship company, Indian Rayons Ltd. producing a range of products from viscose
filament yarn and flax yarns to worsted yarn and fire fighting hosepipes. In fact, the Aditya Birla group is the world’s largest producer of viscose staple fibre. It is also in the garments business with Madura Garments in India being a leader in the branded apparel market in India
The Birla compay - Grasim Industries which has a turnover in excess of U.S. $ 100 million is also in the fibre business. In fabrics, the Birla group has two major brands namely, Grasim and Graviera suitings.
The Aditya Birla group also has textiles mills overseas in Thailand, the Philippines and Indonesia.
The Lalbhais: The Arvind Mills Ltd. is the flagship company of the U.S. $ 550 million Lalbhai group. It is one of the top ten manufacturers of denim in the world. The group companies include Arvind Products Ltd., Arvind Worldwide (M) Inc, Mauritius, Arvind Worldwide Inc, U.S.A., Arvind Clothing Ltd. ( which has a collaboration with Cluett International Ltd. of the U.S.), Arvind Fashions Ltd. ( which has a tie-up with VF Corporation of the U.S.A), and Arvind Overseas (Mauritius) Ltd., Mauritius.
Kasliwals: The S. Kumar Group of the Kasliwals with a turnover of approximatelyU.S. $ 200 million is in the business of blended suitings, home textiles, worseted fabrics and read to wear items. In the uniform and work wear segment, S. Kumars is the dominant brand in India. The group has a 100 per cent EOU in home textiles and manufactures polyester and wool blended and 100 per cent worsted fine and superfine fabrics.
Parikhs: The Ashima Group owned by C.N. Parikh with its flagship company, Ashima Ltd. is one of India’s leading 100 per cent cotton fabric manufacturers. The Ashima Group turnover is U.S. $ 153 million. It has a marketing arrangement with Cone of the U.S.A. With an annual capacity of 65 million metres of woven and circular knitted cotton fabrics and on account of its qualitative supremacy it commands a base of discerning customers in more than 45 countries around the world. Its products include denim, suiting, shirtings, interlining fabrics and circular knitted grey fabrics.
COMMODITY DEVELOPMENTS IN INDUSTRY
Indian Cotton Textile Industry
Today, the Indian cotton textile industry is large with over 1566 spinning units, over 284 composite mills and around 1.54 million registered looms.The industry’s installed capacity includes over 33.93 million ring spindles and around 317 thousand OE rotors. This large installation coupled with wide varieties of locally available cotton enables the industry to produce yarn to match any specification and count range.
In 1999-2000, of an estimated yarn production of 3881 million kg, cotton accounted for approximately 2205 million kg, i.e. is around 65.21 per cent.
The industry’s production of piecegoods was estimated at 38,434 million square meters in 1996-97. Of this 100 per cent cotton accounted for about 48 per cent.
With over 9 million hectares under cotton cultivation and an annual crop of around 2720 million kgs, India is amongst the world’s largest reservoirs of this popular fibre. In addition the 80 odd cotton varieties of different descriptions being grown in India enables the industry’s produce cover almost every conceivable count and construction of fabrics in a width of choice.
Genetically Modified Cotton
The Indian Government has recently allowed commercial cultivation of the country’s first ever genetically engineered crop – the controversial BT cotton developed by the Maharashtra Hybrid Seed Company ( Mahyco) in collaboration with the U.S. based life sciences major, Monsanto.
The Genetic Engineering Approval Committee (GEAC) under the Ministry of Environment and Forests, while giving approval for three out of four of Mahyco’s transgenic hybrid cottons, for which the company sought approval has also laid down certain conditions for the company to comply with. These include information on the quantity of seeds produced, names of individual distributors/dealers, quantities sold and also reports on any resistance built up, second
generation susceptibility of the crop to the target insect pest (American Bollworm), and the possible negative impact of pollen transfer to the neighbouring fields.
In the meanwhile, BT cotton is being grown also in the states of Gujarat and Andhra Pradesh.
Man-Made Textile Industry
The Man-Made textile industry in India has expanded from a capacity of 291.93 million kg in 1984-85 to 914.33 million kg in 1993-94 and 2096.54 million kg in 1998-99..
Man-Made fibres include synthetic fibres, viz. nylon filament yarn, polyester filaments yarn, polypropylene filament yarn, polyester staple fibre, polypropylene staple fibre and acrylic staple fibre as well as cellulose fibres such as viscose filament yarn and viscose staple fibre.
Analysis of the share of synthetic yarn in the total yarn production reveals the supplementary and substitution role played by this sector in the country. The share of cotton yarn in the total yarn production has declined from 77.12% in 1983 to 65. 21 per cent in 1999-2000, while the share of man-made fibres has gone up from around 11.77 per cent in 1983-83 to 34.79 per cent in 1999-2000.
Synthetic fabrics are made in the mill sector, handloom sector and power loom sector. The powerloom sector accounts for about 98 per cent of synthetic fibre fabrics in the country. The handloom sector accounts for a share of 1.9 per cent, The mill sector accounts for 0.1 per cent.
Silk Production
India produces 14,000 tonnes of raw silk and imports 3,000 tonnes of the raw material. Present production of silk fabrics is 190 million metres. India ranks second among the mulberry silk producing countries, accounting for 16% of the total world raw silk production.
Production of mulberry raw silk is mainly confined to the traditional states of Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal; and Jammu and Kashmir which together account for about 99% of the country’s total mulberry raw silk production. Mulberry sericulture has
been introduced in the states of Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, and Uttar Pradesh where a vast potential exists.
Indian silk is essentially woven on handlooms. About 65 per cent of the Indian silk is woven on handlooms and 30% on traditional powerlooms. The powerlooms are also organised on a small-scale cottage industry pattern. The modern silk weaving factories having better powerlooms account for about 5 per cent of silk production.
There are about 182,000 silk handlooms and 27,000 silk powerlooms in India. Indian silk fabrics, mainly saree materials are produced in places such as Kancheepuram, Kumbakonam and Arni in Tamil Nadu, Mysore and Bangalore in Karnataka., Dharmavaram and Pochampalli in Andhra Pradesh, Varanasi in Uttar Pradesh and Murshidabad in West Bengal. About 80 per cent of silk powerlooms are located in Karnataka alone. World production dominated by China has been falling, while Indian production, about 19 per cent of the world figure, has been rising.
Falling world production has also created an unmet global demand, raising prices and improving Indian silk export earnings. Domestic demand itself, now calculated at 25,00 tonnes outstrips supply by approximately one-third.
The constant search for variety and exclusivity in the global haute couture markets gives an edge to Indian products, with their variety of silks.
Woollen Industry
In India the woollen industry is mostly dependent on imported wool. It is also rural, defence ( supplying clothing for the Indian armed forces) and export oriented. It is an industry, where the organized sector, de-centralised sector and the rural sector run complementary to each other. It is also small in size and scattered.
The woollen industry in India is mainly located in the states of Punjab, Haryana, Rajasthan, Uttar Pradesh, Maharahstra and Gujarat.
The installed capacity of the industry consists of 583,000 worsted spindles and 417,000 non-worsted spindles. It employs about 1,200,000 people in the country.
Exports of woolen/acrylic knitwear go to Russia, North America and Europe.
After liberalization of the industry, foreign companies have entered into agreements with Indian woolen textile mills such as the consultancy services provided by Marzotto, Loropiana and Piacenza from Italy to Raymond Ltd. and by Samsung of Korea to Samtex.
India’s production of wool, though a tiny percentage of world production has some strengths in the knitwear sector and the ability to give consumers an exclusive product based on traditional designs and colours. It is in the hand embroidered garment sector in wool that India can be competitive in the world market.
Clusters If we look at the organization of the textile industry according to clusters we find that the large clusters aggregating business of around U.S. $ 204.08 million in the hosiery sector are found in Tirupur, Ludhiana and Kolkatta. In the powerloom sector, major clusters are in Burhanpur in Madhya Pradesh and Bhiwandi in Maharahstra with ready made garment clusters in Delhi, Chennai and Bangalore. Silk clusters are found in Bangalore and Mysore in Karnataka state and woollen clusters for shawls in Kullu in Himachal Pradesh and Amristsar in Punjab.
TEXTILE EXPORTS:
The textile industry occupies a position of prime national importance accounting for over one third of India’s total merchandise export. India produces and exports textiles of all kinds from a wide variety of fibres-natural fibres, regenerated celluloses fibres and synthetic fibres. India’s production base includes the basic textile raw material, intermediates upto the final finished product and the finished textile products themselves. The cotton sector constitutes the backbone of the Indian textile industry.
Massive investments are being made in the Indian textile industry today. A large number of 100 % Export Oriented Units have come up in the sector and many more are in the pipeline. These units produce only for the export market. The Indian cotton textile exports have registered a mark in the global cotton textiles trade scenario by capitalising on the following benefits viz, home grown raw material, wide variety of cotton fibre for spinning, a large variety of yarns, availability of relatively inexpensive and skilled labour, abundant availability of technical and managerial manpower, access to the latest equipment and machinery through various export friendly schemes of the Government and above all the willingness to succeed.
India is the 10th largest exporter of textiles and clothing in the world and exported U.S. $ 11.31 billion worth of these two items in 2001-2002.
The industry’s produce is exported to over 185 countries spread over five continents with Asia accounting for about 45 per cent of the total exports followed by Europe at about 29 per cent, America about 14 per cent, Africa at about 10 per cent and Oceania at about 1.5 percent of the total exports.
Indo- EU market access agreements
Considering the importance of the European market it is interesting to note that in December 1994, India had signed two separate market access textile agreements (called MoUs) with European Union and United States. Under the Indo-EU MOU, market access was to be facilitated through tariff bindings and removal of Quantitative Restrictions. EU was to remove all restrictions on India's exports of
handloom products and cottage industries products. In addition India was to be given exceptional flexibilities in addition to the existing flexibilities. The quantum of flexibilities was 7,000 tonnes per year for 1995-97 and 8,000 tonnes per year for 1998-2004.
However, a number of differences had been persisting over the actual implementation of the MoU, particularly in regard to the grant of exceptional flexibilities by EU and the tariff binding notification by India. The EU denied exceptional flexibilities during 1997 and fully during 1998 and 1999 on the ground that India had not bound its tariffs as per the MoU. Consultations were held with EU in July 2000, in which the long-standing differences over implementation issues have been successfully resolved. Pursuant to the consultations, India has notified the revised tariff bindings to WTO. On the other hand, the EU released 8,000 tonnes of exceptional flexibilities for the year 2000. EU has also agreed to release 8,000 tonnes of exceptional flexibilities during the remaining years till 2004, that is, till the end of the textile quota regime.
THE APPAREL INDUSTRY
The Apparel Industry in India is largely concentrated in the decentralised sector and started mainly as an export-oriented industry. It has made rapid progress during the last one decade. Apart from contributing the highest net export earnings (15 per cent of the total), it produces about 3 times as much for the domestic market also.
A peacock revolution happened in India during the late 80’s. While the women continued with their six yards sarees and ethnic fashions, men were pushed into discarding the street corner tailor with the advent of low priced men’s ready to wear shirts. Stencil was a leader in this concept and it offered a wearable shirt at Rs.99 in 1990. This good value for money shirt brand opened up a revolution. Brass Tacks, Cambridge and several others came onto the scene. The men’s shirts overnight became an across-the counter product. Later the value for money positioning changed considerably and the subsequent foray of brands like Louis Philippe, Van Heusen, Park Avenue etc upgraded the market.
The ready to wear revolution did not usher in a retail revolution. The multi-brand stores which sold all types of products were the prime distribution channel for clothing. The early 90s saw the setting up of solo shops focussed on one brand and in this context the pioneering efforts of Madura Garments and Zodiac helped the evolution of fashion retailing.
During the mid 70’s and mid 80’s a silent revolution was also taking place in women’s sartorial preferences. These periods witnessed an unprecedented growth in the ladies outer wear/inner wear markets. The growth in what is termed as Pujabi suits, or Salwar Khameez sector was up by leaps and bounds.
In the men’s formal wear segment, Madura Garments and Raymonds set the trend.
Thus the garment industry in India has been evolving over the years. In this process, its profile has undergone considerable changes. Technology has been gradually upgraded and there is a qualitative improvement in the garments produced in the country. Many leading fashion labels are now associated with Indian products.
The product matrix today has a repertoire of synthetics, cotton blends and knitwear items. The industry is shaping itself to meet the demands of product specialisation in a highly segmented buyers market.
India has also been exporting garments for a number of years and now in the last few years has established a distinct presence in the world clothing market. From a country traditionally known to be producing low cost products, its is now slowly also being increasingly looked upon as a major supplier of high quality fashion garments. Indian garments have now reached all the leading markets in Europe, North America, the Nordic countries, Australia and Japan.
India exports more than one hundred garment product categories, mainly falling in cotton, semi-fashion, middle price segment of casual wear, with the main product categories being T-shirts, men’s shirts, ladies blouses, ladies dresses and skirts. Member states of EU, U.S.A., Canada, U.A.E, Japan, Switzerland and Australia are the major markets for India’s clothing exports. The share of knitted garments in value terms is about 35 per cent while in quantum terms it is 55per cent. There is no doubt that the knitted sector is emerging as the faster growing sector of the two and over a period of time has succeeded in overtaking the woven garment sector.
The exports of garments have surged both in quantity and value terms in both rupee and hard currency. The average unit export prices have also gone up considerably.
In the domestic sector, there is also the entry of foreign brands, most of them in tie-us with Indian textile houses. Indus Clothing and Arvind Mills/ Arvind Fashions are outstanding examples, the former with Lee Cooper and the latter with V.F. Corporation of U.S.A. for Lee jeans and with Arrow of U.S.A. for shirts.
Foreign brands have also themselves set up shop in India in prime consumer locations. Some of the well known foreign departmental stores also see a growing market in India.
Indian manufacturers are also seeking avenues in foreign markets such as Raymond, who are planning to acquire a fabric manufacturer as well as a garment manufacturer in Europe.
As regards marketing efforts in the domestic market, a study shows that the retail chains in India are very weak owing to the disorganized
form of retailing. At the lower end of the market, there does not appear to be any serious marketing efforts. As one approaches the higher end of the market, real marketing efforts are undertaken either by the producers or by the retailers. At the higher end of the market, there are franchises, with various types of retail formats available to big players such as exclusive showrooms, franchised show rooms etc. Such show rooms are normally multi-product outlets, the reason perhaps being the commercial non-viability of exclusive apparel outlets. Serious marketing efforts also include brand promotion, attractive sales offers etc.
As regards marketing efforts by middle level makers of garments, the concentration seems to be on exports rather than on retail sales. With the retailers, marketing efforts are again limited with the concept of store brands still new in India.
SUPPLY CHAIN
In the export market, composite mills sell either directly or through exporters such as a star trading house, super trading house etc. In the domestic market, the mills sell their products to wholesalers through an agent or a broker. The wholesale package is uniform and does not provide for assortments. The wholesaler passes it on to the semi-wholesaler in assortments and they in turn pass it on to the dealer. Some mills are now scrapping the wholesaler and passing the assortments on directly to the semi-wholesalers. Some mills such as Raymonds, Gwalior Rayon, Reliance and Bombay Dyeing also have their own retail shops.
The smaller players which consist of the power looms operate through merchants. The merchants give them the design and other specifications, which they manufacture and hand over to the merchants for sale.
In the handloom sector, there is marketing support given by the government and there are handloom houses and co-operative society owned shops through which the sales are made.
For knitted garments too, the supply chain is through merchants. The merchants give the manufacturers the specifications and they manufacture and hand over their products to the merchants for sale.
For many years, the textile industry has been one of India’s most closely regulated sectors. This is because the industry provides livelihoods for very many households. The major raw material consumed by the industry is cotton, and almost all of this is domestically grown. Also, most of India’s cotton crop is consumed domestically. The whole of the cotton-growing community is therefore heavily dependent on the country’s textile industry. In addition, there are many small-scale producers in the handloom sector—each hand-operated loom produces around 5-6 meters per day—and in hand processing (dyeing and finishing) who derive their livelihood from the textile industry. The future of industry regulation is a highly contentious issue. On the one hand, there are pressures to adapt to the new world dynamics. But on the other, there are calls for social benefits to be granted to the masses that are dependent on this sector. Seldom is a middle path found. As a result, sectors fight among themselves rather than collaborating to promote and enhance India’s competitive advantages. For the industry to thrive, ways and means of coordinating efforts need to be found.
Lack of Organised Retail Sector
The final user of the bulk of the textile chain’s products is the consumer. Each component in the textile supply chain should therefore aim to maximize the consumer’s satisfaction. However, the system in India is not well adapted to that end. The system is “push” driven by the industry rather than being “pull” driven, by consumers and retailers. A chain like this suffers from the following problems. Retailers, as the members of the chain who are closest to consumers, have the greatest influence on what consumers purchase. However, retailers in India also represent the most fragmented sector. They are seldom aware of improvements in styling, packaging and product features, and of worldwide developments. Even those who are aware of such developments are too small to be able to influence their suppliers, and to persuade them to make extensive changes or introduce innovation. The least fragmented sector—and the one which probably also has the most “clout”—is the spinning sector. However, this sector is distanced from the consumer. Having always been a commodity player, the spinning sector is production driven and has little appreciation of innovative marketing. Because the front (or retail) end of the chain is small and the back end comparatively large and better organised, the result is an inefficient “push” system with a high build-up of inventories at each stage in the chain and a high level of mark-downs (products whose prices have been reduced in order to clear surplus stocks).
In contrast, the front end of the supply chain in most developed economies is strong. The chain is driven either by the consumer or by retailers. In these situations, retail-driven growth has led to a much more efficiency-conscious supply chain. These situations also foster innovation, because retailers are nearest to the consumer market.
Retailing in India
In India there are an estimated 5 mn retail shops. These outlets can range from 50 ft2 to 25,000 ft2, with an average close to 500 ft2. Most are independents. But retailing is one link in the chain which promises tremendous growth. Major business houses in India—such as the Tatas, the Piramals and the Rahejas—have shown interest in this area, and have already ventured into the business with a few large format stores (upwards of 25,000 ft2). Most of the new entrants—recognizing that economies of scale represent a major factor in their success—have chalked out ambitious growth plans with the aim of spreading their operations in all the major metropolitan areas.
This consolidation at the front end has already started to have a positive effect on the supply system. Larger retailers have been successful in generating interest at the consumer level, and have established a more efficient and responsive supply network for themselves. They have started to collaborate with their vendors and to build supply relationships.
Changes in the Garment Sector
Garment making stands a better chance than fabric making of creating impulse-driven demand in India’s stagnant domestic market. However, because of the vast spread of the country, and the wide disparity of disposable income in India, it is difficult for organised retailers to span the entire country. This will only happen in the long term. In the meantime, these retailers are expected to limit their operations to around 15-20 cities for the next five to seven years.
Meanwhile, the sector which is expected to stimulate demand in the textile supply chain is branded garment marketing. In line with the expansion in retail sales, branded garments are growing at an estimated rate of around 25% per annum.
In fact, fashion is now driving the retail boom in India and brands in clothing, textiles, are among the segments that lent the necessary push to get the retail activities to get some organized formats. Textile mill showrooms, Khadi Bhawans and BATA outlets across the nation were in fact the first phase of structuring retail businesses.
For those producers who sell in the international market, garment making has been able to flourish on the basis of India’s competitive strengths—namely, cheap and skilled labour, coupled with a large fabric manufacturing base. However, faced with global competition, growth in this sector has started to level off.
For further growth to be achieved, the industry will need to be unshackled from government regulation, and fresh investment made in state-of-the-art production systems. To attract such investments, however, larger facilities will have to be set up in order to benefit from economies of scale. Larger players would need to step in, but first the right environment would have to be created to facilitate their entry.
The same applies to export markets—particularly as many buyers want, increasingly, to source “full packages” rather than sourcing yarn from one place, getting it converted into fabric at another and then getting the fabric made up into garments at a third location. A more efficient and more capable front end is therefore a must.
Value Added Dyeing and Finishing Sector
India’s fabric processing sector lacks state-of-the-art technology. This helps to explain the high share of grey fabrics in India’s textile exports. World trade in processed fabric is worth double that of grey fabric in value terms. However, India exports only half as much processed fabric as grey fabric in value terms.
Furthermore, even those processed fabrics which India does export achieve much lower average unit values than the average for the market as a whole.
Low unit values can be partly attributed to the fact that the garment sector until recently has been undemanding as far as quality is concerned. Since there is little perceived need for high quality fabrics, there has been little demand for them. Also, Indian garment makers use mainly low value fabrics produced by the power loom sector, or stock lots sold off by the mills after the best qualities have been exported. Even garments destined for export are, typically, low value products.
Investment in fabric
Because of the lack of demand for high quality fabrics, investment in the fabric processing sector has also been low.
In addition to the lack of demand for better-processed fabrics, taxation policies favour low technology hand-processing and standalone process houses—these enterprises are either not required to pay excise duties or have only a low tax burden.
However, because of this differential taxation policy, the sector is witness to rampant excise duty evasion. Such practices are a major deterrent to investment in this sector. For example:some process houses under-invoice their products in order to benefit from lower excise rates; andsome process houses declare power processed fabrics as hand processed because the latter enjoy more favorable tax treatment.
Such evasion is difficult to spot. After a fabric has been processed, it is difficult to ascertain whether it has been printed using hand processing machines or on power machines.
Demand Stimulation
In the absence of a demanding retail sector, textile and clothing manufacturers in India have enjoyed a seller’s market until quite recently. Before the early 1990s, the stimulation of demand had never been an issue. Thus the chain had lots of intermediaries—wholesalers and distributors—who were, in effect, responsible for the marketing of companies’ products.
But, as a consequence of trade liberalisation in the early 1990s—coupled with the media boom—consumers have become much more aware of what is available. As a result, there is a wide gap between consumers’ expectations and what producers are supplying to the market. In fact the transition from a seller’s to a buyer’s market has been very rapid, and many companies have failed to adjust to the new market conditions.
Even in foreign markets, many Indian products tend to be at the bottom end of the market. For example, unit values of Indian yarn and fabric exports are generally lower than world average prices.
Some of the main reasons are as follows. Within India, competition among the various players in each sector is strong, and sellers are often willing to discount the prices of their products in order to get business. Buyers who visit India therefore tend to negotiate with several parties before finalizing their orders.
Quality can not always be guaranteed. Hence most foreign buyers lack the confidence to buy products in India which are aimed at the upper-middle segment and premium end of the market.
India supplies products mostly at the “mass” end of the market where there are many-often cheaper-supply bases such as China and Mexico. Where comparable products are available from alternative supply sources, competition limits the ability of Indian producers to increase their unit values.
Steps Being Taken to Address the Situation
India’s disadvantages are certainly recognized by the industry, as well as by the government. Indeed, a sense of urgency is gradually building up as December 31, 2004-the day when all textile and apparel quotas are due to be eliminated-draws closer.
A committee of experts has therefore been set up by the government. Many industrial bodies and quasi-government bodies have also joined forces with a view to finding new directions and initiatives in order to boost growth in the industry.
Quality Improvement -Textiles Committee
The Government of India has set up a Textiles Committee as a statutory body, under the Ministry of Textiles with the basic objective of ensuring quality in textiles. The management is vested in a 29-member committee representing the Government, textile research associations, export promotion councils and the textile industry and trade. The committee has played a leading role in developing textile testing facilities, generating awareness about eco-friendly textiles and implementation of Quality Management Systems ( ISO-9000).
The Committee has 18 laboratories for testing of textiles, dyes, chemicals and effluents in major textiles centers in India. It has a large clientele of around 30,000 textile exporters located in major textile centers in India to avail of its services. It is the largest organization providing consultancy in the area of ISO 9000, QMS, ISO 14000 EMS and social accountability standards. The 18 laboratories meet national and international standards of Indian, American, British and Japanese standard associations. The Committee has also launched comprehensive programmes for capacity building of textile SMEs in 23 clusters and for training of industry personnel.
Modernization of Production Equipment- TUFS
One area of major concern has been a dearth of state-of-the-art production equipment in the Indian textile industry.
The spinning sector has, perhaps, the most modern equipment. But even in this sector, around 65% of capacity is more than ten years old. Out of a total of 33.3 mn ring spindles, it is estimated that 5 mn have been rendered completely useless by poor maintenance and
made obsolete by changes in technology. Another 5 mn spindles are very old and suffer from extremely low productivity.
Scrapping and replacement of old machinery has been minimal. These old machines are fully depreciated, and producers use this as an opportunity to charge low prices for their products. Few see the need to provide for the capital costs of new machinery in their costing. This policy, according to most of the major players, has been spoiling the market.
Productivity in the Indian spinning sector is poor relative to competitors such as Mexico, Turkey and the USA.
Moreover, all three of these countries have made gains in recent years, whereas India has seen little improvement. Mexico, Turkey and the USA improved their production per spindle by over 50% between 1993 and 1996 by retiring old machinery and installing new spindles with higher productivity. Meanwhile, production per spindle in India rose by only 8.3% over this period—despite a fall in the average count produced.
The need for modernization in spinning is especially important from an export viewpoint. In international markets buyers demand mainly defect-free fabrics and yarns. However, it is not possible to produce long runs of defect-free fabrics unless the yarn used is also standardized and defect-free. To modernize the industry properly, it is important that government measures provide for the scrapping of old machinery as well as investment in new machinery. In addition, workforces need to be rationalized.
The situation in weaving is similar. Despite a huge stock of weaving equipment available to producers in India, relatively few machines are of recent design. India has fewer shuttle less looms-in both the organised mill sector and the fragmented sector-than many of its competitors.
As in the spinning sector, weaving suffers from excess capacity. The bulk of Indian fabric production comes from a fragmented base of about 1.5 mn (mostly conventional) power looms. Total capacity in this sector is estimated at 28,000 mn meters per year.
However, actual production is only around 20,000 mn meters-based on the assumption that one running meter is almost 1 m2 (as few power loom weavers have shifted to wider width machines). Capacity utilization in the power loom sector is therefore only about 70%.
To support and encourage the process of change, the government has recently announced the launch of its Technological Up gradation Fund (TUF).
The aim is to bring about an improvement in production, productivity and quality by introducing state-of-the-art technology. The fund is to be disbursed at an “internationally competitive” interest rate—which will be 5% lower than the interest rate prevailing in India. The TUF is targeting all segments in the chain, from cotton ginning, spinning, weaving and processing to garment manufacture.
As well as modernizing plant and machinery, the TUF is also promoting investment in: the renovation of factory buildings and electrical installations; energy saving devices; effluent treatment plants; water treatment plants for captive industrial use; captive power generation; in-house R&D, including design studios; information technology, including enterprise resource planning packages; and total quality management.
The introduction of state-of-the-art equipment and systems is expected to result in a major jump in productivity and quality. However, it is also expected to reduce labour requirements substantially in situations. The TUF is therefore addressing the issue of voluntary retirement schemes for restructuring manpower.
So far the initial capital sum has been set at about US$ 6 bn for the period April 1, 1999, to March 31, 2004-although the government is prepared to increase this amount. However, the initial take-up of funds has been low because of rigid conditions imposed by the banks. This could slow down the industry’s modernisation.
Technology Mission on Cotton
The Government has also taken steps to improve the quality of raw materials, mainly cotton by launching the Technology Mission on Cotton in order to improve production, the productivity and quality of cotton in an integrated manner. This covers all aspects of cotton development from research to transfer of technology to farmers, improvement of marketing infrastructure, and improvement of the processing of cotton. This involves development of high yielding varieties, technology transfer through demonstration and training, modernization and technological Upgradation of ginning and pressing factories and streamlining marketing infrastructure.
Human Resource Development
While at the top end of the industry there are technical institutes like the Indian Institutes of Technology and other such institutes which offer postgraduate, undergraduate and diploma courses in textile technology, there are not many opportunities for training in the decentralized sectors of weaving, knitting, processing and manufacture of low cost garments..
To remedy this Government has recently set up a “Nodal Centre for Upgradation of Textile Education” which will identify specific areas of technology where manpower modernization is needed. This Centre is to prepare educational softwares for use by teaching institutes, prepare uniform syllabi, conduct training programmes, organize workshops for existing industrial manpower, create an internet network to uplink training institutes with the industry and create a library of reference material which would be accessible for users.
National Institute of Fashion Technology
In 1986, the Government also set up the National Institute of Fashion Technology to assist the apparel and fashion industry to meet industrial competitiveness on a global plane. The first institute of its kind in Asia, the institute has centers at Mumbai, Calcutta, Hyderabad, Gandhinagar, Chennai and Bangalore.. The curricula of this institute patterned after the courses offered abroad has been worked out by entering into Mous with the Fashion Institute of Technology, New York and Nottingham Trent University in the U.K.. But the courses have been adapted to the Indian ethos and Indian needs.
Integration and Linkages in the Supply System
The world textile and apparel market is undergoing a major transition. Many buyers no longer want to move around from country to country—purchasing yarn, arranging for fabric to be produced and finished, and then having the fabric converted into garments. This used to happen in the 1980s and 1990s, when the philosophy was mainly one of “low cost”. At that time India saw a mushrooming of agencies representing key retailers and buyers. Manufacturers would obtain orders merely on the basis that they had their own manufacturing capacity. But today, buyers increasingly prefer to deal with just one entity.
Manufacturers in India therefore need to venture out in order to find buyers themselves. It is expected that agents will gradually move out of the business, as every single percentage point in the structure of the final cost is questioned.
Many of the key players in the organised mill sector realise this, and some are pursuing major initiatives in order to build up supply relationships with some of their buyers. These relationships take the form of either joint ventures or marketing/sourcing arrangements.
For the manufacturer, such relationships help to assure order quantities from buyers. Further, the buyer assists in technological and design development.
The advantage for the buyer is that he secures a regular, “no-hassle” and reputable supply source for some of his mass market and “low-to-middle” segment end products-thereby saving him the trouble of hopping to various locations.
Responses of Indian Corporate Groups and building up of supply relations
Leading Indian corporate groups are responding to these changes in the marketplace with a number of initiatives, including:
building up strong supply relationships in order to increase their market access
exploiting India’s variety of production systems, or formats, as part of a move towards becoming a “one-stop shop window”
and making conscious decisions to promote value addition.
India’s mill sector is starting to build up strong supply partnerships with the aim of establishing an international supply network.
Diversity of Production Formats
The diversity of India’s production formats-which include hand spinning, hand weaving, power loom weaving and the mill sector-could be turned to advantage by many producers. By combining different kinds of fibers, fabric formation methods and technology levels, those producers could widen their product range and increase added value.
In fact this trend is already happening. Individual suppliers who have been able to gain the confidence of their principals are no longer limiting themselves merely to what they produce themselves, but are starting to trade in products which are made by other manufacturers. In effect, they are moving towards becoming a “one-stop shop window”. This trend is apparent in the case of goods for export as well as for the domestic market.
Promoting Added Value
In the mill sector, where most enterprises have only yarn and fabric manufacturing operations, a number of players are looking to increase their added value by becoming more involved in downstream manufacturing operations. For example, many firms are now keen to arrange for the supply of finished apparel products to retail buyers in accordance with those buyers’ specific requirements. Although most of these mills do not have garment making operations, they are adding value to their own products by coordinating their operations with those in downstream sectors. This move is evident in the case of exports as well as domestic sales.
Many players are also keen on establishing linkages with garment making centers-such as North Africa and Eastern Europe-which offer location, quota and tariff advantages in the EU market. Indian producers are considering either establishing their own manufacturing presence in such regions, or building up supply relationships with key producers who are already there.
INDIAN TEXTILE POLICY
VISIONEndowed as the Indian Textile Industry is with multifaceted advantages, it shall be the policy of the Government to develop a strong and vibrant industry that can
Produce cloth of good quality at acceptable prices to meet the growing needs of the people;
Increasingly contribute to the provision of sustainable employment and the economic growth of the nation; and
Compete with confidence for an increasing share of the global market.
OBJECTIVESThe objectives of the policy are to-
Facilitate the Textile Industry to attain and sustain a pre-eminent global standing in the manufacture and export of clothing;
Equip the Industry to withstand pressures of import penetration and maintain a dominant presence in the domestic market;
Liberalise controls and regulations so that the different segments of the textile industry are enabled to perform in a greater competitive environment;
Enable the industry to build world class state-of-the-art manufacturing capabilities in conformity with environmental standards, and for this purpose to encourage both Foreign Direct Investment as well as research and development in the sector;
Develop a strong multi-fibre base with thrust of product upgradation and diversification;
Sustain and strengthen the traditional knowledge, skills and capabilities of our weavers and craftspeople;
Enrich human resource skills and capabilities, with special emphasis on those working in the decentralised sectors of the Industry; and for this purpose to revitalise the Institutional structure;
Expand productive employment by enabling the growth of the industry, with particular effort directed to enhancing the benefits to the north east region;
Make Information Technology (IT), an integral part of the entire value chain of textile production and thereby facilitate the industry to achieve international standards in terms of quality, design and marketing and;
Involve and ensure the active co-operation and partnership of the State Governments, Financial Institutions, Entrepreneurs, Farmers and Non-Governmental Organisations in the fulfillment of these objectives.
THRUST AREASIn furtherance of the objectives, the strategic thrust will be on:
Technological upgradation
Enhancement of Productivity
Quality Consciousness
Strengthening of the raw material base
Product Diversification
Increase in exports and innovative marketing strategies
Financing arrangements
Maximising employment opportunities
Integrated Human Resource Development
IMPORTANT TARGETS AND OUTPUTSThe endeavour will be to -
Achieve the target of textile and apparel exports from the present level of US $ 11 billion to US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion.
Implement vigorously, in a time bound manner, the Technology Upgradation Fund Scheme (TUFS) covering all manufacturing segments of the industry;
Achieve increase in cotton productivity by at least 50% and upgrade its quality to international standards, through effective implementation of the Technology Mission on Cotton;
Launch the Technology Mission on Jute to increase productivity and diversify the use of this environment-friendly fibre;
Assist the private sector to set up specialised financial arrangements to fund the diverse needs of the textile industry;
Set up a Venture Capital Fund for tapping knowledge based entrepreneurs of the industry;
Encourage the private sector to set up world class, environment-friendly, integrated textile complexes and textile processing units in different parts of the country;
De-reserve the Garment industry from the Small Scale Industry sector;
Strengthen and encourage the handloom industry to produce value added items and assist the industry to forge joint ventures to secure global markets;
Re-design and revamp, during the 10th Five Year Plan, the Schemes and Programmes initiated in the handloom, sericulture, handicrafts and jute sector to ensure better returns for those belonging to the disadvantaged categories, and the North East and other backward regions of the country;
Facilitate the growth and strengthen HRD Institutions including NIFT (National Institute of Fashion Technology)on innovative lines;
Review and revitalise the working of the TRAs (Textile Research Associations) to focus research on industry needs; and
Transform, right size and professionalism all field organisations under the Ministry of Textiles to enable them to play the role of facilitators of change and growth.
INTERNATIONALISATION AND NEED FOR IMPROVEMENT
Many textile firms in India still continue to serve, profitably the lower end of the market. As a result, these firms have not graduated to producing and serving the higher value added market segment and they have not made efforts to introduce better products at the same cost to replace the low quality offerings. While there exist islands of excellence in firms like Arvind or Coats or Bombay Dyeing, in many plants enhancement of productivity is limited.
Studies show that there is low investment in Indian firms and most of the investments in the textile industry in India in recent times have been in spinning units. However, 65 percent of the spinning machinery is still more than 10 years old the picture in weaving and dyeing and finishing processes in much worse. China invested in 68,000 shuttles-less looms between 1987-1996 as compared to 8,000 in India or 30,000 in Indonesia or 81,000 in Korea.
There is a noticeable absence of adequate capacity in good quality dyeing and finishing processes. These two processes limit the entry of Indian textiles into higher value added products despite a modern spinning sector.
In fact, the Indian processing sector appears to be the weakest link in the entire textile production chain, which results in a loss of potential value addition and reduction in foreign exchange earnings. Technologically, chemical processing appears to be weak in terms of its production capabilities, assurance of quality, containing environment related issues and the current demand of design inputs. Thus, there is an urgent need for upgradation of the textile processing sector, with particular reference to environmental parameters
Furthermore, production run sizes are longer in Indian plants across the three processes, resulting in higher waiting times for a lot and higher working process inventory. The average manufacturing and delivery lead times from procurement of yarn to shipment (receipt by customer) for India’s apparel exports is between 144 to 182 days, which is often longer than an entire fashion season.
Most firms also do not follow any scientific approach to shop floor planning and control, thereby leading to poor co-ordination between processes. Again, most quality control problems stem from weak quality measurement and control systems. Improving quality
practices at ginneries should be one of the most crucial items on the agenda of the Indian textile industry.
There is also poor co-ordination between different entities that comprise the supply chain, like the cotton producers, ginners, spinners, weavers, dyers and finishers, knitters and apparel producers. There is still no recognition of the fact that they are interdependent in their growth.
Another problem is that there appears to be too much conflict between the small, medium and large players in the industry. Composite or large mills lack the flexibility to produce variety or small orders at low costs. Power looms/small plants have the flexibility due to low overheads but have outdated technologies and work practices to produce high quality products.
The second issue is that decisions on product mix choice and product markets are very local and short-term oriented which result in short-term gain at the cost of long-term effectiveness.
In fact, in the Indian textile industry there appears to be an over dependence on low wages and raw material costs as a source of competitive advantage.
Benchmark studies have revealed that the Indian textile industry which has islands of excellence has distinct weaknesses in processes like ginning and dyeing and to some extent in weaving. It suffers from a lack of product or process innovation, poor shop floor practices, poor use of modern management practices, and inadequate plant and equipment maintenance. Given that the trading regime is going to change drastically in the next few years, the Indian textile industry as well as the textile policy will have to be reorganised and reworked.
Industry analysts also note that textile prices are increasingly competitive worldwide as more and more developing countries enter the global textile trade. To maintain, if not increase, its global market share, the Indian textile industry must procure modern, low-cost, textile machinery so that it can produce high quality textiles and garments for export at competitive prices. It is in this context that the market for used textile machinery is viewed as very promising. Used textile machinery would permit India to incorporate new technology at low cost.
Areas where assistance is needed
There are several areas where the Indian textile industry needs assistance from abroad. The first area is that of textile machinery, where better machines with better specifications are needed. Better weaving machines, knitting machines and processing machines are needed since India does not have an indigenous manufacturing base for textile machinery and has to be dependent on imports from abroad.
Secondly, the textile industry in India needs cleaner production technologies. Presently, large sections of the industry are still using outdated technologies that create pollution.
The third area where India needs assistance is in the area of systems or actual methods of manufacturing. The experience of manufacturers abroad, who have a higher productivity rate, needs to be shared with the Indian industry. This includes quality monitoring, manufacturing methods and work practices.
The fourth area of assistance would be the setting up of joint ventures between Indian manufacturers and foreign manufacturers, where the Indian industry could benefit from financial inputs from abroad. These financial inputs would be especially welcome in the apparel and garments industry.
The fifth area of assistance could be in a cluster development programme. Here too, foreign manufacturers. The Textiles Committee under the Government of India can be an ideal partner institution for this initiative.
The sixth area of assistance would be in technology up gradation of the entire industry from cotton ginning and processing to apparel manufacturing.
Another area of assistance required is in design and marketing support. Assistance is also needed in brand building so that the Indian industry can promote its brands in the European market.
A Special Focus – Tirupur
Background
Tirupur, in Tamil Nadu, (located 55 km to the east of Coimbatore City) accounts for 56 % of India’s cotton knitwear exports valued at Rs 5000 crores.
The state of Tamil Nadu in fact occupies a prime position in the textile map of India. With its strong base of handloom, power loom, spinning mills and knitwear and woven garments industry, Tamil Nadu accounts for more than one-third of the country’s total exports of textiles.
Tamil Nadu produces 40 per cent of the country’s cotton yarn production, with 35 per cent of the country’s total spindle age spread over 776 mills. The power loom sector, which has been playing an increasingly important role in textile production accounts for 50 per cent of the total fabric production of the country.
The cotton knitwear industry in Tirupur consists of 2,500 knitting and stitching units, 750 dyeing and bleaching units, 300 printing units, 235 embroidery units and 200 others. Besides knitwear units catering for exports and local markets, there are a large number of other ancillary units, and supporting industrial units operating
History of the Industry
Till 1924 Tirupur was not known for its knitting factories. The cotton hosiery industry first made its appearance in India in 1893 in Calcutta and after the first world war more cotton, woollen, synthetic hosiery units came into existence in Bengal, Ludhiana, Mumbai, Kerala and Madras province. The first banian factory in Tirupur was started in 1925. With the advent of electricity in Tirupur in 1931 more knitting and weaving factories came into existence. Initially, all the knitting machines were imported from Germany, Japan and New York. By 1942, there were 34 hosiery factories in Tirupur. After the second world war, thanks to financial assistance from the banks, availability of relatively cheap labour, hosiery yarn and electric power, more factories came into existence in Tirupur. Today Tirupur has become an important and active cluster of the knitwear industry in India.
For over 30 years, until the early 60’s the hosiery industry in Tirupur was producing mainly grey and bleached banians. It was in the late
60s that the industry slowly diversified towards manufacture of other inner garments.
The strength of the hosiery industry in Tirupur in 1961 was 200 units. In the 70s, export of small quantities of banians and other inner garments were made from Tirupur. Early in the 80's export of knitwear, mainly basic T-shirts were made in small quantities. Exports of other knitwear items gained momentum after 1985.
In the late 80's the knitwear industry diversified very quickly and took up manufacture and export of other outer garments, viz, cardigans, jerseys, pullovers, ladies blouses, dresses and skirts, trousers, nightwear, sportswear etc.
With the commendable interest shown by entrepreneurs and with the support from the government in the form of higher investment limit allowed for ancillary industrial undertakings and with the hosiery industry allowed to avail of facilities earmarked for small scale units, the hosiery industry in Tirupur transformed itself into the knitwear capital of India in less than three decades. Production of cotton in Tamil Nadu was 6 lakh bales (170 kg per bale) against the all Indian production of 175 lakh bales in the year 1999-2000. As there are mills manufacturing hosiery yarn located near Tirupur, there is virtually no problem in sourcing raw material without having to block funds in large inventories.
Industrial Structure
The majority of the units belong to the proprietorship/partnership form of organization and are directed by family management. Secondly, there are a limited number of vertically integrated production units from the knitting stage through processing, printing, stitching and finishing stages. Thirdly, there are a large number of units involved in doing cutting, making and trimming (CMT) using knitted fabrics in pieces.
The knitwear industry in Tirupur has concentrated mainly on the production of garments for the spring and summer seasons. Of late, the industry has diversified its production range to include winter garments, using polar fleece and blended fabrics. At present, winter garments have come to hold a share of 20 per cent in the total production of knitwear in Tirupur. As cotton garments are meant for only the spring and summer seasons, which are short-lived in Europe and Western countries, the industry perforce has to take up
production of winter garments which have year-round demand in international markets.
Buying Houses and Agents
A noticeable feature in recent years has been the influence exerted by buying houses and buying agents of foreign organizations who have pitched their tents in Tirupur. The buying houses and agents constantly interact with the manufacturers and help them decide on quality specifications, type of fabric to be used and the garment patterns, and styling.
Though knitted garment exports from Tirupur touched U.S. $ 1.02 billion in the year 2001-2002, the domestic market accounted for only U.S. $ 306.12 million of consumption. Of this domestic consumption the retail business in the organised sector accounted for U.S. $ 102.04 million. It is estimated that the total requirement of trained manpower in the industry is 50,000 per year for the next five years against the availability of a few thousand retail trade trained personnel every year. The sector is in fact expected to recruit 2,50,000 trained hands directly and 8-10 times more indirectly in the related supply chains by 2005. In fact, the foremost task of the industry is to pool its resources to raise an inland supply chain to release the goods in the inland market. Hence, inland retailing is going to play an important part in the knitwear industry in future.
Technological Upgradation Fund
The industry is also addressing itself to the need for technological upgradation of manufacturing processes. The Government has introduced the Technology Upgradation Fund Scheme (TUFS) to reduce the cost of capital funds. The scheme envisages reimbursement of 5 per cent interest charges to eligible investors in the benchmarked technology in any of the identified textile manufacturing activities, including garment making. Investment in the industry was of the order of U.S. $ 108.69 million. In the next 10 years, the industry expects to witness investment expansion of the order of U.S.$ 217.39 million.
The Tirupur industry also requires better quality and more competitive rates of hosiery yarn because in the knitting process, yarn has to be converted into loops and while a defect in woven fabric is rectifiable, a defect in knitted fabric is not rectifiable and yarn costs contribute to 60 per cent of the cost of the fabric.
It is also a fact that in the last few years, the technological gap between the Indian knitting industry and that in advanced countries has widened. Though imported technology is available at all manufacturing stages, it is very costly even though many entrepreneurs are also importing high tech knitting and processing machines.
In the past few years, however, over 200 units have taken up to modernisation of their production processes with fresh investments. About 800 new knitting machines have been imported from abroad. According to the UNIDO report, soft flowing dyeing machines, compacting machines for minimising residual shrinkage, dyeing machines, computerised colour matching systems and stenter machines for removing deformity in knitwear are some of the many new machines that have been bought by the industry.
Customers
The Tirupur knitwear industry’s exports are directed to customers in the following percentages: 10 per cent to departmental stores, 60 per cent to importers, 10 per cent to catalogue stores, 5 per cent to retailers and 5 per cent to established consumer brands.
Among major customers of Tirupur’s exports are Kitaso, Savanbee, Texman, Marine Prod, Norwigs Clipper, Green Knitwear, Roy Watsan, Lotto, Arrow, Roytex, Wal-Mart, KDAB, Auchan, Primark, Ether Austin, Clothesline, Ether, Norpo-Tex, Dan-Do, Vroom, Alians Dominos, Oneil and Wibra.
Supply Chain
At the center of the Tirupur Hosiery cluster are the cotton knitwear garment exporters who may be either manufacturer exporters or merchant exporters. According to a UNIDO report, the non-exporting manufacturers undertake sub-contracting tasks mainly for the exporters of both the categories mentioned above and in addition they market the knitwear for the domestic market. There are a number of different types of agents and traders who facilitate the marketing activity. These actors are selling agents, depot sales agents, commission agents and general merchants. In Tirupur, the marketing agents have a strong role to play. They have developed specialization in different geographical market segments, domestic and overseas, as also in product based segments.. Further specialization has developed to the extent that there are agents who market only the rejected goods and the export surplus material.
In terms of employment generation, the direct employment generated is estimated to be 100,000 skilled, semiskilled and unskilled workers and another 100,000 persons are estimated to be earning their livelihood due to this industry. These indirect activities relate to the forward and backward linkages within the industry such as cotton ginning, yarn spinning, and specialist tailoring, calendaring, packaging and other related service activities.
The main raw material in the form of cotton yarn of different thickness is suppliedby the agents of hundreds of spinning mills located in Coimbatore, Salem, Erode and other adjoining cities. Several mills have set up their sales depots at Tirupur to provide raw material on ex-stock basis. Besides, there are also several cotton yarn merchants in Tirupur and Coimbatore. Speciality stores selling accessories, such as buttons, zips, laces and sewing threads are there in a large number in Tirupur itself. Similarly, the dyes and chemicals that are manufactured mainly in Gujarat and Maharashtra are available through companies sales depots and through merchants dealers in Tirupur itself.
The manufacturers of circular knitting machines and dyeing machinery are mainly located in Punjab, especially in Ludhiana and Amritsar. With the introduction of new technology, imported machinery has been in widespread use in Tirupur. The commission agents and dealers for both indigenous and imported machinery are based in Tirupur providing access to the latest models available worldwide. An important agent, among others providing imported machines, is “Mehala group of companies”, with a total employees strength of 350 persons and a dozen individual enterprises. Besides supplying machinery, they undertake servicing of the machines, and provide training to the industry workers in machines working, servicing and maintenance.
Conducive to the need of the export market, innovative service enterprises have been set up by private entrepreneurs. These services are targeted at exporters, suppliers, manufacturers, buyers, importers and the retailers that help their customers to reduce their risk, improve efficiency, provide inputs for cost control, implement and ensure compliance of the mutually agreed quality systems. For instance, the range of services provided to importers may comprise pre-production checks of exporting enterprises, initial production checks, during- production checks, random inspection, status reporting, container loading supervision, damage survey, product
consultancy, sourcing assistance, factory assessment and laboratory testing.
Active Associations
There are as many as seven sub-sectoral industry associations in Tirupur. For example, the dyeing and bleaching units have their separate association. The importance of these associations can be gauged from the fact that all these bodies act as quasi-judicial institutions which help to resolve the inter-firm and within firms commercial disputes. Some of the associations such as “Tirupur Exporters and Knitwear Manufacturers Association (TEKMA) also get the long standing inter-firm payments cleared among the members.
The South India Hosiery Manufacturers Association also assists its members to get financial assistance from the banks and financial institutions. On the procedural front, assistance is also provided in getting the registration certificate of small scale industry, Reserve bank of India code and export import licence issued. It also files legal suits in courts and represents on behalf of their members.
The Tirupur Dyers Associations conducts workshops and seminars to educate members on the latest trends. It has also taken up an active role on the issue of pollution control by representing the case to the authorities concerned.
The associations are also involved in collection and dissemination of information to their members through their regularly printed bulletins which are published periodically ranging from fortnightly to quarterly basis. The bulletins are published both in English and Tamil languages.
Among the associations, the most dynamic is the Tirupur Exporters Association or TEA, a frontline Association. The voice of this Association is heard in the corridors of power. Unlike other Associations, TEA has been spearheading investment in infrastructure projects, which directly act as a catalyst to aid and promote exports. Other key agencies are the South India Textiles Research Association (SITRA), Apparel Export Promotion Council (AEPC), Textile Committee, National Small Industries Corporation.
Strengths and Weaknesses
The Tirupur industry has certain strengths like the ability to take up small orders at short notice. The industry is also able to produce the entire range of knitwear at low cost and reasonably good quality.
However, among the weaknesses of the industry are the occasional delays in delivery, the inability of many firms to match the quality standards demanded at higher price points and the inability of the industry at the lower end of the market to compete with the Chinese and exports form Bangladesh and Sri Lanka.
It is perceived that among the major threats faced by the industry are the phase out of quotas, non-tariff barriers on account of the environment and social issues like child labour and personal safety norms and the inability to reap benefits of economies of scale due to fragmented holding of the manufacturing capacity.
In a paper on the "Knitwear Industry / Vision 2010" prepared by the President of the Tirupur Exporters Association, Mr. A. Sakthivel, he says, the core strength of the Tirupur knitwear industry lies in the rich raw material base and skilled manpower resources.Vision 2010, is to be focused on achieving for knitwear garments exports at least 10 per cent of the world market share. He says this is entirely achievable. Sustainability of knitwear exports in the context of globalisation will entail industry restructuring and moving up the value chain in terms of production of sophisticated fashion apparel. The enterprises most likely to benefit from the post 2004 dispensation will include large sized firms, both because they will be relatively more competent to create the required resources for creative marketing and to accept larger orders as well as invest in the necessary R & D facilities.
Lack of Infrastructure
Tirupur has a unique significant presence at the lower end of the international hosiery and knitwear market. The slow process of infrastructure development is also coming in the way of this town acquiring the image of a prestigious and mature international knitwear centre.
Most Tirupur entrepreneurs are satisfied with catering to the lower end of the market on a contract manufacturing basis. Tirupur is basically a traditional centre for cotton ginning. It's export boom began in the late 1980s, and the entire populace now depends on its viability as an export centre. Almost every household in the town undertakes some activity directly linked to the knitwear industry. The
town’s dusty and narrow bylanes, like Surat, are lined with residence-factories (most houses have dedicated at least one room to these activities) spinning cotton into yarns, or knitting yarn into fabric, or simply separating and dividing the waste and scrap fabrics back into yarn for reprocessing. A whole range of industrial units catering to ancillary functions such as manufacture of cartons, polythene bags, zips, buttons, tapes and other packing material, has also spawned in a big way.
Yet, at first glance, nothing about Tirupur can make one believe that this town earns an annual $720 million in foreign exchange. This is because the state government and local municipal authorities have been too slow to cope with this dynamic growth. The variance between the town’s infrastructure and the actual requirements has led to a sharp rise in the cost of almost every basic social input. The present export-driven prosperity is letting Tirupur’s entrepreneurs meet these costs, but the paucity of adequate infrastructure could soon thwart its growth.
Water-Scarcity
Water scarcity is the biggest problem in Tirupur. This is further aggravated by a 50% growth in population in the past ten years, presently pegged at five lakhs. Most of the present supply of industrial water is sourced from tankers that draw it from wells and natural reservoirs from the neighboring villages. The only commercial vehicle that can be easily spotted in Tirupur, besides the cotton bale-carrying trucks, is the 12,000 litre water tanker. Farmers in these villages draw water from their wells using the wholly state-subsidised power provided by the Tamil Nadu State Electricity Board and supply it to the tanker operators at a price of about Rs 80 for every 12,000 litres.
Although this has been the route of participation in the export boom for many farmers, most farmers are now getting tough. They are badly hit by the depletion of ground water resources and because of pollution of the water table. The entire town of 500-odd dyeing and bleaching units dumps their effluents into the Noyyal River or throw them on the open wasteland. The Noyyal runs all across the 27 sq km town, virtually dividing it into two halves. According to reports from Tirupur, about 12 lakh liters of waste water containing bleaching powder, sulphonic dyes and inorganic catalysts and other chemicals are discharged daily, 80 % of which are drained into Noyyal.
The processing section of the industry (dyeing, bleaching etc) has lagged behind in modernization because of the absence of assured water supply of acceptable quality standards. At present, there are around 700 processing units in Tirupur which source their water requirements from agricultural wells within a radius of about 50 kms. Consequent to the diverse sourcing of water, there are substantial variations in the quality of water used, leading to deficiencies in the processing such as inability to achieve the exact shades, appearance of spots and lack of uniformity while dyeing, resulting in frequent rejections.Earlier, tankers fetched water from a radius of seven kilometres around Tirupur; now they have to go to villages located even outside a 45-kilometre radius to get quality water. But farmers of these villages have reportedly started physically preventing these tankers from getting into their villages. Processors are required to go to villages much beyond the traditional sources of water which involves additional expenditure on petrol, and on maintenance of tankers, resulting in a price of Rs 300-350 for every 12,000 litres of water.
However, the needs of the Tirupur industry which are for 105 million litres of water per day are to be met by a project undertaken by the New Tirupur Area Development Corporation Ltd., which will supply 180 million litres of water per day by the year end 2003. This will also meet the need of residents of the area for 75 million litres of water.
Industrial Pollution
Another problem identified is the issue of industrial pollution. The textile processing units discharge around 60 million litres of effluents per day. Responding to the challenges of pollution control, nearly 700 major processing industries in Tirupur have set up 8 common effluent treatment plants at an estimated cost of U.S. $ 10.86 million. These plants can treat around 30 to 40 million litres of effluents.
According to newspaper reports from Tirupur, Noyyal is now so terribly polluted that it easily gets mistaken for a huge multi-coloured, half-dry gutter. On the other hand, direct discharge of effluents on the ground too has badly polluted and coloured the ground water table in Tirupur. It is not uncommon to see long queues of large plastic buckets and pots at any time of the day, lined in front of public hand pumps and borewells, from which tired but persistent women pump out coloured water of varying shades. According to these reports, the pollution of Noyyal has badly hit even Cauvery and
its tributary Bhawani.
In 1995, the Madras high court had come down heavily on Tirupur’s dyeing units, after which the Tamil Nadu Pollution Control Board drew up plans to set up a few common effluent treatment plants.
It is said that the problem of effluent treatment is dependent on adequate water supply and this problem is to be met by the authorities by the end of year 2003. . Many units are also going in for in-built pollution control measures which will reduce the problem of pollution tremendously.
In the meanwhile, the Tirupur Exporters Association (TEA) is preparing an integrated water supply, sewerage, effluent treatment and road development project estimated to cost Rs 5.80 billion . The public of Tirupur, the Government of Tamil Nadu, and the Central Government and the Infrastructure Leasing & Financial Services Ltd. will all be financially involved with the project.
The Textiles Committee of the Government of India has also drawn up a cluster based programme for capacity building of SMEs in the Tirupur cluster aimed at facilitating the local industry in improving quality, upgrading technology and adoption of systems management, design and product innovation , adoption of cleaner production technologies and skill upgradation of industry personnel etc.
ASSOCIATIONS IN TIRPUR AREA
ANNEXURE I
EXPORT PROMOTION COUNCILS
Banian Cloth Mfrs. Assn. (BCMA)Coimbatore District Power Loom Cloth Dealer Assn.South India Hosiery Mfrs. Assn. (SIHMA)`Tirupur Export Knitwear Mfrs. Assn. (TEKMA)Tirupur Dyers Assn.Tirupur Bleachers Assn.Tirupur Steam Calendring Assn.Tirupur Screen Printing Assn.Tirupur Narrow Tape Mfrs. Assn.Indian Hosiery Yarn Mill Assn.Tirupur Cotton Merchant Assn.Tirupur Merchant Assn.Tirupur Power Loom Assn.Tirupur Hosiery Yarn Merchant Assn.Tirupur Exporters Association
The Cotton Textiles Export Promotion CouncilEngineering Centre5th floor9 Mathew RoadMumbai 400004Tel: 0091-22-3632910
Fax: 0091-22-3632914
Apparel Export Promotion CouncilBajaj BhavanNariman PointMumbai 400021Tel: 0091-22-2853419
Powerloom Development and Export Promotion CouncilCecil Court, B Wing4th floorMahakavi Bhushan MarhBehind Regal CinemaMumbai 400039Tel: 0091-22-2846518/ 19Fax: 0091-22-2846517
The Handloom Export Promotion Council18 Cathedral Garden RoadNungambakkamChennai 600034Tel:0091-44-8276043/ 8278879Fax: 0091-22-8271761
The Indian Silk Export Promotion Council62 Mittal ChambersNariman PointMumbai 400021Tel: 0091-22-2049113/ 2027662Fax: 0091-22=2874606
The Synthetic & Rayon Textile Export Promotion CouncilReshan Bhavan78, Veer Nariman RoadMumbai – 400 020Tel: 0091.22.204 8797 / 204 0168Fax: 0091.22.204 8358
Wool & Wollen Export Promotion Council612/714 Ashoka Estate24, Barakhamba RoadNew Delhi – 110 001Tel: 0091.11.331 5512/ 331 5205Fax: 0091.11.331 4626
Mumbai office-Churchgate Chambers5, New Marine LinesMumbai – 400 020Tel: 0091.22.262 4680/ 262 4651
INDUSTRY ASSOCIATIONS
The Millowners Association, Mumbai]Elphinstone BuildingVeer Nariman RoadFortMumbai 400023Tel: 0091-22-2040411
Clothing Manufacturers Association of IndiaMahalaxmi ChambersNear Mahalaxmi TempleHaji AliMumbai 400026Tel : 0091-22-4928245/4945908
Association of Synthetic Fibre IndustryRaj Mahal84 Veer Nariman RoadMumbai 400020Tel: 0091-22-2048878/ 2048075Fax: 009122-2835838
All India Manufacturers OrganizationAssam State BoardUdyognagar Makum RoadTinsukia - 786 125Ph: 20450
Ahmedabad Textile Mills AssociationAshram Road, Navrangpura,P.B. No. 4056Ahmedabad 380009Ph: 658 2273/ 74Fax: 658 8574
Haryana Textile Manufacturers Association77 Model TownPanipat 130103Ph: 2667
Karnataka Textile Mills Association64, 4th Main NR 18 CrossMalleswaramBangalore - 560 055
M.P. Importers and Exporters Association207, Silver Arc Plaza, 20/1-CNew PalasiaPOB 591Indore - 452 001
Northern India Textile Mills AssociationPHD HouseOpp Asian Games VillageNew Delhi - 110 016Tel: 686 3276/ 626 3801-04Textile Machinery Manufacturers Association53, Mittal Chambers, 5th FloorNariman PointMumbai – 400 021Tel: 202 3766/ 202 4238Fax: 202 8017
GOVERNMENT AGENCIES
Office of the Textile CommissionerNew CGO Building48 Marine LinesMumbai 400020Tel: 0091-22-20001050Fax: 0091-22- 2004693
Central Silk BoardNo. 39, United MansMG RoadBangalore - 560 001
Chief Controller of Imports and ExportsUdyog BhawanMaulana Azad RoadNew Delhi - 110 001
National Textile Corporation Ltd.Surya Kiran, 8th Floor19, K. G. MargNew Delhi- 110 001
Indian Trade Promotion OrganisationPragati MaidanNew Delhi - 110 001
TEXTILE RESEARCH ASSOCIATIONS
The Bombay Textile Research AssociationLal Bahadur Shasrti MargGhatkopar (W)Mumbai –400 086Tel: 500 3651/ 500 2652/ 500 2117Fax: 500 0459
ANNEXURE II
List of Exhibitions
Event Name - Tex-Styles India 2002Venue - Pragati Maidan-New Delhi-IndiaDisplay Range - Home Textiles, Contact Details - Senior General Manager (TDMD) India Trade Promotion Organisation Pragati Maidan, New Delhi-110 001
Event Name - Garmentech International 2002Display Range - garment machinery, technologyContact Detail - ANZ International Trade & Marketing Associates, 34, Cathedral Road, Chennai- 600086
Event Name - Carpet Expo India 2003Venue - Pragati Maidan-New Delhi-IndiaDisplay Range - Carpet and Floor CoveringsContact Detail - All India Carpet Trade Fair Committee Taj Mahal Building, Chauri Road, Bhadohi,
Uttar Pradesh - 221 401
Event Name - Hemitextile India 2002Venue - Pragati Maidan-New Delhi-IndiaDisplay Range - window decoration, furniture fabrics, curtain, towelling,kitchen textiles, design studios, fabricsContact Detail - Event ManagerMesse Frankfurt Trade Fairs India Pvt. Ltd.605 Ansal Bhawan, 16 K.G. Marg,New Delhi-110001
Event Name - Jute India-2003Venue - Pragati Maidan-New Delhi-IndiaDisplay Range - Products, Technolgy and Equipments related to Jute / HesianContact Detail - Event Manager
Jute Manufacturers Developemnt Council 3-A, Park Plaza, 71, Park Street,
Calcutta - 700 016
Event Name: ITME Exhibition 2004Venue: Bombay Exhibition Centre, GoregaonDisplay Range: Textile Machinery ( Parts and Accessories)Contact Details: Event Manager: India ITME Society 76 Mittal Towers Nariman Point Mumbai 400021
ANNEXURE-3- STASTICAL DATA
EMPLOYMENT IN TEXTILE AND ALLIED SECTORS
Sr. No.
Sector / Industry
Employment (In Mn. Nos.)
As on March 2001 (Estimated)
Projectedfor the terminal year of the Tenth Plan
Increase
I. Textile sector 1. Cotton/Man-made Fibre/Yarn Textile/Mill Sector
(including SSI spinning & exclusive weaving units)
1.07 1.10 0.03
2. Man-made Fibre/Filament Yarn Industry (including texturising industry)
0.11 0.20 0.09
3. Decentralised Powerlooms Sector 4.15 4.25 0.10 4. Handloom Sector 12.00 12.40 0.40 5. Knitting Sector 0.30 0.50 0.20 6. Processing Sector 0.24 0.30 0.06 7. Woollen Sector 1.20 1.30 0.10 8. Ready Made Garment Sector
(including Knitwear Sector) 3.54 6.80 3.26
9. Sericulture 5.57 6.03 0.46 10. Handicraft Sector 5.84 6.77 0.93 11. Jute Industry
i) Organised Jute Industry ii) Decentralised Jute Industry
0.20 0.20
0.20 0.30
0.00 0.10
Total (I) 34.42 40.15 5.73
II. Allied Sector1. Cotton
i) Cotton Agriculture ii) Cotton Ginning/Pressing iii) Cotton Trade
16.60 0.70 17.00
17.45 0.85 18.00
0.85 0.15 1.00
Sub - Total 34.30 36.30 2.00
2. Sheep rearing 1.20 1.40 0.20 3. Jute Agriculture 12.00 13.00 1.00 4. Textile machinery industry & accessories 0.03 0.05 0.02
Total (II) 47.53 50.75 3.22
Grand Total (I + II ) 81.95 90.90 8.95
INTERNATIONAL COST COMPARISONS
Total Costs of Ring-Yarn 2001
(In US$ per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.16 0.16 0.17 0.17 0.18 0.14 0.11
6% 6% 6% 5% 7% 5% 4%
Labour 0.10 0.05 0.01 0.78 0.16 0.16 0.54
4% 2% 1% 22% 7% 6% 20%
Power 0.14 0.31 0.10 0.31 0.15 0.28 0.16
6% 12% 3% 10% 6% 10% 6%
Auxiliary material 0.10 0.09 0.09 0.10 0.10 0.09 0.10
4% 3% 3% 3% 4% 3% 4%
Capital (depreciation & interest) 0.84 0.90 1.27 0.65 0.59 1.09 0.72
34% 33% 44% 21% 25% 37% 27%
Raw Material 1.17 1.18 1.22 1.21 1.23 1.12 1.04
46% 44% 43% 39% 51% 39% 39%
Total Yarn costs (US$ per kg of yarn)
2.51 2.69 2.86 3.14 2.41 2.88 2.67
100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 80 86 91 100 77 92 85
Manufacturing Costs of Ring Spinning - 2001
(In national currency per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.31 7.41 1637 354 226 94683 0.11
12% 11% 10% 9% 15% 8% 7%
Labour 0.19 2.28 102 1474 210 109834 0.54
7% 3% 1% 36% 14% 9% 33%
Power 0.29 14.49 916 652 197 187436 0.16
11% 21% 6% 16% 13% 16% 10%
Auxiliary material 0.19 4.32 869 209 122 63806 0.10
7% 6% 6% 5% 8% 5% 6%
Depreciation 0.95 21.11 4361 916 479 412851 0.48
36% 30% 28% 23% 32% 35% 30%
Interest 0.71 20.68 7664 432 267 321494 0.24
27% 29% 49% 11% 18% 27% 14%
Total manufacturing costs (national currency per kg. yarn)
2.64 70.29 15549 4037 1501 1190104 1.63
100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ per kg. yarn)
1.34 1.51 1.64 1.93 1.18 1.76 1.63
Index (Italy:100) 69 78 85 100 61 91 84
Manufacturing Costs of O-E Spinning - 2001
(In national currency per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.22 5.48 1167 252 161 106959 0.14
11% 9% 8% 9% 14% 10% 12%
Labour 0.07 0.80 38 524 75 39828 0.19
3% 1% 0% 20% 7% 4% 16%
Power 0.22 11.37 717 512 155 147157 0.13
11% 19% 5% 19% 13% 14% 11%
Auxiliary material 0.21 4.90 991 232 137 72182 0.11
10% 8% 7% 9% 12% 7% 10%
Depreciation 0.78 19.44 3964 791 406 394251 0.40
37% 32% 29% 29% 35% 37% 34%
Interest 0.58 18.92 6945 367 224 303592 0.19
28% 31% 51% 14% 19% 28% 17%
Total manufacturing costs (national currency per kg. yarn)
2.08 60.91 13822 2678 1158 1063969 1.16
100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ per kg. yarn)
1.06 1.31 1.46 1.28 0.91 1.57 1.16
Index (Italy:100) 83 102 114 100 71 123 91
Total Costs of O-E Yarn - 2001
(In US $ per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.11 0.12 0.12 0.12 0.13 0.16 0.14
5% 5% 5% 5% 6% 6% 6%
Labour 0.04 0.02 0.01 0.25 0.06 0.06 0.19
2% 1% 0% 10% 3% 2% 9%
Power 0.11 0.24 0.08 0.25 0.12 0.22 0.13
5% 10% 3% 10% 6% 8% 6%
Auxiliary material 0.11 0.11 0.10 0.11 0.11 0.11 0.11
5% 4% 4% 4% 5% 4% 5%
Capital (depriciation & interest) 0.69 0.83 1.15 0.55 0.49 1.03 0.59
31% 33% 43% 22% 23% 38% 27%
Raw Material 1.17 1.18 1.22 1.21 1.23 1.12 1.04
52% 47% 45% 49% 57% 42% 47%
Total yarn costs (US $ per kg. yarn)
2.23 2.50 2.68 2.49 2.14 2.70 2.20100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 90 100 108 100 86 108 88
Manufacturing Costs of Texturing - 2001
(In national currency per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Packing 0.08 1.86 379 84 51 27097 0.04
9% 7% 10% 7% 10% 8% 8%
Labour 0.10 1.57 365 338 124 46608 0.15
12% 6% 9% 29% 23% 14% 30%
Power 0.12 6.92 487 282 79 60224 0.07
14% 27% 12% 24% 15% 18% 13%
Auxiliary material 0.02 0.50 107 25 16 8129 0.01
2% 2% 3% 2% 3% 2% 2%
Depreciation 0.24 5.01 928 229 135 83189 0.12
27% 20% 24% 20% 25% 25% 25%
Interest 0.31 9.61 1646 197 131 110219 0.11
36% 38% 42% 18% 24% 33% 22%
Total manufacturing costs (national currency per kg. yarn)
0.87 25.47 3912 1155 536 335466 0.50
100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ per kg. yarn)
0.44 0.55 0.41 0.55 0.42 0.5 0.5
Index (Italy:100) 80 100 75 100 76 91 91
Total Costs of Textured Yarn - 2001
(In US $ per kg. yarn)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Packing 0.04 0.04 0.04 0.04 0.04 0.04 0.04
2% 2% 3% 2% 2% 2% 2%
Labour 0.05 0.03 0.04 0.17 0.10 0.07 0.15
3% 1% 3% 8% 5% 4% 7%
Power 0.06 0.15 0.05 0.13 0.06 0.09 0.07
3% 7% 4% 6% 3% 5% 3%
Auxiliary material 0.01 0.01 0.01 0.01 0.01 0.01 0.01
1% 0% 1% 0% 1% 1% 0%
Capital (depriciation & interest) 0.28 0.32 0.27 0.20 0.21 0.29 0.23
14% 14% 21% 10% 11% 17% 11%
Raw Material 1.48 1.70 0.90 1.54 1.44 1.20 1.65
77% 76% 68% 74% 78% 71% 77%
Total yarn costs (US $ per kg. yarn)
1.92 2.25 1.31 2.09 1.86 1.70 2.15100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 92 108 63 100 89 81 103
Manufacturing Costs of Ring/ O-E Yarn Weaving - 2001
(In national currency per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Labour 0.071 1.115 85.2 389 80.5 23033 0.159
16% 11% 5% 46% 25% 13% 47%
Power 0.063 2.881 208.2 144 46.0 42001 0.040
15% 27% 14% 17% 14% 24% 12%
Auxiliary material 0.097 2.509 416.4 115 121.3 39291 0.048
22% 24% 27% 14% 37% 22% 14%
Depreciation 0.120 2.138 406.9 134 51.1 42678 0.063
28% 20% 27% 16% 16% 24% 18%
Interest 0.083 1.859 406.9 61 28.1 29807 0.030
19% 18% 27% 7% 8% 17% 9%
Total manufacturing costs (national currency per yard of fabric)
0.434 10.502 1523.6 843 327.0 176810 0.340
100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ per yard of fabric)
-0.220 0.226 0.161 0.403 0.256 0.261 0.340
Index (Italy:100) 55 56 40 100 64 65 84
Total Costs of Woven Ring-Yarn Fabric - 2001
(In US $ per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.027 0.028 0.030 0.030 0.031 0.025 0.019
4% 4% 4% 3% 5% 3% 3%
Labour 0.053 0.033 0.011 0.309 0.092 0.062 0.253
8% 5% 2% 32% 14% 8% 31%
Power 0.057 0.116 0.039 0.123 0.063 0.110 0.068
9% 17% 6% 13% 9% 14% 8%
Auxiliary material 0.066 0.070 0.060 0.072 0.112 0.074 0.065
10% 10% 9% 8% 16% 10% 8%
Capital (depriciation & interest) 0.250 0.243 0.308 0.206 0.164 0.296 0.219
38% 35% 47% 22% 24% 39% 27%
Raw Material 0.204 0.206 0.213 0.211 0.215 0.195 0.182
31% 29% 32% 22% 32% 26% 23%
Total fabric costs (In US $ per yard of fabric)
0.657 0.696 0.661 0.951 0.677 0.762 0.806100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 69 73 70 100 71 80 85
Total Costs of Woven O-E Yarn Fabric - 2001
(In US $ per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.019 0.021 0.022 0.021 0.022 0.028 0.024
3% 3% 3% 3% 3% 4% 3%
Labour 0.042 0.027 0.010 0.230 0.073 0.044 0.192
7% 4% 1% 27% 12% 6% 27%
Power 0.051 0.105 0.035 0.112 0.057 0.100 0.063
8% 16% 6% 13% 9% 14% 9%
Auxiliary material 0.068 0.072 0.062 0.074 0.114 0.077 0.067
11% 11% 10% 9% 18% 10% 9%
Capital (depriciation & interest) 0.223 0.230 0.287 0.190 0.148 0.287 0.196
37% 35% 46% 23% 24% 39% 27%
Raw Material 0.204 0.206 0.213 0.211 0.215 0.195 0.182
34% 31% 34% 25% 34% 27% 25%
Total fabric costs (In US $ per yard of fabric)
0.607 0.661 0.629 0.838 0.629 0.731 0.724100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 72 79 75 100 75 87 86
Mnufacturing Costs of Ring Yarn Knitting - 2001
(In national currency per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Labour 0.035 0.307 43 232 52.5 18538 0.11
16% 6% 5% 53% 35% 20% 57%
Power 0.022 1.149 84 55 15.5 14867 0.013
10% 23% 10% 13% 10% 16% 7%
Auxiliary material 0.030 0.586 120 35 17.9 10375 0.014
14% 12% 15% 8% 12% 11% 7%
Depriciation 0.066 1.467 258 80 43.4 26851 0.038
31% 30% 31% 18% 29% 30% 20%
Interest 0.061 1.464 318 35 20.2 20666 0.017
29% 29% 39% 8% 14% 23% 9%
Total manufacturing costs (national currency per yard of fabric)
0.214 4.973 823 437 149.5 91297 0.192100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ per yard of fabric)
0.109 0.107 0.087 0.209 0.117 0.135 0.192
Index (Italy:100) 52 51 42 100 56 64 92
Total Costs of Knitted Ring-Yarn Fabric-2001
(In US $ per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.063 0.065 0.071 0.069 0.072 0.057 0.045
6% 5% 6% 5% 6% 5% 4%
Labour 0.057 0.027 0.009 0.399 0.108 0.094 0.331
5% 2% 1% 27% 10% 7% 26%
Power 0.070 0.152 0.048 0.153 0.075 0.135 0.078
6% 13% 4% 10% 7% 10% 6%
Auxiliary material 0.054 0.051 0.050 0.058 0.053 0.054 0.055
5% 4% 4% 4% 5% 4% 4%
Capital (depriciation & interest) 0.409 0.430 0.580 0.318 0.288 0.513 0.349
36% 36% 46% 21% 26% 39% 27%
Raw Material 0.478 0.482 0.498 0.494 0.502 0.457 0.424
42% 40% 39% 33% 46% 35% 33%
Total fabric costs (US $ per yard of fabric)
1.131 1.207 1.256 1.491 1.098 1.310 1.282100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 76 81 84 100 74 88 86
Manufacturing Costs of O-E Yarn Knitting – 2001
(In national currency per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Labour 0.016 0.144 20 109 24.7 8714 0.052
17% 6% 5% 53% 36% 21% 58%
Power 0.012 0.634 46 30 8.6 8203 0.007
12% 27% 12% 15% 12% 19% 8%
Auxiliary material 0.011 0.224 46 13 6.8 3963 0.005
12% 9% 12% 7% 10% 9% 6%
Depriciation 0.031 0.686 120 37 20.3 12529 0.018
31% 29% 32% 18% 29% 29% 20%
Interest 0.028 0.679 147 15 9.2 9373 0.007
28% 29% 39% 7% 13% 22% 8%
Total manufacturing costs (national currency per yard of fabric)
0.098 2.367 379 204 69.6 42782 0.089
100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ per yard of fabric)
0.050 0.051 0.040 0.098 0.054 0.063 0.089
Index (Italy:100) 51 52 41 100 56 64 91
Total Costs of Knitted O-E Yarn Fabric - 2001
(In US $ per yard fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Waste 0.024 0.025 0.026 0.025 0.027 0.0340 0.030
5% 4% 4% 4% 5% 5% 5%
Labour 0.016 0.007 0.003 0.105 0.032 0.025 0.092
3% 1% 1% 17% 6% 4% 17%
Power 0.030 0.065 0.021 0.066 0.032 0.058 0.035
6% 11% 3% 10% 6% 9% 6%
Auxiliary material 0.028 0.027 0.027 0.030 0.028 0.028 0.029
5% 5% 4% 5% 6% 5% 5%
Capital (depriciation & interest) 0.176 0.204 0.272 0.142 0.127 0.250 0.149
34% 36% 45% 23% 25% 40% 27%
Raw Material 0.247 0.249 0.258 0.257 0.260 0.237 0.220
47% 43% 43% 41% 52% 37% 40%
Total fabric costs (US $ per yard fabric)
0.521 0.577 0.607 0.625 0.506 0.632 0.555100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 83 92 97 100 81 101 89
Total Costs of Knitted Textured Yarn Fabric - 2001
(In US $ per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Packing 0.003 0.003 0.003 0.003 0.003 0.003 0.003
2% 1% 2% 1% 2% 1% 1%
Labour 0.011 0.005 0.005 0.055 0.023 0.016 0.054
6% 3% 4% 23% 12% 9% 23%
Power 0.010 0.024 0.008 0.023 0.011 0.018 0.012
5% 11% 6% 10% 6% 10% 5%
Auxiliary material 0.006 0.005 0.005 0.006 0.005 0.006 0.005
3% 2% 4% 3% 3% 3% 2%
Capital (depriciation & interest) 0.046 0.048 0.044 0.037 0.035 0.049 0.039
24% 23% 33% 15% 19% 27% 16%
Raw Material 0.112 0.128 0.068 0.116 0.109 0.090 0.124
60% 60% 51% 48% 58% 50% 53%
0.188 0.213 0.133 0.240 0.186 0.182 0.237
Total fabric costs (US $ per yard of fabric)
100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 78 89 55 100 78 76 99
Manufacturing Costs of Textured Yarn Weaving - 2001
(In national currency per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Labour 0.092 1.533 107.9 499 104.1 30301 0.207
13% 9% 4% 34% 25% 12% 31%
Power 0.070 3.679 264.2 465 54.1 48137 0.221
10% 22% 10% 32% 13% 18% 33%
Auxiliary material 0.140 3.411 556.5 126 96.1 39386 0.058
20% 21% 22% 8% 23% 15% 8%
Depreciation 0.239 4.251 805.8 263 100.9 83674 0.125
34% 26% 32% 18% 25% 32% 19%
Interest 0.167 3.675 810.1 121 56.1 59442 0.060
23% 22% 32% 8% 14% 23% 9%
Total manufacturing costs (national currency per yard of fabric)
0.708 16.549 2544.5 1474 411.3 260940 0.671
100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ per yard of fabric)
0.359 0.356 0.269 0.704 0.322 0.385 0.671
Index (Italy:100) 51 51 38 100 46 55 95
Manufacturing Costs of Textured Yarn Knitting - 2001
(In national currency per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Labour 0.013 0.118 17 90 20.3 7177 0.043
16% 6% 5% 51% 34% 19% 56%
Power 0.011 0.586 43 28 7.9 7583 0.007
13% 29% 13% 16% 14% 21% 9%
Auxiliary material 0.011 0.0213 43 13 6.5 3779 0.005
13% 10% 13% 7% 11% 10% 7%
Depreciation 0.026 0.568 100 31 16.8 10381 0.015
30% 27% 31% 18% 28% 28% 20%
Interest 0.024 0.565 123 13 7.8 7949 0.006
28% 28% 38% 8% 13% 22% 8%
Total manufacturing costs (national currency per yard of fabric)
0.085 2.050 326 175 59 36869 0.076100% 100% 100% 100% 100% 100% 100%
Total manufacturing costs (US $ per yard of fabric)
0.043 0.044 0.034 0.084 0.046 0.054 0.076
Index (Italy:100) 51 53 41 100 56 65 90
Total Costs of Woven Textured Yarn Fabric - 2001
(In US $ per yard of fabric)
Cost Element Brazil India Indonesia Italy Korea Turkey USA
Packing 0.004 0.004 0.004 0.004 0.004 0.004 0.004
1% 1% 1% 1% 1% 1% 1%
Labour 0.051 0.036 0.015 0.254 0.091 0.051 0.222
9% 6% 4% 28% 18% 9% 25%
Power 0.041 0.094 0.033 0.235 0.048 0.080 0.227
8% 16% 8% 26% 10% 14% 26%
Auxiliary material 0.071 0.073 0.059 0.060 0.075 0.058 0.058
13% 13% 15% 7% 15% 11% 7%
Capital (depriciation & interest) 0.232 0.201 0.197 0.023 0.143 0.239 0.207
43% 35% 50% 22% 28% 44% 23%
Raw Material 0.143 0.164 0.087 0.149 0.139 0.116 0.159
26% 29% 22% 16% 28% 21% 18%
Tota fabric costs (US $ per yard of fabric)
0.542 0.572 0.395 0.905 0.500 0.548 0.877100% 100% 100% 100% 100% 100% 100%
Index (Italy:100) 60 63 44 100 55 61 97
Source : ITMF (International Production cost Comparison) '2001 &Compendium of International Textile Statistics, 2002 published by the Office of the Textile Commissioner, Mumbai
Textiles Exports from 1996-97 to April-Jan.'2003Rs.Million
Item 1999-00 2000-01 2001-02 (P)April-Jan.' 01-02
April-Jan.' 02-03(P)
% variation
Cotton Raw Incl. Waste 770.70 2210.65 437.23 243.64 268.31 10.13
Floor Covering of Jute 476.49 646.78 739.51 610.75 990.57 62.19
Other Jute Manufactures 1212.56 1606.12 1344.43 1119.90 1782.77 59.19
Jute Yarn 1839.78 2601.00 2156.37 1868.63 1719.51 -7.98
Jute Hessian 1917.05 2055.12 1861.14 1592.12 2948.01 85.16
Manmade Staple Fibres 1893.94 1674.08 1118.47 931.42 1646.47 76.77
Cotton Yarn, Fabrics & Madeups
133882.44 158099.56 144555.25 122207.66 131331.04 7.47
Natural Silk Yarn, Fabrics & Madeups
10300.63 14019.77 13094.68 11113.41 12099.61 8.87
Manmade Yarn, Fabrics & Madeups
35158.76 48356.49 50517.01 42047.65 52358.77 24.52
Woollen Yarn, Fabrics & Madeups
2166.13 2851.69 2479.22 2062.90 1985.77 -3.74
RMG of Cotton including Accessories
143966.62 179407.19 175674.61 142507.67 167745.56 17.71
RMG Silk 5383.23 8462.77 7208.81 6072.85 4846.26 -20.20
RMG Wool 7655.69 13570.48 11308.18 10377.39 9258.87 -10.78
RMG Manmade Fibre 43670.16 44542.65 36793.21 31705.29 28351.19 -10.58
RMG of Other Textile Material
5809.07 8448.34 6871.75 5559.35 6104.52 9.81
Coir & Coir Manufactures 1999.66 2208.50 2940.06 2506.18 2871.01 14.56
Carpets (Excluding silk) Handmade
21607.53 20417.29 17612.57 15537.68 16059.22 3.36
Handicrafts (Excluding Handmade Carpets)
28973.71 30220.70 26130.87 22166.05 29146.35 31.49
Carpets (Excluding Silk) Mill Made
4891.77 5047.76 4709.44 4068.40 4324.86 6.30
Silk Carpets 1454.30 1108.82 1684.51 1561.65 685.21 -56.12
Silk Waste 331.85 442.67 365.79 332.22 134.02 -59.66
Total Textiles Exports 455362.05 547998.43 509603.11 426192.81 476657.88 11.84
% Textile Exports 28.62 27.22 24.53 24.92 22.98
Total Exports 1590951.99 2013564.52 2077455.62 1710097.56 2074207.67 21.29
(P) Provisional Source: Foreign Trade Statistics of India (Principal Commodities & Countries) DGCIS, Kolkata
Textile Imports from 1996-97 to April-Jan.'2003
Source Foreign Trade Statistics of India (Principal Commodities & Countries) DGCIS, Calcutta.
Production of Cloth
(In Mn. Sq.Mtrs)
Year CottonBlended yarn
100% Non Cotton Yarn
TotalKhadi, Wool & Silk
Grand Total
1997-98 19992 5751 11153 36896 545 37441
1999-2000 2000-01 ItemApril- Jan. 01-02
April-Jan.' 02-03(P)
% variation
Woollen Yarn & Fabrics 102.88 139.97 172.43 149.61 881.58 489.24
Cotton Yarn & Fabrics 1074.77 1395.68 2278.23 1815.55 3481.48 91.76
Man made filament/ spun yarn (inc. waste)
9669.06 9843.74 13871.97 11852.99 16068.14 35.56
Madeup Textiles Articles1144.52 1910.46 1717.35 1485.36 1598.31 7.60
Other Textile Yarn, Fabrics & Madeup Articles
10022.03 12084.64 14059.48 11754.72 13754.96 17.02
Readymade Garments (Wovn & Knit)
699.38 978.30 1724.89 1539.23 899.24 -41.58
Raw Jute 1393.09 795.01 956.78 760.49 888.17 16.79
Raw Silk 4127.44 4732.61 6207.81 4778.37 5552.74 16.21
Raw Wool 4919.27 4578.13 6190.84 5177.94 6846.73 32.23
Synthetic & Regenerated Fibres
1842.99 2711.92 2721.35 2371.74 3105.80 30.95
Silk yarn & fabrics 619.75 910.21 1711.62 1300.99 2391.65 83.83
Woollen and Cotton Rags etc.
1016.78 1440.93 1070.85 949.08 750.51 -20.92
Cotton Raw & Waste 12539.28 11847.27 20515.79 18146.36 9324.24 -48.62
Textile Yarn, Fabrics & Madeup Articles
0.00 0.00 0.00 0.00 0.00 0.00
Total Textiles imports 49171.229 53368.864 73199.39 62082.44 65543.54 5.58
Ovarall Imports 2155285.31 2283066.42 2436448.42 2028576.98 2420068.48 19.30
1998-99 17948 5700 11895 35543 584 36127
1999-00 18989 5913 13725 38627 581 39207
2000-01 19718 6351 13606 39675 558 40233
2001-02 19769 6287 15334 41390 644 42034
2002-03 (P)
Apr 1675 504 1322 3501 48 3549
May 1609 519 1388 3516 48 3564
June 1658 470 1090 3218 55 3273
July 1744 488 1270 3502 55 3557
August 1623 520 1586 3729 54 3783
September 1588 498 1365 3451 54 3505
October 1628 528 1501 3657 54 3711
November 1530 526 1393 3449 54 3503
December 1663 561 1329 3553 54 3607
January 1631 537 1512 3680 54 3734
February 1462 502 1228 3192 54 3246
March 1635 523 1123 3282 54 3336
Apr - March
2002-03 (P) 19496 6020 16381 41897 644 42541
2001-02 19769 6287 15334 16381 644 42034
Cloth Price Trend - Powerloom Sector Values are in Rs./Mtr.
Item Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Filament (MKT) Avg.
2002-2003 9.34 9.59 10.05
Nil Nil 2 -3 1 Nil 13 Nil -1 Nil 2 3
-23 -23 -36 -18 -3 2 17 15 15 13 5 4
2001-2002 NA 8.81 8.81 8.38 8.14 7.85 7.88 8.19 8.22 8.59 8.71 8.78
Nil Nil 2 -3 1 Nil 13 Nil -1 Nil 2 3
-23 -23 -36 -18 -3 2 17 15 15 13 5 4
2000-2001 NA NA NA NA NA NA NA NA NA 9.01 9.03 8.91
Nil Nil 2 -3 1 Nil 13 Nil -1 Nil 2 3
-23 -23 -36 -18 -3 2 17 15 15 13 5 4
1999-2000 7.46 7.46 7.61 7.41 7.46 7.46 8.41 8.44 8.38 8.38 8.53 8.78
PV(M) Nil Nil 2 -3 1 Nil 13 Nil -1 Nil 2 3
PV(Y) -23 -23 -36 -18 -3 2 17 15 15 13 5 4
1998-1999 9.66 9.66 11.97 9.02 7.68 7.29 7.16 7.32 7.28 7.44 8.1 7.49
PV(M) : % Variation w.r.t. previous month. PV(Y) : % Variation w.r.t. same month of previous year. N.A : Not Available, n.a : Not Applicable
Financial Year-wise, Variety-wise Production of Yarn
( Qty. in Million Kgs. )
Financial Year
.Cotton Yarn
. .Blended Yarn
. .
100% Non Cotton Yarn
.Total Qty.
Growth rate
. Qty.Growth rate
% Share
Qty.Growth rate
% Share
Qty.Growth rate
% Share
. .
1995-1996
1788 13% 75% 395 14% 17% 195 23% 8% 2378 14%
1996-1997
2148 20% 77% 484 22% 17% 162 -17% 6% 2794 17%
1997-1998
2213 3% 74% 583 20% 20% 178 10% 6% 2973 6%
1998-1999
2022 -9% 72% 595 2% 21% 191 7% 7% 2808 -6%
1999-2000
2204 9% 72% 621 4% 20% 221 16% 7% 3046 8%
2000-2001
2268 3% 72% 644 4% 20% 246 11% 8% 3158 4%
2001-2002
2212 -2% 71% 609 -5% 20% 280 14% 9% 3101 -2%
2001-2002(Apr-Feb)
2029 -2% 71% 560 -5% 20% 254 13% 9% 2843 -2%
2002-2003(Apr-Feb)
1987 -2% 71% 535 -4% 19% 289 14% 10% 2811 -1%
Note : Growth Rate is calculated w.r.t. same period last year
Data Source : O/o Textile Commissioner, Mumbai
PRODUCTION OF FABRICS IN DIFFERENT SECTORS(Mn. Sq. Mtrs.)
MILL SECTOR
1994-95 1995-96 (Revised)
1996-97 1997-98 1998-99 99-2000 2000-2001 2001-2002
2002-03 (P)
Cotton 1262 1159 1222 1238 1111 1105 1106 1036 1023
Blended 746 602 488 466 444 379 332 296 262
100% Non Cotton
263 258 247 244 230 230 232 214 214
Total 2271 2019 1957 1948 1785 1714 1670 1546 1499
HANDLOOM SECTOR
Cotton 5429 6239 6441 6699 5861 6376 6577 6698 5160
Blended 13 18 52 69 111 119 111 95 122)
100% Non Cotton
738 945 963 835 820 857 818 792 791
Total 6180 7202 7456 7603 6792 7352 7506 7585 6073
DECENTRALISED POWERLOOM SECTOR
Cotton 7021 7014 7238 6652 5855 6291 6584 6473 6846
Blended 2640 3137 3948 4481 4356 4613 5071 5025 4797
100% Non Cotton
6315 7050 8166 9818 10478 12283 12148 13694 14729
Total 15976 17201 19352 20951 20689 23187 23803 25192 26372
DECENTRALISED HOSIERY SECTOR
Cotton 3307 4488 4940 5403 5121 5217 5451 5562 6467
Blended 262 268 400 735 789 802 837 871 840
100% Non Cotton
179 282 193 256 367 355 408 634 647
Total 3748 5038 5533 6394 6277 6374 6696 7067 7954
ALL SECTORS
Cotton 17019 18900 19841 19992 17948 18989 19718 19769 19496
Blended 3661 4025 4888 5751 5700 5913 6351 6287 6020
100% Non Cotton
7495 8535 9569 11153 11895 13725 13606 15334 16381
Total 28175 31460 34298 36896 35543 38627 39675 41390 41897
Khadi, Wool & Silk
431 498 540 545 584 581 558 644 644
Grand Total
28606 31958 34838 37441 36127 39208 40233 42034 42541
Figures in bracket indicates the corresponding period of the previous yearO/o the Textile Commissioner
INDIA'S EXPORTS OF SILK TEXTILES FROM 1991-92 TO 1999-2000
Year Silk Textiles Total Textile Exports Share as % of Total
Rs. Crore US $ Million
Rs. Crore US $ Million Rs. Crore US $ Million
1991-92 670.98 270.78 14409.50 5796.80 4.7 4.7
1992-93 734.20 253.51 19114.20 6599.60 3.8 3.8
1993-94 789.26 251.63 25010.70 7973.90 3.2 3.2
1994-95 937.31 298.52 31336.30 9980.20 3.0 3.0
1995-96 846.07 253.58 35526.10 10685.10 2.4 2.4
1996-97 880.62 248.06 41828.20 11839.10 2.1 2.1
1997-98 926.29 245.30 46092.50 12342.10 2.0 2.0
1998-99 1036.28 246.20 52814.80 12558.80 2.0 2.0
1999-2000 1274.53 294.00 57736.70 13324.80 2.2 2.2
Source : Central Silk Board
World Cotton Production(millions of 480-lb. bales)
Country 1997/ 98
% Share
1998/ 99
% Share
1999/ 00
% Share
2000/ 01
% Share
2001 /02 April
% Share
2001/ 02 May
% Share
China 21.1 23.0 20.7 24.4 17.6 20.2 20.3 22.9 24.4 25.0 24.4 24.9
United States 18.8 20.5 13.9 16.4 17 19.5 17.2 19.4 20.3 20.8 20.3 20.7
India 12.3 13.4 12.9 15.2 12.2 14.0 10.9 12.3 11.8 12.1 11.8 12.0
Pakistan 7.2 7.8 6.3 7.4 8.6 9.9 8.2 9.2 8 8.2 8.2 8.4
Uzbekistan 5.2 5.7 4.6 5.4 5.2 6.0 4.4 5.0 4.9 5.0 4.9 5.0
Brazil 1.7 1.9 2.1 2.5 3.1 3.6 4.3 4.8 3.4 3.5 3.6 3.7
Turkey 3.7 4.0 3.9 4.6 3.6 4.1 3.6 4.1 3.9 4.0 3.9 4.0
Australia 3.2 3.5 3.3 3.9 3.5 4.0 3.7 4.2 3 3.1 3.1 3.2
African Franc Zone
4.3 4.7 4 4.7 3.9 4.5 3.2 3.6 4.6 4.7 4.6 4.7
Greece 1.7 1.9 1.8 2.1 2 2.3 2 2.3 2.1 2.2 2.1 2.1
Syria 1.6 1.7 1.6 1.9 1.5 1.7 1.7 1.9 1.6 1.6 1.6 1.6
Egypt 1.5 1.6 1.1 1.3 1.1 1.3 0.9 1.0 1.4 1.4 1.4 1.4
Turkmenistan 0.9 1.0 0.9 1.1 1.1 1.3 0.9 1.0 0.9 0.9 0.9 0.9
Argentina 1.4 1.5 0.9 1.1 0.6 0.7 0.7 0.8 0.3 0.3 0.3 0.3
Iran 0.6 0.7 0.6 0.7 0.6 0.7 0.7 0.8 0.6 0.6 0.6 0.6
Paraguay 0.3 0.3 0.3 0.4 0.4 0.5 0.5 0.6 0.3 0.3 0.3 0.3
Others 6.2 6.8 6.1 7.2 5.6 6.4 5.5 6.2 6.1 6.3 6.1 6.2
World Total 91.8 85 87.3 88.7 97.6 98
Source : US Cotton Market Monthly Economic letter 10 May'2002
World Cotton Consumption(millions of 480-lb. bales)
Country 1997/ 98
% Share
1998/ 99
% Share
1999/ 00
% Share
2000/ 01
% Share
2001 /02 April
% Share
2001/ 02 May
% Share
China 19.6 22.5 19.2 22.5 22.2 24.2 23.5 25.5 24.3 26.2 24.5 26.2
India 12.7 14.5 12.6 14.8 13.5 14.7 13.6 14.8 13.2 14.2 13.2 14.1
United States 11.3 12.9 10.4 12.2 10.2 11.1 8.9 9.7 7.5 8.1 7.6 8.1
Pakistan 7.2 8.2 7 8.2 7.6 8.3 8.1 8.8 8.5 9.2 8.5 9.1
Turkey 5 5.7 4.6 5.4 5.6 6.1 5.1 5.5 5.9 6.4 6 6.4
Brazil 3.4 3.9 3.9 4.6 4.1 4.5 4.3 4.7 4.2 4.5 4.3 4.6
European Union 5.3 6.1 4.8 5.6 4.8 5.2 4.7 5.1 4.7 5.1 4.7 5.0
Indonesia 1.8 2.1 2.2 2.6 2 2.2 2.4 2.6 2.4 2.6 2.4 2.6
Mexico 2 2.3 2.2 2.6 2.4 2.6 2.1 2.3 2 2.2 2.1 2.2
Thailand 1.3 1.5 1.3 1.5 1.6 1.7 1.6 1.7 1.8 1.9 1.8 1.9
Russia 1.2 1.4 0.9 1.1 1.5 1.6 1.6 1.7 1.8 1.9 1.8 1.9
South Korea 1.4 1.6 1.5 1.8 1.5 1.6 1.5 1.6 1.6 1.7 1.6 1.7
Taiwan 1.3 1.5 1.4 1.6 1.3 1.4 1.2 1.3 1.2 1.3 1.2 1.3
Japan 1.4 1.6 1.2 1.4 1.3 1.4 1.2 1.3 1.1 1.2 1.1 1.2
Uzbekistan 0.9 1.0 0.8 0.9 0.9 1.0 1.1 1.2 1.2 1.3 1.2 1.3
Other 11.6 13.3 11.2 13.1 11.2 12.2 11.5 12.5 11.5 12.4 11.6 12.4
World Total 87.3 85.3 91.8 92.1 92.7 93.5
Source : US Cotton Market Monthly Economic letter 10 May'2002
