Enrolment No: 03961201715

Minor Project Report

Personality Development & Communication Skills –III (BBA-209)
BBA III Semester

A PROJECT REPORT OF STUDY ON TEXTILE INDUSTRY

IN INDIA
Internal Guide: Submitted By
Dr. Shyama Kumari Rohan Kumbha
Designation: (2015-2018)
Assistant Professor

Submitted To:
Banarsidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi
(Affiliated to Guru Gobind Singh Indraprastha University)

1
 Declaration

I hereby declare that this Minor Project Report titled A PROJECT REPORT OF
STUDY ON TEXTILE INDUSTRY IN INDIA submitted by me to Banarsidas
Chandiwala Institute of Professional Studies, Dwarka is a bonafide work undertaken
during the period from 1st June 2016 to 22nd September 2016 by me and has not been
submitted to any other University or Institution for the award of any degree diploma/
certificate or published any time before.

(Signature of the Student)

Name: Rohan Kumbha

Enroll. No.: 03961201715

Date: 22 /09/2016

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 Bonafide Certificate

This is to certify that as per best of my belief the project entitled “A PROJECT
REPORT OF STUDY ON TEXTILE INDUSTRY IN INDIA” is the bona fide
research work carried out by Rohan kumbha student of BBA, BCIPS, Dwarka, New
Delhi, in partial fulfillment of the requirements for the Minor Project Report of the
Degree of Bachelor of Business Administration.

He has worked under my guidance.

Project Guide (Internal): Dr. Shyama Kumari

Date: 22/09/2016

Counter signed by

Director: Dr. Shamsher Singh

Date: 22/09/2016

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 Acknowledgement

It gives me immense pleasure to express my deepest sense of gratitude and sincere thanks
to my highly respected and esteemed guide Dr. Shyama Kumari, BCIPS, New Delhi for
their valuable guidance, encouragement and help for completing this work. His useful
suggestions for this whole work and co-operative behavior are sincerely acknowledged. It
would never be possible for me to take this project to this level without her innovative
ideas and her relentless support and encouragement. I would also thank my Institution.

I also wish to express my indebtedness to my parents as well as my family member whose

blessings and support always helped me to face the challenges ahead.

At the end I would like to express my sincere thanks to all my friends and others who
helped me directly or indirectly during this project work.

Rohan Kumbha

03961201715

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 List of Tables
Table Name Table No. Page No.
Location of Textile Industries Table 2.1 16
Segment wise Export 2013-17 Table 3.1 32
Market Share of Players Table 4.1 38

List of Figures
Figure Name Fig No Page No
Textile Market Size 2.1 14
Types of Textile 2.2 15
Map showing geographic location 2.3 18
Textile Market Size (US$ billions) 3.1 31

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 Contents
Chapter No. Topics Page No.

Chapter 1 Purpose of the study 8

1.1 Objectives of the Project Report 9

1.2 Scope of the Study 10

Chapter 2 Introduction 11

2.1 About the industry (Overview, History, Size) 12-14

2.2 Products/Services offered 15

2.3 Geographical area (Local, Regional, State wise, National, 16-18

International

Chapter 3 Industry Overview 19

3.1 Industry Developments 20

3.2 Recent trends & innovations 21-24

3.3 Government Regulation 25

3.4 Opportunities & Threats 26-27

3.5 Growth Potential & Problems facing 28-29

3.6 Key statistics & contribution to Indian economy 30-32

Chapter 4 Competitor Analysis 33

4.1 Key players in the industry 34-37

4.2 Market share of each player 38

4.3 Key Challenge facing the competitors 39-40

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Chapter 5 Findings & Conclusions 41-42

Bibliography 43

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 Chapter 1- Purpose of the Study

The purpose of the study will let us know more about the objectives of the study and scope of
the study. The objectives of the project will let you know briefly about the areas covered
about the industry. The following objectives which are given should be fulfilled, if not the
report is incomplete. In scope of the study will let us know which are key players in the
industry and the data will be of India.

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1.1- Objectives of the Project Report

1. To determine the number of companies making up the Textile Industry in

India
2. To find out the major players in the Textile Industry.
3. To find out the total worth of Textile Industry business in India.
4. To find out the major products produced under the Textile Industry.
5. To find out the market share of major players.
6. To find out the major problems faced by Textile Industry.
7. To examine the latest trends in the Textile Industry.

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1.2- Scope of the Study

The scope of the project is confined to consumer products and the companies which make
in the Textile Industry. This study takes in account the domestic market for Textile in
India only.

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 Chapter 2- Introduction

Introduction will briefly tell us about the industries history, size and nature. There are
different products & services which are produced & offered to consumers that information is
also given in the report. The last topic to mention in the chapter is the geographic area of the
industry which will only stick to India as we have mentioned in the topic the study of Indian
textile industry.

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2.1- About the Industry

Overview of the Industry

India’s textiles sector is one of the mainstays of the national economy. It is also one
of the largest contributing sectors of India’s exports contributing 11 per cent to the
country’s total exports basket. The textiles industry is labor intensive and is one of the
largest employers. The industry realized export earnings worth US$ 41.57 billion in
2013-14.
The textile industry has two broad segments, namely handloom, handicrafts, sericulture,
power looms in the unorganized sector and spinning, apparel, garmenting, made ups in
the organized sector.
The Indian textiles industry is extremely varied, with a hand-spun and hand-woven sector
at one end of the spectrum, and the capital intensive sophisticated mill sector at the other.
The decentralized power looms/ hosiery and knitting sector form the largest and knitting
sector form the largest section of the Textiles Sector. The close linkage of the Industry to
agriculture and the ancient culture, the traditions of the country make the Indian textiles
sector unique in comparison to the textiles industry of other countries. This also provides
the industry with the capacity to produce a variety of products suitable to the different
market segments, both within and outside the country.

History of the Industry

Since ancient times Indian Textile
industry has been well known for her textile
goods. During the colonial regime the
traditional textile industry of India was virtually
decayed. However, in the early nineteenth
century the modern textile industry took birth in

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India when the first textile mill was established at Fort Gloster near Calcutta in 1818.
Next to Agriculture India mainly is into the Textile
Sector. Indian Textile Industry id one of the India’s oldest industries and has a formidable
presence in the national economy as it contributes to about 14% of manufacturing value
addition, accounts for around one-third of our gross exports earning and provides gainful
employment to millions of people.

In 1850's the cotton textile industry, however, made its real beginning in Bombay. In the
year 1854 the first cotton textile mill of Bombay was established by a Parsi cotton
merchant then engaged in overseas and internal trade. Indeed, the vast majority of the
early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at
home and Chinese and African markets.

The first cotton mill established in the year 1861 was at Ahmadabad, which was
eventually to emerge as a rival centre to Bombay, which later spread the textile industry
largely due to the Gujarati trading class. The cotton textile industry made rapid progress
in the second half of the nineteenth century and by the end of the century there were 178
cotton textile mills; but during the year 1900 the cotton textile industry was in bad state
due to the great famine and a number of mills of Bombay and Ahmadabad were to be
closed down for long periods.

Size of the Industry

A leading sector in the Indian economy, textiles contributes 14 per cent to

industrial production, 4 per cent to the GDP and around 17 per cent to the total export
earnings. It is, in fact, the largest foreign exchange earning sector in the country. India is
the world's 2nd largest cotton producing country, after China. BT cotton was a major
factor contributing to higher rate of production, from 15.8 million bales in 2013-14 to 31
million bales in 2015-16. India accounts for: · 61 per cent of the global loom age · 22 per
cent of the global spindle age · 12 per cent of the world's production of textile fibers and
yarn. · 25 per cent share in the total world trade of cotton yarn. The textile industry size

13
has expanded from US$ 40 billion in 2013-14 to US$ 49 billion in 2015-16, the domestic
market increased from US$ 23 billion to US$ 30 billion, and exports increased from
around US$ 14 billion to US$ 19 billion. India's textiles and apparels industry is
estimated to be worth US$49 billion where 39 per cent is accounted by the exports
market. The total exports in 2015- 16 were US$ 19.62 billion. Currently India has a 3.5-4
per cent share in world export of textiles and 3 per cent in clothing exports.

The size of India's textile market is expected to expand at a CAGR of 10.1 per cent over
2009-21.

Fig.2.1 source: http://www.india-crafts.com/business-reports/indian-textile-industry/swot-

analysis.htm

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2.2- Products/Services offered

Textile Industry is not only about clothing. There are innumerable Textile Products
Companies which consume textile as a raw material for their Textile Products ranging
from as small a product as bags, slings, briefcases, umbrellas, backpacks, nets, filter bags
to as big as tents, boats, awnings, canopies, conveyor belts and display booths. This
industry is so vast and diverse that a Textile Products Directory becomes inevitable for
Textile Products Manufacturers, Textile Products Suppliers and Textile Products
Wholesalers worldwide. This Directory also includes such products as tarpaulins, wiping
cloths, upholstery, wall coverings, wind screens, sleeping bags, and baffles.

Fig. 2.2 source: http://www.indianmirror.com/indian-industries/textile.html

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 2.3- Geographical Area

The Indian Textile Industry today has approximately 1200 medium to

large scale textile mills in India. 20%of these mills are located in Coimbatore (Tamil
Nadu). The industry has 34 million cotton textile spindles for manufacturing cotton yarn
which account for 70 percent of India's textile exports. The domestic knitting industry is
characterized by small scale units with facilities for dyeing, processing and finishing. The
industry is concentrated in Tirupur (Tamil Nadu) and Ludhiana (Punjab). Tirupur
produces 60 percent of the country's total knitwear exports.

Other Cities in which textile industries are established are as follows (along with
classification based of types of clothes):

Cotton Silk Wool Jute

Kolkata, Mysore, Bangalore, Jamnagar, Kanpur,

Ahmadabad, Srinagar, Madurai, Allahabad, Varanasi, Darbhanga, Gaya,

Rajkot, Indore, etc. Coimbatore, etc. Panipat, Ludhiana, Cuttack, etc

etc
Tab.2.1

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India's textile exports share
Readymade garments were the largest contributor to total textile and apparel exports from
India; the segment had a share of 39 percent.

17
A detailed map is given below:-

Fig. 2.3 source: http://www.mapsofindia.com/maps/india/textile-industry-map.html

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 Chapter 3- Industry overview

The topics covered in industry overview are Industry Developments, Recent trends &
innovations, Government Regulation, Opportunities & Threats, Growth Potential &
Problems facing and the last topic is Key statistics & contribution to Indian economy.

19
3.1- Industry Developments

As per the data released by the Indian textile industry the following points are given below
about the industries development.

• Indian Textile Industry covers 61 % of the international textile market and 22 % of

the global market;
• Indian Textile Industry is known to be the 3rd largest manufacturer of cotton across
the globe;
• This industry of India claims to be the 2nd largest manufacturer as well as provider of
cotton yarn and textiles in the world;
• India holds around 25 % share in the cotton yarn industry across the globe; and

• India Textile Industry contributes to around 12 %of the world's production of cotton
yarn and textiles.

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3.2- Recent Trends & Innovations

Sustainability today has become a necessity driven by consumer awareness and

preference for sustainable products, compliance norms, and a realisation that to secure the
future it is important to act today. Life cycle approach to sustainability in textile and
apparel industry entails ensuring the three facets of sustainability — social, economic and
environmental. These are being addressed in the following stages: Fibre production,
textile manufacturing, garment manufacturing, distribution, retailing, consumption, and
aftermarket. The Government policy has changed from earlier objective of maintaining
the incipient export growth momentum to increasing production and productivity in
cotton and cotton yarn, enhancing value addition in garmenting and apparel sectors,
promoting rich heritage of handlooms and handicrafts, institutional strengthening in jute
sector, and enhanced acreages under mulberry production and safeguarding employment
opportunities. It is now attracting larger capital flows and foreign direct investment by
providing fiscal stimulus, increased the plan allocation from Rs 4,090 crore to Rs 4,500
crore, encompassing an enhanced allocation of Rs 3,140 crore for Technology Up
gradation Fund Scheme (TUFS).

Fifteen emerging trends in Textile industry are described below:

1. Technology Up gradation Fund Scheme (TUFS): This scheme started by the

Government aims towards the modernization of the textile industry. Subsidy was
released on August 06, 2009, in a single trance, for the first time, with the amounts
credited to the bank accounts of all beneficiaries in 3 working days reconstituting an
effective addition to the stimulus packages announced by the Government.

2. E-Marketing: E-marketing platforms have been developed by the Central Cottage

Industries Corporation of India (CCIC), and the Handicrafts and Handlooms Export
Corporation of India (HHEC).More than 1000 contemporary designs with technical
details and regional language interface have been hosted for free download on the website
of National Centre for Textiles Design (NCTD).

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3. Common Effluent Treatment Plant (CETP): An allocation of one time grant of
Rs. 200 crore has been made, for the first time, to 20 Common Effluent Treatment
Plants installed by dyeing units in Tirupur in Tamil Nadu to ensure zero liquid
discharge.

4. Marketing Initiatives: Niche handloom and handicraft products are provided a

marketing platform via ‘Handloom Week’ in December 2009. These marketing
Initiatives of crafts - mela and ‘pradarshinis’ are held in all states periodically.

5. Cotton Sales Depots: Cotton Sales Depots were set up at Coimbatore and
Rajapalayam in Tamil Nadu. In India, a major portion of garments are being made in
the state of Tamilnadu. It has a strong production base and account for about one –
third of textiles production in the country and accounts 37.5 percent of India’s total
production. Textile mills are concentrated in Coimbatore, which is the Manchester of
South India, Rajapalayam, Karur and Erode. Tamilnadu has around 1,400 textile
mills of which spinning mills alone accounts to 650 with an installed spinning
capacity of over 13.0 million spindles. Tamilnadu accounts for about 30 percent of
India’s export of textiles products. In the garments sector, Tamilnadu has more than
4,500 registered exporters who are concentrated mainly in Chennai and Tiruppur.
While Chennai is specializing in export of woven garments, Tiruppur has emerged as
a major centre for knitted garments.

6. The Scheme for Integrated Textile Parks (SITP): 90 % Government grants have
been released for 17 Parks; Infrastructure Development has completed in 5 Parks and
production has commenced in 17 Parks out of the 40 parks under implementation in
Public Private Partnership mode.

7. National Textile Corporation (NTC): NTC has modernized 17 mills. Of these, 4

mills in Coimbatore (Tamil Nadu) and 3 mills in Mumbai.

8. Skill Development: An ambitious Skill Development Programme has been

formulated to train 30 lakh workers over a period of 5 years with an outlay of Rs.
2,200 crore.

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9. Indian School of Textiles and Business: To provide professional education,
including research and consultancy, covering the entire spectrum of textiles, an
Indian School of Textiles and Business has been setup by upgrading the existing,
Sardar Vallabhbhai Patel Institute of Textile Management (SVPITM) at Coimbatore,
Tamilnadu.

10. Export Promotion: Despite the global slowdown, share of textile and clothing
exports in total merchandise exports increased to 12.36% (US$17.37 million)from
11.03% in 2008-09. In a ‘Look East Policy’, new markets have been tapped to promote
exports, besides consolidating existing markets like EU and US. As part of the initiatives,
mega textile shows have been held to capture new markets in Japan, South Asia,
Australia, Latin America and South Africa.

11. National Institute of Fashion Technology (NIFT): Twelfth Centre of National

Institute of Fashion Technology (NIFT) was inaugurated at Kangra in Himachal
Pradesh. Two new NIFT centers will come up at Bhubaneswar and Jodhpur and a
specialty centre at Coimbatore.

12. Skill Up gradation of Handicraft Artisans: 1,00,155 Artisans were given

assistance to upgrade skills and build capacity under the Ambedkar Hastshilp Vikas
Yojana, the Human Resource Development and the Design & Technology Up
gradation Schemes.

13. Technology change: Carbon-centric to watercentric, energy access to energy

efficiency, printed papers to digital development, increased international campaigns,
increased pressure from consumers and legislation, increased innovation and
creativity at various supply chain steps.

14. Welfare Schemes: Under Handloom Weavers Comprehensive Welfare Scheme,

16.11 lakh weavers and ancillary workers were provided Health Insurance coverage and
5.10 lakh with life insurance coverage. Under the Rajiv Gandhi Shilpi Swasthya Bima
Yojana, 7.33 lakh artisans were provided with health insurance coverage.

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15. Migrant Labor: Industry experts said migrant workers have lot of employment
opportunities in their home towns following fast-paced development of
infrastructural projects there. They also have ample opportunities to earn money in
different government schemes like NREGA.

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3.3- Government Regulations

The Ministry of Textiles is responsible for policy formulation, planning, development,

export promotion and trade regulation in the textile sector. This includes all natural and
manmade cellulosic fibre used to make textiles, clothing and handicrafts. National Textile
Policy, 2000 - the policy was introduced for the overall development of the textiles
industry. The key areas of focus include
 Technological upgrades

 Enhancement of productivity

 Quality consciousness

 Strengthening of raw material base

 Product diversification

 Increase in exports and innovative marketing strategies

 Financing arrangements

 Increasing employment opportunities

 Integrated human resource development

Technology Mission on Cotton (TMC), 2000 —the scheme was introduced to address
concerns around cotton production and processing sectors and to place the cotton
economy on a sound footing. It was initially to be phased out at the end of the Tenth Five
Year Plan (2002– 07). However, the scheme’s Mini Mission –iii and iv has been further
extended into the Eleventh Plan for two years to accomplish targets. National Jute
Policy, 2005 —the objective of the policy is to develop the jute industry and ensure high
quality production, maximum employment and substantial contribution to economic
growth.
Jute Technology Mission (JTM), 2006, The objectives of this programme include

 Improving the yield and quality of jute fibre

 Strengthening existing infrastructure for the development and supply of quality seeds

25
 Improving the quality of fibre through better methods of retting and extraction
technologies
 Increasing the supply of quality raw material to the jute industry at reasonable prices
and developing efficient market linkages for raw jute.

3.4- Opportunities and Threats

Opportunities:

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

2. Large, Potential Domestic and International Market.

3. Product development and Diversification to cater global needs.

4. Elimination of Quota Restriction leads to greater Market Development.

5. Market is gradually shifting towards Branded Readymade Garment.

6. Increased Disposable Income and Purchasing Power of Indian Customer opens

New Market Development.
7. Emerging Retail Industry and Malls provide huge opportunities for the Apparel,
Handicraft and other segments of the industry.
8. Greater Investment and FDI opportunities are available.

26
Threats:

1. Competition from other developing countries, especially China.

2. Continuous Quality Improvement is need of the hour as there are different

demand patterns all over the world.
3. Threat for Traditional Market for Power loom and Handloom Products and
forcing them for product diversification.
4. Geographical Disadvantages.

5. International labor and Environmental Laws.

6. To balance the demand and supply.

7. To make balance between price and quality.

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3.5- Growth Potential and Problem Facing

Growth Drivers:

 Rising per capita income, favorable demographics and a shift in preference for
branded products is expected to boost demand
 Favorable trade policies and superior quality will drive textile exports

 Increase in domestic demand is set to boost cloth production

 Pointed and favorable policies instituted by the government will give the industry a
fillip.
 With consumerism and disposable income on the rise, the retail sector has
experienced rapid growth in the past decade, with many global players entering the
Indian market
 The centers of excellence focused on testing and evaluation as well as resource
centers and training facilities have been set up
 As per the plan for 2012-17, the Integrated Skill Development Scheme aims to train
over
 2,675,000 people up to 2017, covering all sub-sectors of the textile sector – textiles
and apparel, handicrafts, handlooms, jute and sericulture
 Changing lifestyles and increasing demand for quality products are set to fuel the
need for apparel

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Problems Facing:

In spite of immense factors fuelling the growth of the Indian textile industry, there are
certain challenges faced by the country in terms of scarcity of trained manpower,
escalating energy costs, high transportation costs, obsolete labor laws, low level of
technology, and lack of economies of scale. Some more problems are listed below:-

1. Market Entry Barriers to Trade

Two types of market entry barriers for trade in textiles and clothing (T&C) are faced by
developing countries: (i) arbitrary conditions imposed by powerful apparel contractors
possessing large distribution channels in the major markets; and (ii) closed networks
created by preferential rules of origin under the regional trade agreements.

2. Textile Machinery Shortages

The textile industry is grappling with the inability of replacing its old and worn out
machinery as there is a dearth of domestic machinery manufacturers. The paucity of
domestic producers of shuttle less looms and spindles is greatly affecting the industry
with the waiting time per order being 2 to 3 years.

3. Raw Material Shortages

While India has adequate raw material for polyester production, it is deficient in cotton.
Though India is the second largest producer of cotton in the world next to China, our
production figures are not even half of what the world leader China produces. The yield
per hectare is among the lowest. At 524kg per hectare in 2008-09, India is way below the
world average yield of 766 kg, China’s 1,251 kg, and USA’s 912 kg.

4. Tax Distortions

Man-made fibers account for over 55% of global textile trade. As against this, only
1520% of our textile exports are currently in the form of man-made fibers, the reason
being the continued tax disincentives against man-made fiber manufactures.

29
3.6- Key statistics & contribution to Indian economy

Role of Textile Industry in India GDP has been quite beneficial in the economic life of
the country. The worldwide trade of textiles and clothing has boosted up the GDP of
India to a great extent as this sector has brought in a huge amount of revenue in the
country.

In the past one year, there has been a massive upsurge in the textile industry of India. The
industry size has expanded from USD 37 billion in 2013-14 to USD 49 billion in 2015-
16. During this era, the local market witnessed a growth of USD 7 billion, that is, from
USD 23 billion to USD 30 billion. The export market increased from USD 14 billion to

USD 19 billion in the same period.

The textile industry is one of the leading sectors in the Indian economy as it contributes
nearly 14 percent to the total industrial production. The textile industry in India is
claimed to be the biggest revenue earners in terms of foreign exchange among all other
industrial sectors in India. This industry provides direct employment to around 35 million
people, which has made it one of the most advantageous industrial sectors in the country.

Some of the important benefits offered by the Indian textile industry are as follows:

• India covers 61 percent of the international textile market

• India covers 22 percent of the global market

• India is known to be the third largest manufacturer of cotton across the globe

• India claims to be the second largest manufacturer as well as provider of cotton

yarn and textiles in the world
• India holds around 25 percent share in the cotton yarn industry across the globe

• India contributes to around 12 percent of the world's production of cotton yarn

and textiles.

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The Role of Textile Industry in India GDP had been undergoing a moderate increase till
the year 2012 to 2013. But ever since, 2014-15, Indian textiles industry has been
witnessing a robust growth and reached almost USD 17 billion during the same period
from USD 14 billion in 2013-14. At present, Indian textile industry holds 3.5 to 4 percent
share in the total textile production across the globe and 3 percent share in the export
production of clothing. The growth in textile production is predicted to touch USD 19.62
billion during 2015-16. USA is known to be the largest purchaser of Indian textiles.

Fig 3.1 source: http://www.dsir.gov.in/reports/isr1/Textiles%20and%20Garments/2_5.pdf

31
 Segment-wise Exports 2013-2016 (US$ mn)

Category 2013-14 2014-15 2015-16

Cotton Textiles 6858.63 4803.52 5711.41

Manmade Textiles 3177.11 3325.88 3970.88

Silk 657.72 684.93 596.05

Wool 443.11 484.75 470.20

Ready Made Garments 9069.80 10383.26 10064.73

Handicrafts 1452.28 1090.77 961.67

Jute 327.86 303.21 218.40

Coir & Coir Prod. 160.25 150.02 160.60

Total 22146.78 21226.34 22418.79

Table 3.1

32
 Chapter 4- Competitor Analysis

In competitors analysis the topics covered is the key players which are present in the
industry, both international and national players are mentioned in the report. The second
topic covered in the chapter is the market share of each player in the industry. The final
topic of the chapter which is discussed in the chapter is the key challenge facing the
competitors.

33
4.1- Key players in the industry

1. Chiripal Group

Chiripal Group laid foundations of ultra-modern 100 per cent cotton & blended bottom
wear fabrics and the most modern & versatile denim manufacturing project called
Nandan Denim Limited (NDL). NDL is one of the largest integrated Ahmedabad-based
textile player engaged in the business of spinning and denim weaving. The company
operates from various offices in India and across the world. It is in-housed with one of the
most sophisticated weaving plants and other facilities to manufacture superior quality
grey cotton fabrics, khakis and denims. The company is listed on the BSE and NSE stock
exchanges

2. The Victoria Mills Ltd

The Victoria Mills Ltd was established in 1913. The Company started with a small capital
of Rs 400,000 (US$ 6,296.55) and had issued bonus shares from time to time and the
present paid up capital is Rs 9,856,000 (US$ 155,147.06) and Reserves Rs 185,602,146
(US$ 12.37 million). Original mill was situated at Gamdevi, Mumbai and later shifted to
Pandurang Budhkar Marg, Lower Parel, and Mumbai. It was a composite textile mill
producing fabrics for local as well as the international market.

3. Digjam

As the leading textile company of India, manufacturing suiting fabrics, Digjam has kept
reinventing itself keeping pace with the changing trends. DIGJAM has a high-end fabric
brand presence in the domestic market, reputed for its finish and quality. The company
manufactures over 3,000 design-shade combinations each year in Light Wool, Polyester
Wool and Woolen fabrics for the DIGJAM brand alone. DIGJAM products and their
ranges are available at its exclusive showrooms and over 4,000 other retail outlets across
the country.

34
4. The Ruby Mills Ltd

Incorporated in the year, 1917 as a Composite Textile Mill mainly manufacturing cottons.
The management of the unit was taken over by the late Mr C N Shah in 1946 and
thereafter the mill has been regularly progressing and manufacturing a wide range of
products. The Ruby Mills Ltd has two plants located at Dadar, Central Bombay and
Dhamni on Bombay-Pune Highway. Since 1996, The Ruby Mills Ltd is manufacturing
micro dot fusible interlining & basic interlining, in technical collaboration with Gygli
Textil AG, Switzerland. The Company has been in operation since 1921 with an Annual
Income of Rs 680 million (US$ 10.95 million).

5. Bombay Dyeing

Bombay Dyeing was established in 1879 as a small operation of Indian spun cotton yarn
dip dyed by hand. The company specialises in stylish linens, towels, home furnishings,
leisure clothing, kids wear and a whole range of other products which are available in
over 350 exclusive Bombay Dyeing Retail or 2,000 multi-brand stores. Bombay Dyeing
also has a polyester division which is engaged in manufacture of 100 per cent virgin
Polyester Staple Fibre and Textile grade PET Chips. It uses NGSSS technology from
Invista Polyester Technologies and Chemtex International Inc, USA. Private &
Confidential Page 8 of 10

6. Arvind Mills

Started in 1931 by three brothers, with a share capital of Rs 2,525,000 (US$ 41,957*),
Arvind Mills was set up with the aim of manufacturing high-end superfine fabrics in
India. Arvind has carved a niche with brand names like Arrow, Flying Machine, USPA,
New Port, Mega Mart, and The Arvind Store. It has diversified into other major segments
such as fabrics, garments, advanced materials, chemicals and dyes, retail, engineering,
real estate, sustainable agriculture, and telecom.

35
7. Welspun India Ltd

Welspun India Ltd is a fully integrated home textile manufacturer and one of the top three
globally. With a network across 32 countries, the company offers the entire range of
home textile products to consumers from almost every corner of the world. It also owns
leading brands such as Christy and Hygrocotton, among others. The company has modern
manufacturing facilities at Anjar and Vapi in Gujarat, India, where it produces the entire
range of home textiles for bed and bath category.

8. Alok Industries Ltd

Alok Industries Ltd vertically integrated textile company, provides end-to-end solutions
through five core divisions – Cotton Yarn, Apparel Fabric, Home Textiles, Garments, and
Polyester Yarn. Alok's large customer base comprises domestic and overseas retailers,
garment exporters in India and converter countries who are vendors to major international
labels. They include some of the world's largest retailers and India's largest manufacturers
of apparel and home textiles.

9. Raymond Ltd

Raymond Ltd With a capacity of 38 million meters in wool and wool-blended fabrics,
Raymond commands over 60% market share in worsted suiting in India and ranks
amongst the first three fully integrated manufacturers of worsted suiting in the world. It
exports products to over 55 countries including USA, Canada, Europe, Japan and the
Middle East. It is the first to introduce Polyester-Wool and Polyester-Wool-Viscose in the
India.

Foreign Investor in Indian Textile Industry

• Rieter (Switzerland)

• Trutzschler (Germany)

• Soktas (Turkey)

• Zambiati (Italy)

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• Bilsar (Turkey)

• Monti (Italy)

• CMT (Mauritius)

• E-land (S. Korea)

• Nissinbo (Japan)

• Marubeni (Japan)

• Skaps (USA)

• Ahlstorm (USA)

• Terram (UK)

• Strata Geosystems (USA)

• Marks & Spencer (UK)

• Zara (Spain)

• Mango (Spain)

• Promod (France)

• Benetton (Italy)

• Esprit (USA)

• Levi’s (USA)

• Forever 21 (USA)

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4.2- Market share of each player

Company Last % 52 wk 52 wk Market

Name Price Chg High Low Cap

(Rs. cr)
Arvind 263.40 1.97 341.40 227.70 6,802.12
Ruby Mills 403.80 0.42 492.00 250.00 337.58
Raymond 398.00 2.59 579.50 360.05 2,442.96
Alok Industries 5.96 1.71 14.08 5.15 820.88
Welspun India 765.15 0.61 963.10 221.00 7,687.65
Table 4.1

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4.3- Key Challenge facing the competitors

Following are some of the problems faced by the industry.

(a) Shortage of raw materials-Raw material determines 35 per cent of the total
production cost. The country is short of cotton, particularly long- staple cotton which is
imported from Pakistan, Kenya, Uganda, Sudan, Egypt, Tanzania, U.S.A. and Peru. It is
pity that despite largest area under cotton (26 per cent of the world acreage) the country
accounts for only 9 percent of the world output of cotton. Fluctuating prices and
uncertainties in the availability of raw material cause low production and sickness to the
mills.

(b) Obsolete machinery-In India most of the cotton textile mills are working with old
and obsolete machinery. According to one estimate in India over 60 per cent of the
spindles are more than 25 years old. The automatic looms account for only 18 per cent of
the total number of looms in the country against the world average of 62 per cent and 100
per cent in the United States. Obsolete machinery leads to low output and poor quality of
goods as a result of which Indian textile goods are not able to face competition in the
international market.

(c) Power shortage-Textile mills are facing acute shortage of power. Supplies of coal
are difficult to obtain and frequent cuts in electricity and load shedding affect the industry
badly. This leads to loss of man hours, low production and loss in the mills.

(d) Low productivity of labour-Low productivity is another major problem of cotton

textile industry. On an average an Indian factory worker only handles 380 spindles and 2
looms as compared to 1,500-2,000 spindles and 30 looms in Japan. If the productivity of
an American worker is taken as 100, the corresponding figure for U.K. is 51 and for India
only 13. Also industrial relations are not very good in the country. Strikes, layoffs,
retrenchments are the common features of many cotton mills in the country.

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(e) Competition in foreign market-The Indian cotton textile goods are facing stiff
competition in foreign markets from Taiwan, South Korea and Japan whose goods are
cheaper and better in quality. It is really paradoxical that in a country where wages are
low and cotton is internally available, production costs should be so high.

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 Chapter 5- Findings and Conclusion

Findings
1. Textile sector contributes 14 per cent to industrial production and 4 per cent to
GDP.
2. With over 45 million people, the industry is one of the largest source of
employment generation in the country.
3. The industry accounts for nearly 13 per cent of total exports.

4. The size of India’s textile market in 2014 was US$ 99 billion; the market is
expected to expand at a CAGR of 9.6 per cent over 2014–23.
5. Textiles and apparel exports from India are estimated to increase to US$ 65
billion by 2016-17 from US$ 40 billion in 2013-14.

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Conclusion

Based on the above findings I concluded that in today’s life of India, Textile
Industry plays a vital role in contributing national GDP of the country. Not
only this, it shares nearly 13% of total exports of the nation. This industry is
also one of the largest source of employment generation.

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