Industry Analysis And Research

Textile And Clothing Industry

GROUP 10
Sr.no Name Roll. No Marks
1 Sushant Jadhav 70
2 Tanay Kanikdale 71
3 Tanmay Malgaonkar 72
4 Utkarsha Dudhe 73
5 Yash Patel 74
6 Yashraj Patil 75
7 Abhishek Suskar 76
8 Mrinal Yadav 77
 Textile and Clothing Industry
 Textile and clothing sector is one of the oldest industries in India.
According to the Indian Brand Equity Foundation (IBEF), “The close
linkage of the textile industry to agriculture and the ancient culture and
traditions of the country in terms of textiles make the Indian textiles sector
unique in comparison to the industries of other countries”.

 The Indian textile industry is estimated around 108 billion dollar and
expected to reach 223 billion dollar by 2021.

 The industry also employs over 45 million people directly to 60 million

people indirectly. The Indian Textile Industry contributes approximately 5
per cent to India’s gross domestic product (GDP), and 14 per cent to
overall Index of Industrial Production (IIP). The textile industry is also one
of the largest contributor to India’s export with approximately 13.5 percent
of total export amounting 42.24 billion dollars.
 Evolution of Clothing Industry
Clothing in Europe during 12th and 13th century remained very simple for both men and
women, and quite uniform across the subcontinent.

 In 18th century the most important centre of manufacturing in international trade was India,
India produced about 25% of the world's industrial output. The largest manufacturing industry
in Mughal India was textile manufacturing, particularly cotton textile manufacturing.

 During the industrial revolution, fabric production was mechanised with machines
powered by waterwheels and steam-engines. Production shifted from small cottage based
production to mass production based on assembly line organisation. Clothing production, on
the other hand, continued to be made by hand.

The worldwide market for textiles and apparel exports in 2017 according to United Nations
Commodity Trade Statistics Database stood at $772 billion.

 The largest apparel exporting nations are China ($161 billion), Bangladesh ($28 billion),
Vietnam ($25 billion), India ($18 billion), Hong Kong ($16 billion), Turkey ($15 billion) and
Indonesia ($7 billion).
 Imports and Exports in Indian Textile Industry
 Exports have been a core feature of India’s textile and apparel
sector, a fact corroborated by trade figures
 Exports in textile and apparel sector stood at US$ 36.63 billion
Visakhapatnam port traffic(million tonnes)
in FY17. Exports of textiles from India reached US$ 21.46 billion
2017-2018

 As of November 2016, the government has extended the 32

duty drawback facility on all textile products and increased

the rates in some cases for 1 year to boost exports
in the sector

 The Goods and Services Tax (GST) that rolled out in

July 2017 has made Imported garments cheaper 18

by 5-6 per cent, as GST is levied at 5 %.

 Increase in imports and levy of GST has adversely

impacted exports.Downward revision of export incentives
and credit squeeze added to the further decline in exports.

 India took the top spot in market share in the men/boys

knitwear shirts cotton' category
 RAYMOND
l Brand Website: www.raymond.in

l Introduced: In 1925 , Thane, Mumbai.

l Chief Executive Officer (CEO): Sanjay behl

l Country: India
l

l Markets: World market

l Headquarters: Mumbai, India

l Category: Formal clothing for men and women

l Vision: Committed to supplying high quality products and

l superior service to customers.

l Mission: To provide the customers with products and service

l that are recognized as best

l Objective: To provide unique clothing in country, provide quality clothing and

l inexpensive clothing.
 Organisation Structure
Products Formal shirts, Trousers, Tie , Tailored clothing,
Suits, Blazers.

Revenue 37.7 million USD

Net Income 850 million USD

Share price 717Rs / share

Parent company Raymond Group

Employees 10000

Sales turnover 47.9 Million USD

 PESTEL Analysis
Political The Government has announced the release of a subsidy on
various products. Working Group has also been announced to be
set up with a National Fibre Policy, to ensure self- sufficiency in
fibre consumption and export requirements in India. PEST
analysis
Economic Indian textile industry contributes about 14% to industrial
production, 4% to the country's gross domestic product (GDP) and
16.63% to export earnings.

Social The market for textile is growing as a whole as India’s population

grows at about 1-2% annually.

Technological The textile industry is more labour intensive, Technical textiles,

Manmade textile.
Environmental Environmental affecting industry, Environmental friendly process,
Waste reduction process.

Legal Strong Environmental laws, Import Export laws

 SWOT Analysis
Strength-
 Strong R&D for product innovations on formal shirts ,suits, blazers.
 Loyalty of customers and high product quality.
 Owns 550 stores across 200 cities world wide

Weakness-
 Global penetration is limited as compared to other international brands
 Weak supply chain management
 Inconsistent execution.

Opportunities-
 Special offers for corporates and business institutions as well as educational
institutes.
 Global expansion would give more opportunity for the brand to grow

Threats-
 Increase in competition in domestic market due to large number of formal wear
brands
 Increase in social and ecological awareness, companys in constant pressure to
follow the environmental and labour laws.
 CSR Activities
• The Raymond rehabilitation centre was set up in Chhindwara in 2013 to rehabilitate
tribals from adjoining villages.

• The Raymond Rehabilitation Centre focuses on welfare of under-privileged children

over the age of 16.

• Raymond conducts 3 month vocational courses of basic training in electrical, air

conditioning and refrigeration repair , tyre puncture and repair, plumbing etc. which
enables students to be independent and self sufficient. These courses are conducted
by finest faculty from Industrial Training Institutes (ITI).

SKILL DEVELOPMENT - RAYMOND TAILORING HUBS

• Raymond is also taking measures to create a robust tailoring ecosystem to
skill 1 lakh tailors in the next 5 years.
• Setting up 25 Tailoring Hubs in FY 17-18 and taking the tally to 50 hubs by
2020.
• Currently, there are 9 Tailoring Hubs located at Mumbai, Delhi, Bihta,
Jamshedpur, Jaipur, Nashik, Villupuram, Ranchi and Bengaluru
• Certified 955 tailors under the Skill India initiative and there is a plan to train
20 thousand tailors during the year 2017-18.
 Allen Solly
Brand Website: www.allensolly.com
Founder: Willam Hollin in 1744
Chief Executive Officer (CEO): Sooraj Bhat
Country: India
Introduction: 1993 in India
Markets: World market
My World, My Way
Headquarters: Bangalore, India
Category: Formal clothing for men and women

Vision: To be a premium conglomerate building leadership

in businesses and creating value for all the stakeholders

Mission: Investing in promising sectors Building leadership in businesses.

A platform to drive synergy of resources Delivering best value to all
the stakeholders To be a responsible corporate citizen of India.

Objectives: To provide unique clothing in country, provide quality clothing

and inexpensive clothing.
 Organization Structure
Products Shirts, Trousers, Denims, Suits, Skirts,
Blazers,
Ties, Belts, Handkerchief.
Revenue USD 443 Million
8118 Crore

Profits 30.26 million USD

Share Price Rs 209.00 as on 6th July 2019

Employees 120,000 (Aditya Birla Fashion and Retail.ltd)

Parent Group Madura Fashion and lifestyle (Aditya Birla

Fashion and Retail.ltd)
 PESTEL Analysis
Political The Government has announced the release of a subsidy of
INR 2,687 Billion forth textile industry.

Economic The growth of Aditya Birla (Allen Solly ) in India is closely

related to India’s Clothing Economy.

Social The Gender roles are evolving in India. Media outlets plays a
critical role in influencing the public opinion.

Technological The latest technology is fast lowering production and servicing

cost in financial sector.

Environmental Waste management especially for units close to urban cities

has taken increasing importance by Aditya Birla (Allen Solly).

Legal Strong Environmental laws, Import Export laws

 SWOT Analysis
Strength
 The brand is present in more than 50 countries
 In-house and experienced design and product teams are available with Allen Solly.

 Premium fashion and international fashion also available

 Work casuals in bold colours, innovative fabric and young fits

Weakness
Global penetration is limited as compared to a few other international brands

Presence of Indian and international brands offers more offering to customers

therefore high brand switching

Opportunity
Digital initiatives and plans to spend significantly on it over the next few years

The brand can diversify into emerging markets and also consider of expanding into

other countries or sectors.

Threats
New technology coming in might pose threat

Similar patterns and verity available at lesser price with other brands pose a threat.

Local market may offer similar patterns at a lesser price although discounting on the

quality.
l

BLACKBERRYS
Brand Website: www.blackberrys.in

Founder & Owner: Mohan Clothing Co. Pvt Ltd

Chief Executive Officer (CEO): Nitin Mohan

Country: India
KEEP RISING
Introduced: 1991

Markets: India

Headquarters (HQ): Gurgaon, Haryana

India Category: Men’s Formal wear

Vision and mission : A ceaseless endeavour to delight the fashion forward customer
with great style and care teamed with speed and innovation.

Objectives: Blackberry has an objective of creating a “Sharp edged” clothing.

 Organisation Structure
Products Formal Shirts ,Suits ,Blazers , Formal shoes , Trousers,
Accessories.

Revenue Blackberrys reported 194 million USD in February 2018

Employees 5000

Parent Group Mohan Clothing Co.pvt.ltd

Gross Profit 110 million USD

Share price 180 Rs/share

 4 P's Analysis
PRODUCT-
• Blackberrys stand for innovations in product and have created a strong image of
‘Sharp Edged Clothing’.
• The brand has a high recall value and is perceived a premium clothing brand and
has been documented in various trade surveys as ‘The Best FIT’.

PLACE-
There are around 205 Company operated stores, planning to open more 70
stores.

PROMOTION-
 Loyal customer relationship as they use to update customers with new
merchandise by SMS and email alerts.
 Special discount offers for regular customers in end of month sale.
 Gift distribution to regular customers in festival time by courier at home address.
 Online catalogues and style direction suggestion on official website.
 Regular promotion by celebrities and advertisement.

PRICE-
Most of the Jackets - 5000 onwards. Trouser- 2000 onwards. They target the
customers of upper middle and middle class.
 SWOT Analysis
STRENGTH
 Well established brands in formal wear.
 Perfect fit for Indian males.
 Unique Designs.
 In tandem with current fashion trend.

WEAKNESS
 High priced products.
 Customers include only higher-middle class and rich customers.

OPPORTUNITIES
 Increase in employment opportunities.
 Opening up new stores in India.

THREATS
 Competitors from Madhura Garments Pvt.ltd (Allen Solly)
 Dynamic nature of fashion industry.
 Online Presence

Raymond
• Instagram – 166k
• Twitter – 9.5k
• Facebook – 1.4m

Allen Solly
• Instagram – 138k
• Twitter – 22.5k
• Facebook – 1.8m

Blackberrys
• Instagram – 25k
• Twitter -12.5k
• Facebook – 5.3m
Comparison Between Companies (Amounts as on 2019)
Raymond Aditya Birla Mohan clothing
Fashion pvt.ltd
(Allen Solly) (Blackberrys)

Share price 717 Rs/share as on 210Rs/share as on 180Rs/share as on

08/07/19 08/07/19 08/07/19

Turnover 850 million USD 443 million USD 194 million USD

Market Share 63.74 million USD 44.03 million 13.12 million USD
(60%) USD(20%) (10%)

Revenue 37.7 million USD 33.26 million USD 28.02 million USD

Export 55 countries 42 countries 18 countries

Graphical representation of market share , export , turnover
Amount (million USD) (as on 2019)

Particulars
Recent trends / changes with respect to Union Budget 2019
(key highlights)

 The Clothing Manufacturers Association Of India (CMAI) is regarded

as the pioneer and most representative Association of the
Indian apparel industry for over 4 decades.

 Reduction of corporate taxes, lower rate of 25 per cent corporate tax

with an annual turnover up to Rs. 400 cr is a welcome step , currently
this rate is applicable to the companies having annual turnover of Rs.259 cr.

 Rahul Mehta, President, CMAI, further added that infusion of Rs. 70,000 cr
capital into public sector banks will ease the current credit squeeze.

 Indian Texpreneurs Federation (ITF) convenor Prabhu Dhamodharan

said, “Increasing the participation of women in workforce is one of the top
most priorities of our country. ITF will be keen to work on this mission.”
presently the textile and apparel industry has around 40 per cent
women workforce
 Bibliography (as on July 2019)
Reference from the following websites
 www.wikipedia.com
 www.ibef.com
 www.moneycontrol.com
 www.etmoney.com
 www.owler.com
 www.abfrl.com
 www.raymond.com
 www.blackberrys.com