SWOT

ANALYSIS OF INDIA’S JUTE EP

WHAT DO THE INDUSTRY EXPERTS SAY ?

 Jute is an emerging market with plenty of opportunities for

growth.

 The 21 s t century has witnessed a new resurgent and resolute

industry in terms of volume as well as in quality.

 Textile and garment industry is the 2 n d highest employment

provider in India after Agriculture.

 With the ATC agreement under WTO the global textile industry
is presenting enormous potential.
 SIZE OF THE INDUSTRY

 At present, about 971000 Ha of land is under raw Jute

cultivation.

 Production of Raw Jute has been 10,940 thousand Bales

(where 1 Bale = 217.7243376 Kgs)

 There are 77 jute mills ( 60 in WB and 7 in AP)

 9 among these are EOUs.

 Avg. Export of Jute (Previous 4 Yrs.) – 286 Thousand Tons

( Rs. 10746 million per annum)
STRENGTHS
STRENGTHS …

 Jute is a Labour intensive industry (engaging some 4.5 million

people providing for a direct competitive advantage over
other Jute exporting countries)

 New SSI and MSI entrants provide huge potential expansion

of existing capacity.

 Jute products are bio-degradable and eco-friendly – hence

with the pressure from the Green Brigade its going to sustain
through consumer preference.
WEAKNESSES
WEAKNESSES ….

 Though jute industry is a labour intensive, wages represent

35% of total conversion cost of jute industry, which evades
the profit margins.

 Multi unionism is one of the major problems faced by jute

industry and engages major concentration of routine
management in resolving labour dispute.

 The machinery used in jute industry is old and obsolete with

the age of machinery ranging between 40 - 150 years.
WEAKNESSES …

 In fact, the 150 years old industry with 75% obsolete

machinery is tagged as "Sunset industry" with "Vintage
machinery".

 Another weakness of jute industry is poor Research &

Development (R&D) initiation, invention/reverse engineering
effort has been grossly neglected in this sector.

 Marketing has been another weak point of jute industry.

 Indian jute has not been able to build brand image for jute
that goes with the quality.
OPPORTUNITIES
OPPORTUNITIES…

 Even with all the constraints Inida leads in diversified value

added products of Jute.

 The “Green Brigade” has already had many countries ban

plastic and variants of Plastic paving the way for Jute
products which is a cheap alternative.

 The Government at the centre and at state has pro-jute

mindset. (As per the N a t i o n a l J u t e P o l i c y , a target has been set to pep up
the export volume from 1000 Crs to 5000 Crs)
OP P OR T UN I T I E S …

 Industry should accomplish Total Quality Management (TQM)

so as to build quality in the products

Source : http://www.indiante xtilejournal.com/articles/FAdetails.asp?

id=1929
THREATS
 One of the major is posed by the Bangladesh Jute industry,
which is armed with 7% cash subsidy on all items of jute
products.

 Withdrawal of Export Subsidy Assistance (ESA) from 1 April,

2007 has been a setback to the export of Indian Jute
industry. (2007 Data)

 Recent government decision to withdraw 10% import duty on

jute and jute products to nil with effect from January 1,
2008, is seen as a threat by the industry.
 EXPORT OF JUTE
BAGS

A simple idea simplified further ….

 A simple Idea !

The idea is to procure Raw

Jute at competitive prices
and …..
And, turn it into something
which can be commercially
exported at a profit !
Marketing Plan