Regional Conclave on

Role of Industry in
Development of South India
Role of Textile Industry
P.M.JAGATHEESAN
President,
Coimbatore Management Association

Indias Position in World Textile Economy

India contributes 20% to the world spindleage capacity
and about 6% to the world rotorage and has second highest
spindleage in the world after China.
India contributes 62% to the world loomage. However
High-tech Shuttless Looms our contribution is only 4.1% to
the world Shuttless loomage.
It contributes 12% to the world production of textile fibres
and yarns. It is the larges producer of Jute, Second largest
producer of Silk and Cellulose fibre / yarn, third largest
producer of cotton and fifth largest producer of synthetic
fibres / yarns.

Textile Industry Position in India

Textiles contributes 14% to the Industrial Production
4% to GDP
Textile Industry is Employing about 35 Million People
Textiles account 21% of India Gross Export Earnings

Profile of Textile Industry in India

Organised Textile Mills
Tamil Nadu

South India

India

No. of Spinning
Mills

813
(51%)

1001
(63%)

1570

No. of
Composite Mills

26
(12%)

40
(18%)

218

Total No. of
Mills
(NTC / Cooperative)

839
(46.92%)

29

1041
(58%)

1788

67

159

Installed Capacity
Tamil Nadu South India

India

Spindles
(Lakhs)

134.11
(39%)

175.84
(51%)

343.90

Rotors
(Nos)

118525
(30%)

138213
(35%)

385395

Looms
(Nos)

5959
(7.4%)

10199
(12.7%)

79791

Small Scale Units

Tamil Nadu South India

India

No. of
Spinning
Mills

907
(78%)

941
(81%)

1161

Installed
Capacity

51396
(41%)

59952
(48%)

123444

Yarn
Production
(Million Kg)
Number of
Workers
(000)

Tamil
Nadu
1261
(39.16%)
230
(25%)

South
India
1545
(49.78%)
286
(31%)

INDIA
3220

916

Cost Competitiveness of Textile Industry

(Indias Position in Comparison with other Countries)
Indias Strengths :

Strong Multi Fibre Raw Material base

Low Cost of Labour

Intellectual Capital

Dynamic and Vibrant Entrepreneurship

Disadvantages:

Fragmented Industry
Productivity Low
Power Cost High
Capital Cost High

Total Costs of Ring-Yarn

In US$ per Kg. of yarn

Cost
Element

Brazil

China India

Italy

Korea Turkey USA

Waste

0.19
7%

0.31
11%

0.17
7%

0.23
6%

0.22
8%

0.22
8%

0.17
6%

Labour

0.06
2%

0.04
2%

0.05
2%

0.85
24%

0.20
8%

0.13
4%

0.55
19%

Power

0.11
4%

0.23
8%

0.30
12%

0.37
10%

0.17
6%

0.25
9%

0.16
6%

Auxiliary
Material

0.11
4%

0.11
4%

0.11
5%

0.12
3%

0.11
4%

0.11
4%

0.12
4%

Capital
(Depreciation
& Interest)

0.84
32%

0.39
14%

0.57
23%

0.60
17%

0.57
21%

0.73
26%

0.60
21%

Manufacturing
Cost (A)

1.31
50%

1.08
39%

1.2
49%

2.17
60%

1.27
47%

1.44
51%

1.6
56%

Raw Material
(B)

1.30
50%

1.68
61%

1.25
51%

1.42
40%

1.41
43%

1.41
49%

1.26
44%

Total Yarn
Costs (A+B)
Per kg. yarn)

2.61

2.76

2.45

3.59

2.68

2.85

2.86

Total Costs of Woven Ring-Yarn Fabric

In US$ per Yard of fabric

Cost Element Brazil

China India Italy

Korea Turkey

USA

Waste

0.033
5%

0.054
8%

0.030
5%

0.039
3%

0.039
5%

0.039
5%

0.030
4%

Labour

0.029
4%

0.022
3%

0.034
5%

0.378
34%

0.116
16%

0.050
7%

0.263
31%

Power

0.046
7%

0.089
13%

0.112
17%

0.146
13%

0.070
9%

0.098
13%

0.068
8%

Auxiliary Material

0.057
9%

0.055
8%

0.074
11%

0.084
8%

0.108
14%

0.077
11%

0.065
8%

Capital
(Depreciation &
Interest)

0.260
40%

0.178
26%

0.195
29%

0.205
19%

0.175
23%

0.228
31%

0.198
23%

Raw Material

0.227
35%

0.293
42%

0.218
33%

0.248
23%

0.246
33%

0.246
33%

0.220
26%

Total Fabric
Costs (per yard
of Fabric)

0.652

0.691

0.663

1.100

0.754

0.738

0.844

Manufacturing Costs of Ring Yarn Knitting

In US$ per Yard of fabric

Cost
Element

Brazil

China

India Italy

Korea Turkey

USA

Labour

0.01
6%

0.01
10%

0.005
5%

0.13
54%

0.04
34%

0.02
17%

0.11
56%

Power

0.01
6%

0.02
22%

0.02
20%

0.03
12%

0.01
10%

0.02
15%

0.01
6%

Auxiliary
Material

0.02
15%

0.015
19%

0.015
13%

0.02
8%

0.02
14%

0.01
14%

0.02
9%

Depreciation

0.04
32%

0.03
37%

0.04
32%

0.05
19%

0.04
33%

0.05
37%

0.04
23%

Interest

0.06
41%

0.01
12%

0.04
30%

0.01
7%

0.01
9%

0.02
17%

0.01
6%

Total
0.14
Manufacturing
Costs (per yard
of Fabric)

0.08

0.12

0.24

0.12

0.12

0.19

A Vision 2010 for Textiles

To Increase Indias Share in World Textile
Trade from 4% to 8%
Export value of US $ 50 Billion
Growth in Textile Economy from US $ 37
Billion to US $ 85 Billion
Creation of 12 Million New Jobs in Textile
Sector

THANK YOU