SEGMENTS IN TEXTILE AND APPAREL SECTOR

The textile and apparel industry can be broadly divided into two
segments:
Yarn and fibre (include natural and man-made)
Processed fabrics (including woollen textiles, silk textiles, jute
textiles, cotton textiles and technical textiles), Readymade
Garments (RMGs) and apparel.

KEY FACTS
The fundamental strength of the textile industry in
India is its strong production base of wide range of
fibre/yarns from natural fibres like cotton, jute, silk and
wool to synthetic /man-made fibres like polyester,
viscose, nylon and acrylic
India is the world's second largest producer of textiles
and garments
India accounts 63 per cent of the market share of
textiles and garments
India is the 2nd biggest producer of silk and cotton
Indian textile industry accounts for about 24 per cent of
the world's spindle capacity and 8 per cent of global
rotor capacity
India has the highest loom capacity (including hand
looms) with 63 per cent of the world's market share
India accounts for about 14 per cent of the world's

TEXTILE GROWTH OVER THE YEARS

Textile plays a major role in the Indian economy:
It contributes 14 percent to industrial production and 4
per cent to GDP
With over 45 million people, the industry is one of the
largest source of employment generation in the country
The industry accounts for nearly 13 per cent of total
exports
The size of India's textile market in 2014 was USD99.0
billion; the market is expected to expand at a CAGR of
9.6 per cent over 201423

INDIAN TEXTILE EXPORTS

Readymade garments and cotton textiles
dominate textile exports
Readymade garments was the largest contributor

to total textile and apparel exports from India in

FY15
The segment had a share of 40 per cent in
overall textile exports
Cotton and man-made textiles were also major
contributors with shares of 31 per cent and 16 per
cent, respectively

Porters Five Forces Analysis

Competitive Rivalry
Intense competition between established brands and private label
brands
Industry is highly fragmented with organised sector contributing
only 31 per cent in 2011
Threat of New Entrants
100 per cent FDI (automatic route) is allowed in the Indian textile
sector
A few large suppliers are focusing on forward integration
Bargaining Power of Suppliers
Significant presence of small suppliers has reduced the
bargaining power
Bargaining power of Customers
Major clothing brands have better bargaining power over textile
manufacturers, as the product differentiation is low and number of
players are high and fragmented
Substitutes Product

 It was incorporated on 17 January 1985, as a Private Limited

Company in the name of Welspun Winilon Silk Mills Pvt. Ltd. at
Mumbai.
It was established to manufacture Polyester filament yarns and
texturized yarns. In 1995, the name changed from Welspun
Polyester to Welspun India Ltd.
Welspunis Asia's largest and the 2nd largest Terry Towel producers
in the Worldbased inMumbai, Maharashtra, India.
Welspun India Limited (WIL) is the Global Leader in Home Textiles
with global reach, delivering to more than 50 countries.
WIL supplies to 14 of the top 30 global retailers and has been
ranked 1st in the Top 15 Supplier Giants to the USA by Home
Textiles Today Magazine continuously for the last three years.

EXPORTS
It exports more than 94 per cent of its towels to more
than 34 countries.
It exports more than 68 per cent of its production to the
US, 23 per cent to Europe and the balance to Middle East,
Australia, Mauritius.
It supplies to 12 out of the top 20 retail chains in the
world
Welspun has a strong presence in key markets like USA,
Canada, UK, and Europe and about 95% of its production
is exported to various countries across the World.

FINANCIALS

Arvind textile ltd.

Inception
Arvind Limited started with a share capital of Rs. 2,525,000 ($55,000) in
the year 1931.
With the aim of manufacturing the high-end superfine fabrics Arvind
invested in very sophisticated technology.
With 52,560 ring spindles, 2552 doubling spindles and 1122 looms it was
one of the few companies in those days to start along with spinning and
weaving facilities in addition to full-fledged facilities for dyeing, bleaching,
finishing and mercerizing. Steadily producing high quality fabrics, year
after year, Arvind took its place amongst the foremost textile units in the
country.
Thus in 1987-88 Arvind entered the export market for two sections -Denim
for leisure & fashion wear and high quality fabric for cotton shirting and
trousers. By 1991 Arvind reached 1600 million meters of Denim per year
and it was the third largest producer of Denim in the world.

Expansion

In 1997 Arvind set up a state-of-the-art shirting, bottom weights and knits

facility, the largest of its kind in India, at Santej. With Arvinds concern for
environment a most modern effluent treatment facility with zero effluent
discharge capability was also established.
Arvind has carved out an aggressive strategy to verticalize its current
operations by setting up world scale garmenting facilities and offering a
one-stop shop service, by offering garment packages to its international
and domestic customers. With our growing global footprints, Arvind has
carved a niche with brand names like Arrow, Flying Machine, USPA, New
Port, Mega Mart and The Arvind Store.
Today, Arvind has diversified into other major segments like Fabrics,
Garments, Advanced Materials, Chemicals & Dyes, Retail, Engineering,
Real Estate, Sustainable Agriculture and Telecom.

Export /import

ARVND is a leader in shirting's market on the domestic side.

Majority of the revenue in this segment are domestic at
65% (22% contribution from company store and MBO),
while exports contribute 35% to revenue
ARVND has 1,000 dealers and 500-700 wholesalers
40% of Denim revenue comes from exports
Company is a preferred supplier of denim fabric to one of
the most reputed denim brands in the world like Miss Sixty,
Diesel, Replay, Armani Exchange, Ann Taylor, Hugo Boss,
Calvin Klein, Polo Ralph, A & F, Jack & Jones, Levis, Lee,
Wrangler, Gap, Zara, Esprit, H & M and Quick Silver.

Financials
Particulars
March31, 2014

Amount
Revenue from operations (Net)
Other Income
Total Revenue
4,860
Total Expenses
3,999
EBITDA
Depreciation and amortization expense
Finance costs
Profit before extraordinary items and tax
Exceptional items
Profit before Tax
409
Tax Expense
Profit After Tax
361
Price earning ratio

March 31, 2015

Amount
5,225
128

4,775
84
5,353
4,398

955

861

126
320
510
32

158
278
425
16
478

100

47
377

19.23