Industry of Insight for Indian

Textiles
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Table of Contents
1. EXECUTIVE
SUMMARY....................................................................... 4
2. HIGHLIGHTS............................................................................ 6
3. INDUSTRY STRUCTURE ................ 7
3.1 Indian Textile Industry.......................7
3.2 Overview.................................. 7
3.2.1. Global Scenario..................7
3.2.2 Indian Scenario .........................................8
3.3 Contribution of Textile Industry in 2004-05...........9
3.4 Production of Textiles ...................9
3.5 Growth Projections...........................11
4. IMPORTS & EXPORTS............................. 14
4.1 Textile Exports:............................14
5. REGULATIONS........................................... 16
5.1 Foreign Direct Investment ..................16
5.2 Labor laws................................................................18
5.3 Intellectual Property Rights...............................18
6. MAJOR PLAYERS.......................... 19
6.1 Indian Rayon............................19
6.2 Arvind Mills................................23
6.3 Raymond.........................27
6.4 Alok Textiles....31
6.5 Century Textiles.................................35
6.6 Bombay Dyeing ................................................39
6.7 Indo Rama Synthetics....................................43
6.8 Welspun India...................................47

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EXECUTIVE SUMMARY
The phasing out of world trade quotas from January, 2005,
thrust Indian textile industry into a new era where it not only
needs to fend for itself in the global markets, but also faces
competition from global players in its own backyard.
Undoubtedly the removal of quota restrictions presents India
with an opportunity to increase its share of global market.
But India needs to reform its laws, modernize machinery and
scale up capacities to global level to exploit this opportunity.
Textile is among the leading sectors in the Indian economy in
terms of production, exports, employment and contribution to
the exchequer.
According to Confederation of Indian Industry (CII), textile
industry has high growth potential given inherent strengths such
as abundant raw materials, low labor cost and a thriving
domestic market. Textile industry is also important from a
foreign exchange and employment perspective.
Indian textile industry comprises a diverse, fragmented group of
establishments that produce and/or process textile-related
products (fiber, yarn, fabric) for further processing into apparel,
home furnishings, and industrial goods.

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The total production of cloth by all sectors that is mill, power

loom, handloom, hosiery and khadi, wool and silk was 42,708
million square meters (provisional) in 2003-04 and expected to
touch 44,322 million square meters in 2004-05.

HIGHLIGHTS
Indian textile industry, according to Ministry of Textiles, constitutes 20
per cent of industrial production, 9 per cent of excise collections and 18
per cent of employment in industrial sector.
India with its share of 14 per cent in the US$31 billion global cotton
textiles trade is second only to China in the global market.
Indian textiles industry accounted for share of 37 per cent of
countrys gross export earnings and four per cent of gross domestic
product in 2003-04. It has been growing at a rate of 5-7 per cent and
expected to grow at the rate of 15-16 per cent in 200506.
India accounts for 22 per cent of the world installed capacity of
spindles. It is one of the largest exporters of yarns in the international
market. The industry accounts for 25 per cent share of world trade in
cotton yarn. Indian industry has the largest cotton acreage of nine
million hectares.
India ranks fourth in terms of staple fiber production and sixth in
filament yarn production.
A study of CRISIL, the Indian credit rating agency, says Indian textile
industry can grow from US$36 billion in 2004 to US$85 billion in
2010.
Indian government has relaxed rules in Special Economic Zones.
Sheets and towels, which make up 40 per cent of the industry's sales,
are the two largest product categories. US is the world's largest market
for terry towels and Home Textiles, accounting for around 50 per cent
of the industry's sales in value, and 30-33 per cent in volumes.
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INDUSTRY STRUCTURE
3.1 Indian Textile :
Industry Indian textile industry comprises a diverse, fragmented
group of establishments that produce and/or process textilerelated products (fiber, yarn, fabric) for further processing into
apparel, home furnishings, and industrial goods. Indian textile
sector comprises spinning sector, consisting of mainly medium
to heavy counts.
Small weaving and processing firms operating in handloom and
power loom sector undertake most of the weaving and fabric
processing activity. Weaving and processing activity in
composite mills sector has gone down considerably due to the
closure of many composite mills in recent past.
In its broadest sense, Indian textile industry comprises:
Spinning units
Weaving units
Processing units
Composite units

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3.2.2 Indian Scenario

Indian textile industry encompasses a range of activities
from production of raw materials to providing the
consumers with high value-added products (fabrics and
garments). Textile Industry plays a significant role in
Indian economy.
According to Ministry of Textiles, it constitutes 20 per cent
of industrial production, 9 per cent of excise collections and
18 per cent of employment in industrial sector. Indian
textile industry has a high growth potential because textile
business is labor intensive where India has a natural
advantage.
However, despite these advantages, industry performance
has been sub-optimal in comparison to other countries.
Indias share in re-location of world trade has been
extremely low in comparison to countries like China and
even Sri Lanka and Bangladesh. Indian Textile Industry is
the second largest in the world in cotton trade.
It has the largest cotton acreage of nine million hectares. It
is the third largest producer of cotton fiber. It ranks fourth
in terms of staple fiber production and fourth in polyester
yarn production.

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Download Industry Insight

Indian Textiles
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8/documents/505/textile-industry/

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