1.14.

Chapter Scheme

The first chapter presents the introduction and the design of the study

covering the introduction, the statement of the problem, the review of literature,

the scope, the objectives, research proposition, the period of the study, the

methodology including the sampling design, the collection of data, the tools for

analysis and the chapter scheme.

The second chapter deals with the profile of the Indian Readymade

Garment Industry.

The third chapter exhibits the conceptual framework of the consumer

behaviour.

The fourth chapter analyses the attitude of individual consumers

towards readymade garments in Madurai city.

The fifth chapter analyses the attitude of institutional consumers

towards readymade garments in Madurai city.

The sixth chapter presents the summary of the findings, the suggestions

and the conclusion.

CHAPTER II

Profile of Indian Readymade Garment Industry

2.1. Introduction
 The cotton textile industry is the first major industry to develop among

the modern Indian industries. It is the base on which the pyramid of the

industrial sector of the country has been built. In India, until the mid-17th

century, most tailors were skilled both in the cutting and in the sewing of

garments, however, the practice of master tailor’s in allocating only the sewing

to apprentices and journeyman created a class of sewers. By the 18th century

the master tailors tended to be recruited from those journeymen who possessed

special cutting skills and business acumen. In addition this tendency, the high

cost of starting a business in the best quarters of the cities, gave rise to a

permanent group of wage earners. However, these skills among them declined

at the end of the 19th century when competition from the readymade clothing

industry led to the division of labour among hand tailors. Production was

cheapened further when it became the practice to make portions of

custom-made garments by machine.

The homework system existed on a small scale before the industrial

revolution, for the lady of manor sometimes employed a seamstress who

worked in her own home rather than in the manor house. This system spread at

the turn of the 18th century when more journeymen tailors started to work at

home and to hire female home-workers to do part of the sewing during busy

seasons. Later, when the ready-made clothing industry developed, the

homework system became a serious social problem for clothing manufacturers

who employed a large number of female home workers to sew garments that

had been cut by the manufacturer.

 In India, the Readymade Garment Industry is considered an offshoot of

our textile industry, which dates back to the middle of the 19th century. There

was no ready-made garment industry worth the name till the dawn of

independence, despite the fact that this particular industry called for no

extraordinary skills or huge capital investments. India’s Readymade Garment

Industry is very small in relation to what might be expected in the context of

the needed basic raw material for that industry.

The trend of readymade garments picked up only in the early decades of

the 20th century, and extended to the higher strata of society. In India, the

garment industry had to wail till after the Second World War to get over its

teething troubles. With the expansion of the sphere of industrialization, better

paid job alternatives became available to the relatively more skilled workers.

This affected clothing sector by way of shortage of labour where returns to the

workers were not commensurate with the degree of skill required to work.

Another important factor besides income levels of the consumers and

climatic conditions prevalent in the country is the emergence of man-made

fibre. Its lasting qualities and the facilities it affords for washing and easy wear

have made both the fabric and the garments made out of it extremely popular.

This has given a fillip to that segment of the garment industry that caters to the

domestic market. The other factor, which will work towards the same end, is

that, unstitched fabric is going out of fashion among the younger generation in
the urban as well as in the rural areas. These aspects will have to be considered

for establishing and consolidating the garment industry.68

2.2. Historical Background of Indian Textile Industry

The Indian textile industry has a great legacy, which is perhaps

unmatched in the history of India’s industrial development. India’s textile

industry evolved and developed at a very early stage and its manufacturing

technology was amongst the best. Prior to colonization, India’s manually

operated textile machines were among the best in the world, and served as a

model for production of the first textile machines in newly industrialized

countries such as Britain and Germany. Indian textiles were sought after for

their finesse, quality and design.

According to Chouta-Kuan, the Chinese observer preference was given

to the Indian weaving for its and delicacy’ Prestige trade, textiles such as Patola

from Patan and Ahmedabad, the coast was sought after by the Malaysian

royalty and wealthy traders of the Philippines. Textiles have historically

formed an important component of India’s exports. Marco Polo’s records show

that Indian textiles used to be exported to China and South-East Asia. Textiles

also comprise a significant portion of the Portuguese trade with India. These

included embroidered bedspreads, wall hangings and quits of embroidered wild

silk on a cotton or jute ground.

2.3. Textile Production Centre in India

68
Kothari’s Industrial Directory of India, 38th Edition, Kothari’s Enterprises, p.15.
 In India, the government of India has the following textile production

centre at various places such as Amiritsar, Ahmedabad, Phagwara, Surat,

Ludhiana, Mumbai, Bhiwani, Bengaluru, Delhi, Chennai, Faridabad,

Coimbatore, Modinagar, Madurai, Kanpur, Raurkela, Kolkata, Tirupur. In

Tamil Nadu there are four textile production centre established for improving

the economic status and production capacity of those who are involved in the

Readymade Garment Industry, namely Madurai, Chennai, Coimbatore and

Tirupur.

2.4. Textile Park

In Madurai, the textile manufacturers have promoted One Textile park

in the name of M/s. Madurai Integrated Textile Park Ltd. The following

industrial activities of them are (i) Spinning (ii) Doubling and Reeling weaving

(iii) Knitting (iv) Dyeing and Bleaching.

2.5. Major Players in Textile Industry

The major player in the textile industry in India are Welspun India Ltd,

Vardhaman Group, Alok Industries Ltd, Raymond Industries, Aravind Mills

Ltd, Bombay Dyeing, Garden Silk Mills, and ITC Lifestyle.

2.6. Textile Boom Ahead

Fuelled by a rise in population and an increase in income levels, the

domestic textile and apparel industry is expected to touch Rs.10,32,000 crore

(around $220 billion) from the current Rs. 3,27,000 crore (around $70 billion)

by 2020. Factors such as the emergence of increased organized players and

rising penetration of retailers in smaller cities is added to the industry's growth.

 The textile and apparel industry is a significant contributor to the

country's GDP (gross domestic product). The industry needs to project itself as

a brand and bring in innovation. Further, it is important for the industry to

identify and create new mega clusters in places like Madurai, Mundra, Ambala

and Mangalore which are having tremendous potential for manufacturing.

India's exports share in the world trade is 4.5 per cent and has the

potential to reach eight per cent by 2020. The high growth of Indian exports is

possible due to an increased sourcing shift from developed countries in Asia

and India's strengths as a suitable alternative to China for global buyers.

For this, investments to the tune of Rs.3,20,000 crore ($68 billion) will be

required by 2020 across the textile supply chain to tap the potential market.

Women's apparel market, with a growth rate of 12 per cent, is leading

the growth trend, compared to mens wear at nine per cent. Other high-growth

categories include innerwear, kidswear, plus-size apparel, workwear, technical

textile and home textile.69

2.7. Foreign Direct Investment

India has most liberal and transparent policies in Foreign Direct

Investment amongst emerging countries. Ministry of Textiles has set up

Foreign Direct Investment cell to attract Foreign Direct Investment in the

Textile sector in the country. Foreign investment and collaboration in India’s

textile and apparel industry has increased significantly in recent years.

2.8. Readymade Garment Industry

69
http://www.hindustantimes.com/Textil...e1-595704.as
 The Readymade Garment Industry is growing day by day to changes of

fashion in day to day life. The Readymade Garment Industry in India owes its

existence to the emergence of a highly profitable market for exports.

The domestic demand has also been growing rapidly. With the changes in the

lifestyle since the on-set of the liberalization, and given the base of the industry

for the overseas market, Indian Garment Industry has taken big strides.

The entry of the Indian and global fashion designers has stimulated the market

further. In the past, the readymade market was confined mainly to baby dresses

and small manila-shirts and dress shirts. Now it has extended to trousers, suites,

and women’s apparel, besides fashion garments for men and women.

Readymade of specific brands have become not only a status symbol, they

have brought a more contemporary style in offices as much as in social circles.

Franchised boutiques have been established as tools for brand and image

building.

The market segmentation by price differentials is notable: high-end for

the affluent, medium priced for the core and high middle classes, low-end for

the low and core middle class. The Indian branded garment market, which is

estimated at over Rs.185 billion, accounts for 25 per cent of the Rs.745 billion

ready made market. 70 Following the entry of several new brands, the branded

segment has grown at 25 per cent annually. This represents a shift from

unbranded to the branded segment.

70
NIIR Project Report.
 The lead Players and Alliances in this sector globally include Maxwell

Apparel IND., Lovable, USA, Page Apparel Mfg., Jockey Intl., and USA.

Some of the major leading brands include Arrow, allen Solly, Van Heusen,

Louis Phillipe, Park Avenue, Zodiac, Lee, Excalibur, Flying Machine, Ruf &

Tuf, Newport, Peter England, Louis Straus, Stencil, Wrangler, Rod Lever and

the like.

2.9. Garmenting

Garmenting is the process of manufacturing readymade garment. It is

the final link in the entire textile value chain, where processed fabrics are

converted into ready to wear apparels. readymade garment include shirts,

trousers, T-shirts, and jeans for men, women, and kids, and the garment is used

interchangeable with apparel. The domestic readymade garment is highly

fragmented and dominated by the unorganized player.

Among the various segments, women’s wear has witnessed the fastest

growth, reflecting the changing consumer base. India is emerging as a regional

sourcing hub. India , Sri Lanka and Bangladesh have helped in the emergence

of South Asia as the most preferred sourcing hub for apparels of all types.

The fragmented processing facilities and the reservation within the

garmenting industry had led to a highly fragmented garmenting industry in

India. So far, the Indian garment industry has successfully leveraged the

flexibility offered by the small production units. Buy fragmentation has also led

to lower productivity, lesser investment in technology, non-integrated supply

chain and few industry leaders for reference points.

2.10. Historical Growth and Development of Readymade Garment
Industry
The history of Indian readymade garment industry can be traced to the

Pre-independent era, when clothing styles were dictated by the dress habits of

the erstwhile dynasties that ruled different parts of the country from time to

time. Mass manufacturing of the garment industry in India began after the

World War II around 1960s; the apparel industry emerged as an organized

commercial activity.

In 1964-1965 with the unprecedented demand for “Bleeding Madras”,

Indian Handloom Industry triggered the craze for Indian handloom products in

the West. Later on, mill fabrics replaced handloom fabrics and there was a

close association between the garment industry and the textile mills. Indeed,

some leading mills set up wholly owned subsidiaries for the readymade

garment production.

The British rule in the country influenced the clothing patterns in urban

areas. The decentralization of the textile industry witnessed the growth of

power looms and small scale processing units in the country. The spurt in the

growth of imports of garments from India was witnessed in 1960s as there was

growing settlement of Indians in the UK and USA during the period, who acted

as importers of Indian cotton garments. The need for mass production led to the

proliferation of small scale units.

The growth pattern of the industry was influenced by the cottage and

small scale industry status acquired by the sector during the period. From 1970

onwards, a major new phase of growth began. The pattern of demand changed
gradually from ‘Indian look’ and became more sophisticated. There was a

greater attraction to the tailoring of mill made and power looms clothes. Thus,

the garment industry, primarily started as a cottage industry in India has turned

into the most vigorous segment of the textile industry with a promise of more

rapid development in the future.

Clothing is a necessity for mankind. In the Bible when Abraham spoke

to the King of Sodom, he uttered the word thread.71 Abraham lived in Israel

between 2100 to 2000 B.C. Sodom was located on the southern portion of the

Dead Sea in Israel.72 Solomon the King of Israel bought sarees and then known

as Kevah. Solomon lived during the 10th century B.C. and died in 930 B.C.73

Historic discoveries show that for more than 4000 years, corsets have

been the foundation of fashion. 74 In India, sophisticated textiles were made at

third millennium B.C. from the Indus River at Mohenjodara. 75 Indian textile

mills have developed since the abandonment of English mills in 1925. Thus,

the modern textile industry in India is more than 70 years of age. 76 India major

71
Book of Genesis Chapter 14, Verses 22-23 and Chapter 38:28, The Holy Bible,
The New King James Version, Second Edition, 1982, Indian Bible Literature, Madras, p.8.
72
Thomas Nelson Inc., 1982: First Book of Kings, Chapter 10, Verse 28, The Holy
Bible, The New King James Version, Second Edition, 1982, Indian Bible Literature, Madras,
p.233.
73
T.Alton Bryant 1967: The New Compact Bible Dictionary, Zondervan Publishing
Housing, Michigan, U.S.A., pp..135 to 561.
74
J.Anderson Black and Madge Garland 1985: Revised by Frances Kennett, The
History of Fashion, Orbis Publishing Limited, London, p.14.
75
John Gillow and Nicholas Barnard 1994: Traditional Indian Textiles, 2 nd Edition,
Thomas and Hudson Limited, London, Singapore, National Printers Limited, pp.7-13.
76
Tirthankar Roy 1998: Economic Reforms and Textile Industry in India, Economics
and Political Weekly, August.8, pp.2173-2183.
competitors are identified as Hong Kong, Korean Republic, Germany and

China in the cotton yarn export and their collections are positive.

External factors such as the global price of cotton yarn and volume of

external demand highly influenced cotton yarn export. However, in fabric

export the determining variables are domestic production and domestic

demand.

Technological and product quality upgradation alone can improve the

mill sector. For sustainable advantage in the long run, India needs to improve

its present level of technology and productivity.

2.11. The Structure of Readymade Garment Industry in India

The Readymade Garment Industry has been classified into two in the

United Nation International Standards classification as “those establishments

which cut and /or stitch/make up garments out of woven or knitted fabric

without being involved in the manufacture of fabrics”.77

The Readymade Garment Industry in India is divided into two distinct

sectors: knitted and woven. The unorganized sector contributed 25 per cent of

the total output. The organized sector has an estimated installed capacity of

12.32 lakh machines of which knitted sector has an installed capacity of

77
K.V.Ramasamy and Gray Gereffi 1998: India’s Apparel Sector in the Global
Economy- Catching up or Falling behind, Economic and Political Weekly, January.17, p.129.
1.18 lakh machines78 The production is estimated at 15 pieces per day in the

knitted garment sector79

Production of ladies garments is concentrated in North India. Children’s

garments in Eastern part of India and in Madyapradesh and men’s garments in

West and South India. The industry produces over 35 different varieties of

western style garments. However, 43 per cent of the volume of production is

dominated by only three varieties namely, T-shirt, blouse, and shirt. The rest of

the varieties have a share of less than six per cent of the total volume of

production.80

A garment today is manufactured in a number of stages, in a variety of

locations adding value at each stage. To understand the globalization of

production for specific countries like India, it is useful to utilize the concept of

commodity chains. Commodity chains are conceived as networks of business

units involved from the stage of raw material supply to produce, exporting and

finally marketing and retailing. Two alternative modes of organizing

international production networks are a Producer Driven Commodity Chain

(PDCC) and Buyer Driven Commodity Chains (BDCC). The PDCC are found

in capital intensive industries such as computers, aircrafts and so on and large

transactional corporations play the central role in co-ordinating production

networks. BDCC are found in industries where large retailers, branded

78
M.K.Panthaki 1998: An open question – what is the size of the garment industry?,
Apparel Quarterly, October – December, p.23.
79
M.K.Panthaki 1998: How big is the garment industry?, Apparel Quarterly,
October – December, pp.34-37.
80
M.K.Panthaki, Op.cit. p.24.
marketers and trading companies play the key role in setting up decentralized

production networks in a variety of exporting countries in the world. This is

common in labour intensive industries in the manufacturing stage. The physical

production activity is separated from designing and marketing stage.

BDCC is manufacturing without factories. Sears, Reebok, and Nike are

the best examples of BDCC. One of the important adjustment mechanisms for

manufacturing export industries in East Asia has been the process of “triangle

manufacturing”81

Apparel manufacturers are organizations, mainly engaged in the design,

cutting and sewing of garments from fabric. Some are contractors or

sub-contractors who generally manufacture apparel from material owned by

other firms. Apparel Merchandisers are organization who generally design and

market clothing, but contract the actual production to manufactures. Buying

agents are organizations who locate, qualify and inspect foreign

suppliers/producers of garments, negotiate with suppliers/producers and often

monitor production for quality control and compliance with other standards.

Finally, retailers are primarily engaged in the distribution, merchandising and

sale of garments to consumers.

Since the retailers have gained growing bargaining power through

consolidation, apparel manufacturers have had to absorb higher costs and live

with lower profit margins in order to maintain production. Due to these

competitive pressures, apparel manufacturers have also undergone considerable

81
Rikabchand jain 1998: Indian Knitting Industry, 21st Century Vision, Apparel
Fortnightly, September 1, pp.11-14.
restructuring and consolidation in recent years.82 India’s role in the triangle

manufacturing is that of the offshore countries or low wage countries.

2.12. Process of Garments Manufacturing

The process of the garment manufacturing units are listed below:

2.12.1. Pattern Making, Grading and Marker Making

Pattern making and grading is a very vital function in prototype

development with the advent of Pattern Design Systems, this highly

skill-dependent and manual task has been revolutionized. Now pattern makers

can develop patterns directly on the CAD (Computer Aided Design), instantly

grade them and develop markers to estimate fabric consumption.

2.12.2. Spreading

Traditionally, spreading of fabrics is one of the most time consuming

manual processes and tends to control the capacity of cutting section. New

generation high speed fabric spreading machines equipped to handle a variety

of fabrics are fitted with features like positive feed, electronic edge sensors, roll

loading device and so on. These can improve the quality and productivity of the

spreading process.

2.12.3. Cutting

Computer controlled cutting machines are gaining popularity in the

apparel industry. In this case, cutting machine uses cut data prepared by CAD

system, the fabric lay is compressed using vacuum and computer controlled

knife cuts the fabric at a high degree of accuracy and speed. One computerized

82
R.S.Shukla 1995: How to export garment successfully, Global Business Press, 1 st
Edition, New Delhi, pp.32-33, 99-103.
cutter can support multiple spreading machines. These machines can cut up to

13 cm high compressed fabric lay. Low ply cutters have been recently

introduced to support mass customization orders.

2.12.4. Fusing

Fusing is a process used for bonding the interlining with apparel fabrics.

The process is controlled by three variables like pressure, time and

temperature. Modern fusing machines offer control of these parameters for

achieving the desired fusing results.

2.12.5. Sewing Operations

Apparel industry uses varied types of materials starting from coarse and

rough denim and rigid canvas to fine chiffon and elastomeric fabric like

LYCRA (Man Made Artificial Fibre). LYCRA is the registered trade made of

DuPont. Due to extreme variations in the properties of the materials to be sewn,

the same machine cannot be used for sewing all these materials.

“Lock stitch” sewing machines are more versatile and are widely used in

the apparel industry. The stitch produced by this machine is reversible (that is

the appearance on top as well as the bottom of the seam is same) and strong.

Lock Stitch is not stretchable. This limitation is removed by chain stitch.

All other stitches, apart form lock stitch, are variations of chain stitch.

The basic single needle sewing machines are versatile, but they need

highly skilled tailors to stitch the garments. With the objective of reducing the

dependence of high skills and improve consistency of sewing, the modern

sewing machine is equipped with additional features like automatic thread

trimmers, needle positioners and preset back tack. There has been a significant

development in the area of sewing needles as well. Leaders in sewing machine

needles Groz Beckert, offer about 400 types of specialized needles for various

sewing operations.

There are machines designed for performing highly specialized jobs.

Sewing activity is just one part of these machines, the additional features

involve folders, stackers, feeding devices, pneumatic controls and much more.

A few of the commonly used workstations are welt pocket-sewing,

CNC pocket setters, automatic button sewing on shirt fronts and so on. Since

early 1990’s the concept ‘stand up and sew’ has got acceptance in Europe and

USA for sewing ‘quick response’ orders in a team working environment.

The actual needle time of operations in apparel sewing units tends to be

about only twenty per cent of the total time. The substantial amount of their

non-sewing time is spent on material handling. To reduce the time spent on

handling the material in apparel factories, electronically controlled material

handling systems are finding their way in sewing rooms world-wide. These

systems also provide online productivity, performance data and help in optimal

utilization of resources.

2.12.6. Post-Sewing (pressing and finishing) Operations

Steam, pressure and vacuum are three factors required for achieving

better results in pressing apparel products. Steam irons and vacuum bucks of

various shapes are being used extensively by the industry for several years.

Microprocessor controls are being used to allow for several pre-set

combinations of time, temperature, pressure and steam, in the equipment like a

shoulder press, collar press and jacket front press and so on used for men’s and

women’s tailored clothing.

2.13. Garment Manufacturing Process Flow Chart83

Garment manufacturing includes a number of processes from order

receiving to dispatch of the finished garments. A process flow chart helps to

understand how raw materials move from one process to another process until

raw materials are transformed into the desired garments. Based on present

apparel industry, garment manufacturing processes are categorized and

presented in flowcharts 2.1, 2.2, and 2.3.

83
www.onlineclothingstudy.com
 Figure 2.1
Pre-Production Process Flowchart
Order receiving

Material Sourcing
Planning Sampling
o Man power
FIT Sample Fabirc Trim in House
o Material
o Machine Size set sample

PP sample approval
Material FAIL
PP meeting inspection

Cutting PASS

Sewing

Printing / Embroidery

Checking FAIL
garments Repair / Alteration
PASS

Washing

Fininshing

Checking FAIL
garments Repair / Alteration
PASS

Packing

FAIL Shipment

Audit

Shipment Dispatch
 Figure 2.2
Production Process Flow Chart

Marker and Plotter

Making

Fabric Spreading

Fabric Cutting Re - Cutting

Checking
Cutting

Stickering Fusing

Sorting and Bundling Printing / Embroidery

Stitching
 Figure 2.3
Garment Finishing Process Flow Chart

Thread Cutting

Initial
Checking

Processing

Measurement
Repair / Alteration
Checking

Repair / Alteration

Final Checking

Tagging

Folding and Packing

Packing to Box

Inspection of Ready to
Ship Goods

Dispatch Shipment
(i) Pre-production processes: Pre-production process includes sampling,

sourcing of raw materials, approvals, and so on.

(ii) Production processes: Production processes are cutting, sewing and so on.

(iii) Post production processes: Thread trimming, pressing, checking, folding

and packing, shipment inspection and so on.

2.14. Technology Used in Apparel Manufacturing

Technology has revolutionized the manufacturing process in virtually all

the industries. The apparel industry is no exception to this global phenomenon.

Major apparel producing nations are attempting to use modern technology for

improving productivity and quality to retain their competitive edge. After the

invention of the sewing machine in 1847, the garment technology has

witnessed far reaching changes in the major manufacturing process of pre-

sewing, sewing or post sewing operations.

Apparel industry used endless varieties of fabrics and other raw

materials to be converted into various types of garments. All these variations

create a need for specialized machines or modifications in the existing

machines. This poses a challenge to machinery developers, and every year,

more and more machines are being introduced for specific jobs which are easy

to operate, give better flexibility and improve productivity while assuring

consistent product quality. The technology for garment industry can be

classified into three main areas, namely, pre-sewing operations, sewing

operations and post sewing operations.

 Figure 2.4

Information Technology Application in Apparel Industry

Pos System and Sourcing Electronic CAD for Development

Electronic Data simulator Retailing print Weave, of Style lines
Interchange Knit and for Next
Embroidery Session
Developmen

Warehouse Digital Printer

Management for instant
system Production of
IT Application in Sample
Fabric
Apparel Industry
Interactive
3D Body
Training Tools
scanner for
for Maintenance
capturing
Measurement

Operator Pattern
Performance & Making,
Wage Grading &
Calculation Marker
Making, CAD

Unit Production Line Production, Cut Product

System/Material Balancing & Planning & Order, Data
Handling Sewing Line Scheduling Planning Manage
Simulation software
2.15. Indian Garment Export

Indian garment exporters cater to the customers all across the country

and the world with an unmatched collection of garments. These are designed as

per the latest market trends and are offered at cost effective rates. The entire

spectrum of garments includes casual and formal wears for men as well as

trendy outfits for women and children.

These are thoroughly tested for ensuing seamless quality, durability, fine

stitch, shrink proof and color resistance. Crafted from superior quality fabrics,

these are manufactured in tune with the International standards. Fashion

conscious people worldwide look for such designer outfits that can best define

their taste and persona. Stitched to perfection, these are easy to wash and

maintain and are perfect to be worn for all occasions. Offered in attractive

designs and shades, these are available in standard sizes that suit the style

statement of the wearer. The repertoire adorned with embellishments is a

perfect gift option for dear ones.

India has successfully entrenched their market stand. Their professional

websites have helped in reaching out to millions worldwide. The easily

navigable sites showcase the wide variety of designer wears offered by the

company. One can have detailed information about the products and services

offered by the apparel manufacturers and also avail latest discounts and offers.

A great variety of apparel for kids are also available. These lend a chirpy look

to the little ones.

 Apparel manufacturers take account of the latest in fashion trends while

designing the wide range. They also offer customized solution to customers by

developing dresses as per the requirements and specifications of clients. These

are offered in various sizes and are ideal for people of different age groups and

stature. The products are delivered within stipulated time frame and helps in

offering complete customer satisfaction. This further helps in assuring optimum

benefit to the customers or end users.84

India exports have also grown because of tapping of new markets like

Middle East, Latin America, Japan, Russia and Australia. Our efforts are also

striving to leverage exports by export promotion events across the world.

India’s Garment Industry has its inherent strengths in terms of good

design and raw material strength and all big brands and chain stores are

sourcing from India. It is the most preferred destination for brands like Zara,

Gap,H and M, Mango, Elcorte, Desigual, and Tommy Hilfiger. Prominent

chain stores like Walmart, C and N, H and M, JC Penny, Target, Sears, Marks

and Spencers, H&M, Debenham, Primark, Top Mom, TESCO are sourcing

garment from India. India is also very good in producing sports items and

deliver goods in short lead time. 85

The product profile of the event covered the entire value chain of the

textile and clothing industry and included the following: blouses, casual wear,

children’s wear, co-ordinates, denim wear, infants’ wear, knitwear, ladies wear,

men’s wear, shirts, shorts, silk garments, skirts, suits, sweat shirt, T-Shirt,
84
http://www.ogtc.in
85
AEPC, Chairman News, Guragon, 2013.
trousers, vest, cocktail dresses, evening dresses, bodysuit, brief, home wear,

fashion jewellery, men’s underwear, nightwear and pajamas, outerwear, pareos,

scarfs, stoles, handbags, cushion covers, bed covers, fabrics and so on.

In order to boost Indian exports of garments and fashion accessories,

more than 100 showroom holders are going to exhibit their latest collections to

buyers from countries like Greece, Australia, Botswana, South Africa, Ecuador

and USA. 86

2.15.1. India’s Readymade Garments Export

From the year 2003 to 2012 the readymade garments export of India is

given in Table 2.1.

Table 2.1
India’s Readymade Garments Export
Sl. No. Year US $ in Million
1. 2003 5.9
2. 2004 6.4
3. 2005 8.2
4. 2006 9.0
5. 2007 9.4
6. 2008 10.3
7. 2009 11.3
8. 2010 10.6
9. 2011 13.7
10. 2012 12.9
Source: DGCI&S (Director General of Commercial Intelligence and Statistics)

India acheieved high export in the year 2011compared with other years.

In Readymade garment export, India was placed eight rank in 2012 in world

level. This is also presented in figure 2.5.

86
AEPC, Guragon, 2013.
 Figure 2.5
India Exports in US $ mn
16
India Exports in US $ mn
13.7
14 12.9

12 11.3
10.3 10.6
10 9 9.4
8.2
8
6.4
5.9
6

0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2.15.2. Region-wise Readymade Garments Export

Readymade garments export to various regions such as Eu, North

American and West Asia details for the year 2013 is presented in Table 2.2.

Table 2.2
Region-wise Readymade Garments Export
Sl. No. Region 2013 (US$ in Million)
1. Eu 2384.50
2. North American 1476.58
3. West Asia 1043.33
Source: AEPC News, Gurgaon 2013.

Among the regions of destination, EU is the top most Readymade

Garment export destination of India for 2013 with US$ 2384.5 mn followed by

North American region where exports were to the tune of US$ 1476.58 mn

West Asia is the third largest regional apparel export destination of India with

US$ 1043.33 mn for the same period. In terms of apparel export growth during
2013, highest growth is registered by South East Asian region followed by

West Asia, North America, and EU.

2.15.3. India’s Garment-Wise Export to World

India export statistics of readymade garments to the world which covers

shirts, suits, T-shirt, track suits, swim wear, ski wear, and over coat for both

men and women is presented in Table 2.3.

Table 2.3
India’s Garment-Wise Export to World

% Change
Sl. Millions United States Dollars % Share
Readymade Garments
No.

2011 2012 2013 2011 2012 2013 2013/2012

1. Women's or Girls'
Suits, Ensemb etc, 1084.3 1086.4 986.6 23.0 22.2 19.7 -9.2
Not Knit Etc
2. T-Shirts, Singlets,
Tank Tops etc, Knit 644.7 746.0 796.4 13.7 15.2 15.9 6.8
or Crochet
3. Women's or Girls'
Blouses, Shirts etc, 660.6 551.0 542.7 14.0 11.2 10.8 -1.5
Not Knit etc
4. Men's or Boys' Suits,
Ensembles etc, Not 293.0 344.5 331.3 6.2 7.0 6.6 -3.8
Knit etc
5. Men's or Boys'
Shirts, Not Knitted or 329.6 333.1 330.9 7.0 6.8 6.6 -0.7
Crocheted
6. Track Suits, Ski-
Suits & Swimwear, 134.6 246.4 284.3 2.9 5.0 5.7 15.4
Not Knit etc
7. Shawls, Scarves,
Mufflers, Mantillas, 226.6 249.5 253.9 4.8 5.1 5.1 1.8
Veils etc.
8. Women's or Girls'
Suits, Ensemb etc, 175.6 190.5 223.0 3.7 3.9 4.4 17.1
Knit or Croch
9. Men's or Boys'
Shirts, Knitted or 262.1 246.3 213.0 5.6 5.0 4.3 -13.5
Crocheted
10 Babies' Garments
and Accessories, 145.0 167.4 188.1 3.1 3.4 3.8 12.3
Knit or Crocheted
11. Women's or Girls'
Slips, Pjs, etc, Knit 120.2 126.8 138.3 2.5 2.6 2.8 9.1
or Crochet
12. Garments Nesoi,
76.7 86.0 127.3 1.6 1.8 2.5 48.0
Knitted or Crocheted
13. Men's or Boys'
Underpants, Pjs, etc, 83.6 79.8 109.5 1.8 1.6 2.2 37.2
Knit or Croch
14. Babies' Garments &
Accessories, Not 75.3 75.9 101.3 1.6 1.5 2.0 33.4
Knit or Croch
15. Women's or Girls'
Blouses & Shirts, 133.4 98.9 89.0 2.8 2.0 1.8 -10.0
Knit or Croch
16. Men's or Boys' Suits,
Ensembles etc, Knit 56.8 63.3 67.8 1.2 1.3 1.4 7.2
or Croch
17. Women's or Girls'
Slips Etc, Not Knit or 46.6 48.9 53.9 1.0 1.0 1.1 10.3
Crochet
18. Sweaters, Pullovers,
Vests Etc, Knit or 57.5 41.8 44.2 1.2 0.9 0.9 5.6
Crocheted
19. Bras, Girdles,
Garters etc., Knitted 14.1 25.2 34.4 0.3 0.5 0.7 36.6
Etc or Not
20. Pantyhose, Socks &
Other Hosiery, Knit 12.8 14.7 19.3 0.3 0.3 0.4 31.2
or Crochet
21. Men's or Boys'
Undershirts etc, Not 11.7 12.0 13.9 0.2 0.2 0.3 16.4
Knit or Croch
22. Made-Up Cl Access
11.6 20.1 13.6 0.2 0.4 0.3 -32.3
Nesoi, Garment
23. Garmentsof Felt etc,
or Fabric 2.4 3.7 11.1 0.1 0.1 0.2 202.2
Impregnated etc
24. Gloves, Mittens And
Mitts, Knitted or 9.2 9.2 7.8 0.2 0.2 0.2 -15.4
Crocheted
25. Men's or Boys'
Overcoats, Cloaks 3.3 3.6 7.5 0.1 0.1 0.1 107.3
etc, Not Knit etc
26. Made-Up Clothing
Access Nesoi, Parts, 24.6 4.9 5.9 0.5 0.1 0.1 21.2
etc, Knit etc
27. Gloves, Mittens And
Mitts, Not Knit or 4.0 5.1 5.5 0.1 0.1 0.1 8.4
Crocheted
28. Track Suits, Ski-
Suits & Swimwear, 3.6 9.0 4.0 0.1 0.2 0.1 -55.4
Knit or Crochet
29. Women's or Girls'
Overcoats etc, Not 3.9 1.9 2.7 0.1 0.0 0.1 43.9
Knit or Croch
30. Handkerchiefs 2.5 3.5 2.0 0.1 0.1 0.0 -42.7
31. Women's or Girls'
Overcoats etc, Knit 1.9 1.7 1.2 0.0 0.0 0.0 -27.5
or Crochet
32. Men's or Boys'
Overcoats etc, Knit 1.0 1.2 1.0 0.0 0.0 0.0 -11.9
or Crochet
33. Ties, Bow Ties &
Cravats, Not Knitted 6.6 0.7 0.5 0.1 0.0 0.0 -21.8
or Crocheted
34. Garments, Knit etc,
Coated Etc Rubber, 0.4 0.2 0.1 0.0 0.0 0.0 -77.3
Plastic etc
Total 4719.8 4899.1 5011.9 100 100 100 2.3
Source: DGCI&S (Director General of Commercial Intelligence and Statistics)

Among the readymade garment items the women’s suits are the top

most readymade garment export destination of India for 2013 with US$ 19.7

mn followed by T.Shirts, singlets, tank tops were to the tune of US$ 15.9 mn ,

women’s shirts were US$ 10.8 mn and men’s shirts were US$ 6.6 mn for the

same period. In terms of apparel export growth during 2013 the highest growth

is in women’s suits and shirts.

2.15.4. India Export with Partner Countries

India’s export with partner countries from the year 2010 to 2012 is
presented in Table 2.4.
 Table 2.4
Export of India’s Readymade Garments

YEAR
Sl.
NO. Partner Country Millions United States % Share %
Dollars Change
2010 2011 2012 2010 2011 2012 2012/2011
1. World 10614 13467 12950 - 3.84
100.00 100.00 100.00
2. United States 2787 3143 3056 26.26 23.34 23.60 - 2.78
3. United Kingdom 1203 1488 1488 11.34 11.05 11.49 - 0.02
4. United Arab Emirates 992 1272 1436 9.35 9.45 11.09 12.85
5. Germany 960 1237 968 9.04 9.18 7.47 - 21.75
6. France 651 830 647 6.13 6.17 5.00 - 22.09
7. Spain 501 593 565 4.72 4.40 4.36 - 4.69
8. Netherlands 381 553 467 3.59 4.10 3.61 - 15.46
9. Italy 392 507 393 3.69 3.76 3.04 - 22.32
10. Saudi Arabia 242 288 305 2.28 2.14 2.35 5.70
11. Belgium 248 351 268 2.34 2.61 2.07 - 23.71
12. Denmark 238 324 259 2.24 2.40 2.00 - 19.86
13. Canada 227 271 227 2.14 2.01 1.75 - 16.07
14. Japan 124 192 225 1.17 1.43 1.74 17.28
15. Sweden 124 152 141 1.17 1.13 1.09 - 7.01
16. Brazil 40 99 135 0.38 0.73 1.04 37.12
17. Mexico 74 102 122 0.70 0.76 0.94 18.57
18. South Africa 85 115 117 0.80 0.86 0.91 1.73
19. Panama 30 107 112 0.29 0.80 0.86 4.00
20. Australia 70 102 103 0.66 0.76 0.80 1.21
21. Nigeria 21 51 82 0.20 0.38 0.63 58.97
22. Poland 37 69 77 0.35 0.52 0.59 10.60
23. Afghanistan 35 69 77 0.33 0.51 0.59 11.45
24. Malaysia 59 58 76 0.55 0.43 0.59 32.18
25. Kuwait 45 62 75 0.42 0.46 0.58 20.90
26. Ireland 57 61 62 0.54 0.46 0.48 1.74
27. Kazakhstan 31 50 61 0.29 0.37 0.47 22.07
28. Hong Kong 37 60 60 0.35 0.45 0.46 - 0.55
29. Switzerland 41 53 59 0.39 0.39 0.45 11.26
30. Djibouti 10 60 57 0.09 0.45 0.44 - 4.99
31. China 22 51 54 0.21 0.38 0.42 6.89
32. Sri Lanka 31 38 51 0.30 0.28 0.40 34.79
33. Finland 39 60 50 0.37 0.45 0.39 - 16.77
34. Singapore 79 82 49 0.74 0.61 0.38 - 40.23
35. Yemen 20 21 49 0.19 0.16 0.37 131.02
36. Turkey 66 80 48 0.62 0.59 0.37 - 40.03
37. Russia 17 34 44 0.16 0.26 0.34 28.27
38. Netherlands Antilles 35 32 43 0.33 0.24 0.33 33.11
39. Tanzania 33 36 42 0.31 0.27 0.33 17.43
40. Sudan 21 37 39 0.20 0.27 0.30 7.22
41. Norway 31 42 38 0.29 0.31 0.29 - 9.05
42. Chile 20 38 37 0.19 0.28 0.28 - 3.25
43. Korea South 13 21 30 0.12 0.16 0.23 40.02
44. Israel 25 32 30 0.24 0.24 0.23 - 6.72
45. Bangladesh 17 23 28 0.16 0.17 0.22 20.09
46. Mauritius 27 26 27 0.26 0.19 0.21 5.25
47. Austria 14 20 27 0.14 0.15 0.20 29.62
48. Portugal 33 37 26 0.31 0.27 0.20 - 28.47
49. Oman 11 12 20 0.10 0.09 0.16 74.12
50. Argentina 19 29 20 0.18 0.22 0.16 - 31.48
51. Czech Republic 7 16 19 0.06 0.12 0.15 19.61
52. Bahrain 10 13 18 0.09 0.09 0.14 44.17
53. Venezuela 8 13 17 0.07 0.10 0.13 33.64
54. Azerbaijan 5 15 17 0.05 0.11 0.13 11.87
55. Kyrgyzstan 12 13 17 0.11 0.10 0.13 29.43
56. Iran 16 12 17 0.15 0.09 0.13 41.33
57. Qatar 11 11 16 0.10 0.08 0.12 48.07
58. Greece 20 20 15 0.18 0.15 0.12 - 22.70
59. Slovakia 5 13 14 0.05 0.10 0.11 9.45
60. Jordan 8 7 14 0.07 0.05 0.11 107.93
61. Cameroon 0 4 14 0.00 0.03 0.10 232.39
62. New Zealand 10 13 13 0.09 0.09 0.10 2.39
63. Egypt 7 7 13 0.07 0.05 0.10 87.23
64. Thailand 5 6 11 0.05 0.04 0.08 82.88
65. Estonia 4 9 10 0.03 0.07 0.08 13.78
66. Morocco 3 3 9 0.03 0.02 0.07 182.41
67. Tajikistan 0 2 9 0.00 0.02 0.07 345.72
68. Uruguay 5 8 9 0.05 0.06 0.07 2.25
69. Algeria 2 3 8 0.02 0.02 0.06 180.50
70. Belize 6 12 8 0.06 0.09 0.06 - 31.70
71. Togo 13 7 8 0.13 0.05 0.06 9.44
72. Peru 3 5 8 0.03 0.04 0.06 49.69
73. Colombia 3 5 7 0.03 0.04 0.05 37.34
74. Armenia 0 0 6 0.00 0.00 0.05 ∞
75. Ukraine 10 8 6 0.10 0.06 0.05 - 19.17
76. Puerto Rico (U.S.) 4 4 6 0.04 0.03 0.05 43.93
77. Kenya 22 11 6 0.21 0.08 0.05 - 43.53
78. Nepal 5 8 6 0.05 0.06 0.05 - 23.19
79. Romania 4 5 6 0.04 0.04 0.04 11.97
80. Trinidad & Tobago 4 5 6 0.04 0.04 0.04 15.76
81. Slovenia 3 6 6 0.03 0.05 0.04 - 12.52
82. Indonesia 2 3 6 0.01 0.02 0.04 96.70
83. Mozambique 1 15 5 0.01 0.11 0.04 - 64.57
84. Uzbekistan 1 2 5 0.01 0.02 0.04 114.72
85. Fiji 4 4 5 0.04 0.03 0.04 23.56
86. Myanmar 2 5 5 0.02 0.03 0.04 5.62
87. Ethiopia 2 15 5 0.02 0.11 0.04 - 69.50
88. Lebanon 3 5 5 0.03 0.03 0.04 - 0.55
89. El Salvador 0 2 5 0.00 0.01 0.04 140.46
90. Libya 5 1 4 0.04 0.00 0.03 584.00
91. Ghana 2 3 4 0.01 0.02 0.03 54.38
92. Taiwan 2 4 4 0.02 0.03 0.03 - 8.43
93. Zimbabwe 0 1 4 0.00 0.01 0.03 220.23
94. Georgia 2 2 4 0.02 0.02 0.03 77.68
95. Seychelles 0 0 3 0.00 0.00 0.03 752.26
96. Zambia 0 1 3 0.00 0.01 0.03 191.09
97. Belarus 1 2 3 0.01 0.02 0.03 54.42
98. Hungary 3 3 3 0.03 0.02 0.03 - 2.29
99. Madagascar 2 2 3 0.02 0.02 0.02 30.33
100. Equatorial Guinea 0 0 3 0.00 0.00 0.02 569.98
101. Uganda 1 3 3 0.01 0.02 0.02 8.15
102. Latvia 1 1 3 0.01 0.01 0.02 134.83
103. Maldives 1 2 3 0.01 0.01 0.02 52.14
104. Philippines 2 4 3 0.02 0.03 0.02 - 34.51
105. Rwanda 0 0 3 0.00 0.00 0.02 5592.64
106. Jamaica 3 3 2 0.03 0.02 0.02 - 25.34
107. Niger 0 1 2 0.00 0.01 0.02 187.52
108. Korea North 1 1 2 0.01 0.01 0.02 154.72
109. Costa Rica 1 3 2 0.01 0.02 0.02 - 15.47
110. Croatia 2 2 2 0.02 0.02 0.02 2.26
111. Turkmenistan 3 3 2 0.02 0.02 0.02 - 38.00
112. Suriname 1 1 2 0.01 0.01 0.01 79.98
113. Benin 6 7 2 0.06 0.05 0.01 - 73.41
114. Cyprus 1 2 2 0.01 0.02 0.01 - 24.39
115. Comoros 0 0 2 0.00 0.00 0.01 464.33
116. Iraq 1 1 2 0.01 0.01 0.01 27.10
117. Pakistan 1 1 2 0.01 0.01 0.01 123.84
118. Reunion 1 2 1 0.01 0.01 0.01 - 9.51
119. Bulgaria 1 2 1 0.01 0.01 0.01 - 33.54
120. Aruba 0 1 1 0.00 0.00 0.01 80.74
121. Senegal 1 1 1 0.01 0.01 0.01 - 22.05
122. Guinea 1 0 1 0.01 0.00 0.01 100.23
123. Tunisia 0 1 1 0.00 0.00 0.01 46.43
124. Serbia and Montenegro 1 1 1 0.01 0.00 0.01 42.08
125. Angola 0 1 1 0.00 0.00 0.01 29.02
126. Lithuania 1 0 1 0.01 0.00 0.01 84.72
127. Papua New Guinea 0 1 1 0.00 0.01 0.00 - 26.11
128. Guyana 1 2 1 0.00 0.02 0.00 - 75.25
129. Vietnam 0 2 1 0.00 0.01 0.00 - 62.75
130. Barbados 1 1 1 0.01 0.00 0.00 - 14.33
131. Mauritania 0 0 0 0.00 0.00 0.00 7107.74
132. Congo 1 2 0 0.01 0.01 0.00 - 70.94
133. Malta 0 1 0 0.00 0.01 0.00 - 40.26
134. Botswana 1 1 0 0.01 0.01 0.00 - 58.05
135. Cambodia 0 0 0 0.00 0.00 0.00 4.52
136. Swaziland 1 0 0 0.01 0.00 0.00 - 15.08
137. Burundi 0 0 0 0.00 0.00 0.00 ∞
138. Paraguay 0 0 0 0.00 0.00 0.00 7.87
139. Unidentified Country 8 0 0 0.07 0.00 0.00 53.75
140. Dominican Republic 1 0 0 0.01 0.00 0.00 - 24.69
141. Virgin Islands (U.S.) 0 0 0 0.00 0.00 0.00 - 6.81
142. Honduras 0 0 0 0.00 0.00 0.00 4067.12
143. St. Kitts & Nevis 1 0 0 0.01 0.00 0.00 16.70
144. Syria 0 0 0 0.00 0.00 0.00 - 20.30
145. Guadeloupe 1 1 0 0.01 0.00 0.00 - 49.43
146. Mali 0 0 0 0.00 0.00 0.00 339.83
147. Luxembourg 0 0 0 0.00 0.00 0.00 6.12
148. Ecuador 0 0 0 0.00 0.00 0.00 7.01
149. Bermuda 0 0 0 0.00 0.00 0.00 44.14
150. Congo Dem. Rep. 0 0 0 0.00 0.00 0.00 2116.24
151. Vanuatu 0 0 0 0.00 0.00 0.00 0.38
152. Brunei Darussalam 0 0 0 0.00 0.00 0.00 27.74
153. Bosnia & Herzegovina 0 0 0 0.00 0.00 0.00 - 40.42
154. Bolivia 0 0 0 0.00 0.00 0.00 53.31
155. Haiti 0 0 0 0.00 0.00 0.00 7393.73
156. French Polynesia 0 0 0 0.00 0.00 0.00 157.12
157. Malawi 0 0 0 0.00 0.00 0.00 16.73
158. Iceland 0 0 0 0.00 0.00 0.00 - 36.75
159. New Caledonia 0 0 0 0.00 0.00 0.00 64.76
160. Namibia 0 0 0 0.00 0.00 0.00 - 33.50
161. Virgin Islands (British) 0 0 0 0.00 0.00 0.00 68.74
162. Grenada 0 0 0 0.00 0.00 0.00 - 40.68
163. Cuba 0 0 0 0.00 0.00 0.00 0.00
164. Somalia 0 0 0 0.00 0.00 0.00 ∞
165. Guatemala 0 0 0 0.00 0.00 0.00 416.64
166. Cote d Ivoire 0 0 0 0.00 0.00 0.00 7.81
167. Chad 0 0 0 0.00 0.00 0.00 23.98
168. Antigua & Barbuda 0 0 0 0.00 0.00 0.00 - 63.78
169. Gabon 0 0 0 0.00 0.00 0.00 - 36.75
170. Wallis & Futuna Islands 0 0 0 0.00 0.00 0.00 31.40
171. Macedonia 0 0 0 0.00 0.00 0.00 757.88
172. Sierra Leone 0 0 0 0.00 0.00 0.00 - 76.95
173. French Guiana 0 0 0 0.00 0.00 0.00 874.40
174. Guam 0 0 0 0.00 0.00 0.00 233.74
175. Gambia 0 0 0 0.00 0.00 0.00 - 57.66
176. Liberia 0 0 0 0.00 0.00 0.00 - 33.46
177. Monaco 0 0 0 0.00 0.00 0.00 7.81
178. Bahamas 0 0 0 0.00 0.00 0.00 - 31.34
179. Panama Canal Zone 0 0 0 0.00 0.00 0.00 571.81
180. St. Lucia 0 0 0 0.00 0.00 0.00 750.45
181. Moldova 0 0 0 0.00 0.00 0.00 - 82.84
182. Albania 0 0 0 0.00 0.00 0.00 313.66
183. Mongolia 0 0 0 0.00 0.00 0.00 - 56.28
184. Cook Islands 0 0 0 0.00 0.00 0.00 - 38.53
185. Turks & Caicos Islands 0 0 0 0.00 0.00 0.00 - 40.97
186. Laos 0 0 0 0.00 0.00 0.00 0.00
187. Martinique 0 0 0 0.00 0.00 0.00 - 93.15
188. Gibraltar 0 0 0 0.00 0.00 0.00 3.04
189. Liechtenstein 0 0 0 0.00 0.00 0.00 0.00
190. Cayman Islands 0 0 0 0.00 0.00 0.00 - 53.28
191. Kiribati 0 0 0 0.00 0.00 0.00 0.00
192. Central African Republic 0 0 0 0.00 0.00 0.00 0.00
193. Macau 0 0 0 0.00 0.00 0.00 - 67.74
194. Marshall Islands 0 0 0 0.00 0.00 0.00 - 56.54
195. Tonga 0 0 0 0.00 0.00 0.00 0.00
196. Niue 0 0 0 0.00 0.00 0.00 0.00
197. Andorra 0 0 0 0.00 0.00 0.00 - 84.65
198. Dominica 0 0 0 0.00 0.00 0.00 607.16
199. Samoa (Western) 0 0 0 0.00 0.00 0.00 575.83
200. Burkina Faso 1 0 0 0.01 0.00 0.00 - 98.90
201. Northern Mariana Islands 0 0 0 0.00 0.00 0.00 0.00
202. Guinea-Bissau 0 0 0 0.00 0.00 0.00 33.17
203. St. Vincent & the 0 0 0 0.00 0.00 0.00 - 83.96
Grenadines
204. St. Helena 0 0 0 0.00 0.00 0.00 - 43.89
205. Bhutan 0 0 0 0.00 0.00 0.00 - 39.69
206. Eritrea 0 0 0 0.00 0.00 0.00 0.00
207. Nicaragua 0 0 0 0.00 0.00 0.00 - 99.94
208. Lesotho 0 0 0 0.00 0.00 0.00 0.00
209. Greenland 0 0 0 0.00 0.00 0.00 0.00
210. Faroe Islands 0 0 0 0.00 0.00 0.00 - 100.00
211. Cape Verde 0 0 0 0.00 0.00 0.00 - 100.00
 212. Norfolk Island 0 0 0 0.00 0.00 0.00 0.00
213. Christmas Island 0 0 0 0.00 0.00 0.00 - 100.00
214. Cocos (Keeling) Islands 0 0 0 0.00 0.00 0.00 0.00
215. American Samoa 0 0 0 0.00 0.00 0.00 - 100.00
216. Nauru 0 0 0 0.00 0.00 0.00 - 100.00
217. Anguilla 0 0 0 0.00 0.00 0.00 - 100.00
218. Solomon Islands 0 0 0 0.00 0.00 0.00 - 100.00
219. Montserrat 0 0 0 0.00 0.00 0.00 0.00
Source of Data: Ministry of Commerce

Among the partner countries United States was the top most readymade

garment export destination of India for 2012 with US$ 3056 mn followed by

United Kingdom, where exports were to the tune of US$ 1488 mn, and the

United Arab Emirates is the third largest apparel export destination of India

with US$ 1436 mn for the same period.

2.15.5. Towns of Export Excellences in India

In India, there are four towns of export excellences out of which one is

situated in Tirupur district of Tamilnadu state. The towns of export excellences

are listed as below:

(a) Tirupur (Tamilnadu) - Hosiery

(b) Ludhiana (Punjab) - Wollen Knitwear

(c) Panipat (Haryana) - Wollen Blanket

(d) Bhilwara (Rajesthan) - Textile

2.15.6. India’s Readymade Garments Export to World

Apparel exports were to the tune of USD 1279 million in July 2013-14

with an increase of 19 per cent against the corresponding month of last

financial year. In rupee terms, the exports have increased by 28 per cent in July

2013-14 over the same month of previous year.

 Export in dollar terms for April-July of the financial year 2013-14

increased by 13 per cent over the same period of previous financial year and

reached USD 4841 million. However, in rupee terms exports increased by 18

per cent compared to the same period of last year. In April-July 2013-14 in

rupee terms apparel export of India was to the tune of Rs. 27538 crore

compared to Rs. 23300 crore in April-July 2012-13.

In the financial year 2012-13 exports in dollar terms declined by

6 per cent from previous year and totaled USD 12923 million in April-March

2012-13.

Table 2.5
India's Readymade Garments Export to World
2012-13 2013-14 Growth (%)
Month In INR In US$ In INR In US$ INR US$
Crore Million Crore Million
April 5717 1059 6354 1150 11.14 8.59
May 5569 1040 6278 1172 12.73 12.69
June 6056 1106 7260 1240 19.88 12.13
July 5958 1074 7646 1279 28.33 19.14
April-July 23300 4279 27538 4841 18.18 13.13
Source: DGCI&S, Kolkata (Director General of Commercial Intelligence and Statistics)

2.15.7. Top Ten Commodities of Export

Department of commerce, India having the system on foreign trade

performance analysis (FTPA) that shows the top commodities of export.

Table 2.6 shows the top ten commodities of export.

 Table 2.6
Top Ten Commodities of Export (Values in Rs. Crore)
% %
Rank Commodities 2013 2014 (P)
Growth Share
1 Petroleum 330,790.01 380,249.60 14.95 20.07
2 Gems and Jewellary 236,162.03 248,465.42 5.21 13.12
3 Equipments 99,902.74 129,761.30 29.89 6.85
4 Machine Instruments 83,286.78 98,207.92 17.92 5.18
5 Drugs, and Phrmcutes 79,823.27 91,052.51 14.07 4.81
6 Other Commodities 54,748.77 60,092.48 9.76 3.17
7 Metals 54,676.59 58,663.76 7.29 3.10
8 Readymade Garments 45,826.50 54,870.44 19.74 2.90
9 Cotton yarn, Fabrics 40,946.59 53,913.77 31.67 2.85
10 Electronic Goods 43,845.35 46,217.13 5.41 2.44
Total 1,634,318.83 1,894,181.95 15.90 100.00
Source: DGCIS, Kolkata (Director General of Commercial Intelligence and Statistics)

It is seen in Table 2.6 that readymade garments export sharing is

2.9 per cent of the total and its growth rate 19.74 per cent. The commodity

readymade garment has got eigth rank.

2.15.8. India’s Trade Performance

India’s merchandise exports reached a level of US $ 304.62 billion

during 2011-12 registering a growth of 21.30 per cent as compared to a growth

of 40.49 per cent during the previous year. Despite the recent setback faced by

India’s export sector due to global slowdown, merchandise exports still

recorded a Compound Annual Growth Rate (CAGR) of 20.3 per cent over a

period of eight years from 2004-05 to 2011-12.

2.15.9. World Trade Scenario

As per IMF’s World Economic Outlook January, 2013, the volume of

world trade (goods and services) in 2012 slowed down to 2.8 per cent

compared to the 5.9 per cent achieved in 2011. As per IMF projections, growth

in the volume of world trade is expected to rise to 3.8 per cent in 2013.

The IMF has put its growth projections of world output at 3.5 per cent in

2013. The advanced economies are expected to grow at 1.4 per cent while the

emerging and developing economies to grow at 5.5 per cent in 2013.

The projected growth rates in different countries are expected to determine the

markets for our exports.

As per WTO’s International Trade Statistics, 2012, in merchandise

trade, India is the 19th largest exporter in the world with a share of 1.7 per cent

and the 12th largest importer with a share of 2.5 per cent in 2011.87

2.15.10. Estimated and Actual Export of India

From the year 2004 to 2013 recorded values of target export and

actually achieved in US $ Bn are presented in Table 2.7.

Table 2.7
Estimated and Actual Export of India
Sl. No. Year Export Target Actually Achieved
(US $ Bn) (US $ Bn)
1. 2004-05 75 83.54
2. 2005-06 100 103.09
3. 2006-07 125 126.41
4. 2007-08 160 163.13
5. 2008-09 200 185.30
6. 2009-10 175 178.75
7. 2010-11 200 251.14
8. 2011-12 300 304.62
9. 2012-13 360 265.95
Source: Ministry of Commerce, Govt. of India.

87
Annual Report 2012-2013. Ministry of Commerce, Government of India.
 Exports recorded a growth of 21.30 per cent during 2011-12.

The government set an export target of US $ 360 billion for 2012-13.

The merchandise exports reached US $ 265.95 billion in 2012-13. It is also

presented in Figure 2.6.

Figure 2.6
Expected and Achieved Exports
400

350

300
Values in US $ Billion

250

200

150

100

50

0
2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012-
05 06 07 08 09 10 11 12 13
Export Target 0 75 100 125 160 200 175 200 300 360
Actually Achieved 0 83.54 103.09 126.41 163.13 185.3 178.75 251.14 304.62 265.95

2.16. Imports of Readymade Garments in India

India’s import is very low compared with its export for ten years from

2003 to 2012. The details of import of Readymade garment import shown in

Table 2.8.
 Table 2.8
Imports of Readymade Garments in India
Sl. No. Year US $ in Million
1. 2003 0.0
2. 2004 0.0
3. 2005 0.0
4. 2006 0.1
5. 2007 0.1
6. 2008 0.1
7. 2009 0.1
8. 2010 0.2
9. 2011 0.3
10. 2012 0.3
Source: DGCI&S (Director General of Commercial Intelligence and Statistics)

It is seen in Table 2.7 that india’s import gradually increased and india

was placed rank as 75 in world level. It shows India’s balance of trade is in

positive. This same is also presented in Figure 2.7.

Figure 2.7
India's Import (value in US $ mn)
0.35
India's Import (value in US $ 0.3 0.3
0.3 mn)

0.25
0.2
0.2

0.15
0.1 0.1 0.1 0.1
0.1

0.05
0 0 0
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2.17. Brand in India

India is witnessing a change in life styles of large section of the

population. The need to understand the emerging markets and consumers has

become a big challenge for the corporate world, especially in creating and

managing a powerful brand. By developing a powerful brand, corporates can

establish 'brand equity' and the equity assists firms in a variety of ways to

manage competition and to maintain market share. Branding is one of the most

effective competitive tools and it is a challenging task for the marketeer to

nurture a brand into a strong, profitable brand.

Brands were more visible than those in the past. They are everywhere on

the TV hoardings, posters and print media. Brands while proclaiming their

positive qualities pull down those of their rivals. Intangible assets such as

brands, patents and know-now have become increasingly dominant elements of

company value. Brands are widely recognized as corporate assets, but have

been historically evaluated based on non financial attributes like awareness,

recognition and perceived value. Every marketeer instinctively knows that his

or her brand is valuable. Brand value is represented by the premium price a

company gets at the time of transfer of ownership. However, the value of

on-going business is determined by the important financial term “Goodwill”.

Buying behaviour of men in branded shirts is changing one. A number

of people visit the showroom with a brand in mind because the quality and

comfort of that brand are suitable for them. Most of the youth not give much
importance to any specific brand because they go for a smart look and different

style only.

2.17.1. Reasons for Branding

Branding of products is very important in marketing. It promotes image

and reputation of business firm. It also gives satisfaction to the customers.

Trademark helps producers and sellers get legal protection. From this

customers can get quality products at reasonable price.

Producers, sellers, customers get different benefits and advantages from

brand name and trademark. Hence, the main reasons for branding products are

the benefits and advantages that the consumers and business firms get.

The importance and reasons for branding products can be mentioned as

follows:

2.17.3. Branded Garments in for More Relaxations

The government proposes some more relaxations for the branded

garments sector, besides enhancement of duty abatement from 40 per cent to

55 per cent.

One of the major relaxations proposed for the sector is the exemption for

job, workers who work for brand owners in India. This category may not be

required to pay 10 per cent excise duty, which the government imposed on

branded garments in the Union Budget 2011-12.

Second, branded school and corporate uniforms and materials may also

be exempted from excise duty. “This means any branded uniform or blankets,
quilts, and so on. for schools, colleges, hotels, airlines or for any other industry

is likely to be exempted from payment of excise duty,” explained an official

source.

Third, documentation and procedures for availing of exemption from

excise duty for small-scale industries may be simplified. According to sources

excise officials might not inspect documents. Rather, mere certification of a

chartered accountant or documents submitted for value added tax (VAT) and

VAT credit would be sufficient to claim excise exemption. 88

2.18. Marketing Strategy

Strategies are formulated to provide superior customer value. In

formulating marketing strategies, the readymade garment units in Maduari city

are followed the 4-ps for achieving the target market and the decision making

process generally followed by the consumer is based on 4-ps.

Figure 2.8

Decision Making Process Generally Followed by Consumer

Product, Price, Promotion, Place Target Market

(i) Product

A product is anything that is offered to the consumer which is tangible

and can satisfy a need and has some value.

88
Anindita Dey / Mumbai May 09, 2011, 0:12 IST
(ii) Price

Price is the amount of money one must pay to obtain the right to use the

product.

(iii) Distribution (Place)

The goods can be distributed by many channels. These could be

retailers, wholesalers, agents or by direct selling. Distribution outlets play an

important role in reaching the goods to the consumer. They provide, time, place

and possession utilities.

(iv) Promotion

Promotion is the means of changing the attitudes of the consumer, so

that it becomes favourable towards the company’s products. Various means of

promotion are advertising, personal selling, sales promotion and publicity.

2.19. Marketing Strategies Adopted by Leading Readymade

Garment Sellers

2.19.1. Peter England

Peter England Milestones – A unique and efficient rewards

programme that allows its members to earn points equal to the purchase value,

on every purchase. The accumulated points not only entitle you to a discount of

up to 10 per cent on bill value but also provides bonus points for the

purchase.

Consumers can register for this hassle free programme by mentioning

their mobile number at the cash desk of any Peter England store at the time of

purchase and earn start earning points on the go with every purchase. This
programme does not require you to carry a physical card to avail of benefits of

the programme.

Table 2.9
Details of Peter England Membership Card
Bonus
Sl. Purchase Value No. of Points
Membership Points(%)
No. (Rs.) Purchases Per
Purchase
1. Classic 0 - Rs.3000 1 3 10

2. Silver 3000 - Rs.6000 2 5 20

3. Gold 6000 - Rs.12000 3 7 30
4. Platinum 12000 and above 4 10 40
(Source: www.peterengland.com)

2.19.2. Van Heusen

The brand embodies ‘fashion for the corporate’ and reflects the current

expression of elegance in today’s context. Van Heusen believes that the design

drivers for the brand are fashion and sophistication. The brand covers all

aspects of an individual's clothing needs, be it corporate wear, casual wear,

party wear or ceremonial wear, Van Heusen in true sense is a complete lifestyle

brand.

The Power Club is a unique membership and rewards program for loyal

customers of Van Heusen. Each time members shop with the card, they will be

awarded points based on the value of purchase. These points can be redeemed

at any of our exclusive stores across India for more Van Heusen merchandise

of their choice.
 The Power Club is an online program for consumer convenience. Once

consumer becomes a member, one will be sent a unique log in ID and password

via consumer mobile phone. The consumer can log in to this website at any

time to view their membership information, check points status, edit account

details or get in touch with us. One can also access their membership details

and check points status by flashing the membership card at any Van Heusen

store. Van Heusen has three levels of membership in depending on the

customer shopping profile such as Gold, Silver and Classic.

Table 2.10
Details of Ven Heusen Membership Card

Sl. Points (Every

Membership Eligibility Validity
No. Rs.100 Spent)

1. Gold Make a single purchase

Rs.15000 or Cumulative 7 12 months
purchase Rs.20000 p.a
2. Silver Make a single purchase
Rs.7000 or Cumulative 5 12 months
purchase Rs.10000 p.a
3. Classic Make a single purchase
3 12 months
Rs.3000 p.a
(Source: Press release by Van Heusen at their website)

As a Power Club member, customers also have access to previews of

new collections, invitations to fashion evenings as well as other out-of-store

privileges that match their lifestyle.

2.20. Associations in India for Promoting Readymade Garment Export

To promote the growth of readymade garment in India there are many

associations. They are Clothing Manufacturers Association of India (CMAI),

Apparel Export Promotion Council (AEPC) and so on.

2.20.1. Clothing Manufacturer’s Association of India (CMAI)

It was established in 1963 on a national level and it encompasses both

manufacturers and exporters of garments. It has over 1,800 members and was

set up with the following objectives:

1. To promote the interest of cloth manufactures in domestic and foreign

trade.
2. To act as a like between the clothing industry and government
authorities.
3. To serve as a platform for the resolution of disputes between
manufacturers and dealers.

In 1997, it persuaded the government to establish the AEPC. It also

organized the National Garment Fair (NGF) for the first time in India during

1981 and so far 34 NGF’s were held. It has also set up an arbitration panel in

1973, to resolve disputes between members and dealers with the success rate of

85 to 90 per cent. It publishers a black list consisting of recalcitrant dealers to

members of CMAI and other member associations.

It has also set up a clothing Export Processing Zone in Andheri,

Mumbai, during July 1981. In this zone a training institution also prevails to

train workers in production techniques. To test both chemical and physical

characteristics of garments, a testing laboratory was started in 1996 in Mumbai.

The laboratory has computer controlled testing equipment to ensure internal

quality of garments and textiles also. Its test reports have solved disputes

relating to quality on quite a few occasions between fabric supplier and

exporter. Thus CMAI plays a very vital role in strengthening the RMGI by its

timely actions and its keenness in improving the image of Indian garments.

2.20.2. Apparel Export Promotion Council (AEPC)

AEPC sponsored by the Government of India, Ministry of Textiles was

set up in 1978 and is registered under section 25 of the Company’s Act 1956.

It came into existence on 1978 with the object of promoting and regulating the

exports of readymade garments. Its head office is located in New Delhi and has

13 branches within India of which southern region accounts for five branches.

It has two special branches to handle cargo at Mumbai and New Delhi. India

has negotiated bilateral textile agreements with EU, USA, Canada and Norway.

To execute the above agreements the government has formulated the Garments

Exporters Entitlement Policy (GEEP) popularly known as “Quota Policy”.

The main function of AEPC till phasing out of the Multi Fibre

Agreement will be to administer and monitor export entitlement for RMG on

an annual basis, that is, to administer the quota policy. In addition, it helps its

members in demand creation activities, conducting market research and

provides market information. It also arranges buyer-seller meets and helps the

government on matters of export-import policy and other issues relating to

RMGI. Thus, the role of AEPC is to project India’s image as a reliable supplier

of high quality ready-made garments and allied services.

2.20.3. Tirupur Exporters Association (TEA)

TEA was established in 1990. This is an association exclusively for

exporters of knitwear who have production facilities in Tirupur. The members

of the association have resolved to develop their organization differently with

emphasis on:

i. Multi-lateral growth of knitwear-industry and exports

ii. Development of infrastructural need of Tirupur

iii. Implementation of schemes for the benefit of the society and public

iv. Treatment of workers as partners of progress and give them their due

share without grudging

v. Steps to grow help and guide others to grow.

2.20.4. South India Textile Research Association (SITRA)

SITRA was developed in collaboration with United Nations Industrial

Development Organization (UNIDO) and Textile Industries with the aim of

promoting and developing the garment industry. It gives technical assistance to

the industry in the following ways:

(i) Helping to solve the problems of different processes faced by the

garment industry
(ii) Undertaking evaluation of quality of yarns and its performance in
processing
(iii) Testing of fabric parameters for various types of fabric
(iv) Conducting training programmes for technical persons in the
industry
(v) Helping to prepare feasibility reports.
2.20.5. Textile Committee

The textiles Committee is a statutory body constituted under the Textiles

Committee Act, 1963. A committee of 29 members representing the

government, industry and trade manages the organization. The Chairman is

appointed from the textile industry for a period of two years, the Textile

Commissioner is the Vice Chairman, Ex-officio and the Secretary of the

Committee is the Chief Executive Officer.

The personnel of the Committee are around 700 and two-thirds of them

are qualified and trained textile technologists/chemists and Market Research

specialists. The Head Office of the Committee is located in Mumbai and has

29 other fields/regional offices. The activities of the Committee are funded

partly by the proceeds of Cess, collected from the industry at 0.05 per cent ad

valorem.

The Textile Committee is the only organization of its kind, which

provides a wide range of services under one roof. With 30,000 textile exporters

and manufactures as its clientele and with 30 offices covering all major textile

centers in the country, the Committee has a tremendous amount of reach and

rapport with the industry. Such strength, if harnessed properly, will go a long

way in serving the Indian textile industry and trade effectively.

The services rendered by the Textile Committee are:

i. Testing of textiles, chemicals, dyes and effluents through 17 laboratories

equipped with world class testing facilities;

 ii. Providing consultancy to textile companies in the implementation of

ISO 9000 QMS/ISO 14000 EMS/SA 8000 standards;

iii. Conducting training programmes to industry personnel in quality,

inspection/assessment, process control, inventory management and other

related areas;

iv. Surveys for creation of database on vital sectors of industry;

v. Assistance to exporters by way of inspection and certification;

vi. Assisting the BIS in evolving quality standards for textiles;

vii. Coordinating the project for upgradation of textile testing laboratories in

the country;

viii. Research and Development with respect to eco-friendly textiles.

2.20.6 National Institute of Fashion Technology

The National Institute of Fashion Technology (NIFT) is an autonomous

body, registered as a Society under the Societies Registration Act, 1860 on

1986 under the administrative control of the Ministry of Textiles, Government

of India with a view to be a professional institute for imparting training in

design, business and technology for garments as well as for related products of

fashion industry. The institute introduced its first course in 1987. NIFT has

emerged as a premier institution imparting training in fashion technology,

matching the best available internationally.

2.20.7. The Apparel Training and Design Centre

The Apparel Training and Design Centre (ATDC), a Society registered

under Societies Act, sponsored by ‘Apparel Export Promotion Council’,

Ministry of Textiles, Government of India, was set up in1991 in New Delhi,

with a view to upgrade the technical skills of the workers employed in the

garment industry. The first training institute was set up in Chennai during

December 1995 and the second training institute was set up in Bangalore

during May 1996, to be followed by other centers in Hyderabad, Jaipur, Delhi

and Calcutta. Plans are also there to start the training institutes at Bombay,

Noida, Gurgaon, Ludhiana and Trivandrum.

This training institute is dedicated to impart the professional training to

the workers engaged in the Garment Manufacturing Industry in the field of

Pattern Making / Cutting techniques and Production Supervision and Quality

Control techniques so that quality garments are manufactured for the global

market in these garment units.

Indian exporters have generally been catering to the lower end of the

international market and our unit value realization is much less than what many

other countries have been able to achieve. In order to achieve the quality,

sufficient growth in the sector and to train the workers, ATDCs are being

established in different parts of the country, where garment industry is

concentrated. Different courses are offered in the training centers and after

completion of the training courses, the successful candidates are awarded

certificates.

2.21. Readymade Garment Industry in Tamilnadu

The Readymade Garment Industry has grown rapidly in Tamilnadu over

the decade. In Tamilnadu the Madras Export Processing Zone is one of the
country’s growing hubs in garments products along with other metropolitan

cities such as Mumbai, Delhi and Kolkata. Besides its growth spread over in all

other major districts such as Chennai, Tirupur, Coimbatore, and Madurai.

The main cause for this rapid growth in Tamilnadu was the spinning mills that

have invested their surplus from the spinning boom of the early 1990s into

higher-value added segments like garments.

Besides the investors are new, first time players, who took advantage of

the garment’s erstwhile policy of reserving garments for exclusive production

by small firms to get into a new and potentially lucrative market. The flow of

funds from states outside Tamilnadu by the entrepreneurs who entered into the

garments business was also another significant cause for this growth.

2.22. Readymade Garment Industry in Madurai

There are around 1000 Micro tailoring and Readymade Garments units

in and around Madurai. The Madurai integrated textile park consists six

Readymade Garments units and three household garment unit. 89 It fulfil the

needs of the domestic market consumers and export readymade garments to

various countries.

Readymade Garment Industry generates employment opportunities in

Madurai city. Moreover, in Madurai area, unskilled labour are available with

reasonable labour cost.

89
http://www.dicmdu.in/integrated.htm
 Wholesaler and retailer of readymade garments having their own

manufacturing unit in Madurai, namely A.K. Ahamed, Pothys, Ramaraj

Cottons, Sri Krishna, Rajmahal, suxuz, prestiage and the others.

2.23. Trends in Domestic Market

Domestic Apparel Market is growing at the rate of ten per cent per

annum. Urban consumers are increasingly seeking branded and lifestyle

products. Semi-urban and rural Indian markets are growing faster than

expected.

2.24. SWOT of Readymade Garments Units in Madurai City

The researcher has attempted to make swot of readyamade garment

units in Madurai city. Table 2.11 shows that strengths, weaknesses,

opportunities and threats of readymade garment units in Madurai city.

 Table 2.11
Swot of Readymade Garments Units in Madurai City
Availability of highly productive workforce, especially
women at competitive costs.
Logistical advantage with respect to export markets
Image as a competitive destination for the industry by
STRENGTHS
virtue of the presence of some of the renowned
readymade garments manufactures in the country.
Availability of specialized industrial parks like the
Integrated apparels park.
Logistical disadvantage with respect to the domestic
market in the country as also principal sources of raw
material(fabrics).
Inadequate availability of highly skilled professionals
WEAKNESSES fashion designers, master cutters and so on.
Large scale employee turnover (especially women, after
getting married) reported in organized garment units.
Absence of well developed infrastructure/ facilities for
skills development, training and so on.
Expanding domestic and international markets.

Avenues opening up in international markets in a

OPPORTUNITIES post MFA regime.
Changes in the dressing pattern especially within Tamil
Nadu, opening up larger markets for readymade
Garments.
Emergence of China as the major player in the textiles
and garment business is likely to intensify competition
in the international markets.
Existence of well known brands pose competition to
THREATS readymade garment units within the state targeting the
domestic markets.
Dumping of cheaper garments from centers outside the
state, distorting local market conditions.

Table 2.11 exhibits the common strengths, weaknesses, opportunities

and threats applicable for the readymade garment units in Madurai city.

Normally, they are in a position to maximize the strength by way of taping the