EXISTING STRUCTURE OF

THE INDIAN APPAREL

INDUSTRY
 STRUCTURE OF THE APPAREL
INDUSTRY
IN INDIA
spinning
processing
garment making
weaving

retailing
STRUCTURE OF THE APPAREL
INDUSTRY
IN INDIA
 Financially strong players at the back end.
State of the art spinning facilities
 Large weaving capacity. However, a major
capacity is in the unorganized / small scale
sector.
 Processing is the weakest link in the entire
chain.
 Barring a few large, organized sector players,
operating largely in the 100% Cotton and / or
Cotton Rich blends in finer counts & in
denim, this sector is unorganized
STRUCTURE OF THE APPAREL
INDUSTRY
IN INDIA
 Garment making has a number of small to large
players.

 Larger companies expanding capacity rapidly. Most

have Full Package capability.

 Large number of retailers at the front end,though

only a few are big (relatively).
LEADING PLAYERS –
RELIANCE INDUSTRIES LTD

World’s largest producer of Polyester Fiber

&Yarn, after acquisition of Trevira, Germany
in 2004
 Polyester Capacity in 2002: 1 mn tonnes.
Expanding to 2.0 mn tonnes in 2005
LEADING PLAYERS –
ARVIND MILLS LTD.

 India’s largest textile company. World’s

4th largest denim manufacturer
 Raising its garment capacity to 25 Mn
pieces by end 2005
 Arvind Brands manages & runs local
brands including Arrow, Lee, Wrangler,
Newport, Tommy Hilfiger, etc.
 Product Production/Annum

 Knit Fabric 4,700 tonnes

 Cotton Shirting 34 mn metres

 Denim Fabric 120 mn metres

LEADING PLAYERS –
AMBATTUR CLOTHING LTD.
 4th largest Apparel exporter in India
 Over 35 Mn pieces per annum from 10
factories
 Sales Turnover of US$ 110 Mn for 2004.

 Targeting US$ 210 Mn in the next 4 years

 Key buyers include GAP, Kohls, Eddie Bauer,

LL Bean, Levis, Ann Taylor, J.Crew, Next,
Esprit, Diesel, etc.
LEADING PLAYERS –
MADURA GARMENTS
 Largest branded apparel company in India.
2003-04 revenue of US$ 120 Mn. Over 350
stores across India
 Launches 720 designs in shirts & 360
designs in trousers annually across all brands
 One of the largest manufacturer-exporters
for Tommy Hilfiger and Marks & Spencer
 Adding innerwear manufacturing capabilities
CHALLENGES FOR THE INDIAN
APPAREL INDUSTRY
 Competitive Prices (from our experience
most Indian companies have opportunities
of Cost Savings of 10%+)
 Shorter Lead times

 Wider Style Variations & Smaller

production runs thus need for Flexible
Manufacturing
 Stringent workplace and human rights
standards
 Demand for the most efficient logistics
capability
 Demand for high manufacturing standards
GROWING DOMESTIC MARKET…
Improving Infrastructure & Business Environment
 Golden quadrilateral project underway –
connecting all major metros, cities and business
centers
 Infrastructure within major cities being upgraded
rapidly
 Telecom & Internet connectivity amongst the best
in the world
 Airports & Seaports still lag size, but plans for
major renovations & expansion underway
 Excellent Banking, Financial & Stock markets
CONSUMERS SHIFTING FROM
MARKETS TO
MALLS
 About 70 - 80 million sq. ft. of space from
more than 400 malls expected to be
operational by end of 2008

 And perhaps as many as 600 by end of 2010

across 60 cities
ORGANIZED RETAILING GROWING AT
25 –
30% P.A.
Retail industry in India is estimated at US$
200 billion and is projected to grow at 5%
p.a.
 Size of organized retailing market stands at
over US$ 6 billion & is growing at 25-30%
p.a. Its share of total retail market is
anticipated to become 10% from current 3%
IN THE NEXT 3 YEARS, INDIA
COULD SEE
Luxury / Premium Mass Affluence /
Brands such as: Fashion Brands such
as:

Chanel Esprit
 Burberry  Diesel
 Gucci
 Next
 Paul & Shark
 Gant
 Versace
 Zara
 Armani
 Polo Ralph Lauren
 H&M

 Prada  Gap

 Valentino
OPPORTUNITIES IN DOMESTIC
MARKET
 Within 7-10 years India will become one
of the 5 largest retail markets in the
world
 A country-wide network of several
hundred department stores & shopping
malls across 100 plus cities will exist
 Well positioned apparel brands have
significant opportunities to create a
strong foot-print
 A well positioned middle market brand
can expect to have a retail turnover
exceeding US $100 million
 Again, understand local challenges well
& plan ahead to meet them
THANK U….