PRESENTATION ONINDIAN GARMENT INDUSTRY : PRESENTATION ONINDIAN GARMENT INDUSTRY
INDIAN GARMENT INDUSTRY - CURRENT ENVIRONMENT : INDIAN GARMENT INDUSTRY - CURRENT ENVIRONMENT 12.5% share in India’s commodity export basket.
Represents value added sub-sector.
Less import sensitive.
7% of Industrial production.
Growing at a rate of 20%
Slide 3: The Indian Garment Industry is segmented into two sectors:
Domestic & Export segments INDIAN GARMENT INDUSTRY- OVERVIEW
Slide 4: The Domestic RMG is highly fragmented with a few players in the organized sector
Small and unorganized local players largely dominate the domestic RMG Market
The domestic market worth Euro 13.64 billion can further be segmented into:
Slide 5: Men’s Wear segment is estimated at
5.65 Euro billion in 2005-06
accounting for about 41.4%
of the total domestic RMG market
Segment has grown at a CAGR of
around 8% from 2001-02 to 2005-06
Men’s Wear segment has further been
categorized as depicted by the diagram
Slide 6: The Women’s Wear segment is estimated
at 4.69 Euro billion in 2005-06
accounting for about 34.4% of the total domestic RMG market
Segment has grown at a CAGR of 8 % from
2001-02 to 2005-06
Women’s Wear segment has further been
categorized as depicted by the diagram
Slide 7: – The Kid’s Wear segment is worth 3.30 Euro billion
accounts for about 24.2%of the total domestic RMG market
segment has grown at a CAGR of 14% from 2001-02 to 2005-06
Kid’s Wear segment has further been categorized as depicted by the diagram
Slide 8: The export market for readymade garment is estimated
at 6.19 Euro billion of the total market size.
The United States (US) and the European Union (EU) being the key destinations.
Exports are dominated by readymade garments : Exports are dominated by readymade garments Readymade garments dominate textile exports
Share of manmade textiles in overall textile export basket has risen, whereas that of cotton textiles has fallen Readymade garments Cotton yarn, fabric & made-ups Manmade staple fibres, yarn, fabric & made-ups Silk & woolen textiles, cotton raw, incl waste 51% 35% 10% 4% 52% 34% 9% 5% 55% 25% 13% 7% 100% = INR 654 bn 100% = INR 390 bn 100% = INR 199 bn Year 1994-95 Year 1999-00 Year 2005-06 Textile exports Source: Ministry of Textiles
MAYOR PLAYERS IN INDIAN GARMENT MARKET : MAYOR PLAYERS IN INDIAN GARMENT MARKET 1. Pantaloon Retail (India) Limited
2. Shopper’s Stop
3. TATA – Trent
4. Globus Stores Pvt Ltd
5. Piramyd Retail Ltd
6. Arvind Brands Ltd
7. Provogue ( India) Ltd
8. The Raymond Group
9. Madura Garment
10. Reliance retail Ltd
11. Wills Lifestyle (Lifestyle Retailing Business Division, ITC)
12. Murjani Group
13. Landmark Group
14. Gokaldas Exports Ltd
15. Zodiac Clothing
SWOT analysis on Indian garment industry : SWOT analysis on Indian garment industry STRENTHS
Increasing disposable incomes
of the people
Brand conscious customers
Availability of cheap finance
Growing domestic market,
Increase in number of malls WEAKNESSES
Predominance of unorganized
Sector
Technological obsolescence in the
supply chain
Effect of Historical Government Policies
Slide 12: OPPURTUNITIES
Increasing demand for luxury brands from the middle class
Research and new product development can help the companies to move across the value chain
Increased use of CAD to develop designing capabilities
Indian companies need to focus on Product Development THREATS
Increased competition in the
domestic markets
Cheaper imports
Changing Government’s policy on FDI
Need to improve the Working Conditions of the people who are involved in this profession
Tackle Chinese Aggression over the International Market
INITIATIVES TAKEN BY THE GOVERNMENT TO MAKE THE INDUSTRY GLOBALLY COMPETITIVE : INITIATIVES TAKEN BY THE GOVERNMENT TO MAKE THE INDUSTRY GLOBALLY COMPETITIVE Setting up of US $ 6 Billion Technology Upgradation Fund for modernising the entire value chain of the industry
Launching of a Technology Mission on Cotton to improve the quality and productivity of raw cotton
Liberalized labour laws, tax and other benefits of a Special Economic Zone need to be implemented
Progressive reduction of import duty on garment machinery and products
Companies free to set up fully-owned sourcing (liaison) offices, as well as marketing operations
Future prospects : Future prospects Garment industry is looking at achieving an export target of $25 billion by 2010-11, an Apparel Export Promotion Council (AEPC) official said.
The industry would need an additional 1.5 million people
An investment of Rs 35,000 crore in terms of related infrastructure
AEPC plans to set up 50 training centres, besides the 22 centres it has at present across the country
Recently AEPC & TCS tie-up to focus on IT need of apparel industry
Slide 15: RECESSION IMPACT
Slowdown of local & global markets
Uncompetitive production cost
Rising input cost
Unrelenting neglect by the government
Slide 16: THANK YOU
Presented By
GUNEET SINGH
08-49