IndustryAnalysis Research Report on

TEXTILE INDUSTRY IN INDIA

BY

20MBAMM10 PRATIK DETHE

7 PRAJWAL KHANDARE
20MBAMM10 MOHIT SHARMA
1 RUSHABH GANDHI
20MBAMM08 AKANSHA AKHADE
7
20MBAMM11
7
20MBAMM07
4

(MBA: 2020 – 2021)

IN PARTIAL FULFILLMENT OF

Marketing Specialization: MBA2020: Industry Analysis Research

As prescribed by MIT-World Peace University

MIT-World Peace University’s

Faculty of Management (PG)
1
Pune

2
 CERTIFICATE

This is to certify that Mr. / Ms /Mrs.

of MIT-WPU’sFaculty of Management (PG)have
successfully completed the desk research work titled
in partial fulfilment of
requirement for Course MBA2020: Industry Analysis Researchasprescribed by the MIT-
World Peace University.

This Report is the record of authentic work carried out during the academic year
2020-21.

Mansi Kapoor

Prof. Dr. Aparna Dixit

Head of School
MIT-WPU-FOM(PG)

3
DECLARATION

We, Mr. / Ms. / Mrs._________________________________ hereby declare that this

Research Report is the record of authentic work carried out by us during the academic year
2018-19 and has not been submitted to any other University or Institute towards the award of
any degree.

Roll No. Name Sign

20MBAMM107 PRATIK DETHE

20MBAMM101 PRAJWAL KHANDARE
20MBAMM087 MOHIT SHARMA
20MBAMM117 RUSHABH GANDHI
20MBAMM074 AKANSHA AKHADE

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 CONTENTS
Chapt
Particulars Page No.
er No.
Certificate 2
Declaration 3
Acknowledgement
Executive Summary 7
1 Profile of Industry: ----------- 8
1.1. Nature of the Industry 8
1.2. Players in the industry 10
1.3. Nature of competition from an economist’s
perspective 12
1.4. Market shares of top 2 players 13
1.5. Possible Classification of players into Leaders,
Challengers, Followers, Nichers 13
1.6. Demand and Supply 15
1.7. Capacity Analysis of Industry and Key Players 16
1.8. Professional Trade Bodies of Industry 17
1.9. Online Presence of Industry 18
1.10.Controlling ministry and / or regulator if any for the
Industry 19
1.11.Key National and Global issues affecting the industry 19
1.12.Key initiatives by the Government to promote the
industry 20
1.13.Macro Environment 21
1.14.Micro Environment 21
1.15.Environmental issues 21
1.16.Sick players if any and their turnaround strategies, if
any. 23
1.17.Trends in the Industry 24
1.18.Strategic Alliances in the Industry 27
1.19.Budget 2020 and Its Impact on Industry 28
1.20.New EXIM Policy and Its Impact on Industry 29
1.21.Global Trade 30
1.22. Conclusion 30

PROFILE OF INDUSTRY

2 Promoters and Management Ethos 31

2.1 Background of promoter 31
2.2 Vision, Mission and Quality Policy 31
2.3 Brief profile of key top management personnel 34
2.4 CSR policy 35
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Chapt
Particulars Page No.
er No.
2.5 Corporate Governance Initiatives 36
2.6 Initiatives towards environment conservation 36

 
3 External Environment 38
3.1. Macro Environment 38
3.2. Micro Environment 39
3.3. Environmental issues 41

 
4 Marketing Strategies 43
4.1. Marketing Strategies and Plans 43
4.2. Target Market 45
4.3. Differentiation and Positioning Strategies 45
4.4. 4Ps /7Ps Product (Price , Promotion , Place, People,
Process, Physical Environment 50
4.5. SWOT analysis 51

 
5 Financials 54
5.1. Finance Strategies and Plans 54
5.2. Revenues of last 5 years 54

 
6 Recent Developments 56
 
Bibliography  
Annexure  

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 Summary

The textile and apparel industry is one of the earliest industries to have developed in
India. Its inherent and unique strength is its incomparable employment potential owing to the
presence of the entire value chain from fibre to apparel manufacturing within the country. It
is the biggest employer after agriculture and provides direct employment to 4.5 crore people
and another 6 crores in allied sectors.Indian garments are considered as the right value for
money. International brands are showing increased trust in India which enhanced the brand
value of Indian garments.India is on the global radar for textile, and apparel sector supported
by its increasing population, income level, growing market penetration of more and more
players, and rapid urbanization of smaller towns. This would be the best chance for India to
increase its foot prints in the global textile arena.

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1.Profile of Industry

1.1 Nature of the Industry:

The Textile Sector in India ranks next to Agriculture. Textile is one of India’s oldest
industries and has a formidable presence in the national economy in as much as it contributes
to about 14 per cent of manufacturing value-addition, accounts for around one-third of our
gross export earnings and provides gainful employment to millions of people. The textile
industry occupies a unique place in our country. One of the earliest to come into existence in
India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the
total exports and is the second largest employment generator after agriculture.
Textile Industry is providing one of the most basic needs of people and the holds importance;
maintaining sustained growth for improving quality of life. It has a unique position as a self-
reliant industry, from the production of raw materials to the delivery of finished products,
with substantial value-addition at each stage of processing; it is a major contribution to the
country's economy. This paper deals with structure, growth and size of the Indian textile
industry, role of textile industry in economy, key advantages of the industry, textile industry
export and global scenario and strength, weakness, opportunities and threats of the Indian
textile industry.
Structure of the industry;
Unlike other major textile-producing countries, India’s textile industry is comprised mostly of
small-scale, non-integrated spinning, weaving, finishing, and apparel-making enterprises.
This unique industry structure is primarily a legacy of government policies that have
promoted labour-intensive, small-scale operations and discriminated against larger scale
firms:
• Composite Mills. Relatively large-scale mills that integrate spinning, weaving and,
sometimes, fabric finishing is common in other major textile-producing countries. In India,
however, these types of mills now account for about only 3 percent of output in the textile
sector. About 276 composite mills are now operating in India, most owned by the public
sector and many deemed financially “sick.”
• Spinning. Spinning is the process of converting cotton or manmade fibre into yarn to be
used for weaving and knitting. Largely due to deregulation beginning in the mid-1980s,
spinning is the most consolidated and technically efficient sector in India’s textile industry.
Average plant size remains small, however, and technology outdated, relative to other major

8
producers. In 2002/03, India’s spinning sector consisted of about 1,146 small-scale
independent firms and 1,599 larger scale independent units.
• Weaving and Knitting. Weaving and knitting converts cotton, manmade, or blended yarns
into woven or knitted fabrics. India’s weaving and knitting sector remains highly fragmented,
small-scale, and labour-intensive. This sector consists of about 3.9 million handlooms,
380,000 “power loom” enterprises that operate about 1.7 million looms, and just 137,000
looms in the various composite mills. “Power looms” are small firms, with an average loom
capacity of four to five owned by independent entrepreneurs or weavers. Modern shuttle less
looms account for less than 1 percent of loom capacity.
• Fabric Finishing. Fabric finishing (also referred to as processing), which includes dyeing,
printing, and other cloth preparation prior to the manufacture of clothing, is also dominated
by a large number of independent, small scale enterprises. Overall, about 2,300 processors
are operating in India, including about 2,100 independent units and 200 units that are
integrated with spinning, weaving, or knitting units.
• Clothing. Apparel is produced by about 77,000 small-scale units classified as domestic
manufacturers, manufacturer exporters, and fabricators.
Size of the industry;
• The textile industry in India covers a wide gamut of activities ranging from production of
raw material like cotton, jute, silk and wool to providing high value-added products such as
fabrics and garments to consumers.
• The industry uses a wide variety of fibres ranging from natural fibres like cotton, jute, silk
and wool to manmade fibres like polyester, viscose, acrylic and multiple blends of such fibres
and filament yarn.
• The textile industry plays a significant role in Indian economy by providing direct
employment to an estimated 35 million people, by contributing 4 per cent of GDP and
accounting for 35 per cent of gross export earnings. The textile sector contributes 14 per cent
of the value-addition in the manufacturing sector.
• Textile exports during the period of April-February 2003-2004 amounted to $11,698.5
million as against $11,142.2 million during the same period in the previous year, showing an
increase of around 5 per cent.
• Estimates say that the textile sector might achieve about 15 to 18 per cent growth this year
following dismantling of MFA.
 

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1.2. Players in the industry:

Arvind Ltd

Arvind Ltd was founded in the year 1931. It is headquartered in Ahmedabad. The company is
offering a wide range of products including knits, retail, woven, telecom, advanced material,
agri-business etc. The company owns brands like Flying Machine, Newport, and Excalibur
and licensed international brands like Arrow, Tommy Hilfiger, through its nationwide retail
network. It is one of the Top 10 Textile Companies in India.

Bombay Dyeing and Manufacturing Company Ltd

It is one of the Top 10 Textile Companies in India. Bombay Dyeing & Manufacturing
Company Ltd was started in the year 1879 and it is headquartered in Mumbai,India. The
company’s primary business is Polyster Staple Fibre and Retail- Textile. The company is
known for its revolutionary designs and high quality products.

Bombay Rayon Fashions Ltd

Bombay Rayon Fashions Ltd is one of the leading textile companies in India. It is offering
wide-range of products including Lycra, Wool, Tencel, Polyester. It has very good fabric
manufacturing capacity.  It is rapidly growing textile companies in India.

Fabindia Overseas Pvt Ltd

Fabindia was founded in the year 1960 by John Bissell. Its headquarter is located in New
Delhi, India. Today, it has opened stores all across the country. The company is also
promoting rural employment by sourcing products from Indian Villages. It has also started
the successful retail business in India. It is one of the Top 10 Textile Companies in India.

Grasim Industries Ltd

Grasim Industries Ltd world’s leading producer of viscose rayon fiber. The company was
started in the year 1947 and is headquartered in Mumbai, Maharashtra. It produces viscose
staple fiber and viscose filament yarn. It is the part of Aditya Birla Group and ranked as
largest private sector company. It is one of the Top 10 Textile Companies in India. It caters to
international fashion houses in the United States and the United Kingdom supplying fabric to
them for manufacturing of garments.

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JCT Ltd

JCT Ltd was founded in the year 1946. The company is engaged in the manufacture of
textiles and man-made fibres (nylon filament yarns). The Company operates through two
segments: Textiles and Filament yarn. The products considered as a part of Textile segment
are cloth and yarn. The products considered as a part of Filament segment are nylon yarn and
chips. The Company’s textile manufacturing facilities are located at Phagwara, Punjab. It is
one of the Top 10 Textile Companies in India.

Karnataka Silk Industries Corporation Ltd

Mysore is known for its rich cultural heritage. It produces a very good quality silk. KSIC
especially formed to promote the cultural heritage that is silk. Since last many years it is
producing good quality silk that is distributed all across India. It is manufacturing quality silk
admired all over India. Its product range includes Silk Dhoti, Men’s Tie, Salwar Kameez,
Silk Sarees, Kurta etc.

Raymond Ltd

Raymond Ltd was founded in the year 1925. It is headquartered in Mumbai, India. It is
producing wide range of products including fabrics, garment, designer wear, denim etc. It is
among the most trusted fabric brands in India. Raymond opened retail shops all across India
and overseas as well. It is one of the Top 10 Textile Companies in India.

The Lakshmi Mills Company Ltd

Lakshmi Mills Company was founded in the year 1910 by G. Kuppuswami Naidu. Its
headquarter is located in Coimbatore, Tamil Nadu. It is offering a huge range of products
including textile yarn, textile garments, weaving, and spinning. Its parent company is Laksmi
Machine Works. It is one of the Top 10 Textile Companies in India.

Vardhman Textiles Ltd

Vardhman Group is a textile group based in Ludhiana, Punjab, India. Vardhman Group was
established in 1965 by Lala Rattan Chand Oswal. The group is engaged in manufacturing and
trading in Yarn, Greige and Processed Fabric, Sewing Thread, Acrylic fibre and Alloy steel.
Vardhman group was incorporated in 1962 as Vardhman Spinning & General Mills
(VSGML).

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1.3. Nature of competition from an economist’s perspective:

Competitiveness means different things to different people. To an economist, it may mean

how well a country is performing compared to other countries as reflected in the standard of
living and changes in national productivity. To a policy maker, it may mean how a new
regulation changes the ability of affected businesses to compete. To a business owner, it may
mean changes in profitability as reflected in market share for its goods and services in a lower
cost market place. Thus, it is necessary to interpret competitiveness as best suits one's needs
and mission.
The OECD defines a nation's competitiveness as the degree to which a country can, under
free and fair market conditions, produce goods and services which meet the test of
international markets, while simultaneously maintaining and expanding the real incomes of
its people over the long term. Some scholars claim that nations themselves do not compete
rather; their enterprises do. There is no doubt that competitive enterprises are the main
engines of a country's competitiveness. However, over the past last years, the economic
responsibilities of governments have for better or worse increased so much that it is simply
impossible to ignore their influence on modern economies. Recent studies on employment by
the OECD clearly underline the role of nations in shaping the environment in which
enterprises operate, thereby influencing their competitiveness. A significant part of the
competitive advantage of certain nations today stems from aggressive incentive policies such
as tax breaks, subsidies, etc., which are designed to attract foreign investment.
Many studies on competitiveness have looked at labour productivity and adopted a
benchmarking approach to make practical recommendations on ways to improve the output
of factories and industry. Other studies have tried to understand what buyers are looking for
in various countries. Our study complements these studies by looking at the perceptions and
ideas behind the notion of competitiveness, from the perspective of the key players in the
industry. We wanted to see if there was consensus or disagreement in these perceptions
among the various actors, especially between buyers on one hand, and key players such as
government officials, who set policies, and factory owners, who set policies and standards in
their particular factories, on the other hand. Finally, we wanted to understand how workers
view competitiveness and what policies could be employed to help them increase their

12
productivity and efficiency. This analysis will help design policies and initiatives to improve
the various indices of productivity

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1.4. Market shares of top 2 players :-

Valuations of textile companies have increased significantly. In such a situation it makes

sense to be invested with consistent performers that may continue to do well operationally in
the next two three years due to their strong brands, timely expansion, market share and top 2
Players in markets.
• Nandan Denim: -
With 10 per cent market share of India's denim fabric market, Nandan Denim is the second
largest denim fabric manufacturing company in India. The denim segment has been growing
at a CAGR of 18% in the past 10 ET Textile years. The companies, which will enhance its
covers capacity by 22 per cent by companies the end of FY16.across the company value
chain, plans to increase has given 90 per cent the share of exreturns in the ports to 15-20% in
past three the next few years, while from 9%. Given the benchmark growth in denim nifty has
given fabric segment it totally 40% return is one of the few companies which is poised to do
well. In the past three years the company has delivered stable operating profit margin of 15%.
On the valuation front the company is trading at price to earnings multiple of times.

• Welspun India: -

Welspun India is the nation's largest manufacturer of home textile products such as terry
towels and bed sheets. The company supplies to 14 of the top 30 global retailers like Wal-
Mart, J.C.Penney, Target and Macy's. When it comes to towels and bed sheets, Welspun
product offerings cover super premium to value segment with brands like Christy, Kingsley,
Welhome and Spaces within India and overseas. Recently, the company expanded its
products offerings by focusing on carpet segment.

In the next one and a half years, Welspun plans to invest Rs 1,000- Rs 1,200 crore through
internal accruals to expand terry towel and bed sheet capacity by 25 per cent. There are two
main factors which would boost Welspun's operating profit margins in the coming years.
One, the company has adopted shop-inshop concept instead of putting its products for sale in
independent retail outlets.

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1.5. Possible Classification of players:
Given what has been said so far, the choice of who to challenge is fundamental and a major
determinant not just of the likelihood of success, but also of the costs and risks involved.
However, once this has been done, the strategist is then in a position to consider the detail of
the strategy that is to be pursued. Returning to the sorts of military analogies discussed
earlier, this translates into a choice between five strategies: a frontal attack, a flanking attack,
an encirclement attack, a bypass attack and a guerrilla attack. But before choosing among
these we need to return for a moment to the more fundamental issue referred to above of who
to attack and when. In deciding this, the options, as we have suggested, can be seen in terms
of an assault on the market leader a high-risk but potentially high return strategy, an attack
upon companies of similar size, or an attack upon the generally larger number of smaller and
possibly more vulnerable firms in the industry.
It has long been recognized that market challengers only rarely succeed by relying on just one
element of strategy. Instead, the challenging strategy needs to be made up of several strands
that, together, provide the basis for competitive advantage.
• Nichers
The fourth and final strategic position for a firm is that of a market nicher. Although niching
is typically associated with small companies it is in practice a strategy that is also adopted by
divisions of larger companies in industries in which competition is intense and the costs of
achieving a prominent position are disproportionately high. The advantages of niching can
therefore be considerable since, if properly done, it is not only profitable but also avoids
confrontation and competition.

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1.6. DEMAND AND SUPPLY-:

The demand of textile value chain, including yarn, fabric and apparels is likely to contract by
25-35 per cent in the financial year 2021 due to ongoing economic slowdown following
lockdown to curb the spread of the Covid-19 pandemic, finds a study by India Ratings and
Research.

The demand for yarn, fabric and apparels is set to remain muted throughout the first half of
the financial year 2020-21. The FY21 demand growth would typically depend on
discretionary spending, and thus a gradual recovery in household income over the second half
of the current financial year between October 2020 and March 2021.

Normalcy in revenue across the textile value chain may return by the second half of the
financial year 2022, on the back of reopening of the retail space, a normal monsoon, the
festive and wedding season. The demand revival will also depend on government measure to
incentivize exports, the study forecasts.

Weak demand of value-added products like yarn, fabric and apparel is bound to impact raw
material prices. The study forecasts a correction in cotton prices over FY21 from the levels of
Rs 95 per kg as of May 2020 due to a low demand and high holding levels at Cotton
Corporation of India. However, holding stocks could only provide a short-term relief. Some
of the inventory is expected to be exported, given the advantage of lower prices and rupee
depreciation.

“The textile industry is Laboure intensive in nature, and with most labourer headed to their
hometowns, sector companies could face challenges to operate even at low capacities. The
labour issue is expected to normalize in three-four months," says the study.

16
INDIA’S TEXTILE INDUSTRY DEMAND GRAPH AMID THE NOVEL CORONA
VIRUS. The graph clearly represents that the demand of the textile products in the Indian
market has drop down significantly due to the novel corona virus.

1.7. Capacity Analysis of Industry and Key Players: -

• India is the third largest producer of cotton with the largest area under cotton cultivation
in the world. It has an edge in low cost cotton sourcing compared to other countries.
• Average wage rates in India are 50-60 per cent lower than that in developed countries,
thus enabling India to benefit from global outsourcing trends in labour intensive
businesses such as garments and home textiles.
• Design and fashion capabilities are key strengths that will enable Indian players to
strengthen their relationships with global retailers and score over their Chinese
competitors.
• Production facilities are available across the textile value chain, from spinning to
garments manufacturing. The industry is investing in technology and increasing its
capacities which should prove a major asset in the years to come.
• Large Indian players such as Arvind Mills, Welspun India, Alok Industries and
Raymonds have established themselves as 'quality producers' in the global market. This
recognition would further enable India to leverage its position among global retailers.
• India has gathered experience in terms of working with global brands and this should
benefit Indian vendors.
India is second largest producer of textiles and garments in the world. Abundant availability
of textile raw material such as cotton, wool, silk and jute as well as skilled and cheap
workforce have made India a sourcing hub. India’s textile industry plays a very substantive
role in national economy for net foreign exchange earnings. Textile sector is also one of the
largest contributing sectors of India’s export it contributes around 11 percent of the countries.

17
1.8. Professional Trade Bodies of Industry:

The Indian Textile Association is the largest textile professional National body of India,
striving for the growth of India’s largest single Textile Industry and also largest in the world
textiles. It was launched in the year 1939 and is registered under The Society's Registration
Act XXI of 1860 and under the Bombay Public Trust Act 1950 at the Public Trust
Registration Office, Greater Bombay Region on 17th Day of June, 1955. It was established
with 126 founding members and currently the Association comprises of more than 23000
strong memberships with 26 affiliated Units spread across the country. Recently in 2011 the
Kota unit was merged with Rajasthan Unit. The Indian Textile Association is actively
involved in organizing programs related to continued education in textile technology and
management and promotes the use of scientific knowledge in textiles, from fibres to
garments.  The association helps its members in acquiring textile qualifications towards
improved job performance and gives awards to all those who have contribute immensely to
the growth of Indian textiles. The Indian Textile Association strongly promotes a healthy
competition amongst the fellow textile professionals. The Indian Textile Association helps in
professional growth of technologist’s managers, traders, researchers, entrepreneurs, teachers
and consultants on the Indian textile scene. It takes care of all the needs of all fibres, products
and all sectors of the Indian industry. TAI is actively involved in organizing Seminars,
Conferences, Workshops, Refresher Courses and Exhibitions of textiles and allied machines
for the benefits of the members serving the textile industry. ITA along with 27 federal units
organizes activities that are held throughout the country that provides useful information on
topics of current interest to different segments of the industry.
ITA also looks after the publication of a journal of Textile Association (JTA) aimed at
providing new information in the field of applied industrial research in all areas of textiles. It
also publishes low cost booklets and books providing useful practical information to the
practicing professionals, technologists and managers in the Indian Textile Industry. ITA
provides National level reorganization of just two individuals each year by awarding one
Honorary Membership to the eminent individual for their contribution towards the growth of
textile industry and one Honorary Fellowship to the emerging scientists and researchers for
their contribution in academic field.

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1.9. Online Presence Of industry:
The textile sector of India is one among the oldest industries within the Indian economy,
dating back several centuries. The industry is very diversified, with hand-meandering and
hand-woven textile sectors at one end of the spectrum, while the capital-intensive
sophisticated mill sector at the opposite end. The decentralized loom / hosiery and weaving
sector is that the largest component within the textile sector. The textile industry's close
connection to the country's ancient culture and traditions in terms of agriculture (for raw
materials like cotton) and textiles makes it unique compared to other industries within the
country. India's textile industry has the potential to supply a good sort of products suitable for
various market segments, India and worldwide.

1.Market Size

2.Investment

3.Government initiatives

4.Achievements

5.Road Ahead

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1.10. Controlling ministry and / or regulator if any for the Industry: -
The Ministry of Textiles is an Indian government national agency responsible
for the formulation of policy, planning, development, export promotion and regulation of
the textile industry in India. This includes all natural, artificial, and cellulosic fibres that go
into the making of textiles, clothing and Handicrafts.

The ministry of textile is responsible for policy formulation planning,

development, export promotion and trade regulation of the textile industry. This includes all
natural and manmade cellulosic fibres that go into the making of textile, clothing and
handicraft. The matters relating to non-cellulosic synthetic fibres and filament yams such as
nylon ,polyester acrylic and poly propylene are under the administrative control of minister of
chemicals and petrochemicals.

1.11. Key National & Global issues affecting the industry:

The contemporary issue within the textile industry may be a subject of constant discussion
within the media. While the discussion is usually focused on the social outlook of consumers,
it's having an impression on the Indian export crisis and therefore the environment also as
other sectors. India is that the second largest producer of textiles and clothing after China and
therefore the second largest producer of cotton. it's the most important producer of jute within
the world. It employs 51 million people directly and 68 million people indirectly. However,
these features don't summarize the present scenario of the world . The Indian textile industry
is very fragmented and dominated by the unorganized sector and little and medium industries.
Changing government policies at the state and central government levels pose major
challenges for the textile industry. The tax structure makes GST clothing expensive. Another
important thing is raising interest rates and labor wages and wages of workers. there's a high
level of attraction within the garment industry . However, the central government is investing
within the textile industry to woo foreign investors. These are a number of the main issues
affecting the industry.

1.Shortage in supply of raw material

2.Increase in cost of raw Material

3.Compliance: Environmental Issues

4.Infrastructure bottlenecks
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5. Impact of GST

6.Shortage of labour due to mass return

1.12. Key initiatives by the Government to promote the industry :-

(i) Knitting and Knitwear Sector scheme: Government has launched a separate
scheme for development of Knitting and Knitwear Sector to boost production in
knitting and knitwear cluster at Ludhiana, Kolkata and Tirupur.

(ii) Government is implementing Amended Technology Up-gradation Fund Scheme

(ATUFS) for technology up-gradation of the textile industry to incentivize
production with an outlay of Rs.17,822 crore during 2016-2022. It is expected to
attract investment of Rs.1 lakh crore and generate 35.62 lakhs employment in the
textile sector by 2022.
(iii) Government has launched a special package of Rs.6000 crore in 2016 to boost
investment, employment and exports in the garmenting and made-ups sector with
the following components viz., (i) full refund is provided under Remission of
State Levies (ROSL) to the exporters for the State level taxes; (ii) production
linked additional incentive of 10% is provided under the Amended Technology
Up-gradation Fund Scheme (ATUFS).
(iv) National Handloom Development Programme, Comprehensive Handloom Cluster
Development Scheme, Handloom Weaver Comprehensive Welfare Scheme and
Yarn Supply Schemes.
(v) National Handicrafts Development Programme (NHDP) and Comprehensive
Handicraft Cluster Development Schemes.
(vi) Power Tex India: A comprehensive scheme for Powerloom sector.
(vii) Silk Samagra – An integrated Scheme for development of silk.
(viii) Jute ICARE for increasing the income of farmers through different interventions.
(ix) North East Region Textile Promotion Scheme (NERTPS) for promoting textiles
industry.

21
1.13. Macro Environment: -
The external factors which affect a company's planning and performance, and are beyond its
control: for example, socio-economic, legal and technological change.
Uncontrollable factors that constitute the external environment of marketing including
demographic, economic, technological, natural, social, cultural, and regulatory forces.

1.14. Micro Environment: -

The immediate context of a company’s operations including elements such as suppliers’
customers and competitors.
These are internal factors close to the company that have a direct impact on the
organization’s strategy. These factors include: Customers

1.15. Environmental issues:

The textile industry is considered one of the world's worst offenders in terms of pollution.
Traditionally produced clothing contains residues of chemicals used during their manufacture
- chemicals that evaporate into the air that we breathe or absorb from our skin. Some
chemicals are carcinogenic or can cause harm to babies before birth, while some people may
have allergies. Cotton is the second most harmful agricultural crop in the world; 25 percent of
all pesticides used globally are applied to cotton crops. Most of the cotton is irrigated and is a
direct drain for chemical applications (through pesticides and fertilizers) along with irrigation
to circulate groundwater worldwide for toxic chemicals. There are two main types of fibers
used to make materials - natural and synthetic.

22
Natural fibres include: Synthetic fibres are materials created from
      Cotton petrochemicals such as:
      wool  polyester
      hemp  nylon
      bamboo  spandex
      flax  vinyl
      cashmere  acrylics
      angora
      leather
And a variety of other plant or animal-based
fibres.

And a variety of other chemically produced clothing. Natural fibers are bio-degradable due to
their origin and harmless to the environment, at which point they are processed without the
use of chemicals. Organic farming is a costly affair because it involves more care and
artificial means are not used to cultivate crops, production is much lower than in commercial
farming, and therefore organically grown fibers are expensive. The textile industry
encompasses a lot of processes from the cultivation of fibers to the last stage of the fabric.
The spinning, weaving and processing industries churn out a lot of harmful wastes that
obstruct our environment.
Examples
1. All the vegetable fibres are cultivated with the help of pesticides and fertilizers to give
a high yield, especially cotton.
2. These fertilizers and pesticides are harmful to our environment in the long run
3. Manmade fibres though are advantageous to natural fibres are not suitable in our
climatic conditions for the wearer and also the process involved in making these
fibres is more pollution generating one.
4. Water is very precious and less than 1% of water found on our planet can be used for
human consumption, all the textile processing units need lots of water.
5. All the processing and Dyeing Units need to have an ETP (Effluent Treatment Plant)
to avoid polluting the water table and the soil of our planet.

23
Laundry contributes greatly to environmental impacts, especially those requiring detergent
and hot water or dry cleaning. It is important to consider how the garment will be worn and
washed as this will contribute to potential impacts during the life of the garment. Some
clothes require less detergent and can be cleaned in cold water, so there will be relatively
little effect, assuming that all are the same.

1.Water Pollution

2.Air pollution

3.Solid-Waste Pollution

4.EPA Compliance Assistance

1.16. Sick players if any and their turnaround strategies

Currently almost the whole textile industry is struggling because of corona virus, most of the
businesses have been affected drastically. The companies have been trying really hard to
manage and keep the profits and revenue generating, but it is all for nothing.

The companies have been operating at 25% on production but the sales and logistics are still
a lag. The textiles companies, have a real challenge to sell during Covid-19 because of the
sanitization and hygiene factor. Even in malls and many textile retails stores the brands and
malls have closed the changing room facility due to less contingency. (as part of mall
management and government rules) Because of this, it gets hard for the customer too, to
select the perfect size.

The basic turnaround strategy is using internet or online media, for selling, promotion,
advertisement, marketing etc. E-buying has always been a emerging trend in textiles; even
after the ambiguity of proper quality, proper size to buy, consumers prefer online media to
buy cloths.

R K Dalmia, president of Century Textiles and Industries, said, “While we have started
operations at our plant, production of fabric or garments wouldn’t make any sense unless 90
per cent of both domestic and overseas markets open and consumer demand comes back.”

“We are eyeing Diwali as the possible opportunity for restoration of textile consumer
demand. Financial year 2020-21 could be a washout for textile players,”

24
Filatex India, a manmade fibers maker, has resumed partial operations at its Dadra plant to
meet the urgent requirement of yarns. “Considering the current scenario, we are looking to
restore normalcy in two to three months. We are even expecting orders to move from China
to India,” said Madhu Sudan Bhageria, chairman and managing director of Filatex India.

Labourers leaving towns and their absence have been another drastic set-back in textile
industry; tailors, designers, and other blue-collar workers moving and shifting due to
pandemic have caused many gaps in production and logistics.

To address the labour issue, A Sakthivel, chairman of Apparel Export Promotion Council

(AEPC), said the government should consider allowing 12 hour shifts instead of 8 hours with
normal wages. Normal wage rate should be considered for the additional four hours rather
than at twice the wage rate.

The Clothing Manufacturers Association of India (CMAI) has said garment retailers and
traders are currently not allowed to register micro, small and medium enterprises (MSMEs),
but they need to be allowed to register and get the benefits offered to the sector. The survival
of retailers is important to create demand.

1.17. TRENDS IN THE INDUSTRY-:

Fashion industry is a global industry and is one of the fastest emerging industries of India.
The industry has made an outstanding performance in recent years and has the potential to
make a mark internationally. A lot of Indian fashion shows are organized every year in the
metropolitan cities of India. All top designers of India exhibit their designs to make clients
and earn appreciation at such a popular stage. India is the epicentre of textiles and handicrafts
industries; there are many handicrafts industries in the towns and small cities of India. India
is the largest exporter of textile garments and fabrics and second largest producer of silk.
Today Indian fashion designers are largely inspired by the simple but elegant apparel designs
of these small-scale industries. They use silk and cotton in their apparels time to time. These
designs are also appreciated internationally for their uniqueness and elegance.
The pace of change accelerated considerably in the following century, and women and men's
fashion, especially in the dressing and adorning of the hair, became equally complex and
changing. Art historians are therefore able to use fashion in dating images with increasing
confidence and precision, often within five years in the case of 15th century images. Initially
changes in fashion led to a fragmentation of what had previously been very similar styles of

25
dressing across the upper classes of Europe, and the development of distinctive national
styles.
People no longer consider apparels as a durable item, to be shopped seasonally, instead, they
chase latest trends and hunt for bargains. Clothes are seen as disposable and modern
consumer’s closets which can be full of many impractical and infrequently worn items.
Apparel brands are forced to embrace what we are calling ‘a new design paradigm’ to create
collections faster and at lower Research and Development (R&D) costs. The traditional
design process with a three-six months’ time frame was designed for seasonal collections. It
has now given way to a ‘curation over creation’ strategy for monthly collections with a
shorter time frame of two months. As a result, players across the textile value chain must
reduce lead times.
Rise of fit customer and wearable fashion,
The rise of the ‘fit’ customer is another megatrend fueling the demand in activewear and
sportswear. Worldwide, there is a cultural shift towards sports including running as part of a
growing emphasis on fitness, especially among the urban population. Technology is getting
integrated as part of wearables. There are smart clothing items in the market with embedded
health sensors and medical monitors. Outside of apparel too, fitness wearables that sync to
smartphones have gone mainstream.
Viable eco-friendly products,
The third trend is visible in how progressive apparel companies are addressing the latent
consumer demand for environment-friendly clothes. US-based Patagonia is an early adopter
of recycled materials and organic cotton usage in its apparel. While the Denali jacket from
The North Face is made with recycled yarn, recovered from fabric scraps and recycled
bottles, which uses less water for dying. From a composite value chain perspective,
downstream companies like Bolt Threads have developed bio-synthetic fibers that harness
natural proteins; as an alternative to petroleum-based fabrics like polyester or nylon.
Patagonia is, in fact, a key user of these alternatives, eco-friendly fabrics.
Preference to productpersonalisation,
Fourth, product personalisation is going mainstream rapidly, creating whole new revenue
streams and possibilities for agile brands. Thursday Finest offers custom-tailored merino
wool socks that are made on demand using 3D knitting machines to a customer’s
specifications: size, shape, and colors. US-based MTailor has embraced smartphone-based
personalisation for suits, shirts, and jeans – customers provide measurements and place the
order on phone, and get the products shipped via mail. Bombay Shirt Company in India has

26
embraced a similar model. Further, several mainstream jeans brands have started offered
personalised fits.
Fulfillment of personalised fashion requires brands to re-engineer their entire value chain, use
cutting-edge technology for collaboration and communications and forge new types of
vendor relationships to ensure express deliveries; for the customer does not like to wait.
Diversifying product segments,
The fifth trend is specific to India and to women wear as a category. Women and kids wear
categories are growing faster with a 13 percent and 17 percent CAGR respectively between
FY 2010-2015 than menswear at 11 percent. The per capita apparel spending is also highest
for kids, followed by women and men. Further, within womenswear, western and Indian
ethnic segments are growing faster, with 21 percent and 17 percent projected CAGR between
FY 2015-2020 compared to saree at 6 percent CAGR. As saree moves to an occasional wear
category, we believe brands with single product focus will be severely impacted.
Indeed, companies like Garden Vareli have already diversified their product portfolio to
include non-saree ethnic and western wear. Globally too, apparel brands have sought to
diversify products across customer groups to mitigate single-product risks. Ralph Lauren, for
example, today has multiple product lines for women, men, kids and even home furnishing.
Embracing digital technology,
Finally, three is a clear emergence of e-commerce as a popular channel for fashion and
apparel buying – a recent A.T. Kearney-Google study found that 84 percent of respondents
claimed to have bought apparel online in the past three months; compared to 79 percent who
bought electronics and 52 percent who bought groceries.
The onus on apparel brands is clear. They must collaborate with not just downstream players,
but even upstream players to innovate and develop products. For example, Levi’s
collaborated with Google to launch a Commuter jacket targeted at millennial urban cyclists
that use conductive yarn and offers touch-based interactivity with a smartphone – allowing
users to accept or decline calls, access music or navigation by gestures right on the jacket.
Nike on the other hand innovated with fabric with fibers that open up to increase breathability
when sweating and close when the wearer is cooling down. A brand like Uniqlo has, in fact,
carved a unique differentiated positioning by using technology innovations: their Heattech
innerwear for winters is 100x warmer than regular cotton.
More importantly, India’s fashion and textile industry need to recognize that the modern
Indian consumer is no different from her counterparts in the west. Local brands and
manufacturers, who can become distinctly homegrown leaders, will be crucial for enhancing
India’s garments industry competitiveness on the global stage. To do so, they must focus on
27
product innovation and development, invest in brand building and customer engagement,
create flexibility in manufacturing and supply chain and finally, demonstrate savviness in
embracing digital technologies. Trend-spotting, in this case, is a lucrative business indeed.
Secondhand clothing,
A massive force is reshaping the fashion industry: secondhand clothing. According to a new
report, the U.S. secondhand clothing market is projected to more than triple in value in the
next 10 years – from US$28 billion in 2019 to US$80 billion in 2029 – in a U.S. market
currently worth $379 billion. In 2019, secondhand clothing expanded 21 times faster than
conventional apparel retail did.
Even more transformative is secondhand clothing’s potential to dramatically alter the
prominence of fast fashion – a business model characterized by cheap and disposable
clothing that emerged in the early 2000s, epitomized by brands like H&M and Zara. Fast
fashion grew exponentially over the next two decades, significantly altering the fashion
landscape by producing more clothing, distributing it faster and encouraging consumers to
buy in excess with low prices.
While fast fashion is expected to continue to grow 20% in the next 10 years, secondhand
fashion is poised to grow 185%.
As researchers who study clothing consumption and sustainability, we think the secondhand
clothing trend has the potential to reshape the fashion industry and mitigate the industry’s
detrimental environmental impact on the planet.
1.18. STRATEGIC ALLIANCE IN TEXTILE INDUSTRY

Strategic alliances are increasingly gaining popular for Textile companies to achieve fast and
economic growth in today’s globalization. Strategic alliances are an important source of
resources, learning, and thereby core competencies improvement. So, managers have to make
conscious decisions to develop certain competencies and in order to have all competencies
that are required to be successful, firms look for strategic alliances and to leverage their
partner firms’ competencies. However, coordination with alliance partners is not easy; each
part has its own reporting process and measures, and each brings its own perspective of what
it wants to contribute to the alliance and what it intends to obtain from the alliance.

One very recent and popular strategic alliance in textile industry in India is ‘Gartex’ and
‘Texprocess’ coming together.

Businesses of today are built on a complex network of information, interaction, and change.
This evolving nature of business has led back to one of the most fundamental aspect of

28
business - relationships. In order to be more successful, companies need to take advantage of
the strength of other organizations. Strategic alliance between two or more organizations is
vital to succeed in today's client driven and networked economy.

Developed and propagated as formalized inter organizational relationship, the alliance seeks
to achieve organizational objectives in a better way through collaboration, rather than
competition. The companies aspire to work in collaboration, facilitating global sourcing in
the textile value chains.

Strategic alliances reflect the desire of two businesses to achieve their independent business
objectives cooperatively. Apparel industry consists of value chain influenced by buyers, and
three lead firms; marketers, retailers, and manufacturers. Strategic alliances would pave way
for apparel industries to move up the value chain, developing its capacity.

Introducing a product in a new market can be challenging for any business. Furthermore, it is
also costly and complicated exposing the business to entrench competition, operational
hurdles, and hostile statutory regulations prevailing in that region. Opportunity costs and
direct financial losses due to inappropriate market conditions may also occur.

Going in for a strategic alliance with a well established business in that region will overcome
these issues, and help the organization to minimize its entry cost in the new market.
Companies can receive orders from branded retailers, designers, and manufacturers.
Networks would be developed, proving crucial for the transition of full production.

New market access might also mean stringent statutory regulations, and other complicated
political factors imposed by the Government of the region. This can be overcome by having a
joint venture with the local firms. Strategic alliances help the business to penetrate into the
local market of the targeted region.

A business may or may not be strong enough to obtain its objectives all by itself. But, with
the joint efforts together, it will be possible. The combination of individual strength of two
businesses will help them to compete more effectively rather than making attempts of its
own.

Creating a favourable image in the consumers mind is time consuming, and involves some
cost. An enterprise which wishes to enter into a new market may use the brand image of
another business that is already well established, and strong in the consumers mind. This
makes market penetration of the first business easier, at a relatively lower cost.

29
1.19. Budget 2020 and Its Impact on Industry :-
Union Budget 2020 India Textile industry plays a significant role in the economy
contributing to over 13% of the industrial output, over 2% to the GDP of India. The industry
employed more than 4.5 crores citizens and contributed 15 per cent to the export earnings of
India FY 2019. In addition to this, the support from the government has aided the industries
effort to grow and contribute further. Government has been extremely responsive and have
been listening to the industries and taking measures on real time basis like reshuffling of GST
rates, allowing refund accumulated taxes in case of textiles etc. With the bold reforms taken
by government in the recent past including tax reforms, Skill India mission, RoSCTL Scheme
for textile sector to defray / rebate the embedded taxes, etc. has helped the industry to remain
hopeful on the announcements in budget to be presented on 1 Feb 2020.

However, the sector has been experiencing a pressure on exports across segments in
the past few years resulting into fall in exports. Apart from global slowdown witnessed
recently there are few other factor affecting Indian Textile industry which renders exports
from India uncompetitive other countries like Bangladesh, Pakistan, Vietnam, China. These
are high cost of working capital and power, low average productivity from unskilled
operators, challenges in infrastructure, logistics costs as well as longer turnaround time at
port.

The government can support the Indian textile manufacturers by taking measures like
swift execution of FTA with UK, EU and USA, remove cap on benefit under the TUF
scheme in order to encourage large scale projects, bring relaxation in labour laws, improve
infrastructure and provide plug and play mega textile zones near port cities to enhance textile
export, and introduce an alternative to MEIS to provide level playing field for Indian
exporters. The government can facilitate financing against government receivable from banks
at benchmark rates with low margin 10% without any restriction on the tenor or aging.
1.20. New EXIM Policy and Its Impact on Industry:

30
The current global apparel market size is around $ 1.9 Trn and is expected to grow to over $
2.6 Trn. The global demand for apparels is estimated to grow at a Compound Annual Growth
Rate (CAGR) of five per cent. Among the world’s top five markets for apparel, India and
China are anticipated to grow at a steady CAGR of 12 per cent and 10 per cent respectively,
as compared to the global total of five per cent over the next few years. China is widely
expected to become the largest apparel consumer in the world by the year 2025 with a market
size worth $ 450 Bn, while India will overtake Japan to occupy the 4th position on this list
with an estimated market size of over $ 160 Bn.

In 2018-19, India was the 5th largest textiles and apparel exporter globally, followed by
Bangladesh and Germany with their exports worth $ 35 Bn and $ 34 Bn respectively.
1.21. GLOBAL TRADE
The global trade in the textiles and apparel sector has seen consistent growth in the recent
years. In 2018, the world’s textile and apparel trade stood at $ 823 Bn while it has grown at a
CAGR of four per cent since 2005. Apparel was the most traded category in the sector,
commanding a share of 57 per cent of the total textile and apparel trade. The exports in this
category too, have been growing at a CAGR of four per cent since 2005. A close second to
apparel was fabric, which accounted for 19 per cent of the total textile and apparel trade, with
its exports growing at a CAGR of three per cent since 2005. The global trade of textiles and
apparel is expected to see similar growth in the future too, growing from the current $ 823 Bn
to $ 1 Trn in 2025, growing at a promising rate of over three per cent when compounded
annually.
1.22. Conclusion:
The textile industry is one of the earliest industries to have developed in India. Its inherent
and unique strength is its incomparable employment potential. This is owing to the presence

31
of the entire value chain from fiber to apparel manufacturing within the country. The Indian
textile industry has a significant presence in the Indian economy as well as in the
international textile economy. Its contribution to the Indian economy is manifested in terms
of its contribution to the industrial production, employment generation and foreign exchange
earnings.

In fact, it is the biggest employer after agriculture. It provides direct employment to 4.5 crore
people and another 6 crores in allied sectors. Furthermore, India is the second-largest
manufacturer of textiles and clothing in the world. India is also the second-largest exporter of
textiles and apparel. In fact, it has a share of 5% in global trade.

The fabric industry registered a marginal improvement in exports in 10MFY20. This was
coupled with lower raw material costs and increased export demand from Bangladesh and
other countries. Indian ready-made garments players have been hoping of a revival in demand
and shift of orders from China since the start of a pandemic. However, with the spread of
coronavirus in Europe, demand and orders have been reduced from major retailers. Due to the
pandemic ‘s impact on consumer behavior and habits, online-sales are expected to witness a
significant surge, even after the industry recovers.

2. PROMOTORS & MANAGEMENT ETHOS

2.1.Background of Promotor:

The promoters of several textile companies have increased their stake in the last nine months
by purchasing fresh shares in the open market on expectations of a recovery in demand, and
thus better profit margins. The promoters of Raymond have increased their stake by 290 basis
points (bps) to 46.7 per cent between April and December 2019.

Similarly, the promoters of Arvind have raised their stake by 165 basis points in the same
period. Indo Rama Synthetics, which has a low market capitalisation, has witnessed its
promoters increasing their stake by over 18 percentage points. 

2.2. Vision, Mission & Quality Policy:

The vision

32
"An opportunity to make a real difference in all aspects of our customer relationships
globally."

Establish themselves as global market leaders by pursuing excellence in providing an

exemplary customer experience with all stakeholders, maintaining the highest quality of
products and services across all business and operational processes.

ITL is committed to stand out in its engagement from order confirmation to delivery that
makes the customer feel good, and ensures satisfaction in the critical areas of:

• Competitive Pricing

• Consistent On-time Deliveries

• Impeccable Product Quality

• Excellence in Customer Focus, Engagement and Satisfaction

• Innovation through Lean, Six Sigma & Process Re-Engineering

ITL Core Values:

1. Value of Time

We should use our time efficiently and in positive manner. Avoid procrastination. Adopt
proactive approach in dealing with day to day issues

2. Integrity and Honesty

Commits to honesty/truth in every facet of behavior and demonstrate ethical and sincere
conduct

3. Respect and Humility

Establish mutual respect and trust in dealing with others regardless of their position

4. Action Oriented
33
Strives for simplicity and clarity and getting things done effectively

5. People Development

Developing employees through mentoring and training for taking them to next level

6. Team work

Prioritizing organizational goals over individual milestones and working with a positive
synergy

7. Willing to learn

Positive approach towards constructive criticism and grow with changing times

8. Empowerment through Accountability

Empowering and challenging employees by taking up ownership in their respective areas

9. Creativity and Innovation

Invent and simplify by thinking out of the box. Encourage ideas at all levels

10. Empathy

Always consider the human factor in every decision. Respect external perspectives and
opinions.

11. Frugality

Accomplish more with less. Convert constraints into opportunity of being resourceful

12. Have a backbone: Disagree and Commit

Respectfully challenge decisions in case of disagreement. Once a decision is determined then

commit. Wholly

13. Social Responsibility

Act as a corporate Citizen by giving back to the community and environment

Mission:

"Engage effectively, responsibly and profitably in the global textile industry"

34
The company seeks a high standard of performance and aims to maintain a long-term
leadership position in the textile market segments in which it competes.

This will be achieved through operating efficiency, continued dedication to customer care,
cost effectiveness, innovation and conformance to our values.

The company aspires to be recognized in the community it operates in as a safe and

environmentally responsible organization.

The company acknowledges that commercial success and sustained profitable growth
depends on the resourcing, development and retention of its talented human resources. It will
continue to invest in building its organizational capacity and capability.

The company strives to protect each shareholder’s investment and provide a return, which
meets or exceeds their expectations. This is achieved through continued commercial success
in winning new businesses and retaining old customers, which is underpinned by the
development and provision of new products/services to our customers, offering a clearly
superior value proposition.

Quality Policy:

It is the Arville Group’s objective to be recognised as the Technical Textile Specialists with
the capability of designing, weaving, finishing, coating and fabricating specialist, and high
quality, technical textiles and related coated and fabricated textile products for our customers.

To achieve this we are committed to:

1.Customer Satisfaction

• Providing our customers with products and services that meet or exceed their requirements

2.Continual Improvement:

• Measurable improvement of the effectiveness of our business and its management and
operating systems

3.Employees

• Providing training to employees to promote Continual Improvement

• Empowering our employees to use their skills and talents to achieve the quality policy and
business plan objectives

35
4.Management System

• Maintaining a management system compliant to ISO 9001 and applicable legal and
regulatory requirements

• Reviewing our management system on a continual basis for its robustness and integrity

• Setting and reviewing performance objectives to meet our business goals

5.Environment

• Maintaining operations that protect the environment and the natural resources of our
communities and our nation. Please see our separate Environmental Policy for our detailed
policy

6.Safety

• Providing a safe work environment for our employees and visitors at all times

• Supplying products and services that are fit for purpose & safe to use

2.3. Brief profile of key top management personnel:

Answer: Under Section 2 of the Companies Act 2013, Key Managerial Personnel in reference
to a company are as follows:

1. Chief Executive Officer/Managing Director

2. Company Secretary

3. Whole Time Director

4.Chief Financial Officer.

2.4.CSR Policy:

The concept of social responsibility is a fairly recent one in the business world. Awareness
about the social responsibility of business organizations is rapidly on the rise and firms are
also accepting this concept. The textile industry is no exception. Textile producing and
trading firms are also realizing their responsibility towards the society and the environment.

36
This article aims at analyzing the concept of social responsibility and the common ways in
which textile firms try to fulfill it.

1.Social Responsibility &Human Responsibility

1.Towards employees:

2.Towards shareholders:

3.Towards the government:

4.Towards customers:

5.Towards investors:

6.Towards suppliers

7.Towards competitors:

8.Towards society:

2.Environmental Responsibility.

• Ensuring the purchase of environment-friendly supplies.

• Ensuring a pollution-free process of production

• Having an efficient system for the disposal of waste

• Making the product and the process of production as environment-friendly as possible.

• Adopting eco-friendly packaging.

2.5.Cooperate governance initiatives:

This is the oldest among all industries in India. It’s the second largest employment provider
and biggest export earner. The area under cotton cultivation is also the largest in the world.
But the share of this industry in the GDP is not up to the mark and the obvious reason for this
is poor policy making on the part of the Government of India, in terms of tariff and cost
structure, has impeded growth and improvement of the quality of cotton. This sector has
always been characterized by very high labour-capital and labour output ratios, much larger
37
than optimal levels. Also, historically, govt. restricted expanding weaving capacity in the
composite mill sector in the interest of handloom, which eventually resulted in obsolescence
of textile industry and eventual dominance by power loom. After Liberalization, now there is
considerable competition from MNCs. So, technology intensive product development is
required and being incorporated.

2.6. Initiatives towards Environment Conservation:

The public awareness and the growing perception of social cognizance about the environment
have forced the textile industry to produce environmentally friendly products. For this reason,
nowadays many companies and organizations focus on the environmentally friendly way of
production. In order to create a sustainable textile, the main change factors have been linked
to eco-materials so less and harmless waste, reusing/recycling, lesser usage of energy, water
and chemicals and ethical issues in production processes. This article emphasizes the
environmental effects of textiles in detail and contributes to cleaner production and
sustainability in the textile industry by initiating a discussion on the opportunities for change
in textile processes in accordance with the laws.

Practices for waste reduction at source:

1.Administrative preventions

2.Better process control:

3.Material substitution:

4.Equipment modification

5.New process technology

6.Reuse/Recycling

7.Product modification

Tools and Methods For Cleaner Production:

The choice of which tools are used to determine the use of cleaner production opportunities
according to their application areas depends on the problem in operation and the work to be
done. Single or multiple tools can be used based on nature of the problem.11

1.Environmental impact assessment (EIA)

38
2.Environmental management system (EMS)

3.Life cycle assessment (LCA)

4.Environmental technology evaluation

5.Chemical evaluation

6.Waste inspection

7.Environmental inspection

8.Eco-label/environmental labelling

9.Industrial symbiosis (IS)

10.Water footprint

11.Carbon footprint

12.Risk assessment

13.International organizations and ınstitutions for cleaner production

14.The United Nations Environment Programme (UNEP)

15.The United Nations Industrial Development Organization (UNIDO)

16.The Organization For Economic Co-Operation and Development (OECD)

17.The World Business Council for Sustainable Development (WBCSD)

3. External Environment:

3.1. External Macro Environment :-

The macro environment refers to all forces that are part of the larger society and affect the
micro environment. Factors affecting organization in macro environment are known as
PESTEL, that is: Political, Economical, Social, Technological, Environmental.

39
Political and legal Factors:

These are all about how and to what degree a government intervenes in the economy. This
can include government policy, political stability or instability, foreign trade policy, tax
policy, labor law, environmental law, trade restrictions and so on. It is clear from the list
above that political factors often have an impact on ease of doing business. Organizations
need to be able to respond to the current and anticipated future legislation and adjust their
marketing policy accordingly.

Economic Factors:

Economic factors have a significant impact on how an organization does business and also
how profitable they are. Economic factors include economic growth, interest rates, exchange
rates, inflation, disposable income of consumers, employment etc. These factors can be
further broken down into macro economical and micro economic factors. Macro economic
factors deal with the management of demand in any given economy. Micro economic factors
are all about the way people spend their income. The effect of some of the economic factors
on textile industry.

Growth in global economy:

According to the OECD, the global economy is expected to strengthen and grow in the next
few years. The European Commission [20] declares that the fashion industry itself has
constantly growing at around 10%. Remy, Schmidt, Werner and Lu claim that the global
women’s apparel market growth rate is expected to increase by 50% till 2025. As a result,
there are greater opportunities for internationalization of apparel brands.

Raw material and labor costs:

Raw materials like oil and water are becoming scarce; resulting in rise in manufacturing cost
of apparel 22,23 . The European Commission alerts that due to the decline of the
manufacturing industry, skilled labor has decreased and became more expensive, which may
pose a threat to the competitiveness in the apparel industry [20]. As a response to these two
trends, fashion industry tends to outsource the textile production to low-cost manufacturing
countries like Bangladesh or Cambodia in order to cut production and laborcosts . However,
experts alert that even in these countries, the resource prices already have and will be rising
significantly in the future 2025.

40
3.2. External Micro environment: -

The Micro Marketing Environment includes all those factors that are closely associated with
the operations of the business and influences its functioning on day to day basis. Therefore,
before deciding corporate strategy companies should carry out a full analysis of their micro
environment. The micro environment factors include customers, employees, suppliers,
retailers & distributors, shareholders, Competitors, Government and General Public.
Businesses cannot always control micro environment factors but they should endeavor to
manage them along with Internal Environment and Macro Environment factors.

Customers:

Every business revolves around fulfilling the customer’s needs and wants. Thus, each
marketing strategy is customer oriented that focuses on understanding the need of the
customers and offering the best product that fulfills their needs and customer service.

Employees:

Employees are the main component of a business who contributes significantly to its
success. The quality of employees depends on the training and motivation sessions and
promotion opportunities given to them. Training and development play a critical role in
achieving a competitive edge; especially in Marketing.

Suppliers:

Suppliers are the persons from whom the material is purchased to make a finished good and
hence are very important for the organization. A supplier’s behavior will directly impact the
business. For example if a supplier provides a poor service this could increase time scales or
product quality. An increase in raw material prices will affect an organization’s marketing
strategy and may even force price increases. It is crucial to identify and choose best suppliers
existing in the market and maintain close relationships with them to remain competitive and
provide quality products to customers.

Retailers & Distributors:

41
They play a vital role in determining the success of marketing operations. Being in direct
touch with customers they can give suggestions about customer’s choice regarding a product
and its services.

Competitors:

Keeping a close watch on competitors enables a company to decide its marketing strategy
according to the trend prevailing in the market. Competitor analysis and monitoring is crucial
if an organization is to maintain or improve its position within the market.

Shareholders:

Apart from financial institutions, the public company can raise funds through shareholders.
Therefore, every public company has an objective of maximizing its shareholder’s wealth.
Thus, marketing activities should be undertaken keeping in mind the returns to shareholders
and to strengthen company’s financial position. Media: Positive media attention can “make”
an organization (or its products) and negative media attention can “break” an organization.
Organizations need to manage the media so that the media help promote the positive things
about the organization and reduce the impact of a negative event on their reputation. Some
organizations will even employ public relations (PR) consultants to help them manage a
particular event or incident. Consumer television programs with a wide and more direct
audience can also have a very powerful impact on the success of an organization.

Government:

The Government departments make several policies viz. pricing policy, credit policy,
education policy, housing policy, etc. that do have an influence on the marketing strategies. A
company has to keep track on these policies and make the marketing programs accordingly.

General public (Society):

The business has some social responsibility towards the society in which it is operating. Thus,
all the marketing activities should be designed that result in increased welfare of the society
as a whole.

3.3. Environmental issues:

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The public awareness and the growing perception of social cognizance about the environment
have forced the textile industry to produce environmentally friendly products. For this reason,
nowadays many companies and organizations focus on the environmentally friendly way of
production. In order to create a sustainable textile, the main change factors have been linked
to eco-materials so less and harmless waste, reusing/recycling, lesser usage of energy, water
and chemicals and ethical issues in production processes.

Advanced production technologies, which are used to meet increased consumption demands,
have also made production activities important to the global environment. The developing
technology brought about the problems like pollution of the environment, air, and water,
thinning of the ozone layer, a decrease of green areas. The main environmental impact in the
textile industry is manifested by the discharge of high amounts of chemical loads into the
receiving environment. Other important elements are high chemical and water use, energy
consumption, air pollution, solid waste and odor formation. Environmental issues related to
textile and garment sector; it starts with drugs that are used in the cultivation of natural fibers
and the emissions in the production of synthetic fibers. From this moment on, a series of
processes are being carried out in which thousands of different chemicals, tons of water and
considerable amount of energy are used to treat the fibers to reach the final textile product.

Practices for waste reduction at source

Administrative preventions: It is one of the simplest methods of cleaner production and it is

not costly because there is no investment and it can be put into practice immediately after
determining the possibilities. Examples are the prevention of water, energy and other source
losses such as keeping the water vents closed, optimizing chemical dosing, wasting
equipment, etc. Moreover, focusing on the management and training of employees can also
be done under this heading.

Better process control: Within this heading; temperature, time, pressure, pH, process speed
etc. are to be checked to see if they are optimum in terms of welding consumables,
production, and waste production, and to make appropriate changes if necessary. This part
requires more complex monitoring and management than administrative measures.

Material substitution: This means that the productivity of the production is increased by the
use of a higher quality material without compromising quality and cost. In addition, material
substitution also means replacing existing materials with some more environmentally friendly
materials. For example, replacing a dyestuff containing a hazardous chemical with an

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environmentally friendly one means that the purification requirements and costs that would
be caused by the hazardous chemical substance are either eliminating or falling down.

Equipment modification: Equipment modification is the development of present equipment to

produce fewer waste and to ensure more efficient production processes. Examples include
setting engine speeds, optimizing tank volumes, isolation of hot pipes, and so on.

New process technology: Because this method involves the use of more modern and efficient
technologies, it requires a higher initial investment cost than other methods. However, with
the developments of quality and savings the investment can be repaid in a very short-dated
and with this application the company can more easily switch to more up-to-date and modern
production processes. Such applications also provide improvements in product and
production quality.8-10

Reuse/Recycling: Reusing rinse water from one process to another cleaning process is an
example of on-site recycling or reuse. It involves collecting waste and reusing it in the same
or different parts of the production. Non-preventable wastes can be recycled or vend as an
offshoot. This includes the creation of by-products, the sale of waste to consumers or other
firms after collection of waste. For example; waste yeast, which is released in the brewery,
can be reused as animal feed, fish production and food additive substance.9,10

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4. Marketing strategies:

4.1 Marketing strategies and plan-:

A marketing plan for a textile industry company sets forth a specific market strategy that
identifies marketing goals and objectives with time-specific actions for achieving them. The
textile industry includes the design and manufacturing of textiles and other fabrics.
Distribution channels include manufacturers, importers and retailers. As a result of the wide
scope of distribution channels, as well as the variety of product and service segments, each
marketing plan will vary widely, and will be particularly tailored to each company's goals and
objectives.

A marketing strategy serves as the base of a marketing plan. A marketing plan contains a list
of specific actions required to successfully implement a specific marketing strategy. An
example of marketing strategy is as follows: "Use a low cost product to attract consumers.
Once our organization, via our low cost product, has established a relationship with
consumers, our organization will sell additional, higher-margin products and services that
enhance the consumer's interaction with the low-cost product or service." Without a sound
marketing strategy, a marketing plan has no foundation. Marketing strategies serve as the
fundamental foundation of marketing plans designed to reach marketing objectives. It is
important that these objectives have measurable results.

Observing how people shop, when they shop and where they purchase from is crucial for
determining future marketing strategies. In 2005, only half of the American populace
shopped online. By 2008, that number grew to 65 percent and continued to jump each
subsequent year. This reality forced many retailers to expand their Internet presence by
purchasing more online advertising and not just advertising in fashion magazines. In addition,
companies were forced to improve or establish their e-stores to allow for convenient
shopping. Companies increasingly partner with member-only communities and other
merchants to sell product.

Marketing is the process of developing and communicating value to your prospects and
customers. Think about every step you take to sell service and manage your customers:

· Your knowledge of the market and your strategy to penetrate it

· The distribution channels you use to connect with your customers

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· Your pricing strategy

· The messages you deliver to your market

· The look and feel of your marketing materials

· The experience you deliver to your market and customers

· The actions of your sales and service reps

· All of the planning, preparation, forecasting and measurement of your investments

Marketing Goals:

Marketing plan goals should align with a company's overall business goals and objectives.
The lack of a clear marketing goal can derail the best efforts before any action is put into
place, writes David Meerman Scott, author of "The New Rules of Marketing and PR."
Profitable revenue growth is the most important goal of any for-profit business enterprise. An
example of a clear marketing goal for a textile manufacturer might be to develop export sales
to Canada as 5 percent of the company's gross revenues.

Market Plan Actions:

A marketing goal should be followed by specific actions towards achieving the goal. It
should set forth the specific actions required to gain new customers and retain existing
customers. For example, a textile industry manufacturer's business goal might be to increase
its year-over-year sales by 15 percent. Specific related actions in a marketing plan might
include increasing the number of industry trade shows, exhibitions, fairs and conferences the
company attends in order to identify specific outlets, such as the International Exhibition on
Textile Industry held annually in China. Greater profit can also be achieved by reducing
production costs. Specific actions to this end might include decreasing the cost of textile
chemicals, dyeing and finishing supplies by requesting proposals from alternative vendor
sources.

Web Marketing Strategies:

New media has created new options for marketing plans. In addition to traditional marketing
plan strategies – such as attending trade shows and advertising in traditional media –
companies are now using social media, online videos and viral marketing tools to achieve

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marketing goals. "Marketing is more than just advertising. PR is for more than just a
mainstream media audience," writes Scott. Scott argues that marketing plans should shift
from simple "mainstream marketing to the masses" to targeting strategies that reach
audiences through the Internet. With marketing budgets under greater scrutiny, B2B textile
industry companies can benefit from the increasing use of new media outlets to stay
competitive and lower marketing costs.

4.2 Target Market-:

buyer that a company has identified as potentially interested in the company's product or
service. A target market can represent an identified niche. For example, a small manufacturer
might tailor its design and production outputs to the home textiles market, which represents a
relatively large market segment. The manufacturer can also tell not all customers are the
same. A target market represents a specific type of r its productions to environmentally
conscious consumers, similar to Europe's Ecolabel textile products. In such a case, the
manufacturer can then market products to both general retailers in the household textile
market and retailers in the niche environmental products market.

4.3 DIFFERENTIATION AND POSITIONING STRATAGIES-:

Product differentiation:

It is a marketing concept which was first proposed by Edward Chamberlin in 1933, in the
Theory of Monopolistic Competition. The product differentiation is the process by which a
product is distinguished from others, by making it more attractive to a particular target
market. The differentiation is due to buyers perceiving a difference, therefore, the differences
do not have to be very big, and differentiation can just be made by a different packaging,
advertising campaign, sales promotion or distribution chain. The difference can also be made
by the product itself; the main sources of differentiation for products are:

- Differences in the product‟s functional aspects

- Differences in quality

- Differences in price

The company can also play with the availability of its product. It can choose to produce just a
few number of the product, to produce it just a few times a year, or to sell it just in few
special stores in order to make it to more rare.

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Differentiation also can be based on price. Goods are considered as packages of
characteristics which make them easier to be compared. Observed prices and observes
characteristics are, most of the time, related. The difference among prices depends on the
characteristics that are embodied in the product. If a company wants to differentiate its
product by its price, it has to have different characteristics.

The purpose of differentiation is to show that the product is unique, and therefore, valued by
customers. Instead of selling a product whose comparisons with substitutes will be made only
on price, the company can also differentiate its product with substitutes on non-price factors.
This will bring the company competitive advantage, and, to benefit from this advantage, the
company can make advertisement targeted on the uniqueness of its product, it is called
unique selling proposition. When the customer has understood that the product was different
from those the competitors offer, this will develop a preference or brand loyalty. This is the
long term purpose of product differentiation, to make the customer loyal to the brand in order
to change the demand curve of the product. This will give the company the power to change
the prices of its products.

There are two main types of product differentiation:

- Horizontal: based on characteristics, but the quality is not the same. It is when different
products are sold at the same price but when consumers don‟t evaluate them at the same level
of quality.

- Vertical: based on characteristics and the quality is clear. It is the opposite of horizontal
differentiation. In the case of vertical differentiation, consumers evaluate products which are
sold at the same price, as being the same level of quality.

If a company produces goods which are different from its competitors‟, those products will
be imperfect substitutes for each other. This will give the company the opportunity to act as a
monopolist concerning its own products. Due to the fact that it reduces the sensitivity to
competitive moves, differentiation will bring the company potential for monopoly profits and
hence provides it with the incentive to differentiate its products.

Service differentiation:

It is easier to differentiate products because their variables are tangible than services. But
when the product cannot be differentiated, adding valued services, or improving their quality

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can be the key to competitive success. According to Bruhn and Georgi services are processes
which have six characteristics:

- Services are intangible

- They are perishable

- Not transportable

- They are produced and consumed simultaneously

- They can differ from one customer to the other

- They are co-produced by the customer

According to those characteristics, services have to be really well prepared they cannot be
taken back or modified. In services marketing, 7 P have to be combined in order to create the
best service possible.

Channel differentiation:

Channel differentiation refers to that companies can achieve competitive advantage through
the way they design their distribution channels. Channel differentiation looks at various ways
the firm distributes, sells or offers its products to its customers. This type of differentiation
includes expertise of the channel managers and the performance of the channel in ease of
ordering, service and personnel. It is more about logistics then marketing but it‟s still an
important aspect in differentiation on the market. Standing out in the way which you offer
your products in the market can be an expellant way in gaining costumers attention.
Distribution channels consist of a lot of different actors, a broad categorization is
wholesalers, retailers, customers and users. Each of these has specific obligations towards the
others. These obligations must be fulfilled in order for the channel to function properly.
Channel differentiation is about positioning the company on the market. The choice of
channels is mainly about which product that will be available to which customers. Webster
argues that the distribution strategy should correspond with the marketing strategy. The
starting-point of the distribution strategy should be on the same level as the service level the
company has against their customers. Complications arise when company try to select a
simple and effective distribution system while, at the same time preparing the most effective
marketing programs for a competitive market.

The tasks in the marketing channel are these:

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- communication, - selling,

- shipping and storing,

- servicing

To manage and control the channel is important for the company. The company needs to
begin the process of deciding the appropriate differentiation strategy by analyzing the end-
customer‟s needs. Further on, the company needs to determine channel objectives and goals.
After this, the company needs to determine the coverage, exposure and support of the
channel. And finally the company can determine the most suitable differentiation strategy for
the channel. A well-functioning distribution channel prevents the gap between producer and
consumer. The gaps that are prevented are: time gap, geographical gap, quality gap, variety
gap and communication and information gaps.

Channel differentiation is a new way in differentiating the company from their competitors.
Historically the companies have mainly prioritised product differentiation. According to
Friedman and Furley there is a simple formula that explains why channel differentiation is of
great importance;

Add more channels= make more sales.

Online shopping:

Customers want to be in charge when it comes to how, when and why they are buying.
Retailers must listen and redesign their retail alternatives around customer lifestyles in order
to be successful. Online shopping is a relatively new way in differentiating the distribution
channels of the company. This new phenomena is giving the customer the opportunity to
compare products through description about product attributes, reviews from other customers,
prices and evaluate different retailers. This information is presented online and is easy
accessed by the customers.

One of the strength of internet shopping is the wide supply of products. This can also be
perceived as a disadvantage of the customers, 19% of the online shoppers feel overwhelmed
by all of the products offered. The positives overweight the negatives when it comes to online
shopping; one positive effect is that it is easy and convenient for the customer. The shopper
feels as if they can evaluate their different options in peace and quiet. Customers appreciate
the ease, the convenience and the privacy. The customer groups that can not visit a store
because of time or geographical constraints now have the same possibilities as the other

50
customers. The companies can through internet reach those customers that do not live close
to the store location. An important factor in online shopping is that customers online are
demanding higher level of product description before making a purchase decision. The choice
of the information presented has a major impact on the purchasing decision. Online shopping
highly depending on how much effort the customer is willing to put into the shopping
experience. If the customer is not willing to put a lot of effort into evaluating different
products, the products that are listed first have a bigger chance of being bought.

The customer‟s perception of the actual store is an important element of the channel
differentiation. The internal marketing mix consists of factors that can explain the attraction
value of a store. The mix consists of: presentation of the store, personnel, physical
distribution, pricing strategy and productivity in the store. A successful mix of these factors
can convert created interest into actual purchasing. A store can also attract the attention of the
customer by being unique in the design of the store. The customer perception of the store is
mostly based on the knowledge that the customer already have about the specific brand.
When it comes to the fashion industry the customer is likely to have favourites. There are
special brands and stores that they will look at first when they are shopping. The emotional
aspect is playing a big part of the shopping experience.The perception of the store is affected
through the five senses; seeing, hearing, smelling, tasting and touching. On the basis of this
the customer makes personal choices. That‟s why the physical demonstration of a store is so
important. A shopping environment is the perfect way in communicating the values of a
brand. The customer will use all of their senses to get a feeling about the company.

There are different external factors that are deciding how the store design should be for a
specific company. The store design depends on the fallowing factors: industry, target group,
their range of products, location and size of the company. Atmospherics is a concept
regarding the effort to design buying environments that produce a certain feeling for the
buyer that increase consumption willingness. The atmosphere can be described through
sensory terms. It is important to make a distinction between intended atmosphere and
perceived atmosphere. Perceived atmosphere might very between different customers and the
intended atmosphere is the company‟s attempt to create a certain feeling. The main factors
that affect the senses can be categorised. The main visuals include; colour, brightness, size
and shape of the store. The main aural is volume. The nose is affected by scent and freshness.
The touch responds to softness, smoothness and temperature. A company's image can be
described as the overall perception of the company. The image can be enhanced by
promotional activities, environmental factors, competitor‟s actions or by non- paid for
51
activities, such as word of mouth. Image is formed as a result of all the experiences, values
and the impression that external actors have about the company. The company may have
many stakeholders, all with different backgrounds, so it cannot be expected that all
stakeholders have one and same image. In other words, one company has multiple images.
Designing sustainable and strong brands has been of great significance on the commercial
market. A strong brand is the company's most powerful asset and the importance of it is
recognised by various companies. Kapferer argues that the brand is a significant actor in the
society, and the company can include the brand as part of the business capital. A strong brand
is a great way to give your product or service an identity. The brand can be a combination of
words, images and sound. An effective image does three things for a product or company; it
establishes the product's planned character, it differentiates the product from competing
products and it delivers emotional power. Armstrong and Kotler states that when competing
products are alike, buyers may perceive a difference based on brand image. The image is a
powerful tool to use for differentiation. The same shirt can have different demand because of
the logo on the chest. A strong image does not arise on one day; it takes a significant amount
of time to build.

A company brand image should represent the products benefits and the company positioning
on the market. Too create the desired image for the company requires strategic thinking. The
image represents the promise that the products will perform to expectations of the customers.
A good brand that processes good image would make the customer feel uncomfortable
buying from any other brand.

4.4 Marketing Mix, the 4 P’s -:

Consumers are getting quickly immune to the marketing tactics of businesses, and margins
are being squeezed by demanding customers. Focus is getting shifted from mass advertising
to making of new trends. Clothing industry is a very competitive arena. Due to the highly
fragmented nature of apparels, and fashion sector, an apparel brand must differentiate itself
from its competitors right from the stage it enters the market.

Price:

In case of apparels, especially in fashion, price is not of big importance. Gone are the times
when companies competed on price. Service is the key today which will shift to focus on
personality in the future. Innovative designs are no longer a competitive advantage. New
sketches are transformed into garments and make their way in store shelves within a span of

52
three weeks. New disposable fashion has shortened the product development cycle from 16
months to 20 days.

Promotion:

In integrated communication is as essential part of the marketing mix. This is even more
important for clothing industry as communication is a critical tool in creating an impression
in the minds of the consumers. An apparel, to become acceptable by public must first be
adopted by a group which has acknowledged respect in the society. Celebrities are the most
influential people who can influence public opinion. CPR (Consumer Personal Reference)
marketing refers to the process of marketing where a customer publicizes a brand by
accepting the product and spreading the trend by word of mouth.

Product:

Product not only refers to tangible items but also to intangible attributes such as brand name
and customer service. Earlier it was believed that a good product will sell itself. In todays
competitive market, there is no such commodity as bad product. So, manufacturers must
focus on creating a product or service that will satisfy the demands of the consumers. The
product characteristics must be defined with functionality, quality, appearance, brand service,
support and warranty.

Place:

Apart from price and quality, the place of distribution must also be taken into consideration
while creating a right marketing mix, as the apparel industry is primarily based on perception.
Store designs must be deployed to create an elegant atmosphere emphasizing a brand image
and reflecting current trends. Focus must also be kept on the distribution processes and
partners, without which even excellent products will fail. Big revolutions in business have
come about by changing place. Location, logistics, channel motivation, service levels, and
channel members must be taken into consideration.

Good marketing mix is like an appetizing food recipe. The key for a successful strategy is the
right combination of ingredients to get the right taste of food. The key ingredients of a
successful marketing mix modeling such as product, price, place, and promotion needs to be
combined in the right way, and in the right time for an appropriate marketing of a product.

4.5 SWOT analysis -:

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Strengths;

The Indian textile industry has several strengths. First is the availability of low cost labour.
Interviewee D says that, the nation has skilled manpower at very low prices which in turn
reduces the cost of production. Nine interviewees said that India has availability of abundant
raw material which helps to control the costs and reduces the lead time. India is very rich in
resources like jute, cotton, silk, cotton yarn man-made fibre in the world. India also has large
varieties of cotton fibres which make is distinct from other countries. They further add that
the Indian textile industry is a self-reliant industry. It has complete value chain from the
procurement of raw materials to the production of finished goods.

Another strength which India possesses is flourishing domestic market. This allows producers
to mitigate risks and be competitive in the market (Utamsingh, 2003). Interviewee A believes
that India is performing remarkably in the spinning sector. As a result the export of cotton
yarn to other countries is increasing enormously.

Weaknesses:

Presently, the Indian textile industry is facing a problem to compete in the world textile
market. This is because of weaknesses like fragmented infrastructure, rigid labour laws,
technology obsolescence and many others. Due to fragmented infrastructure, India is unable
to diversify. In fabric production large part of the industry is engaged in unorganized sectors
like powerlooms and handlooms (Utamsingh, 2003). Many interviewees considered
inflexible labour laws of India to be the major reason for the low labour productivity. Another
drawback of the Indian textile industry is use of outdated technology which resulted in low
production capacities as compared to China says interviewee K and L.

Interviewee H feels that Indian industry has the longest supply chain in the world. The
average time taken by all the nations from the procurement of raw material to production of
finished goods and finally exporting it is 45 days, whereas India takes around 80 days.
Another area where India lacks is cost competitiveness. The Indian industry does not have
efficient economies of scale therefore unable it is incapable of competing with China. Also
the expenses like indirect taxes, power and interests are comparatively high in India
(Utamsingh, 2003).

Opportunities:

The Indian textile industry has various opportunities like technical textiles, product
development and diversification, FDI and brand recognition. Technical textiles offer the
54
opportunity to the Indian textile industry to maintain the present current growth and flourish
in near future. It will also help in advancement of the industry (Rakshit, Hira and
Gangopadhyay, 2007). India is not using technical textiles much. Both nonwoven and woven
technical textiles will thrive in India in coming years adds Interviewee D. The Indian
companies need to focus on product development and diversification in order to capture new
markets globally. They need to invest in design centres and investment labs. Specialized and
smart fabrics should be introduced (Utamsingh, 2003). Another opportunity for the Indian
textile industry is elimination of quotas. Interviewee C and H said that after the removal
quotas there is increase in the exports of textiles and clothing to the United States and
European Union but not as much as China. Five out of fifteen interviewees said that the
industry has also taken some steps to improve the brand value of India.

Threats:

China is the biggest threat to the Indian textile industry in the global market says interviewee
L. India also has a threat from low cost producing countries like Pakistan and Bangladesh
which may hinder Indian exports demand in the future. Another disadvantage of India is its
geographical distance from major global markets of US, Europe and Japan in contrast to its
rivals like Mexico, China etc which are comparatively nearer. Big geographical distance
results in high shipping expenses and lengthy lead-time. The removal of MFA quotas has
given the opportunity to all the countries to enter the textile sector. As a result many big
players are entering the textile sector (Equitymaster.com, 2006). The Indian textile industry is
not able to maintain balance between price and quality. Therefore most of the big companies
in the United States and the European Union are shifting their manufacturing orders to China.
Hence Indian textile industry is losing its share in global textile market adds interviewee M
and N.

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5. Financials:

5.1.Finance Strategies and Plans:

The outbreak of Covid-19 has affected the textile and apparel industry globally as well as in
India. The spread of the virus is having serious implications and companies have started
feeling the impact owing to uncertainty in demand, supply chain disruptions, decline in raw
material prices having implication on livelihood of workers as well. As estimates suggest, for
the Indian textile and apparel industry, there is a 12-15 months' slowdown causing at least a
30 per cent shrinkage in the FY21 market size globally.
To support the industry, the government of India has launched several measures including
INR 3 lakh crore ($ 39.7 Bn) collateral-free loans for businesses, including Micro, Small and
Medium Enterprises (MSMEs), barring global tenders for government procurement up to
INR 200 crore ($ 26.4 Mn), infusing more liquidity into banking and non-banking
institutions, deferment of EPF/ESI payments, amending the definition of MSMEs by
increasing the investment limit and including annual sales turnover as an additional criterion.
The Reserve Bank of India has also announced several stimulus measures to ease down the
financial stress on the companies in the sector.
Turning crisis into opportunity, the textiles and apparel industry in India came to the forefront
to help India combat Covid-19. Major shortages of masks and personal protective equipment
(PPE) were being reported across the country, posing much danger for frontline workers who
tend to Covid-19 patients. What followed then was a remarkable collaboration between
governments at the central and state levels, textile and apparel industry players and workers
to revamp existing production lines to manufacture a completely unknown product, from
scratch.

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5.2. Revenues of last 5 years:

India has traditionally been a major producer of textiles. Along with this factor, a population
boom in the 20th century led to an increased demand of textile and apparel in India. Besides
the population, a rapid growth can be seen in the disposable income of the middle and lower
middle class sections of the society and it is expected to grow even further in the foreseeable
future. In value terms, India’s domestic textile and apparel market is worth US$ 106 billion in
2019-20.

Textile and apparel exports of India stood at US$ 37 billion in the financial year 2018-19.
The imports of textile and apparel have been growing at a CAGR of 8% over the last 13 years
from 2005-06 to 2018-19. India exported fabric worth US$ 4,787 million in 2018-19, which
has decreased at 1% CAGR since 2013-14. Woven fabric comprised of 91% of the total
fabric exports of the year 2018-19. India exported synthetic woven fabric worth US$ 842
million in 2018-19, which has grown at 3% CAGR since 2013-14. The top importing nations;
UAE and Bangladesh formed nearly 21% of the total exports of synthetic woven fabric from
India. USA, UK and Afganisthan are the other major importing nations with cumulative share
of ~17% in the total synthetic woven fabric exports of India

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6.Recent Developments:

The Ministry of Textiles is in the process of formulating a New Textiles Policy 2020 with a
vision to develop a competitive textile sector which is modern, sustainable and inclusive with
special focus on manufacturing of apparel and garment, technical textiles, man-made fibre
products and exports while maintaining pre-eminent position in handicrafts and handlooms
sectors. To help boost local manufacturing, attract large investments in the textile and apparel
sector, the government is planning to expand its production-linked incentive scheme.

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