Cotton Yarn Annual Review September 2009
CRISIL Ltd.
September 30, 2009 84 Pages - SKU: CRSL2467760
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Domestic demand to lead cotton yarn growth, exports to pull down growth
CRISIL Research expects the demand for cotton yarn to grow at an overall CAGR of 4.4 per cent, from 2,897 million kgs in 2008-09 to 3,599 million kgs in 2013-14. This growth rate is slower than the 6.4 per cent CAGR recorded between 2003-04 and 2008-09.
Exports of apparel and made-ups are expected to grow at a slower pace than in the previous years, given the slowdown in the US and EU markets, and the severe competition from China, Vietnam and Bangladesh. Consequently, derived demand (yarn used for manufacturing fabric used in garments and made-ups that are exported) will also exhibit a lower growth trend.
While the domestic textiles industry will remain the key driver, cotton yarn is expected to face substitution from polyester filament yarn (PFY), which is cheaper and finds usage in low-priced synthetic fabric. Direct yarn exports too are expected to grow slowly on account of falling consumption in the EU-27 countries and Japan, and also due to declining made-up exports of yarn importing countries like South Korea and Turkey to the US and the EU, respectively.
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- Sections
- Credit profile of cotton yarn spinners to remain weak; Tamil Nadu players to be most impacted
- Executive summary
- 1.0 Cotton yarn: Outlook on demand and supply
- 2.0 Outlook on cotton
- Supply
- Demand
- 3.0 Impact of tightening of cotton supply in the long run on spinners
- 4.0 Margins and profitability
- Chart
- 3.0 Impact of tightening of cotton supply in the long run on spinners
- 01 Yarn varieties and their production process
- Figures
- 1.0 Cotton yarn: Outlook on demand and supply
- 01 Cotton yarn — Demand outlook
- 02 Cotton yarn consumption mix
- 03 Demand — Cotton yarn vs. PFY
- 04 Cotton yarn to PFY price ratio
- 05 Income versus textile expenditure
- 06 India’s cotton textile exports
- 07 Expected derived cotton yarn demand
- 08 Major destinations for yarn export
- 09 Yarn exports to show muted growth
- 10 Expected capacity additions
- 11 Spinning disbursement under TUFS
- 2.0 Outlook on cotton
- 01 Cotton acreage to increase
- 02 MSP of Cotton and competing crops
- 03 State-wise deviation of rainfall from normal (June 1 to Aug 10)
- 04 State-wise share in cotton production
- 05 Cotton consumption break-up
- 06 Cotton export vis-à-vis cotton yarn
- 07 Prices — Domestic vs. International
- 08 Destination wise export break-up
- 09 China’s cotton consumption
- 10 China — Destination-wise cotton imports
- 11 US cotton availability
- 12 Bangladesh cotton and cotton yarn imports
- 13 Bangladesh spinning capacity additions
- 14 Global ending stock and price movement
- 15 India — Cotton DD-SS
- 3.0 Impact of tightening of cotton supply in the long run on spinners
- 01 Fabric demand
- 02 India’s consumption mix
- 03 Limited availability to result in a deficit scenario (by 2018-19)
- 04 State-wise yield
- 05 India — Cotton DD-SS
- 06 India — Fibre-wise consumption mix
- 07 Global — Fibre-wise consumption mix
- 08 MMF demand mix
- 09 Segment-wise demand growth
- 4.0 Margins and profitability
- 01 Limited pricing flexibility for cotton yarn players
- 02 Margin pressure expected to continue
- 03 State-wise spinning capacity
- 04 State-wise TUFS disbursement (Rs 610 bn)
- 05 Level of fragmentation of spinning units
- 06 Operating rate lower for TN based companies
- 07 Gearing higher for TN based companies
- 08 Asset turnover continues to decline
- Sections
- 1.0 Demand-supply
- Cotton yarn composition
- Growth in yarn production gained momentum after the removal of quota
- 2.0 Cost factors
- Raw material costs: Key determinant of profitability
- Capital costs: Spinning is capital-intensive
- 3.0 Cotton
- Introduction
- Availability
- India’s cotton balance sheet
- Pricing
- India - highest in acreage, but lowest in yield
- Production comparison
- Bt cotton: Bacillus thuringiensis cotton
- 4.0 Industry structure
- Cotton yarn: Industry structure
- 5.0 Manufacturing process
- Introduction
- Process
- Outputs
- 6.0 Government policies
- Recent government measures
- Government regulations affecting specific segments in the cotton tiles chain
- Boxes
- 5.0 Manufacturing process
- 01 Open-ended spinning vis-à-vis ring spinning
- 02 Latest developments in spinning technology
- Charts
- 4.0 Industry structure
- 01 Textiles value chain
- 02 Industry structure
- 5.0 Manufacturing process
- 01 Manufacturing process a glance
- Figures
- 1.0 Demand-supply
- 01 Segment-wise demand (2008-09)
- 02 Cotton-based apparel exports
- 03 Cotton-based apparel exports
- 04 Cotton-based made-ups exports
- 05 Cotton yarn exports
- 06 Domestic yarn production - Proportion
- 07 Comparative prices
- 08 Comparative excise duties
- 09 Domestic fabric production - Proportion
- 3.0 Cotton
- 01 Domestic prices traces international prices
- 02 Maharashtra has the highest acreage characterised with lowest yield
- 03 Rise in yield on account of increased area under Bt cotton cultivation
- 4.0 Industry structure
- 01 Region-wise cotton production (CS 2008-09)
- 02 Region-wise cotton yarn production in 2008-09
- 03 Fragmentation in the textiles industry
- 6.0 Government policies
- 01 Total amount disbursed under TUFS as on March 2009
- Tables
- 1.0 Demand-supply
- 01 Domestic yarn production
- 02 Count-wise production data
- 03 Domestic fabric production - Absolute
- 04 India - Spinning capacities - Organised mill sector (SSI and non-SSI)
- 05 Spinning industry - Capacity utilisation rates
- 2.0 Cost factors
- 01 Cost structure
- 3.0 Cotton
- 01 India's cotton balance sheet
- 02 India has the highest acreage under cotton
- 03 India has the lowest yield
- 4.0 Industry structure
- 01 Spun yarn region-wise capacities
- 02 Fabric production by sector
- Tables
- 01 Cotton: Monthly mill consumption (SSI and Non-SSI)
- 02 State-wise cotton production in million kg
- 03 Cotton: State-wise area under cultivation
- 04 Cotton: Region-wise yield
- 05 Cotton: Country-wise production
- 06 Cotton: Country-wise consumption
- 07 Cotton: Country-wise exports
- 08 Cotton: Country-wise imports
- 09 Import of raw cotton by India: Major countries (including waste)
- 10 Export of raw cotton: Major countries (including waste)
- 11 Production of spun yarn
- 12 Domestic deliveries of cotton yarn
- 13 Export of cotton yarn to major countries
- 14 Cotton Balance sheet
- 15 Excise duty on fibre, yarn and filament yarn
- 16 Customs duty on fibre, yarn and filament yarn
- 17 Eleventh Plan projections
- 18 Segment-wise progress under TUFS as on 31/03/2009 (provisional)
- 19 Year-wise progress of TUFS
- 20 Closure of cotton/man-madefibre textile mills (non-SSI)
- 21 Aggregates
- 22 Bannari Amman Spinning Mills Ltd
- 23 Cheslind Textiles Ltd
- 24 Eurotex Industries & Exports Ltd
- 25 G T N Industries Ltd
- 26 Gangotri Textiles Ltd
- 27 Kandagiri Spinning Mills Ltd
- 28 Katare Spinning Mills Ltd.
- 29 Nitin Spinners Ltd
- 30 Precot Meridian Ltd
- 31 Prime Textiles Ltd
- 32 R M Mohite Textiles Ltd
- 33 Rajapalayam Mills Ltd
- 34 Ramaraju Surgical Cotton Mills Ltd
- 35 Super Spinning Mills Ltd
- 36 Vardhman Textiles Ltd
- Industry statistics
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