India Textile & Garment Industry Report - 2015

India Textile & Garment Industry Report - 2015

This report profiles India’s textile and garment industry, discussing market trends through 2014 and outlook for 2015 and beyond. The report also highlights leading players in the sector including Alok Industries Ltd, Welspun India Ltd and Arvind Ltd.

The textile and garment sector is one of the pillars of the Indian economy. The sector accounts for 14% of the industrial production and 6% of the GDP. Besides, the sector also employs close to 45mn people and is the second largest employer after agriculture. It is a diversified sector comprising of many industries including cotton textiles industry, jute industry, silk textiles industry, woolen textiles industry, apparel industry, fibre industry, handicrafts as well as handlooms.

India’s overall industrial growth recovered in FY15. It was a good year for the domestic textile sector, backed by stable growth in exports. Depreciation of the Indian rupee helped in making local textile exports more competitive amidst competition from emerging markets like Bangladesh and Vietnam. The two largest export segments, namely ready-made garments and cotton textiles, each saw a double-digit growth in USD terms during the year.

The young demographic dividend and comparatively lower cost of manufacturing bodes well for the textile and garment sector in the long-term. Exchange rate fluctuations and costly working capital loans are the biggest challenges for the sector.

Key Points:

According to the Ministry of Textiles, the sector accounted for 12% of India’s total exports in FY15 and acted as one of the major foreign exchange earners. During 2008-14, the sector export earnings grew at a CAGR of 8% in dollar terms.

As of FY14, ready-made garments were the largest segment in terms of export contribution, accounting for 46% of the total export earnings. Cotton textiles were next, with a contribution of 31%. Manmade textiles were the third largest segment with a contribution of 14%. Together, these three segments accounted for 91% of India’s textile exports as of FY15.

According to UN Comtrade, India became the second largest textile exporter in the world just behind China in 2013. India also saw the highest growth (21% y/y) among the top five markets. Meanwhile, world textile exports grew by 5% y/y in the same period.

In FY15, the sector export earnings grew by 16% y/y in USD terms, recording a second year of strong recovery after the decline in FY13.

1. Industry profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-India
2.2 Ready-made garments
2.3 Cotton textiles
2.4 Man-made textiles
2.5 Handicrafts and carpets
2.6 Silk textiles
2.7 Wool and woolen textiles
2.8 Jute textiles
2.9 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Alok Industries Limited (AIL)
3.1.2 Welspun India Limited (WIL)
3.1.3 Arvind Limited (Arvind)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and Charts
Table 1: Ten point strategy to achieve the targets stipulated in the Vision 2024-25
Table 2: Key financial ratios of leading players

Chart 1: Annual cloth production in India
Chart 2: Share of cloth production by segment
Chart 3: Cloth consumption in India
Chart 4: Export earnings from textile sector
Chart 5: Share of segments in Indian textile exports
Chart 6: World’s largest textile export markets
Chart 7: Cumulative FDI in the textile sector
Chart 8: Results of Indian general elections 2014-Seat share
Chart 9: Current account deficit and fiscal deficit
Chart 10: Cumulative amount disbursed in the TUFS
Chart 11: Quarterly GDP growth rate-India
Chart 12: Average monthly USD to INR exchange rate
Chart 13: Inflation during FY13-India
Chart 14: Repo rate
Chart 15: Weights of different industries in index of industrial production
Chart 16: Y/Y change in index of industrial production
Chart 17: Annual export earnings from ready-made garments
Chart 18: Ready-made garment exports by segments
Chart 19: World cotton production by country
Chart 20: Annual cotton yarn production in India
Chart 21: Annual cotton cloth production in India
Chart 22: Annual export earnings from cotton textiles
Chart 23: Production of man-made fibres and yarns
Chart 24: Man-made fibre production by segments
Chart 25: Ratio of exports to production in various staple fibre categories
Chart 26: Annual export earnings from man-made textiles
Chart 27: Annual export earnings from handicrafts
Chart 28: Annual export earnings from carpets
Chart 29: Annual export earnings from silk and silk textiles
Chart 30: Contribution of different segments in handicraft exports
Chart 31: Annual wool and woolen textile trade in India
Chart 32: Contribution of different segments in woolen textile exports
Chart 33: Annual jute textile exports from India
Chart 34: Jute textile export earnings by segments
Chart 35: Net sales by divisions-Alok Industries
Chart 36: Total income of Alok Industries
Chart 37: Profit margins of Alok Industries
Chart 38: Cost breakup of WIL
Chart 39: Total income of WIL
Chart 40: Profit margins of WIL

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