APPAREL INDUSTRY

Presented By:
Fateh Khan A1802009423
Amrit Mishra A1802009398
Padmini Chetia A1802009413
Ankit Mour A1802009618
 Overview
● India is today recognized as one of the best sourcing
destinations for garments, textiles, accessories and finish
● Labor is skilled and economical while prices are highly
competitive
● As per the APEC garment export from India for 2009-10
was usd 10.64 bn
● India's natural leverages that the industry uses to its full
advantage
– India the largest producer of jute
– the second largest producer of cotton
– the third largest producer of raw cotton
– the fourth largest producer of synthetic fibre

Source : www.apecindia.com/advantage-india.asp accesed on 17 dec2010 3pm IST

 Overview...
● Globally Apparel Industry is one of the most importanat
sectors of the economy in terms of investrment, revenue,
Trade and employment generation all over the world
● Some of the important segments of the apparel industry
include kids clothing, mens clothing, clothing for women,
bridal ware , mens wedding ware and intimate apparel
● 3 major channels of sales are
– Brick and Mortar
– Catalog
– Internet
 Production Centres
● The major production hubs exclusively for
exports are:-
– Delhi
– Mumbai
– Tirupur
– Bangalore
– Chennai

Source: http://www.highbeam.com/doc/1G1-161882507.html accesed on 16 Dec 10 at 4pm IST

 Domestic Industry
● Indian Domestic aaparel market is pegged at
between Rs 120-150 million
● Major players in Indian garment market
– Pantaloon
– Shoppers Stop
– TATA
– Globus stores
– Arvind Brands
– Madura Garments
– Wills Lifestyle
 Trends In Export

8000
Export Of Textiles
7064
7000 6847.63

6230.45
6000 5893.65
5495.41

5000 4771.77
Export (million USD)

3940
4000 3659.12
3452.47
3229.31
3000

2000

1000

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Year
Source: www.commerce.nic.in
 Trends in Export...
Growth Of Textiles Export
Source: DGCIS Kolkotta
25
21.11
19.86
20

15.16
15 14.12
13.31

9.91
10
7.25
Percentage Growth

-13.97 -5.65 -11.8

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-5

-10

-15

-20
Year
 Major Export Destinations

● US and EU together account for 75% of India’s

export fo apparel

● U.A.E

● Saudi Arabia

Source: http://www.fibre2fashion.com/news/apparel-market-trends-news/newsdetails.aspx?news_id=83306
 Exports from India for last 3 years
● 2007-2008 : USD 9.7bn
● 2008-2009 : USD 10.13bn
● 2009-2010 : USD 10.64bn

Source: http://www.aepcindia.com/files/Garment-exports-from-India-stumble-in-current-fiscal-year.pdf
Major Competitior in the global
Market
 Provisions in India’s FTP
● Higher Support for Market and Product Diversification
– 256 new products added under FPS
– 300 products from the RMG sector incentivized under MLFPS for
further 6 months from October, 2010 to march, 2011 for exports to
27 EU countries
– Market focus scheme introduced for the market diversification is
continued
● Support for Technological up-gradation
– Zero duty EPCG scheme
– Additional Towns of Export Excellence (TEEs) announced in
which Bhiwandi (Maharashtra) has been named for Textile

Source: http://www.aepcindia.com/trade-policy.asp accesed on 17th Dec 2010 7pm IST

 Provisions in India’s FTP
● Procedural simplification and Reduction of Transaction Cost
– Flexibility to get a high value EPCG authorization by filing their EPCG
application on Annual basis
– a single customs notification for the two variants of Advance Authorization
scheme namely advance authorization for physical exports & deemed
exports shall be issued
● Other
– Duty free import of specified trimmings, embellishment etc shall be available
@ 3 per cent on exports of polyester made-ups in line with the facility
available to sectors like Textiles & Leather
– Readymade Garment sector granted enhanced support under MLFPS
 Quality Standards
● For the textile and apparel industry, product quality is
calculated in terms of :
– Quality and standard of fibers
– Yarns
– Fabric construction
– Colour fastness
– Designs
– Final finished garments
● Quality control in terms of garment manufacturing,
pre-sales and posts sales service, delivery, pricing,
etc are essential for any garment manufacturer, trader
or exporter
 Quality Standards...
● Major things to pay special attention for quality of apparel
export
– Sewing defects
– Colour effects
– Sizing defects
– Garment defects
● Quality Parameter
– Performance
– Reliability
– Durablity
– Visual & Percieved Quality
● International Quality programs : ISO 9000
 Problems/ Challenges faced by
Exporters
● India’s focus is on High value clothing for which
the demand has signifiacanlty decreased after
recession
● Competiton from countries like Bangladesh and
vietnam who provide apparel at very low
margins
● Change in Buyer preferneces, they have moved
towards low cost retailers

Source: http://www4.economictimes.indiatimes.com/news/news-by-industry/cons-products/garments-/-
textiles/slowdown-woes-indian-apparel-exporters-iron-out-inherent-problems/articleshow/4352540.cms
 Problems/ Challenges faced by
Exporters...
● Productivity in Indian garment factories is only
50% of the global standards
● Disadvantage on the duty drawback front in
comparison to China, Vietnam & Bangladesh
● Fluctuations in the Exchange rates( Rupee
appreciation is disadvantageous to exporter)
 News Articles
● Textile cos gung ho on Indo-Japan FTA
– The Economic Times 16 Dec, Pg 10

● Japanese textile Units are keen on building their

Indian Presence shifting away from current
favourite China.The FTA is likely to significantly
boost trade.
 News Articles...
● Cotton exports less than half of registrations
– The Economic Times 17 Dec, Pg 12
● Much to the relief of doomestic texitle industry
exporters have managed to ship out only less than
half of the permitted 55 lakh bales of cotton
 References
● http://www.articlesnatch.com/Article/India-s-Apparel-Export-Industry---
Coming-Apart-At-The-Seams/762258
accesed on 17th Dec 2010 at 3.30 pmIST
● http://www.iigm.in/apparel.html
accesed on 18th Dec 2010 at 5.30 pm IST
● http://www.fibre2fashion.com/news/apparel-market-trends-
news/newsdetails.aspx?news_id=83306
accesed on 18th Dec 2010 at 6.00 pm IST
● http://www4.economictimes.indiatimes.com/news/news-by-
industry/cons-products/garments-/-textiles/slowdown-woes-indian-
apparel-exporters-iron-out-inherent-problems/articleshow/4352540.cms
accesed on 19th Dec 2010 at 3.30 pm IST