AN ANALYSIS ON EXPORT OF INDIAN TEXTILE INDUSTRY WITH SPECIAL REFERENCE TO LUDHIANA.

Presented By :
Pushp Sambyal MBA- 2B

Introduction to The Company

The Nahar Group

At Nahar, excellence is always an ongoing journey never destination

 Nahar group came into existence in 1949 . It was established with initial efforts of three Oswal brothers Sh.Vidya Sagar Oswal ,Sh. Lachman Dass& Sh. Rattan Chand Oswal. The initial capacity of nahar group was 800 spindles. At present it has more than 66200 spindles of capacity.

Nahar Group of Companies

OSWAL WOOLLEN MILLS LTD. NAHAR INDUSTRIAL ENTERPRISES LTD. NAHAR SPINNING MILLS LTD.

Introduction to

At OWM, Even the Word Impossible Says Im Possible.

OSWAL WOOLLEN MILLS LTD

It was established in 1949 by Sh. Vidya Sagar Oswal. It is manufacturing all type of blended worsted yarn, weaving yarn, shawls,garments etc.

Features
Group turnover is Rs. 2500 Crore.

Export Markets: Argentina ,Brazil ,China, Poland ,Portugal ,U.K ,U.S.A, Turkey, South Africa,Egypt, Israel and Bangladesh.

Social upliftment by establishing Jawahar Lal Oswal Public Charitable Trust and Mohan Dai Oswal Memorial Hospital.

List of Directors
Mr. Jawahar Lal Oswal

Chairman-Cum-Managing Director Director Director Director Executive Director Executive Director Additional Director Additional Director Additional Director Additional Director

Mr. Amarjeet Singh

Mr. Dinesh Oswal

Mr. Kamal Oswal

Mr. Sandeep Jain

Mr. Dinesh Gogna

Dr. (Mrs.) H.K. Bal

Mr. O.P. Sahni

Mr. K.S. Maini

Dr. Suresh Kumar

Product Portfolio
Wool / acrylic top Yarns Textile fabrics Hosiery knitwear products

Brands of OWM

Departments in OWM
Quality Control Human Resource Department Finance Department Marketing Department

Competitors
Major competitors in pullovers and cardigans Casablanca Pringle (Scotland)

Competitors of woolen/blended worsted yarn

Vardhman Textiles Limited Jayshree Textiles Limited Malwa Cotton Mills Limited Arvind Mills Limited Aarvee Denims Limited Raymond Limited

Competitors of their denim fabric

SWOT Analysis

Strengths
Good Brand Image. Many persons are working here for more than 50 yrs. This shows commitment of employees towards their org.

Member of wool mark and ISO 9002.

Laboratories for testing the quality of the product.

Weaknesses

OWM is dependent upon foreign producers for greasy wool.

Depend on the third party for sale and the distribution of the product.

Opportunities
Fabrication for various companies likes NIKE, MARKS AND SPENCER, GAP, WILLS, etc. Manufacturing of kids garments.

Threats
Mushrooming and upcoming of small hosieries in Ludhiana.

Seasonal demand for their major product i.e. pullovers.

FINANCIAL ANALYSIS

Ratio Analysis is one of the most powerful tools of financial analysis. It is used as a device to analyze and interpret the financial health of an enterprise .

Current Ratio = Current Assets / Current Liabilities

Firms ability to pay its current liabilities out of its current assets.

Particulars

2006-2007 in Lac

2007-2008 in Lac

2008-2009 in Lac

Current Assets20543.67 Current Liabilities 11185.67

30129.28 9044.30

30422.64 9897.32 3.07

Current Ratio 1.84

3.33

Quick Ratio = Quick Assets/Current Liabilities

Particulars
Quick Assets Current Liabilities

2006-07 in Lacs 2007-08 In Lacs 2008-09 In Lacs

9060 11185 17328 9044 17506 9897

Quick Ratio

0.81

1.915

1.7688

ny is satisfactorily liquid to fulfillC.L well in time but it is not satisfactory in the year 2006-07 i

Earning Per Share = Net profit available to equity holders after tax & preference dividend
Number of ordinary shares outstanding

Particulars

2006-07 in Lacs

2007-08in Lacs

2008-09in Lacs

Net profit available 1402

2127

2368

Number of shares

249

249

249

EPS

5.63

8.54

9.51

ajor reason is that company s net profit is increasing every year but the number of shares being the same ev

INTRODUCTION TO INDIAN TEXTILE INDUSTRY

Indian Textile Industry

India textile industry largely depends upon the textile manufacturing and export.

India earns about 27% of its total foreign exchange through textile exports. It also contributes around 3% to the GDP of the country

Contd
It is the second largest employer after the agriculture sector in both rural and urban areas. Textile sector contributes 14% of value addition in manufacturing sector.

Indian Textile Industry

Market Size of Indian Textile Industry

2 0 0 8 -0 9
Textile Clothing & Garments Undergarments 20,219 1,487 93% 6.80% 0.01% 0.001%

% Sh a r e

Home Textile Furnishings 2.16 Accessories Total 0.29 21,708.45

Value-wise share of various products in total T&C exports by India (2008-09):

Share of major export markets in total T&C exports by India (2008-09 Value-wise):

INDIAN TEXTILE EXPORTS (2008-09)ITEM WISE

Export Target of Indian Textile Industry

Strength

Ludhaina Textile industry

Ludhiana is one of the principal producers of woolen and acrylic knitwear, apart from it also uses cotton and blended fiber to produce hosiery, knitwear and various ready-made garments.

The total output of hosiery products in Ludhiana is estimated to be around Rs. 8,000 crore in 2008-09 and the share of domestic sale to exports is to the tune of 75:25 ratio.

Cont

The major export markets of Ludhiana today are the EU, US, Africa,Vietnam & Bangladesh. Ludhiana accounts for nearly 90 per cent of the countrys woolen hosiery industry Ludhiana Textile Industry serves as the backbone of Indian hosiery industry.

Sector wise share in Ludhiana

Percentage share of companies in total exports of textiles in 2008-09 from Ludhaina .

Percentage of domestic sales to exports of textiles in Ludhaina(2008-09)

Title of the Project

AN ANALYSIS ON EXPORT OF INDIAN TEXTILE INDUSTRY WITH SPECIAL REFERENCE TO LUDHIANA

Objectives

To analyse the export potential of Ludhiana textile industry. To know the factors affecting exports of textiles. To know the strengths & weakness of textile industry.

RESEARCH METHODOLOGY

Research Design: Descriptive.

Sampling Technique: Convenience & snowball sampling. Universe: All the exporters of textiles.

Population: All the exporters of textiles in Ludhiana

Sample Unit: A single textile company in Ludhiana which is into export business. Sample Size: 20 Exporters. Sample Type: Area Sampling : Sample area of the study is Ludhiana

Data collection: Primary data : Questionnaire.

Secondary data: Journals and websites.

Limitations of the study

The study is limited to Ludhiana city due to time constraints. The Sample size has been restricted to 20 due to constraints of time . The analysis could have been made much more accurate, if the project be done in other cities also. The respondents were busy or for some other reasons, did not show much attention filing the questionnaire; hence the chances of biasness could be possible. To collect valid data a senior authority was needed to fill the questionnaire. Most of the time they were having important works to do and questionnaires were filled by other people.

Data Interpretation & Analysis

Table 4.1 Nature Of Company (N = 20)

Table : 4.3 Specification Of Export Products (N= 20)

Table 4.4 Performance Of Export Sales (N = 20)

Table 4.5 Potential Market For Exports (N= 20)

Table 4.6 Factor Affecting Exports ( N = 20)

Table 4.8: Exporters Risk ( N = 20)


Table 4.9: Competition Faced From Different Countries

Table 4.10: Table nature of competition (N = 20)

 Table 4.11.1: Strengths of Textile industry ( N=20 )


Table 4.11.2: Weakness of Textile industry ( N=20 )

Table 4.14: Future potential of textile industry ( N=20 )

Findings

Most of the export houses in Ludhiana are dealing in garments, woollen & yarn sector. Majority of the exporters of Ludhiana find South Africa as their potential export market followed by European countries . Strength of the textile industry is abundant raw material and the Weakness is govt. policies. China is the major competitor of Indian textile industry.

Suggestions

Government . has to extend validity of promotional schemes to promote textile exports. Ludhiana textile industry should explore new markets for exports . Government should take steps to provide better infrastructure ,technology, innovations & govt. policies to boost textile industry in near future.

Conclusion

Thank You