apparel industry 1

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APPAREL INDUSTRYAPPAREL INDUSTRY

Presented By:Presented By:

Fateh Khan A1802009423Fateh Khan A1802009423Amrit Mishra A1802009398Amrit Mishra A1802009398Padmini Chetia A1802009413Padmini Chetia A1802009413Ankit Mour A1802009618Ankit Mour A1802009618



Overview

● India is today recognized as one of the best sourcingdestinations for garments, textiles, accessories and finish

● Labor is skilled and economical while prices are highlycompetitive

● As per the APEC garment export from India for 2009-10was usd 10.64 bn

● India's natural leverages that the industry uses to its fulladvantage

– 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

http://www.apecindia.com/advantage-india.asp

http://www.apecindia.com/advantage-india.asp



Overview...

● Globally Apparel Industry is one of the most importanatsectors 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

http://www.highbeam.com/doc/1G1-161882507.html





Domestic Industry

● Indian Domestic aaparel market is pegged atbetween 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

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

1000

2000

3000

4000

5000

6000

7000

8000

3229.31

3659.123452.47

3940

4771.77

5495.41

5893.65

7064

6230.45

6847.63

Export Of Textiles

Source: www.commerce.nic.inYear

Export(million

USD)



Trends in Export...

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-20

-15

-10

-5

0

5

10

15

20

25

-13.97

13.31

-5.65

14.12

21.11

15.16

7.25

19.86

-11.8

9.91

Growth Of Textiles Export

Source: DGCIS Kolkotta

Year

PercentageGr o

wth



Major Export Destinations

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



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 inwhich Bhiwandi (Maharashtra) has been named for Textile

Source: http://www.aepcindia.com/trade-policy.asp accesed on 17

th

Dec 2010 7pm IST

http://www.aepcindia.com/trade-policy.asp





Provisions in India’s FTP

● Procedural simplification and Reduction of Transaction Cost

– Flexibility to get a high value EPCG authorization by filing their EPCGapplication on Annual basis

– a single customs notification for the two variants of Advance Authorizationscheme 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 facilityavailable to sectors like Textiles & Leather

–

Readymade Garment sector granted enhanced support under MLFPS



Quality Standards

● For the textile and apparel industry, product quality iscalculated 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 apparelexport

– Sewing defects

– Colour effects

– Sizing defects

– Garment defects

● Quality Parameter

– Performance

– Reliability

– Durablity– Visual & Percieved Quality

● International Quality programs : ISO 9000



Problems/ Challenges faced byExporters

● India’s focus is on High value clothing for whichthe demand has signifiacanlty decreased after recession

●

Competiton from countries like Bangladesh andvietnam who provide apparel at very lowmargins

● Change in Buyer preferneces, they have movedtowards 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 byExporters...

● Productivity in Indian garment factories is only50% 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 currentfavourite China.The FTA is likely to significantlyboost 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 thanhalf 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

http://www.iigm.in/apparel.html

http://www.iigm.in/apparel.html

apparel industry 1

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