mr.p.m san chairman

8/2/2019 Mr.P.M san Chairman

1/13

Regional Conclave on

Role of Industry in

Development of South India

Role of Textile Industry

P.M.JAGATHEESANPresident,Coimbatore Management Association


2/13

Indias Position in World Textile Economy

India contributes 20% to the world spindleage capacityand about 6% to the world rotorage and has second highestspindleage in the world after China.

India contributes 62% to the world loomage. HoweverHigh-tech Shuttless Looms our contribution is only 4.1% to

the world Shuttless loomage.

It contributes 12% to the world production of textile fibresand yarns. It is the larges producer of Jute, Second largestproducer of Silk and Cellulose fibre / yarn, third largestproducer of cotton and fifth largest producer of synthetic

fibres / yarns.


3/13

Textile Industry Position in India

Textiles contributes 14% to the Industrial Production

4% to GDP

Textile Industry is Employing about 35 Million People

Textiles account 21% of India Gross Export Earnings


4/13

Profile of Textile Industry in IndiaOrganised Textile Mills

Tamil Nadu South India India

No. of SpinningMills

813

(51%)

1001

(63%)

1570

No. of

Composite Mills

26

(12%)

40

(18%)

218

Total No. ofMills

(NTC / Co-operative)

839(46.92%)

29

1041

(58%)

67

1788

159


5/13

Installed Capacity


Spindles(Lakhs)

134.11

(39%)

175.84

(51%)

343.90

Rotors(Nos)

118525

(30%)

138213

(35%)

385395

Looms(Nos)

5959

(7.4%)

10199

(12.7%)

79791


6/13

Small Scale Units


No. ofSpinningMills

907

(78%)

941

(81%)

1161

InstalledCapacity

51396

(41%)

59952

(48%)

123444


7/13

TamilNadu

SouthIndia

INDIA

Yarn

Production(Million Kg)

1261

(39.16%)

1545

(49.78%)

3220

Number of

Workers(000)

230

(25%)

286

(31%)

916


8/13

Cost Competitiveness of Textile Industry

(Indias Position in Comparison with other Countries)

Indias Strengths: Strong Multi Fibre Raw Material base

Low Cost of Labour

Intellectual Capital

Dynamic and Vibrant Entrepreneurship

Disadvantages: Fragmented Industry

Productivity Low Power Cost High

Capital Cost High


9/13

Total Costs of Ring-Yarn

CostElement

Brazil China India Italy Korea Turkey USA

Waste 0.197%

0.3111%

0.177%

0.236%

0.228%

0.228%

0.176%

Labour 0.06

2%

0.04

2%

0.05

2%

0.85

24%

0.20

8%

0.13

4%

0.55

19%

Power 0.11

4%

0.23

8%

0.30

12%

0.37

10%

0.17

6%

0.25

9%

0.16

6%AuxiliaryMaterial

0.11

4%

0.11

4%

0.11

5%

0.12

3%

0.11

4%

0.11

4%

0.12

4%

Capital(Depreciation& Interest)

0.84

32%

0.39

14%

0.57

23%

0.60

17%

0.57

21%

0.73

26%

0.60

21%

ManufacturingCost (A)

1.31

50%

1.08

39%

1.2

49%

2.17

60%

1.27

47%

1.44

51%

1.6

56%

Raw Material(B)

1.30

50%

1.68

61%

1.25

51%

1.42

40%

1.41

43%

1.41

49%

1.26

44%

Total Yarn

Costs (A+B)Per kg. yarn)

2.61 2.76 2.45 3.59 2.68 2.85 2.86

In US$ per Kg. of yarn


10/13

Total Costs of Woven Ring-Yarn Fabric

Cost Element Brazil China India Italy Korea Turkey USA

Waste 0.0335%

0.0548%

0.0305%

0.0393%

0.0395%

0.0395%

0.0304%

Labour 0.029

4%

0.022

3%

0.034

5%

0.378

34%

0.116

16%

0.050

7%

0.263

31%

Power 0.046

7%

0.089

13%

0.112

17%

0.146

13%

0.070

9%

0.098

13%

0.068

8%

Auxiliary Material 0.057

9%

0.055

8%

0.074

11%

0.084

8%

0.108

14%

0.077

11%

0.065

8%

Capital(Depreciation &

Interest)

0.260

40%

0.178

26%

0.195

29%

0.205

19%

0.175

23%

0.228

31%

0.198

23%

Raw Material 0.227

35%

0.293

42%

0.218

33%

0.248

23%

0.246

33%

0.246

33%

0.220

26%

Total FabricCosts (per yardof Fabric)

0.652 0.691 0.663 1.100 0.754 0.738 0.844

In US$ per Yard of fabric


11/13

ManufacturingCosts of Ring Yarn Knitting

Cost

Element

Brazil China India Italy Korea Turkey USA

Labour 0.01

6%

0.01

10%

0.005

5%

0.13

54%

0.04

34%

0.02

17%

0.11

56%

Power 0.01

6%

0.02

22%

0.02

20%

0.03

12%

0.01

10%

0.02

15%

0.01

6%

AuxiliaryMaterial 0.0215%0.01519%

0.01513%

0.028%

0.0214%

0.0114%

0.029%

Depreciation 0.04

32%

0.03

37%

0.04

32%

0.05

19%

0.04

33%

0.05

37%

0.04

23%

Interest 0.06

41%

0.01

12%

0.04

30%

0.01

7%

0.01

9%

0.02

17%

0.01

6%

TotalManufacturingCosts (per yardof Fabric)

0.14 0.08 0.12 0.24 0.12 0.12 0.19

In US$ per Yard of fabric


12/13

A Vision 2010 for Textiles

To Increase Indias Share in World Textile

Trade from 4% to 8%

Export value of US $ 50 Billion

Growth in Textile Economy from US $ 37Billion to US $ 85 Billion

Creation of 12 Million New Jobs in Textile

Sector


13/13

THANK YOU

mr.p.m san chairman

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