Professional Documents
Culture Documents
APPAREL INDUSTRY
INDEX
S.N0. PAGE NO.
1. INDUSTRY OVERVIEW………………………………………………………………………………. 3.
2. PRODUCTION CENTRES…………………………………………………………………………… 5.
3. DOMESTIC INDUSTRY…………………………………………………………………………………………. 8.
India is the second largest manufacturer of garments after China, which is the global
leader in garment production. India is known for its high quality garments for men. Most
of the garment manufacturers in the country are in the Small and Medium scale
industry.
India has an advantage in producing garments & it produces and exports garments at
economical prices due to the cheap labor rates.
Also technological advancement & use of sophisticated machinery has enabled
the manufacturers to achieve better quality and make well designed garments.
The country is booming with fashion and lifestyle, with the organized retail trade growing
at a rate of 30% per annum. The Indian apparel or Indian garment industry is pegged at
more than 90,000 crores with nearly 13% growth per annum. The men's garment or
clothing segment constitutes nearly 45 % of the total apparel market and growing at a
constant rate each year. The share of organized branded segmet is fast increasing in
the Indian apparel market.
is the second most preferred country after China for textile and apparel sourcing. Its
Apparel industry is likely to achieve an export target of US$ 25 billion by 2010-11.
Low labor costs.
India's natural leverages that the industry uses to its full advantage -
Globally Apparel Industry is one of the most important sectors of the economy in terms
of investment, revenue, and Trade and employment generation all over the world
Some of the important segments of the apparel industry include kids clothing, men’s
clothing, clothing for women, bridal ware, men’s wedding ware and intimate apparel
–Catalog
–Internet
5
2. PRODUCTION CENTRES
–Delhi
–Mumbai
–Tirupur
–Bangalore
–Chennai
6
Some of the major production centers of knitting yarns and garments in India are as
follows:
Tirupur
Ludhiana
Himachal Pradesh
Tirupur
Tirupur located 55 km to the east of Coimbatore city in Tamil Nadu is known as the
hosiery capital of India. It accounts for 90% of India's cotton knitwear export which is
worth an estimated Rs 4,000 crores. In spite of being severely handicapped by poor
infrastructure. Tirupur has a unique significant presence at the lower end of the
international knitwear and hosiery market. Local market of Tirupur is around 800 crore
Indian rupees. There are more than 2500 apparel manufacturing units and 750 dyeing
units in the city. Tirupur also has 300 printing units, 100 embroidery units and 200 other
units like compacting, raising and calendaring units. Market of Tirupur is around Rs
8500 crores and local market is about 1500 crores according to a recent report. Every
year, millions of pieces of underwear come out of Tirupur. Tirupur's hosiery factories are
profitable successes and are considered as small jewels in India's economy.
Tirupur is one of the largest source of Foreign Exchange for the country because of its
exports. This city is famous for the export of all Knit wears like T-Shirts, Polo - Shirts,
Sweat Shirts, Banyans, Pajamas & Night Dresses on various fabrics like Single Jersey,
Interlock, Fleece, Polar Fleece, Drop Needle, Pique Jersey, Pointelle Jersey, Pointelle
RIB, RIB, etc. The hosiery and knitwear business in this city has long been held out as a
model for the export-led growth path.
7
Ludhiana
It is also known as the "Manchester of India", Ludhiana in the State of Punjab is a big
center for knitwear production. Ludhiana started its first hosiery unit in the beginning of
20th century and today the city boasts of housing more than 6000 small to medium size
knitwear factories, 10 big hosiery yarns mills, about 150 small to medium size worsted
and some woolen yarn factories, about 120 yarn and fabric dyeing factories, besides
manufacturers of knitting machines, stitching machines, knitting needles, labels and
packaging materials. About one third of the population of the city is engaged in the
knitwear business, directly and indirectly.
Ludhiana makes an hosiery turn over of approximately US$ 40 million annually with
exports equivalent to 30 percent of its production. The countries to which exports are
mainly are Europe, USA and Middle East countries.
Himachal Pradesh
Himachal Pradesh has a long tradition of hand knitting. There are various small scale
knitting mills in Himachal Pradesh. Baddi and Nalagarh are two important towns in the
state.
Himachal Pradesh is exempted from paying income tax and central excise duties for 10
years and there are concessions in sales tax.
8
3. Domestic Industry
–Pantaloon
–Shoppers Stop
–TATA
–Globus stores
–Arvind Brands
–Madura Garments
–Wills Lifestyle
9
The provisional figures released by AEPC showed that India exported garments worth
$10.13 billion during 2008-09, as compared $9.68 billion, registering 4.6% growth over
last year. The export figures in terms of Indian Rupee showed better performance,
inasmuch as our exports work out to Rs.46,628 crore for 2008-09, up 19.55% from
Rs.39,002 crore for 2007-08. The full year performance saw both small surges and
slides, depending upon primarily the value of Indian Rupee as compared to US Dollar,
which essentially decides how competitive we are in the world garment market. This
further need to be read in the context of level of demand for garments in all important
export destinations, have gone down.
The US and the EU together account for more than 80% of Indian garment export
The UAE and Saudi Arabia are the other major export destinations.
10
2007-2008:USD 9.7bn
2008-2009:USD 10.13bn
2009-2010:USD 10.64bn
India exported garments worth $10.13 billion during 2008-09, as compared $9.68 billion,
registering 4.6% growth over last year. The export figures in terms of Indian Rupee
showed better performance, inasmuch as our exports work out to Rs.46,628 crore for
2008-09, up 19.55% from Rs.39,002 crore for 2007-08.
Export Trends
10.8
10.6
10.4
10.2 Export Trends
10
9.8
9.6
9.4
9.2
2007-08 2008-09 2009-2010
11
The factors which are very much concerned for considering competition in the apparel
industry are :
China
Bangladesh
Vietnam
Turkey
Mexico
European Union.
–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
8. Quality Standards
14
For the textile and apparel industry, product quality is calculated in terms of :
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
–Sewing defects
–Color effects
–Sizing defects
–Garment defects
Quality Parameter
–Performance
–Reliability
–Durability
–Visual & Perceived Quality
India’s focus is on High value clothing for which the demand has significantly decreased
after recession
Competition from countries like Bangladesh and Vietnam who provide apparel at very
low margins
Change in Buyer preferences, they have moved towards low cost retailers