Professional Documents
Culture Documents
JANUARY 2016
Executive Summary......3
Advantage India....5
Strategies Adopted23
Growth Drivers...25
Opportunities..38
Success Stories..41
Useful Information..47
JANUARY 2016
141
100
67
2014
2017E
2021E
USD billion
CAGR: 12.06%
82
65
41.4
2015
2017E
USD billion
2021E
CAGR: 31.9%
112
64.3
38.0
2015
JANUARY 2016
2016*
Billion square metres
2017E
CAGR: 1.7%
4.25
4.18
JANUARY 2016
ADVANTAGE INDIA
JANUARY 2016
2015E
Market
Value:
USD108.5
billion
Competitive
advantage
Increasing investments
Advantage
India
Market
Value:
USD226
billion
Policy support
Under
Union
Budget
2015-16,
government has allocated USD39.81
million for integrated parks in India
2023F
Source: PHD Camber of Commerce; Federation of Indian Chambers of Commerce and Industry, TechSci Research
Notes: SITP - Scheme for Integrated Textile Park; FDI - Foreign Direct Investment,
ASEAN - Association of Southeast Asian Nations, E Estimate; F-Forecasted
JANUARY 2016
19011950
1854-1900
Number
of
mills
increased from 178 in
Notes: NTP - National Textile Policy; NTC - National Textiles Corporation; ASEAN - Association of Southeast Asian Nations, TUFS - Technology Upgradation Fund Scheme;
TMC - Technology Mission on Cotton, EU - European Union,Source: Union Budget 2015-16, Make In India
JANUARY 2016
Raw
material
Output
Cotton,
jute, silk,
wool
Ginning
Fibre*
Spinning
Yarn
Weaving/
knitting
Processing
Garment/
apparel
production
Fabric
Processed
fabric
Final
garment/
Apparel
Woollen textiles
Silk textiles
Jute textiles
Technical textiles
JANUARY 2016
India has the highest loom capacity (including hand looms) with 63 per cent of the worlds market share
India accounts for about 14 per cent of the worlds production of textile fibres and yarns (largest producer of jute, second
largest producer of silk and cotton; and third largest in cellulosic fibre)
Source: Textile Ministry, Make in India, TechSci Research
Note: Figures are as per latest data available
JANUARY 2016
10
226
78
70
2009
2010
89
2011
99
2014
108.5
2015E
2023E
JANUARY 2016
11
Textiles
60%
Apparels
JANUARY 2016
12
CAGR: 4.2%
30.7
28
FY07
FY08
29
FY09
33.9
35.3
35.6
FY11
FY12
FY13
39.8
39
FY14
FY15*
30.5
FY10
Raw cotton and man-made fibres are major segments in this category
Raw wool and raw silk are other components their production levels are much lower
JANUARY 2016
13
1.14
1.27
1.24
1.29
1.23
1.26
1.31
1.34
1.07
0.77
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15 FY16*
JANUARY 2016
14
626.30
583.50
623.90
660.20
673.60
399.30
FY11
FY12
FY13
FY14
FY15
FY16*
JANUARY 2016
15
9,283
18,812
8,468
30,570
33,871
35,439
20,567
8,135
31,201
21,663
7,769
28,790
22,438
6,766
26,898
20,534
6,888
21,173
27,196
19,545
26,238
6,882
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
Cotton
Blended
JANUARY 2016
16
39.3
31.7
33.3
3.2
3.04
2.7
5.4
5.2
4.2
19.1
22.4
3.4
21.2
3.5
2.8
2.7
3.3
17.6
19.1
22.1
27.8
41.4
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14^ FY15* FY16**
Exports
Imports
JANUARY 2016
17
Readymade Garment
4%
9%
Cotton Textiles
16%
41%
Man-made textiles
31%
Handicrafts (Excl.
Handmade Carpets)
JANUARY 2016
18
Business areas
Vardhman Group
Raymond Ltd
JANUARY 2016
19
Increasing investment in
TUFS
Multi-Fibre Arrangement
(MFA)
Public-Private
Partnership (PPP)
With the expiry of MFA in January 2005, cotton prices in India are now fully integrated with
international rates. In 2014, the government has cleared 13 proposal of new textile parks
in different states.
The Ministry of Textiles commenced an initiative to establish institutes under the PublicPrivate Partnership (PPP) model to encourage private sector participation in the
development of the industry
Technical textiles
Technical textiles, which has been growing at around twice the rate of textiles for clothing
applications over the past few years, is now expected to post a CAGR of 20 per cent over
FY11-17
USD70.83 million has been allocated to promote the use of Geotechnical textiles in the
North East states.
JANUARY 2016
20
Threat of New
Entrants
(High)
Substitute Products
Bargaining
Power of
Customers
(Moderate)
Competitive
Rivalry
(Moderate)
Substitute
Products
(High)
Bargaining
Power of
Suppliers
(Low)
JANUARY 2016
22
STRATEGIES ADOPTED
JANUARY 2016
Focus on backward
integration
Welspun India plans to increase its internal supply of yarn and greige from ~35 per cent in
February 2014 to 70-75 per cent by June 2014, through its backward integration strategy
Focus on forward
integration
Vardhman Textiles Ltd has entered into garment manufacturing business through a
collaboration with Nisshinbo, a Japanese manufacturer of yarns
Raymond group under its group company J.K.Helene Curtis is looking to ramp up male
grooming segment by unleashing new variants of shampoos and deos
Diversification
JANUARY 2016
24
GROWTH DRIVERS
JANUARY 2016
Increasing investments
Policy support
Growing demand
Growing domestic
and foreign
investments
Rising demand in
exports
Inviting
Resulting in
Increasing demand
in domestic market
due to changing
taste and
preferences
Government setting
up SITPs and Mega
Cluster Zones
Commitment of
USD140billion of
foreign investments
Growing population
driving demand for
textiles
Increasing loans
under TUFS
Government
investment
schemes (TCIDS
and APES)
JANUARY 2016
26
Stress on
mechanisation
Union Budget
Some of the key tax reliefs
in Budget FY16:
Zero excise duty for the
cotton products
Structure of the excise
duty on Man-Made Fibre
has been same
Infrastructure
support
Allocation of USD39.8
million for apparel parks
under SITP
USD26.05 million have
been allocated for NER
Textile Promotion
Scheme
USD1.33 million has
been allocated to Trade
Facilitation Centre and
Craft Museum
JANUARY 2016
27
CAGR: 1.72%
1.20
1.26
1.28
1.29
2014
2015
2016
1.34
1.03
0.85
0.69
1980
1990
2000
2010
2019F
JANUARY 2016
28
2500
10.0%
8.0%
2000
244
273
322
30%
26%
15%
43%
40%
6.0%
2302.5
2128.8
1978.6
1832.8
1702.1
1595.7
500
1504.5
2.0%
1514.6
1000
1552.5
4.0%
1430.2
1500
32%
23%
3%
2015
-2.0%
-4.0%
Growth Rate
29%
0.0%
Income
segment
(USD)
1%
25%
6%
3%
2020
17%
7%
2030
Globals(>22065.3)
Strivers(11032.7-22065.3)
Seekers(4413.1-11032.7)
Aspirers(1985.9-4413.1)
Deprived(<1985.9)
Source: IMF, Mckinsey Global Institute, TechSci Research
Notes: E - Estimates, F - Forecasts
JANUARY 2016
29
CAGR: 9.97%
39.3
33.3
41.4
31.7
27.8
22.1
17.6
19.1
21.2
22.4
19.1
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16**
Source: Ministry of Textiles, Budget 2015, TechSci Research
(**data shown for FY16 is from April to September only)
JANUARY 2016
30
32
CAGR: 9.6%
14
FY14
FY23E
JANUARY 2016
31
CAGR: 8.3%
5.5
4.7
JANUARY 2016
2014
2016E
2021E
32
Investment was made to promote modernisation and up-gradation of the textile industry by
providing credit at reduced rates
USD0.39 billion has been allocated for TUFS scheme for FY15
Foreign Direct
Investment
The policy was introduced for the overall development of textile industry
Key areas of focus include technological upgrades, enhancement of productivity, product
diversification and financing arrangements
New draft for this policy ensures to employ 35 million by attracting foreign investments. It
also focuses on establishing a modern apparel garment manufacturing centre in every
North Eastern state for which Government has invested an amount of USD3.27 million
FDI of up to 100 per cent is allowed in the textile sector through the automatic route
Technical textile
industry
JANUARY 2016
SITP was set up in 2005 to provide necessary infrastructure to new textile units; under
SITP, 40 projects (worth USD678 million) have been sanctioned
Out of these 40 projects, 27 have started production. 16 projects has been completed and
as on November 2014, Government has invested a total of USD21.96 million for 21 new
textile parks and the remaining 13 textile parks has been given the in-principle approval
under SITP
Government of India has planned an increase in the fund outlay for technical textiles
industry to more than USD117 million during the current 12th Five Year Plan (2012-17)
For updated information, please visit www.ibef.org
33
State
Tamil Nadu
Area
(hectares)
607.1
Sector
Details
Apparel and
fashion
accessories
Gujarat
56.0
Textiles
Brandix India
Apparel City (BIAC)
(Functional)
Andhra
Pradesh
404.7
Textiles
Several sectors
(KIADB)
(Functional)
Karnataka
16,129.0
JANUARY 2016
34
JANUARY 2016
35
Acquirer name
Target name
37.67
NA
NA
NA
Grasim Industries
360.0
Madura Garments
Pantaloon Retail
333.3
Himachal Fibres
NA
721.1
Group of investors
Provogue (India)Ltd
526.9
Maxwell Industries
8.5
Source: M&A, Thompson ONE Banker, Grant Thornton, CMIE, TechSci Research
Note: * The value for 290 deals were not disclosed
JANUARY 2016
36
1771.06
1587.83
1424.92
1122.17
1226.02
956.97
817.26
JANUARY 2016
FY10
FY11
FY12
FY13
FY14
FY15
FY16*
37
OPPORTUNITIES
JANUARY 2016
JANUARY 2016
of a domestic foothold,
outsourcing will also rise
significantly
39
is expected to grow at a
Compound Annual Growth Rate
(CAGR) of more than 13 per cent
over a 10-year period
Foreign investments
The government is taking
Notes: BTRA - The Bombay Textile Research Association, SITRA - South India Textile Research Association,
NITRA - Northern India Textile Research Association, SASMIRA - Synthetic & Art Silk Mills Research Association
JANUARY 2016
40
SUCCESS STORIES
JANUARY 2016
Retail
JV with GAS in
India - 2007
Furnishings
Acquisition of
ColorPlus 2002
Corporate wear
Capacity of 40
MM -1996
Woollen outerwear
Apparels
Fabrics
Organic
growth in
textiles
1964
Vertical
integration in
multi-fibres
1980
Transformed
into industrial
conglomerate
FY16*
USD434.4
million
turnover
FY08
USD595
million
turnover
1925 1958 1964 1968 1990 1996 2000 2002 2006 2007 2008 2010 2011 2012 2013 2014 2015 2016
Source: Company Presentation, TechSci Research
Notes: JV - Joint Venture, MM - Million Meters; * - Data is for Half Year Ended September 2015
JANUARY 2016
42
Polyester yarn
Home textile
Tie-ups With
Global Retail
Giants
Embroidery
Apparel fabric
Cotton and
blended yarn
Organic growth
in textiles
1995*
Financial and
technical
collaboration
through JV
FY16*
~USD0.55
billion
turnover
1986 1988 1990 1992 1993 1995 2003 2004 2006 2007 2008 2010 2011 2012 2013 2014 2015 2016
Source: Company Annual Reports and Presentation, TechSci Research
Notes: NTC - National Textile Corporation *In 1995 Alok industries had sets up financial and technical collaboration with Grabal, Albert Grabher
GmbH & Co of Austria to make embroidered products through a joint venture company, Grabal Alok Impex Ltd; * - Data is for Q1 ended June 2015
JANUARY 2016
43
Global
brand
Wide
distribution
network
Terry towels
Focus on
innovation
Growth
strategy
Focused
approach
on home
textiles
Association
with top
brands and
clients
Rugs
Location - Anjar/Vapi
Capacity 60 million
metre/Year
Location - Anjar
Location - Vapi
JANUARY 2016
44
227.12
CAGR:
12.2%
612
495
672
880
CAGR: 24.2%
170.09
725
537
100
77
FY10
FY11
FY12
FY13
FY14
FY15
FY16*
120.2
118.54
468.4
FY10
65
FY11
FY12
FY13
FY14
FY15
FY16*
JANUARY 2016
45
5.9
CAGR: 12.6%
2.5
2.5
2.4
2.7
2.6
2.4
FY13
2.4
FY12
FY11
6.5
FY10
FY09
FY08
FY07
2.5
1.9
FY18E
FY17E
FY15*
FY14
1.4
FY06
FY05
JANUARY 2016
46
USEFUL INFORMATION
JANUARY 2016
JANUARY 2016
48
JANUARY 2016
49
JANUARY 2016
50
Year
Year
200405
44.81
2005
43.98
200506
44.14
2006
45.18
200607
45.14
2007
41.34
200708
40.27
200809
46.14
2008
43.62
200910
47.42
2009
48.42
201011
45.62
2010
45.72
201112
46.88
2011
46.85
201213
54.31
2012
53.46
201314
60.28
2013
58.44
2014-15
61.06
2014
61.03
2015-16(Expected)
61.06
2015(Expected)
63.72
JANUARY 2016
51
This presentation is for information purposes only. While due care has been taken during the compilation of this
presentation to ensure that the information is accurate to the best of TechSci and IBEFs knowledge and belief, the
content is not to be construed in any manner whatsoever as a substitute for professional advice.
TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in
this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of
any reliance placed on this presentation.
Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission
on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.
JANUARY 2016
52