India Textile & Garment Industry Report - H1, 2013

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India Textile & Garment Industry Report - H1, 2013

The textile and garment sector is one of the pillars of the Indian economy. The sector accounts for 14% of industrial production and 4% of GDP. Besides, the sector also employs close to 45mn people and is the second largest employer after agriculture. It is a diversified sector comprising of many industries including cotton textiles industry, jute industry, silk textiles industry, woolen textiles industry, apparel industry, fibre industry, handicrafts as well as handlooms.

FY13 was a difficult year for the Indian textile industry. Eurozone sovereign debt crisis led to a slowdown in demand for Indian textiles. This had a considerable impact on the export earnings of the Indian textile sector. The depreciation of rupee brought some respite for the apparel exporters in INR terms but decline was clearly visible in USD terms. Domestic market showed some resilience especially in the festive season which reduced the impact of export decline to a certain extent.

Despite a tough year, the demographic dividend and comparatively lower cost of manufacturing bodes well for the textile and garment sector in longer term. Exchange rate fluctuations and costly working capital loans are the biggest challenges for the sector.

Key Points:

• The sector accounted for 10.4% of the country’s total exports during FY13. It acted as one of the major foreign exchange earners for the country. During 2008-2012, the export earnings from the sector grew at a CAGR of 13.7%.

• As of 9MFY13, ready-made garments were the largest segment in terms of export contribution accounting for 39% of the total export earnings. Cotton textiles were next with a contribution of 33%. Manmade textiles were the third largest segment with a contribution of 17%.

• The United States was the largest market for Indian textile exports accounting for around 18% of the total export earnings. It was followed by China and UAE which accounted for 10% and 7%, respectively.

• In FY13, the export earnings from textile sector grew by 8% year on year in INR terms. However, in USD terms it recorded a year on year decline of 4.1%. The on-going financial crisis in the Eurozone countries had a considerable impact on the export earnings of the Indian textile sector in 9MFY13.

Table of Contents

1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-India
2.2 Ready Made Garments
2.3 Cotton textiles
2.4 Man-made textiles
2.5 Handicrafts
2.6 Silk textiles
2.7 Wool & woollen textiles
2.8 Jute textiles

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Alok Industries Limited (AIL)
3.1.2 Welspun India Limited (WIL)
3.1.3 Arvind Limited
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and Charts

Table 1: Highlights of Union Budget 2013-14 for the textile sector
Table 2: Balance sheet parameters
Table 3: Valuation matrix

Chart 1: Annual cloth production in India
Chart 2: Share of cloth production by segment
Chart 3: Export earnings from textile sector
Chart 4: Share of segments in Indian textile exports
Chart 5: Export markets for Indian textiles by earnings
Chart 6: Y/Y change in USD export earnings of textile sector from major markets
Chart 7: Cumulative FDI in the textile sector
Chart 8: Position of constituent parties in lower house of parliament
Chart 9: Current account deficit and fiscal deficit
Chart 10: Cumulative amount disbursed in the TUFS
Chart 11: Quarterly GDP growth rate-India
Chart 12: Average monthly USD to INR exchange rate
Chart 13: Inflation during FY13-India
Chart 14: Weights of different industries in index of industrial production
Chart 15: Index of industrial production
Chart 16: Y/Y change in index of industrial production-FY13
Chart 17: Annual export earnings from ready-made garments
Chart 18: Ready-made garment exports by segments
Chart 19: World cotton production by country
Chart 20: Annual cotton yarn production in India
Chart 21: Annual cotton cloth production in India
Chart 22: Annual export earnings from cotton textiles
Chart 23: Production of man-made fibres and yarns
Chart 24: Man-made fibre production by segments
Chart 25: Annual export earnings from man-made textiles
Chart 26: Contribution of different segments in man-made textile exports
Chart 27: Annual export earnings from handicrafts
Chart 28: Contribution of different segments in handicraft exports
Chart 29: Annual export earnings from handicrafts
Chart 30: Contribution of different segments in handicraft exports
Chart 31: Annual wool and woollen textile trade in India
Chart 32: Contribution of different segments in woollen textile exports
Chart 33: Annual jute textile exports from India
Chart 34: Jute textile export earnings by segments
Chart 35: Shareholding-Alok Industries
Chart 36: Net sales by segment-Alok Industries
Chart 37: Net sales of Alok Industries
Chart 38: Consolidated profit margins of Alok Industries
Chart 39: Shareholding-Welspun India Ltd
Chart 40: Installed capacity by segments-WIL
Chart 41: Net sales of WIL
Chart 42: Profit margins of WIL
Chart 43: Shareholding-Arvind Ltd
Chart 44: Revenue share by segments-Arvind
Chart 45: Net sales of Arvind
Chart 46: Profit margins of Arvind

Number of pages: 32
Release Date: Fri, 28 Jun 2013