Readymade Garments, Textile & Textile Auxiliaries, Hosiery,

Spinning, Jeans and Under Garments

The Readymade garments industry is increasing day by day due to changes of fashion in
day to day life. The readymade garment industry in India owes its existence to the
emergence of a highly profitable market for exports. Ready-made garments account for
approximately 45% of India's total textile exports. They represent value added and less
import sub sector. In the recent years, however, the domestic demand has also been
growing rapidly.
The changes in the life style since the onset of the liberalization era, and given the base
of the industry for the overseas market, Indian garments industry have taken big
strides. The entry of the Indian and global fashion designers has stimulated the market
further. With the rising tailoring costs and relatively low prices of standardized
products, the Indian consumer is increasingly taking to readymade. In the past, the
ready-mades market was confined mainly to baby dresses and small manila-shirts and
dress shirts. Now it has extended to trousers, suits, and lady dresses and, of course,
fashion garments for men and women. Readymade of specific brands have become not
only a status symbol; these have brought a more contemporary style in offices as much
as in social circles. Franchised boutiques have been established as tools for brand and
image building.
The garments industry categorizes itself into many segments: formal wear and
casual wear; women's dresses, men's and kids wear; suits, trousers, jackets and
blazers; shirts, sportswear, tee-shirts, denims, neckwear; undergarments (men's and
women's), knitwear, saris. Denim is graded in clearly defined weight classes.
Lightweight denim (cambray) is used in shirts and blouses. Heavy classical denim is
used to make trousers, jackets or coats.
The market segmentation by price differentials is notable: high-end for the affluent,
medium priced for the core and high middle classes, low-end for the low and core
middle class. Of the entire industry volume of about 5 million tonnes, polyester and
polyester filament yarn account for about 1.7 million tonnes, and acrylic, nylon, and
viscose taken together for 300,000 tonnes. The balance is represented by cotton
textiles.
The Indian branded garment market, which is estimated at over Rs 185 billion, accounts
for 25% of the Rs 745 billion readymades market. Following the entry of several new
brands, the branded segment has grown at 25% annually. This represents a shift from
unbranded to the branded segment. The market for mens innerwear is estimated to be
worth Rs 25 billion, with branded market valued at Rs 7 billion.
The Lead Players & Alliances in this sector globally includes Maxwell Apparel Ind.,
Lovable, USA, Page Apparel Mfg., Jokey Intl., USA, etc. Some of the major leading
brands include Arrow, Allen Solly, Van Heusen, Louis Phillipe, Park Avenue, Zodiac, Lee,
Excalibur, Flying Machine, Ruf n Tuf, Newport, Peter England, Louis Straus, Stencil,
Wrangler, Rod Lever, etc.

The textile industry occupies a leading position in the hierarchy of the Indian
manufacturing industry. It has witnessed several new directions in the era of
liberalization. While textile exports are increasing and India has become the largest
exporter in world trade in cotton yarn and is an important player of readymade
garments, countrys international textile trade constitutes a mere 3% of the total world
textile trade. Several mills have opted for modernization and expansion and are going
in for export-oriented units (EOUs) focused on production of cotton yarn. It has passed
through cyclical oscillations and at present, it is witnessing a recovery after a downturn.
A major improvement in weaving efficiency has been brought about by developments in
spinning technology which has enabled production of yarn of higher quality. A major
share of the looms installed in composite mills is now of automatic looms. However,
autolooms installed in the decentralized and powerloom segments are small in number.
Shuttleless technology, direct wrapping, use of splicing technology, automatic doffing
and knotting systems, help to increase mill productivity. Speed of the auto looms or
shuttleless looms is 60% higher than that of non-autolooms.
The textile industry has managed to modernise the spinning sector but there is a long
way to go on the weaving front. India's power loom sector has over 10,000 shuttleless
looms as compared to 150,000 in China. The lead players in the Indian industry include
Bombay Dyeing, Arvind Mills, Century Textiles, Coats Viyella, Morarji Gokuldas Spinning,
JCT, Hindustan Spinning, etc.

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PREFACE
We are going to make our project on textile industry in order to know the Readymade
Garments process. This project also gives the some important information of textile industry
those brands, different product, New business, New technologies, New partnership. Because
technologies also shape corporate destines.
The Career of the Person depends upon many things. One of them is the knowledge. It
acquires through theory is not sufficient to develop. Her personality and to develop some
skills, but now a days, it is no more. Practical training is necessary to implement the theories
& acquire the knowledge, so for this purpose our institute Global Institute of Management
affiliated by Gujarat Technological University.
The report is made with clear objective of study of textile industry its working. The
report will give the details of Production .Our report provides you all the information
related to the Readymade Garments. We hope this report fulfils need of the educational
requirements.

ACKNOWLEDGEMENT

We are heartily thankful to the Shraddha Maam, which has given us the
golden opportunity to prepare or analyze project report of textile industry. We
are also thankful to honorable professor Shraddha maam who has leaded us to
enlighten ourselves in preparation of this project.
We are heartily thankful to Management Faculty without whose constant
guidance this work would have been an impossible task to complete. Her
inspiration and encouragement has leaded me to come with a successful task.

INDEX
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PARTICULAR

ACKNOWLEDGEMENT

OVERVIEW OF TEXTILE INDUSTRY

PREFACE

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BIBLIOGRAPHY

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NO.

OVERVIEW OF TEXTILE INDUSTRY

Modernization Is A Continuous Process And There Should Be Concerted Efforts To

Modernize Both Machinery And Manufacturing Processes Regularly. It Is General
Experience That Units Which Maintained The Process Of Modernization Systematically
Could Manage To Sustain Their Growth In The Long Run.
Modernization In Fact Is Needed To Increase Production, Reduce The Cost Of Production,
Rationalize Labour, Reduce Maintenance And Power Cost Per Unit Of Production Etc. Due
To A Number Of Factors, The Vast Majority Of The Textile Units In India Never Tried To
Regularly Modernize Their Units. As A Result The Indian Textile Industry Had Been
Suffering From Technological Obsolescence Since The Beginning Of The 20th Century.
Textile Industry Is One Of The Leading Textile Industries In The World. Though Was
Predominantly Unorganized Industry Even A Few Years Back, But The Scenario Started
Changing After The Economic Liberalization Of Indian Economy In 1991. The Opening Up
Of Economy Gave Much Needed Thrust To Textile Industry, Which Has Now Successfully
Become One Of The Largest In The World.
Indian Textile Industry Largely Depends Upon The Textile Manufacturing And Export. Its
Play A Major Role In The Economy of The Country. Indian Textile Industry Is Also The
Largest In The Country In Terms Of Employment Generation.
Indian Textile Industry Can Be Divided Into Several Segments, Some Of Which Can Be
Listed As Below:

Cotton Textile
Silk Textile
Woolen Textile
Readymade Textile
Hand-Crafted Textile
Jute And Coir

Overview Indian Ready Made Apparel Market

Despite substantial growth, comparing to the international readymade
garment market of nearly 183mn USD, the Indian readymade garment

market is still in a budding phase. Due to the higher the introduction

cost of brand in India for the foreign players, domestic players have no
fear of any outside competition. The main obstacle to the organized
players is the huge unorganized scenario of the market. In a move to
compete, the organized players have rolled out their own strategy of
standardizing the goods. The brands introduced by these major textile
players hold much intrinsic power and high on quality and pricing
factors. They present the inheritance and constancy in the garment
piece. Siyaram's is venturing into readymade garment to grip the
continuously changing fashion trends. It is becoming a prominent
designer of mens readymade garments and accessories from fabric
manufacturer. The two major unique selling points of the recently
launched Siyaram's brand, Monday to Sunday Dressing would be the
widespread 30,000 retail outlets, where it is selling fabrics and second,
the fabric quality that Siyaram's has, which guarantees that the buyer
gets the high quality at a cheaper price.

GRASIM INDUSTRIES: TEXTILE SECTOR

Grasim Industries has a strong presence in the textile industry in India in the
fabrics and synthetic yarns sector through its subsidiary Grasim Bhiwani
Textiles Limited. Grasim is well known for its branded suitings, Grasim and
Graviera, mainly in the polyester - cellulosic branded menswear. Its textile
plants are located at Bhiwani (Haryana) and Malanpur (Madhya Pradesh). One
of the leading fabric manufacturers in India, Grasim's fabric operations are
centralised at Bhiwani with a processing capacity of 17 million metres a year.
Vikram Woollens, Malanpur, a unit of Grasim manufactures worsted dyed yarn
spun from 100 per cent merino wool along with polyester and other blends.
Grasim's strong nationwide retail network includes exclusive showrooms,
wholesalers and multi-brand outlets through which it reaches its customers.
Grasim also has a strong presence in the international market, catering to
international fashion houses in the US and the UK, supplying fabric for
manufacturing garments. These garments are available in retail chain stores
around the world.

Grasim's state-of-the-art manufacturing facilities has the latest technology in

fibre dyeing, yarn spinning, weaving, processing and folding, which ensures
that the company is at par with leading textile manufacturers in India. Grasim
has a strong design and development team which conceptualises and
develops designs as per the latest international fashion trends and market
needs.

Role of Textile Industry in India GDP

Role of Textile Industry in India GDP has been quite beneficial in the
economic life of the country. The worldwide trade of textiles and clothing has
boosted up the GDP of India to a great extent as this sector has brought in a huge
amount of revenue in the country.
In the past one year, there has been a massive upsurge in the textile industry of
India. The industry size has expanded from USD 37 billion in 2004-05 to USD 49
billion in 2006-07. During this era, the local market witnessed a growth of USD 7
billion, that is, from USD 23 billion to USD 30 billion. The export market increased
from USD 14 billion to USD 19 billion in the same period.
The textile industry is one of the leading sectors in the Indian economy as it
contributes nearly 14 percent to the total industrial production. The textile industry
in India is claimed to be the biggest revenue earners in terms of foreign exchange
among all other industrial sectors in India. This industry provides direct employment
to around 35 million people, which has made it one of the most advantageous
industrial sectors in the country.

Some of the important benefits offered by the Indian textile industry are as follows:
India covers 61 percent of the international textile market
India covers 22 percent of the global market
India is known to be the third largest manufacturer of cotton across the globe
India claims to be the second largest manufacturer as well as provider of
cotton yarn and textiles in the world
India holds around 25 percent share in the cotton yarn industry across the
globe
India contributes to around 12 percent of the world's production of cotton yarn
and textiles
The Role of Textile Industry in India GDP had been undergoing a moderate increase
till the year 2004 to 2005. But ever since, 2005-06, Indian textiles industry has been
witnessing a robust growth and reached almost USD 17 billion during the same
period from USD 14 billion in 2004-05. At present, Indian textile industry holds 3.5 to
4 percent share in the total textile production across the globe and 3 percent share
in the export production of clothing. The growth in textile production is predicted to
touch USD 19.62 billion during 2006-07. USA is known to be the largest purchaser of
Indian textiles.

Following are the statistics calculated as per the contribution of the sectors in Textile
industry in India GDP:
India holds 22 percent share in the textile market in Europe and 43 percent
share in the apparel market of the country. USA holds 10 percent and 32.6 percent
shares in Indian textiles and apparel.
Few other global countries apart from USA and Europe, where India has a
marked presence include UAE, Saudi Arabia, Canada, Bangladesh, China, Turkey and
Japan
Ready made garments accounts for 45 percent share holding in the total
textile exports and 8.2 percent in export production of India
Export production of carpets has witnessed a major growth of 42.23 percent,
which apparently stands at USD 654.32 million during 2004-05 to USD 930.69 million
in the year 2006-07. India holds 36 percent share in the global textile market as has
been estimated during April-October 2007
The technical textiles market in India is assumed to touch USD 10.63 billion by
2007-08 from USD 5.09 billion during 2005-06, which is approximately double. It is
also assumed to touch USD 19.76 billion by the year 2014-15
By 2010, India is expected to double its share in the international technical
textile market
The entire sector of technical textiles is estimated to reach USD 29 billion
during 2005-2010
The Role of Textile Industry in India GDP also includes a hike in the investment flow
both in the domestic market and the export production of textiles. The investment
range in the Indian textile industry has increased from USD 2.94 billion to USD 7.85
billion within three years, from 2004 to 2007. It has been assumed that by the year
2012, the investment ratio in textile industry is most likely to touch USD 38.14
billion.
- See more at: http://business.mapsofindia.com/indiagdp/industries/textile.html#sthash.ZIHuhlzn.dpuf

Conclusion:
Today, the buyers of ready made garment segment are aware of the running
trends, and demand the newest in fashion and products at a reasonable cost. At
the front position of this evolution are the smaller players, which private labels
that are thoroughly transforming the dressing way of men, women and children.
With the supply chain limitations eased, organization in real estate markets, and
rationale tax structure, the readymade garment segment has become more
lucrative and it is anticipated that the readymade garment segment will be the
main segment in the next five years.

PORTER FIVE FORCE ANALYSIS OF TEXTILE INDUSTRY IN PAKISTAN

Porter five force analysis consist of following five forces

Entry & Exit barrier

Level of competition
Bargaining power of buyers
Bargaining power of supplier
Threat of substitute

ENTRY & EXIT BARRIER

In entry and exit barrier we are choosing following indicators to understand this force
a) Legal environment and Incentive from government in textile industry
b) Energy crises
Lets start with legal environment regarding textile industry

a) LEGAL ENVIRONMENT
Generally speaking legal environment is not in the favor of textile industry.
The Textile Industry was one of those five industries of Pakistan that enjoyed 0%
rating facility, which means that their products were not subject to any sales tax. This
exemption was given by the government through SRO 509 (I)/2007 dated 9th
June, 2007. But recently a new SRO 231(I)/2011 dated 15th March, 2011 has
been issued to have changes in the previous one. The applicability of the new sales
tax regime for textile sector has become applicable from April 1, 2011 instead of date
of the promulgation of the Presidential Ordinance or issuance of relevant notification
i.e., March 15, 2011. This new SRO finished the facility of 100% zero rating and
imposed a tax of 4% if the finished fabrics have been sold to the un-registered
persons like wholesale market

All Pakistan Textile Mills Association (APTMA) has told that governments actions are
not matching with its words for the textile industry. Chairman APTMA said that this
government policy is textile industry friendly.
a) NO SUBSIDY FROM THE GOVERNNMENT
Especially the provisions of Finance Bill 2009-10 are not textile industry friendly at
all. Provisions like

Reintroduction of 0.5% minimum tax on domestic sales

1%withholding tax on import of textile and articles
16% Federal Excise Duty on banking and insurance services besides

Reintroduction of minimum tax on domestic sales would invite unavoidable liquidity

problem, which is already reached to the alarming level. The textile industry was
facing negative generation of funds due to unaffordable mark up rate
The government has raised special excise duty from one per cent to 25 per
cent.
So instead of given subsidy to the textile industry the government of Pakistan is
making unfriendly policies for the textile industry.
So we conclude that entry and exit barrier are very high.

b) INFLATION RATE

The categories which recorded the highest price increases were: Alcoholic
Beverages and Tobacco (18.5 percent); Recreation and Culture (17 percent);
Clothing and Footwear (15.7 percent); Health Care (13.2 percent); Restaurants and
Hotels (9.8 percent) and Miscellaneous Goods and Services (8.6 percent).
The increase in inflation causes the increase in the cost of production of textile good
which return in downsizing. The increase inflation also cause reduction in exports of
textile.

c)ENERGY CRISES
In spite of the rates of utilities in Pakistan being higher than competing countries,
their tariffs are increased on regular basis making the industry un-competitive. The
cost of production has also risen due to instant increase in electricity tariff. As a
consequence of load-shedding the textile production capacity of various sub-sectors
has been reduced by up to 30 percent which, along with other consequences, has
also reduced the export order. Due to load shedding some mill owner uses
alternative source of energy like generator which increase their cost of production
further. Due to such dramatic situation the capability of competitiveness of this
industry in international market affected badly.
A spokesman for the All Pakistan Textile Mills Association (APTMA) claimed
that 60 to 70 per cent of the industry had been affected and was unable to

accept export orders coming in from around the globe, as a result of gas load
shedding.
Another jerk has been given to the industry in the form of a Two-day weekend for
the conservation of energy. Either adequate energy resources are unavailable to the
industry or the prices of fuel are out of range of the industry. The textile industry
being an energy intensive sector is vulnerable to a higher rate of energy losses
across various production processes resulting in higher energy bills, and productivity
losses- all of which have significant financial impact
We conclude that in extile industry entry and exit barrier are very high.

LEVEL OF COMPETITION
Two types of competition is facing by textile industry

Internal
External

On national stage the level of competition is low because textile industry needs huge
investment. Most importantly now a days our country legal and tax policies are not in
the favour of textile industry Now a days Pakistan is also facing severe energy crisis.
The high cost of production resulting is because of increasing energy crisis.
So on internal level this competition is low because of unattractiveness of this
industry.
While on international level industry is facing competition from other
developing countries like Bangladesh, India. China also competing Pakistan in
major export markets i.e. the EU and the USA. Also the current recession in the
West has resulted in

a slowdown in demand for textile products. Due to all the other problems faced by
the Textile Industry, its production capacity and quality is getting low. So Pakistan is
lagging behind its competitors in the sphere of this international and regional
competition. This is a huge threat to the Textile Industry of Pakistan.

No of player is low to moderate but the rule of game is very high.

So, we conclude that in textile industry level of competition is very high.

BARGAINING POWER OF BUYERS

Bargaining power of buyer is very high because of new emerging trends of WHO . In
past USA and EU was the major importer of Pakistani textile goods but not now.
Pakistani textile industry is achieving the national quality standards very hardly It is
not easy for Pakistani textile industry to achieving international quality standards.
Now a day WHO quality standard is the metals of most immediate concern are
chromium, Zinc, iron, mercury and lead. The fate of these chemicals varies,
ranging from 100% retention on the fabric to 100% discharge with the effluent. Most
of these metals are non-degradable into non-toxic end products. Experts say that
textile wastewater contains substantial pollution loads in terms of COD, BOD, TSS,
TDS and heavy metals. The values of these parameters are very high as compared
to the values in National Environment Quality Standards (NEQS) set by the
government.
United States cancel more than 50% of textile orders of Pakistan .US also
impose a high duties on the import of textile of Pakistan which effect the export in a
bad manner. US & EU are the major importer of Pakistan textile which creates a
huge difference in export of Pakistan textile after imposing restriction on import of
Pakistani textile goods.

BARGAINING POWER OF SUPPLIER

Bargaining power of supplier is low because of the new emerging trends of WHO
.Now the buyers have very much power to exercise as compare to suppliers.
So, bargaining power of supplier level is low.

THREAT OF SUBSTITUTE
In textile industry threat of substitute is low because people dont have any option to
purchase another product to satisfy their need.
As USA cut off 50% textile trade from Pakistan but it does not mean that USA find a
substitution for textile products .In fact they shift to another suppliers as China
,Bangladesh or India.
So we conclude that threat of substitute is low .

Poter Five
forces
Entry & Exit barrier
Levelof competition
Barganing power of
buyers
Barganing power of
suppliers
Threat Of Substitute

LOW

MEDIUM

HIGH

CONCLUSION
Porter five forces results show that textile industry is not a favorable business in
Pakistan to operate.
Among the five porter forces three are listed on table as high and remaining two are
listed as low .So simply the answer to start a textile business in Pakistan is in no.

BCG matrix

Portfolio plan of Boston Consulting Group (BCG) that has been developing since
70's is based on the assessment analysis of existing products, possibilities of
modifying products or manufacturing new ones. Starting from researches done by
BCG, it has been concluded that a strategic position of business is determined in
accordance with relative market participation and a market growth rate.
Relative market participation is considered to be a market participation of a product
in relationship with a leading competitor in the production of similar garments.
Growth rate can be positive (meaning growing market), nought (standing for
stagnated market) and negative (i.e. falling market in future). Market growth rate is
indicated with "low" and "high" in BCG matrix meaning that market growth rate of
that garment manufactures is lower or higher than growth of an entire economy of
the region.
At so called Boston matrix, products are indicated as follows:

 Stars - products with a high participation on a market and a high market growth
rate (garments that bring profit but needs a large investment in textile material as
well as a technological process of production).
Cash cows - garments that are main sources of profit
Dogs - products with low growth rate and low rate of market participation
(garments with low participation on a market that stagnates - stops producing them).
Problem children (question mark) - products with a high growth rate and small
market participation (garments that bring small profit, but are promising so they
cannot be neglected).
According to this matrix an integral indicator of all market characteristics stands for
a growth from the following reasons:
-

growth is the best measure of life cycles of a product,

it is easier to win a market share when product attracts new customers,
it is easier to keep than to conquer a market,
market is larger and non-competitive on a growing market,
new competitors can be discouraged by aggressive appearance on a growing
market.
Trying to remove the shortage of BCG matrix, Boston Consulting Group has
designed a new portfolio matrix. New BCG matrix has a changed coordinate of
relative market participation with "a great advantage that is going to be designed in
regards to other competitors", and a market growth rate has been changed by "a
large number of unique ways used for creating advantages".