The Growth of Organized Retail Is A Significant Component of India's Current Economic Situation

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Kerala Textile industry ,and its feature

This study is aim to identify the textile market situations and find out the recent trend playing in
that area ,the study is also focus on the textile industry , especially in the kerala how they
function , and how they utilize there resources to meet certain needs and goals . during these
study we also analyzing the various problems facing in textile industry

introduction
Globally, the textile industry is a huge industry that affects every nation either directly or
indirectly. In the late 2000s, for example, crop issues caused cotton prices to increase and, as a
result, there was a shortage of cotton due to its popularity.according to a recent analysis, the
worldwide textile sector is valued at over USD 920 billion, and it is expected to grow 4.4 percent
over the forecast period, reaching around USD 1,230 billion by 2024.China is the largest
producer and exporter of both raw textiles and garments in the world. And even though the
country is exporting less apparel and more textiles due to the epidemic, it still maintains its
position as a top producer and exporter.The United States is the leading producer and exporter
of raw cotton, while also being the top importer of raw textiles and garments. The U.S. textile
and apparel industry is a nearly $70 billion sector when measured by value of industry
shipments. It remains one of the most significant sectors of the manufacturing industry and
ranks among the top markets in the world by export value: $23 billion in 2018.According to the
WTO, India's textile industry is the third largest in the world and has an export value of more
than USD 30 billion. India is responsible for over 6% of total textile production, globally, and it is
worth USD 150 billion

Export details of Textile industry

countr China EU India USA


y

Value $ $ 66.3 $17.2 $13.4


of 119.6
export
Need of the study
Textile Industry is a group of related industries, and each of the industry is significant in a
particular way. These industries use a variety of materials which may be natural i.e. cotton,
wool,etc. or synthetic fibers for producing fibers.The Textile industry occupies an important
place in the Economy of the country because of its contribution to the industrial output,
employment generation and foreign exchange earnings. The textile industry encompasses a
range of industrial units, which use a wide variety of natural and synthetic fibres to produce
fabrics
To survive, humans need food, shelter, and warmth. Textiles fall into all of these categories.
Without natural and synthetic fibers, shingles and other types of building materials could not be
made, influencing the type of shelters built. To understand how textiles affect our day to day
lives, it's important to realize the variety of textiles available.identify the opportunity in textile
industry will help as to gain more profit and great huge employment opportunity

Object

To identify the textile industry of kerala


To examin how to create opportunities for the private sectors in the textile sectors in kerala
To find out the problems facing in garment and textiles sector in kerala

Limitations of the study

Datas are collected from different sources such as websites ,reports from different govt
agencies ,report from different organizations , due to these reason there is a chance to deviate
from actual

There is a chance that Reports of different industries are prepared based on there industry
norms , do to those reason data may or may note be possess actual figure

Data represent the large amounts of entity , but there is no rules that each individual in that
industry are in same situation

Textile industries in india

The Indian textile industry is one of the largest in the world with a large unmatched raw material
base and manufacturing strength across the value chain India is the world's sixth largest
exporter of textiles and apparel. The textile and garment industry in India is one of the country's
most important industries. Textile and apparel (T&A), which includes handicrafts, account for a
significant 11.8 percent of India's overall exports in 2019-20. India's textile and clothing trade
accounts for 5% of global trade. Cotton is one of the most significant cash crops, accounting for
roughly a quarter of all worldwide fiber production. Cotton accounts for almost 60% of the raw
material consumption basket of the Indian textile sector. Cotton is consumed in the amount of
300 lakh bales (170 kg apiece) every year.The share of textile and clothing in India’s total
exports stands at a significant 12 % (2018-19) The USA textile market is the fourth largest textile
industry in the world after China, India, and other countries, and United States exports of textiles
products increased 39 percent, Approximately valued near about 17.6 billion USD. The textile
industry of US exports to more than 200 countries in the world

● According to the data , Estimated Man-made fiber production increased by 33% and
filament yarn production increased by 49%during April-Jan, 2020 as compared to same
period of the previous year.
● Estimated Cotton yarn production decreased by 5% during April-Jan, 2020
● . Blended and 100% non-cotton yarn production increased by 2% during April-Jan 2020
as compared to same period of the previous year.
● Estimated cloth production by mill sector decreased by about 3% during April-Jan, 2020.
● The estimated cloth production by decentralized sector increased by 9% during
April-Jan, 2020, as compared to same period of the previous year.
● The total cloth production increased by 9% during April-Jan, 2020 compared to same
period of the previous year
Exports of textile and Apparel products including handicrafts from India have increased to US$
40.4 billion during the year 2018-19 from US$ 39.3 billion during 2017-18, registering a growth of
3%. The share of textiles & apparel in overall export basket of India was 12% in 2018-19 as
compared to 13% in 2017-18. • During 2018-19, Readymade Garments (RMG) accounted for
almost 40% of the total textile and apparel exports. Apart from this, major contributing
segments in export are Cotton textiles (31%), Man-made textiles (14%), Carpet (4%) and
Handicrafts excluding handmade carpets (9%). • In Apr-Nov’19, India’s textile and apparel export
including handicrafts were valued at US$ 24 bn as compared to US$ 25.9 bn for the same period
last year. The share of 11% in India’s total export of US$ 211.7 billion in Apr-Nov’19. • India’s
textiles products, including handlooms and handicrafts, are exported to more than hundred
countries. However, the USA and the EU, account for approximately 43% of India’s textiles and
apparel exports. The other major export destinations are China, U.A.E., Bangladesh, Sri Lanka,
Saudi Arabia, Turkey, Pakistan and Vietnam etc

Imports
• India is a major textile and apparel exporting country and enjoys trade surplus. Bulk of import
takes place for re-export or for industry requirement of raw material.
• Import of textiles and apparel products by India has increased by 6% to US$ 7.5 billion in
2018-19 from US$ 7.3 billion in 2017-18.
• Import of textiles & apparel products has increased by 17% from US$ 6.0 billion in Apr-Nov
2019-20 to US$ 5.2 billion during same period of current fiscal year.

Value in Mn USD 2017-18 2018-19 2001-2019 2019-2020


(april-nov) (apr-nov)

T&A import 7,318 7,549 5,173 6,048


including
handicrafts

Change over 6% 17%%


same period in
previous year

Textile industry in kerala


Kerala's textile industry is linked to the state's economic expansion. During the years
2012-2013, the gross domestic product expanded at a pace of 15.26 percent per year.According
to the Annual Survey of Industries 2016-17, states with more garment industries, such as
Tamilnadu and Karnataka, pay an annual wage with benefits worth Rs.1.70 lakhs, compared to
Kerala, which has few garment factories. that pay Rs.1.60 lakhs in salaries and benefits every
year . the major advantage of kerala in this sector is there employes and there education
capabilities . more than that the opportunity in garment and spinning sector .the man day
wages of employes are the major problem in textile industry , us compared to any other states ,
the daily wages of kerala much bigger that others.The textile products of Kerala are made of
pure cotton ,coir(made from coconut fiber) ,Jute,Sisal and Palm fibers.Polyester cotton blends
are rarely used.Due to its traditional heritage, Kerala's textile sector relies on handlooms rather
than mechanized looms.

Across Kerala, there are numerous co-operative handloom societies run by weavers.These
organizations provide cotton yarns (coloured and bleached), weaving accessories, and other
technical knowledge for specific products.The weavers will weave the fabrics on handlooms,
either at home or in a communal weaving shed inside the weavers co-operative group.Pit looms
(a primitive loom at floor level with the shedding mechanism usually located in pits and the warp
yarn stretched parallel to the ground), frame looms, and Jacquard/ Dobby looms are the looms
used to weave.Based on the development of these sector government also taking different
initiatives ,The participation of private actors should be promoted by the government in order to
raise the loomage of Hi-Tech weaving. While doing this,As a result, the government should make
sure that a certain amount of free school uniforms is provided.outfits, as well as any other
uniforms required by government entities, must be purchased.

SPINNING
Kerala has a total capacity of 7,03,881 spindles in the PSU – Central and State / Cooperative and
Private sectors, accounting for around 1.38 percent of the country's total capacity.
The State Government operates 17 spinning mills with a total spindle capacity of 2,87,993
spindles and 680 spindles in the public/cooperative sector.

rotors, which employ more than 3500 people directly and indirectly

Approximately 10,000 people are employed.

Textile mills in the public sector and cooperative mills are located throughout the country.
In addition, M/s. National Textile Corporation Limited, Central Public Sector Mill has the
following five mills in the state with a total spindle capacity of 1,99,888 .Private Spinning Mills
players, M/s. GTN limited (Patodia Group) in Aluva and M/s. Precot Group in Kanjikode and
Vazhayar, together have 2,16,000 spindles, employing about 2200 workers.

WEAVING
1. KHADI
Kerala Khadi and Village Industries Board is vested with the responsibility of organizing and
promoting Khadi and Village Industries in the State.The Board has direct supervision over 232
spinning centers and 154 weaving centers, as well as 6000 artisans working in the khadi
industry. In addition, the Board funds 14 institutions that engage in Khadi activities, as well as 14
institutions that are directly aided by the Khadi and Village Industries Commission.

HANDLOOMS
Kerala is divided into 14 districts, ranging from Thiruvananthapuram in the south to Kasargod in
the north. Despite the fact that the handloom sector is present in all of the state's districts, it is
concentrated in a few key clusters
The southern Kerala or the Travancore region is famous for its superfine cotton products, like
Sarees, Dhotis and 'Set mundu' etc., the middle part of Kerala, the Cochin region is also engaged
with such products. But while going to the northern belt of Kerala, also called Malabar Region,
the main production is of coarser varieties like furnishing materials,bed-spreads, towels etc.The
southern Kerala or the Travancore region is famous for its superfine cotton products, like
Sarees, Dhotis and 'Set mundu' etc., the middle part of Kerala, the Cochin region is also engaged
with such products. But while going to the northern belt of Kerala, also called Malabar Region,
the main production is of coarser varieties like furnishing materials,bed-spreads, towels etc.

POWERLOOMS
Kerala has over 550 traditional powerlooms in five co-operative societies across the state from
Neyyattinkara to Wayanad, and 66 powerlooms in five co-operative societies spanning the state
from Neyyattinkara to Wayanad.Kerala State Textile Corporation Limited uses atypical
powerlooms.The overall number of players is increased by integrating private players and the
unorganized sector.The number of looms would be around 1100.

PROCESSING
Kerala was having big players in Wet processing like
● Sitaram Textiles Limited, a pioneer in Uniform Cloths Dyeing, Thrissur
● Parvathy Mills, a unit of National Textile Corporation Limited, Kollam
● which was famous in Apparel Dyed fabric - ENTYCE
● Common Wealth Handloom Weaving Factory (COMTRUST), Kozhikode
which was a leading supplier to British Airways Upholstery cloth

Garment
Garment manufacturing processes include all activities from the point when textiles are
received at the factory, to when retail-ready garments are shipped to the distributor. Some
processes—such as fabric relaxing, cutting, and sewing—occur in the manufacturing of all
garments.The garment industry is the only one in the textile value chain that employs a large
number of people despite using cutting-edge technologies. Furthermore, because this industry
primarily works during the day, it provides more opportunities for women to work. In terms of air
pollution, water pollution, noise pollution, and other factors, the garment factory's environment
is substantially better than that of other industries.
AN OVERVIEW OF GOVERNMENT CONTROLLED MILLS OF KERALA
Crisis faced by the state PSU/Co-Op. Spinning Mills

Supply & demand Mismatch : The entire textile value chain is reportedly in a state of flux at
present. External factors. adversely affecting the commercial front are the major problems
faced by the spinning mills. the fabric sector is reportedly not able to absorb the increasing yarn
production of the country, resulting in supply demand mismatch, adversely affecting the prices
and movement of yarn. In addition to that Fluctuation of raw material price.
Cotton prices, which are the main raw material and significant cost component of spinning mills,
have recently risen, putting several Kerala PSU/Co-op spinning factories out of business. The
cost of production has risen significantly, while the selling price of the finished product has
remained inadequate, resulting in a negative skew between production cost and sales
realization. Despite the fact that India is the world's second largest producer of cotton after
China, with yields increasing year after year, domestic mills have benefited in no way because
cotton prices have recently reached an all-time high due to uncontrolled and excessive export of
cotton from India to other countries.

Heavy outstanding dues to Creditor :The mills are unable to provide timely service to their raw
material suppliers, and outstanding dues have accumulated to alarming levels. As a result, raw
material suppliers are unwilling to provide additional supplies to most mills. Due to insufficient
participation of suppliers, the centralized cotton procurement committee has been unable to
function properly for the past few years, and mills have been obliged to purchase raw material
that was available for sale without regard for quality. also Inability to procure Cotton (raw
material) during crop season Due to the non-availability of bulk working capital facility for
procuring raw material during crop season at an economical price, it is only impossible to
procure the available quality cotton on daily basis or with small interval.

Pending Statutory Dues : Due to heavy erosion in working capital and net loss, statutory
payments like EPF, ESI, LIC premium contributions, Gratuity amount of retired workers and staff
etc. are pending for payment for the last three years. EPF and ESI Corporations have started
recovery measures for non-payment of contributions. Bulk superannuation of workers is one of
the problems faced by some of the mills and gratuity commitment for these mills will be high for
next two to three years. This will be an added financial burden for these mills.

High Operating cost In Kerala, spinning mills are located distance from raw material sources
and yarn markets. In both circumstances, transportation costs are now quite high, and these
costs are passed on to the manufacturer either directly or indirectly, resulting in higher raw
material costs or lower selling prices because there are no local consumers for finished items.

Low labor productivity :The market prices of yarns are mostly based on the calculation of labor
cost prevailing in other State, where mostly contract workers are engaged with very low man-day
wages and operating at very high labor and machine productivity. Hence, the only option to
reduce the wages cost is to modernize the mill with high-tech machines with maximum
automation and highest labor and machine productivity, capable of producing high quality value
added yarns which are saleable at premium price.

Quality checking & correcting : The practice of regularly checking the outgoing yarn quality
and the process materials are lagging among the mills and those mills which are testing
sparingly also owe dues on testing charges. A system will have to be evolved for regular testing
and monitoring based on quality parameters. There is lack of qualified technical persons in
essential areas like production, maintenance and quality control etc. The shortage of personnel
in key technical areas will have to be looked into and vacancies are to be filled.

Recent trent in textile industry

The textile industry is an immense global market that affects every country in the world either
directly or indirectly. For example, the people selling cotton increased prices in the late 2000s
due to crop issues, but then ran out of cotton as it was being sold so quickly. The price increase
and the scarcity was reflected in the consumer prices of products that contained cotton, leading
to lower sales.

The COVID-19 pandemic has posed a significant threat to the textile industry in 2020. Asia,
which is one of the world's main textile marketplaces, has been hit by protracted lockdowns and
restrictions in the majority of Asian countries, as well as a reduction in foreign demand for their
products.According to the study by the International Labour Organization (ILO) the global textile
trade collapsed during the first half of 2020. Also, exports to the major buying regions in the
European Union, the United States, and Japan fell by around 70%. The industry also suffered
several supply chain disruptions due to the shortages of cotton and other raw materials
● Technology - Technical textiles are a large and growing market right now. Countries are
rehabilitating mills and buildings and hiring new staff to work on new innovations like 3D
printed clothing and shoes or smart fabrics with small chips that act as conductors and
energy converters.

● Non-Woven Fabrics - New machinery has made it possible to pursue non-woven


fabrics. Non-wovens are non-yarn materials that are pressed together rather than
woven. The reason this is an advantage is the labor is less intensive and the product can
be made quicker and for less money. Non-woven fabrics are also very hygienic, which is
great for the medical field, a large part of the textile industry.

● Domestic Sales - Countries such as China and the United States are concentrating their
efforts not only internationally, but also locally. Domestic product development and
marketing to local populations opens up a new and larger market for countries who are
typically focused on the international market.
● Environmental Sustainability - Due to the extensive use of water, air pollution, and
waste concerns, the environment has become a major issue in the textile sector. Many
countries have begun to place a strong emphasis on environmentally friendly materials.
Clothing made from leftover coffee grounds, algae, or soured milk is one of the latest
developments. These novel materials are one-of-a-kind, and they're gaining traction in
the market.
● In Garments Sector, it's suggested that the Government should encourage the
entrepreneurial development through launch-ups by supporting them through
Incubation centers. The redundant land and structures possessed by the state PSUs can
be made use of by giving the same on parcel to the prospective investors. In order
to encourage the exports of garments, incitement scheme can also be introduced,
● Restitution of external factors like political interference and un nessary legal interference
will help the organizations to survey the current and future situations
● Government can also provide the help in the sector of procuring raw materials and
supply or distribution of goods (through in the form if basic infrastructure).it will leads to
increase in confidence to our manufactures
● International seminars and international conference is the best place to attract foregin
investment and technological acquisition

Conclusion

Textile industry plays a significant role in the economy. The kerala textile industry is one of the
largest and most important sectors in the economy in terms of output, foreign exchange
earnings and employment in kerala. Result development and moden technology can also help
our economy to engoye more advantages in this sector .in india It contributes 20 per cent of
industrial production, 9 per cent of excise collections, 18 per cent of employment in industrial
sector, nearly 20 per cent to the country’s total export earnings and 4 per cent ton the GDP. The
sector employs nearly 35 million people and is the second highest employer in the country. The
textile sector also has a direct link with the rural economy and performance of major fiber crops
and crafts such as cotton, wool, silk, handicrafts and handlooms, which employ millions of
farmers and crafts persons in rural and semi-urban areas. It has been estimated that one out of
every six households in the country depends directly or indirectly on this sector.futher
development of these sector will lead to increase imn employment opportunity to the country,
especially in kerala . moden technological advantages and recent trend implementation is the
major factors that affect the growth of the kerala textile industry

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