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SWOT ANALYSIS OF THE

INDIAN GARMENT
INDUSTRY

PRESENTED BY:
•AKRITI DIXIT
•ALANKRITI SONKAR
•DEEPALI CHOUDHARY
•DEVENDRA GUPTA
•KOMAL KATYAL
•MANISH PANWAR

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INDIAN GARMENT INDUSTRY
The garments industry in India is one of the best in
the world.
An extremely well organized sector, garment
manufacturers, exporters, suppliers, stockists and
wholesalers are the gateway to an extremely
enterprising clothing and apparel industry in India.
There are numerous garments exporters, garments
manufacturers, readymade garments exporters etc.
both in the small scale as well as large scale. 
The Indian apparel industry also has a vast
existence in the economic life of the country.

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It plays a critical role in the economic development of
the country with its contribution to industrial output,
export earnings of the country and the generation of
employment.
 The Indian apparel industry has seen remarkable
changes in the past few years and it is also one of the
India's largest foreign exchange earners.
Embroidery being the traditional art form of the
country has contributed hugely for apparel industry.
Indian embroidery market stands out as being
extraordinary in the international markets. 

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Country wise garment
production

china
india
pakistan
america
others
turkey

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GARMENT INDUSTRY KEY
FACTS
The apparel industry is one of the largest foreign
exchange earners, accounting for nearly 16% of
the country's total exports. It has been estimated
that India has approximately 30,000 readymade
garment manufacturing units and around three
million people are working in the industry. 
Indian garment Industry is one of the largest and
oldest industry in India.
Indian garment Industry is highly fragmented
industry; at the same time it is an independent
and self-reliant industry that has shown
sustainable growth over the years.

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Mill sector 4 %

Handloom sector 14 %
Hosiery sector
19%

Powerloom 63%

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 Industry has direct and strong linkage with rural and
agriculture sector, therefore it is estimated that, one of
every six households in country is directly or indirectly
dependent on this industry.
 India is evolved as a major contributor in world’s cotton
sector. India is the world’s third-largest producer of cotton
and second-largest producer of cotton yarns and textiles.
 Large and potential domestic & international market,
large pool of skilled and cheap labor, well-established
industry, promising export potential etc. are few strengths
of Indian Textile Industry.
 Highly Fragmented, High dependence on cotton sector,
Lower productivity, Unfavorable Labor Laws are few
drawbacks of the industry from which it has to overcome.

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Labour cost comparisons

16
14
12
10
8
6
4
2
0
pakistan India China us

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India has around 6% of global rotor capacity.
The country has the highest loom capacity, including handlooms,
and has share of 61% in world loomage.
Including garments, 30% of India's export comes from this sector.
Indian garment Industry is one of the largest industry that
provides high exports and foreign revenue.
Exports of readymade garments registered a 6.4% increase in
dollar terms and an 11.6% increase in rupee terms during the
period April-December 1999-2000, despite a sluggish growth in
income both at home and abroad. Indian Garment export growth
during April-June 1998 for woolen ready made garments was a
phenomenal 150%, for ready made garments made of silk it was
58%, and for other ready made garments it was 39%, in dollar
terms.

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Degree of modernization in the
Garment industry

80
70
60
50
40
30
20
10
0
india world america china pakistan europe

% of total shuttleless looms used in total loom


capacity
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Strengths: attributes of the person or
company that are helpful to achieving the
objective(s).
Weaknesses: attributes of the person or
company that are harmful to achieving
the objective(s).
Opportunities: external conditions that
are helpful to achieving the objective(s).
Threats: external conditions which could
do damage to the objective(s).

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USE OF SWOT ANALYSIS
The usefulness of SWOT analysis is not limited
to profit-seeking organizations.
 SWOT analysis may be used in any decision-
making situation when a desired end-state
(objective) has been defined. Examples
include: non-profit organizations, governmental
units, and individuals.
SWOT analysis may also be used in pre-crisis
planning and preventive crisis management.
SWOT analysis may also be used in creating a
recommendation during a viability study.

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STRENGTHS
Indian Garment Industry is an Independent & Self-Reliant industry.
Abundant Raw Material availability that helps industry to control costs and reduces the lead-time across the operation.
Availability of Low Cost and Skilled Manpower provides competitive advantage to industry.
India is one of the largest exporters of Yarn in international market and contributes around 25% share of the global trade in Cotton Yarn.
The Apparel Industry is one of largest foreign revenue contributor and holds 12% of the country’s total export.
Industry has large and diversified segments that provide wide variety of products.

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Increasing disposable incomes of the
people.
Brand conscious customers.
Availability of cheap finance.
Growing domestic market.
Increase in number of malls.
Growing Economy and Potential Domestic
and International Market.
Industry has Manufacturing Flexibility that
helps to increase the productivity.

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WEAKNESSES
Indian Garment Industry is highly
Fragmented Industry. Predominance of
unorganised sector.
Industry is highly dependent on Cotton.
Lower Productivity in various segments.
Lack of Technological Development that
affect the productivity and other activities
in whole value chain.

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Infrastructural Bottlenecks and Efficiency
such as, Transaction Time at Ports and
transportation Time.
Unfavorable labor Laws. Effect of historical
government polices.
Lack of Trade Membership, which restrict to
tap other potential market.
Lacking to generate Economies of Scale.
Higher Indirect Taxes, Power and Interest
Rates.

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OPPORTUNITIES
Increasing demand for the luxury brands from the
middle class.
Research and new product development can help the
companies to move across the value chain.
Increase use of CAD to develop designing capabilities.
Indian companies need to focus on Product
Development.
Large, Potential Domestic and International Market.
Product development and Diversification to cater global
needs.

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Elimination of Quota Restriction leads to
greater Market Development.
Market is gradually shifting towards Branded
Readymade Garment.
Increased Disposable Income and Purchasing
Power of Indian Customer opens New Market
Development.
Emerging Retail Industry and Malls provide
huge opportunities for the Apparel, Handicraft
and other segments of the industry.
Greater Investment and FDI (Foreign Direct
Investment) opportunities are available.

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THREATS
Increased competition in the domestic markets.
Cheaper imports
Changing government’s policy on FDI.
Need to improve the working condition of the
people who are involved in this profession
Competition from other developing countries,
especially China. Tackle Chinese aggression over
the international market.
Continuous Quality Improvement is need of the
hour as there are different demand patterns all
over the world.

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Elimination of Quota system will lead to
fluctuations in Export Demand.
Threat for Traditional Market for Powerloom and
Handloom Products and forcing them for
product diversification.
Geographical Disadvantages.
International labor and Environmental Laws.
To balance the demand and supply.
To make balance between price and quality.

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STRATERGY FORMULATION
SWOT ANALYSIS

•Strengths, Weaknesses, Opportunities and Threats


(SWOT) analysis is a strategy development tool
that matches internal organizational strengths and
weaknesses with external opportunities and
threats.
•Strengths and weaknesses are factors that are
within your control
•Opportunities and threats are those issues that
you cannot control.

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COMPARISON OF THE INDIAN AND
CHINESE TEXTILE INDUSTY
 India ranks among the top target countries for any company sourcing
textiles and apparel. Indeed, apart from China, no other country can
match the size, spread, depth, and competitiveness of the Indian
textile and apparel industry. Moreover, the global elimination of
quotas at the end of 2004 has greatly enhanced the opportunities for
sourcing from India. 
 India: a growing source
India supplies over US$13 bn worth of textiles and apparel to the
world’s markets. And exports are growing rapidly as more and more
buyers around the world turn to India as an alternative to China.
 Growing international competitiveness
The reasons for India’s success are not hard to find. Apart from China,
no other country can match the size, depth, spread and
competitiveness of the Indian textile and apparel industry. India has a
complete supply chain – from a vast raw material supply to high
quality finished products. Labour costs are among the lowest in the
world. Indian firms offer experience, entrepreneurship and design
skills which Chinese firms find hard to match.

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China has been more successful than India for
attracting foreign buyers:
Chinese suppliers are good salespeople.
China has set up factories to make about
every kind of product, whereas India’s
industry does not have the same breadth of
offer. This “one-stop sourcing” is a huge
benefit for buyers trying to optimize their
time and find everything they need on one
trade show.

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Advantages of India over
China
 Indian exporters, having been very exposed to Western
buyers/culture/business for a very long time, are much more
understanding of Western business assumptions: they take
their responsibilities more seriously than Chinese exporters.
They understand that they are responsible for quality
issues, even when a consignment has been inspected by
the buyer. They understand that delivery on schedule is
critically important, and understand that they need to
compensate if a consignment has problems, or is late. This
is not generally true of Chinese exporters.
 They truly understand long term relationships, and are not
so focused on the profitability of each consignment. More so
than Chinese exporters, they focus on the long term.

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 There is a greater widespread understanding of their
customers’ customers: What is acceptable to consumers
in different countries in terms of packaging, quality,
hidden manufacturing defects, safety issues (lead in
paint/trace metals in children toys),
 Indians, overall, are more creative than Chinese factories.
New designs/items are created and plugged into their
potential markets. Creativity is real, in India, and they are
not looking to copy, but to create something new
 With all major international banks having branches in
India, and very professional Indian banks, international
trade is much more efficient than in China. Buying
without L.C.’s or a 30% deposit, is much more prevalent
in India today, than in China.

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Growing per capita garment consumption

18
16
14
12
10
8
6
4
2
Global average

Developed countrie

India
china

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FUTURE PROSPECTS
Garment industry is looking on achieving an export
target of $25 billion by 2010-2011, an Apparel
Export Promotion Council (AEPC) officially said.
The industry would need an additional 1.5 million
people.
An investment of Rs. 35,000 crores in terms of
related infrastructure.
APEC plans to set up 55 training centres, besides
the 22 training centres it has at present in the
country.
Recently AEPC and TCS tie up to meet the IT need of
the industry.

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THANK YOU

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