141

CAGR: 9.3%

Rising per capita income,

favourable demographics and a
shift in preference to branded
products to boost demand

58

2011

2021P

Domestic Textile and Apparel Industry (USD billions)

CAGR: 10.2%

Favourable trade policies and

superior quality to drive textile
exports

82

31

2011

2021P

Textile and Apparel Industry Export (USD billions)

CAGR: 15.9%

Textile and apparel exports

from India is expected to
increase to USD82 billion by
2021 from USD31 billion in
2011

111.8

62.0

Increase in domestic demand

set to boost cloth production
FY13

The domestic textile and

apparel industry in India is
estimated to reach USD141
billion by 2021 from USD58
billion in 2011

FY17P

Total cloth production (million sqr. Mtr.)

Total cloth production in India is

expected to grow to 111.8
billion square metres by FY17
from 62.0 billion square metres
in FY13

Source: Ministry of Textiles, Planning Commission, Technopak, Aranca Research

Note: CAGR - Compound Annual Growth Rate

CAGR: 11.1%

122

65

Changing lifestyle and

increasing demand for quality
products set to fuel demand for
apparel

FY11
FY17P
Demand for Apparel (USD billions)

1.7% Growth

Demand for apparel is likely to

rise to USD122 billion by 2017
from USD65 billion in FY11

4.25

In the 12th Five Year Plan, the

Government plans to provide a
budgetary support to textiles of
USD4.25 billion against
support USD4.18 billion in the 11th Five
11th plan outlay
Proposed 12th Policy
plan outlay
USD (billions)
Year Plan
4.18

Rising government focus and

favourable policies to support
the industry

Source: Ministry of Textiles,

Planning Commission, Technopak, Aranca Research
Note: CAGR - Compound Annual Growth Rate

Robust demand

2011

Market
Value:
USD89
billion

Increasing investments

Increased penetration of organised

retail, favourable demographics,
and rising income levels to drive
textile demand

Growth in building and construction

will continue to drive demand for
non-clothing textiles

Over USD35 billion of investments

have been made in the textile and
clothing sector during the last four
years, with the cotton textile
segment accounting for around 75
per cent

2021E
Market
Value:
USD223
billion

Advantage
India
Policy support

Competitive advantage

Abundant availability of raw

materials such as cotton, wool,
silk and jute

India enjoys a comparative

advantage in terms of skilled
manpower and in cost of
production relative to major textile
producers

100 per cent FDI (automatic route)

is allowed in the Indian textile sector

SITP was approved in July 2005 to

facilitate setting up of textiles parks
with world class infrastructure

Free trade with ASEAN countries

and proposed agreement with
European Union will boost exports

Source: Technopak; Aranca Research

Notes: SITP - Scheme for Integrated Textile Park; FDI - Foreign Direct Investment,
2021E - Estimated figure for 2020; ASEAN - Association of Southeast Asian Nations

2000 onwards
1951-2000

19011950

1854-1900

The first cotton

textile mill of
Mumbai was
established in 1854
The first cotton mill
of Ahmedabad was
found in 1861; it
emerged as a rival
centre to Mumbai

Number of mills
increased from 178 in
1901 to 417 in 1945
Out of 423 textile mills
of the undivided India,
India received 409 after
partition and the
remaining 14 went to
Pakistan

In 1999, TUFS was set

up to provide easy
access to capital for
technological up
gradation
TMC was launched to
address issues related
to low productivity and
infrastructure
In 2000, NTP was
announced for the
overall development of
the textile and apparel
industry

NTC started selling few mills

to private businesses in
2005
SITP was implemented to
facilitate setting up of textile
units with appropriate
support infrastructure
After MFA cotton prices are
aligned with global prices
Technical textile industry will
be a new growth avenue
Free trade agreement with
ASEAN countries and
proposed agreement with
EU under discussion

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

The textile and apparel industry can be broadly divided into two segments:
Yarn and fibre (include natural and man-made)
Processed fabrics (including woolen textiles, silk textiles, jute textiles, cotton textiles and technical textiles),
Readymade Garments (RMGs) and apparel

Key segments of the textile industry

Process

Raw
material

Output

Cotton,
jute, silk,
wool

Ginning

Fibre*

Spinning

Yarn

Yarn and fibre segment

Weaving/
knitting

Processing

Garment/
apparel
production

Fabric

Processed
fabric

Final
garment/
Apparel

Woollen textiles
Silk textiles
Jute textiles
Technical textiles

Source: Aranca Research

Note: * Including cotton, jute, silk, wool and manmade fibres

The fundamental strength of the textile industry in India is its strong production base of wide range of fibre/yarns from natural
fibres like cotton, jute, silk and wool to synthetic /man-made fibres like polyester, viscose, nylon and acrylic
India is the worlds second largest producer of textiles and garments
Indian textile industry accounts for about 22 per cent* of the worlds spindle capacity and 8 per cent of global rotor capacity
India has the highest loom capacity (including hand looms) with 61 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, Aranca Research

Note: *As of February 2014

India's textile market size (USD billion)

Textile plays major role in the Indian economy

It contributes 14 per cent* to industrial production
and 4 per cent to GDP

223

With over 45 million people, the industry is one of

the largest source of employment generation in the
country

CAGR: 10.1%

143

89

The industry accounts for nearly 11 per cent* of total

exports
The size of Indias textile market in 2011 was USD89.0
billion; the market is expected to expand at a CAGR of 10.1
per cent over 200921

70

2009

78

2010

2011

2016E

2021E

Source: Technopak, Ministry of Textiles, Aranca Research

Notes: CAGR - Compound Annual Growth Rate,
E Estimated, *As of February 2014

Apparel constitute a large share in the overall sector

Shares in Indias textile and apparel sector in 2012

In 2012, apparel had a share of 69 per cent of the

overall market; textiles contributed the remaining 31
per cent
31%

To improve technical skills in apparel industry

government established 75 apparel training and
design centres across India

Apparel

Textile

National Institute of Fashion Technologies played

pioneering role in growth of apparel industry and
exports
To promote apparel exports 12 locations has been
approved by the government to set up apparel parks
for exports

69%

Source: Technopak, Aranca Research

Note: NIFT - National Institute of Fashion technology

Production of raw cotton (million bales)

Production of raw cotton grew to 33.4 million bales in FY13,

up from about 28.0 million bales in FY07
During the same period, production expanded at a CAGR of
3.0 per cent; however, production declined 5.4 per cent in
FY13
Of overall amount of raw cotton produced in the country,
domestic consumption totaled 27 million bales*, while 7
million bales* were exported

CAGR: 3.0%
30.7
29.0

33.9

35.3
33.4

30.5

28.0

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Source: The Cotton Corporation of India Ltd, Aranca Research

Notes: CAGR - Compounded Annual Growth Rate,
One Bale - 217.7 kilogram
Cotton FY Oct Se
*Provisional as of FY 13

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

Production of man-made fibre has also been on an upward

trend

Production of man-made fibre (million tonnes)

Production stood at 1.263 million tonnes in FY13 with the

figure reinforcing a recovery from 2009 levels

1.268

1.285

1.244

1.234

1.263

1.139

During 9MFY14, production increased to 0.985 million

tonnes from 0.946 million tonnes in the same period last
year

1.066
0.985

FY07

FY08

FY09

FY10

FY11

FY12

FY13 9MFY14

Source: Ministry of Textiles, Aranca Research

Production of yarn (million tonnes)

Production of yarn grew to 6.2 million tonnes in FY13 from

5.2 million tonnes in FY07, implying a CAGR of 3.1 per cent
Cotton yarn accounts for the largest share in total yarn
production; in FY13, the segments share amounted to 57.4
per cent

1.55

1.37

1.51

1.42

1.52
1.22

1.37

0.98

1.46
1.29

1.37

1.25

0.99

1.06

1.02

1.11

2.95

2.90

3.08

3.49

3.13

3.58

3.92

2.82

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14*

Cotton Yarn

Other Spun Yarn

Manmade Filament Yarn

Source: Ministry of Textiles, Aranca Research

Note: * 9 months data available for man-made Filament yarn

Fabric production (million sq mtr)

Fabric production is projected to rise to 63,623 million

square metres in FY14(A) from 52,665 million square
metres in FY07, implying a CAGR of 2.7 per cent
The major segment in FY13 is cotton yarn, which accounted
for more than 55 per cent
During 11MFY14, fabric production stood at 58,322 million
square metres compared to 56,918 million square metres
produced during the same period of the previous year

6,882

6,888

7,769

8,135

8,468

9,283

10,065

6,766

19,545 21,173 20,534

18,812 17,923
22,438 21,663 20,567

31,201 30,570 33,871 35,636

26,238 27,196 26,898 28,790

FY07

FY08

FY09
Cotton

FY10

FY11

100% Non Cotton

FY12

FY13 FY14(A)

Blended

Source: Ministry of Textiles, Aranca Research

Notes: A Annualised, Sq Mtr is Square Meter

Exports have been a core feature of Indias textile and

apparel sector, a fact corroborated by trade figures

India's textile trade (USD billion)

33.3

Exports grew to USD33.3 billion in FY12 from USD17.6

billion in FY06, implying a CAGR of 11.2 per cent

27.8

CAGR: 11.2%
22.4

FY12 was a particularly good year for the sector, with

exports surging at an annual rate of 19.8 per cent

22.1

19.1

21.2

17.6

2.7

FY06

2.8

FY07

3.3

FY08

3.5

FY09
Export

3.4

4.2

5.2

FY10

FY11

FY12P

Import

Source: Ministry of Textiles, Aranca Research

Note: P - Data for FY12 is provisional

Shares in Indias textile exports (FY12P)

Readymade garments was the largest contributor to total

textile and apparel exports from India in FY12P; the
segment had a share of 39 per cent

Readymade
Garment

3% 4%
3%

Cotton and man-made textiles were the major contributors

with shares of 34 per cent and 17 per cent, respectively
17%

Cotton Texttiles
39%

Man-made
Textiles
Handicrafts
Silk & Handloom

34%

Woolen &
Others

Source: Ministry of Textiles, Aranca Research

Notes: Others include coir & coir manufacturers and jute,
P - Data for FY12 is provisional

Company

Business areas

Welspun India Ltd

Home textiles, bathrobes, terry towels

Vardhman Group

Yarn, fabric, sewing threads, acrylic fiber

Alok Industries Ltd

Home textiles, woven and knitted apparel fabric,

garments and polyester yarn

Raymond Ltd

Worsted suiting, tailored clothing, denim, shirting,

woollen outerwear

Arvind Mills Ltd

Spinning, weaving, processing and garment

production (denims, shirting, khakis and knitwear)

Bombay Dyeing & Manufacturing

Company Ltd

Bed linen, towels, furnishings, fabric for suits,

shirts, dresses and saris in cotton and polyester
blends

Garden Silk Mills Ltd

Dyed and printed fabric

Source: Annual Reports, Aranca Research

Increasing investment in
TUFS

Multi-Fibre Arrangement
(MFA)

Public-Private
Partnership (PPP)

Technical textiles

The Ministry of Textiles is encouraging investments through increasing focus on schemes

such as Technology Upgradation Fund Scheme (TUFS) and cluster development activities
TUFS for the textile sector to continue in the 12th Five Year plan with an investment target
of USD24.8 billion

With the expiry of MFA in January 2005, cotton prices in India are now fully integrated with
international rates

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, 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

Source: Ministry of Textiles, Aranca Research

Note: TUFS - Technology Upgradation Fund Scheme

Competitive Rivalry

Intense competition between established brands and private label

brands
Industry is highly fragmented with organised sector contributing only 31
per cent in 2011

Threat of New Entrants

100 per cent FDI (automatic

route) is allowed in the Indian
textile sector
A few large suppliers are
focusing on forward integration

Bargaining Power of Suppliers

Significant presence of small

suppliers has reduced the
bargaining power

Threat of New
Entrants
(High)

Substitute Products

Low cost substitute products

from countries like Pakistan
and Bangladesh
Threat from unorganised sector

Bargaining
Power of
Customers
(Moderate)

Competitive
Rivalry
(Moderate)

Substitute
Products
(High)

Bargaining Power of Customers

Major clothing brands have

better bargaining power over
textile manufacturers, as the
product differentiation is low
and number of players are high
and fragmented

Bargaining
Power of
Suppliers
(Low)

Source: PricewaterhouseCoopers, Techopak, Aranca Research

Focus on high growth

domestic market

Focus on backward
integration

Focus on forward
integration

Diversification

Increasing focus on setting up a shop-in-shop strategy, where all shops are opened in
large retail stores, curtailing capex and risk, as in the case of Welspun India

More textile manufacturers are adopting backward integration in order to reduce their
dependence on external suppliers. Welspun India is increasing internal supply of yarn and
greige through new capacity addition

Companies entering into forward businesses through foreign collaborations for instance
Vardhaman Textiles Ltd entering into the garment manufacturing business through a
collaboration with Nisshinbo, a Japanese manufacturer of yarns

Textile manufacturers are diversifying into related businesses to attract customers, for
instance Raymond group under its group company J.K.Helene Curtis is ramping up male
grooming segment by unleashing new variants of shampoos and deos

Source: Annual Reports and Company presentations Aranca Research

Increasing investments

Policy support

Growing demand

Growing domestic
and foreign
investments

100 per cent FDI in

textile sector

Rising demand in
exports
Inviting

Resulting in

Increasing demand
in domestic market

Government setting
up SITPs and Mega
Cluster Zones

Commitment of
USD140 billion of
foreign investments

Growing population
driving demand for
textiles

Increasing loans
under TUFS

Government
investment
schemes (TCIDS
and APES)

Source: Ministry of Textiles, Aranca Research

Notes: TCIDS - Textile Center Infrastructure Development Scheme, APES - Apparel Park for Exports Scheme

TUFS for the textile sector to continue in

the 12th Five Year plan with an
investment target of USD24.8 billion
Budget provides USD0.5 billion over
201314 for modernisation of the power
loom sector

Zero excise duty for the

cotton and man-made
sector at yarn, fabric and
garment stages
Reduction in duty for
imported
textile
machinery and parts
(to 5.0 per cent from 7.5
per cent)
Exemption on excise
duty
for
hand-made
carpets and textile floor

Stress On

mechanisation

FY14 Union

Budget
Tax sops and

financial
package

Infrastructure
support

Allocation of USD10.4
million for apparel parks
under SITP
A
new
Integrated
Processing Development
Scheme in the 12th Plan
with
an
outlay
of
USD1041.5 million to
address environmental
concerns of the industry

Source: Budget FY14 - Government of India

Notes: SITP - Scheme for Integrated Textile Parks, TUFS - Technology Upgradation Fund Scheme

Indias population in billions

By 2010, Indias population had almost doubled compared

to figures 30 years before

1.34

The IMF expects Indias population to touch 1.34

billion by end-2019

CAGR: 1.8%

1.20

1.24

2010

2013

1.03

Indias growing population has been a key driver of textile

consumption growth in the country

0.85
0.69

It has been complemented by a young population which is

growing and at the same time is exposed to changing tastes
and fashion
Complementing this factor is rising female workforce
participation in the country

1980

1990

2000

2019F

Source: IMF, Aranca Research

Note: F - Forecasts

Rising incomes has been a key determinant of domestic demand for the sector; with incomes rising in the rural economy as
well, the upward push on demand from the income side is set to continue

Changing economic fortunes by income

segments (2010)

Trends in per-capita income in India (USD)

2,500

12

2,000

10

Million Household,100%

1,500
1,000

50%

4
2

29%

35%
25%
12%
2%
2008

Gross domestic product per capita, current prices(USD)

Gross domestic product, constant prices(per cent)

32%
40%

2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014F
2015F
2016F
2017F
2018F
2019F

500

15%

26%

Income
segment
(USD)

1%

Globals (>22065.3)
Seekers (4413.1 - 11032.7)
Deprived (<1985.9)

6%
2020

3%

17%
7%
2030

Strivers (11032.7 - 22065.3)

Aspirers (1985.9 - 4413.1)

Source: IMF, Mckinsey global institute April 2010, Aranca Research

Notes: E - Estimates, F - Forecasts

Growing textile exports from India

(USD billion)

Capacity built over years has led to low cost of production

per unit in Indias textile industry; this has lent a strong
competitive advantage to the countrys textile exporters
relative to key global peers

33.3

The sector has also witnessed increasing outsourcing over

the years as Indian players moved up the value chain from
being mere converters to vendor partners of global retail
giants

CAGR: 11.6%

27.8

22.4
22.2

21.1

FY08

FY09

19.2

The strong performance of textile exports is reflected in the

value of exports from the sector over the years; In FY12,
textile exports jumped by 19.4 per cent to USD33.3 billion
In the coming decades, Africa and Latin America could very
well turn out to be key markets for Indian textiles

FY07

FY10

FY11

FY12

Source: Ministry of Textiles, Aranca Research

The major service offerings of the technical textile industry

include thermal protection and blood-absorbing materials,
seatbelts and adhesive tapes

Technical textile industry (USD billion)

36.0

CAGR: 20%

The technical textile industry is expected to expand at a

CAGR of 20 per cent during FY1217 to USD36 billion in
FY17
Healthcare and infrastructure sectors are major drivers of
the technical textile industry

17.4

India is expected to be a key growth market for the technical

textile sector due to cost-effectiveness, durability and
versatility of technical textiles
FY13E

The government has supported the technical textile industry

with an allotment of USD1 billion for SMEs and an
exemption in custom duty for raw materials used by the
sector
Government plans to launch a USD44.2 million mission for
the promotion of technical textiles, and cleared plans to set
up a new research centre for the industry

FY17E

Source: Indian Technical Textile Association, Aranca Research

Notes: SME - Small and Medium Enterprises, E - Estimates

Indias home textile industry is expected to expand at a

CAGR of 8.3 per cent during 201121 to USD8.2 billion in
2021 from USD3.7 billion in 2011

Indian home textile industry (USD billion)

8.2

India accounts for 7 per cent of global home textiles trade.

Superior quality makes companies in India a leader in the
US and the UK, contributing two-third to their exports
Indian products has gained a significant market share in
global home textiles in the past few years

CAGR: 8.3%
5.5

3.7

2011

2016E

2021E

Source: Ministry of Textiles, Technopak, Aranca Research

Note: E - Estimates

Technology
Upgradation Fund
Scheme (TUFS)

National Textile Policy 2000

Foreign Direct
Investment

TUFS for the textile sector to continue in the 12th Five Year plan with an investment target
of USD24.8 billion
Investment was made to promote modernisation and upgradation of the textile industry by
providing credit at reduced rates

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

FDI of up to 100 per cent is allowed in the textile sector through the automatic route

Scheme for Integrated

Textiles Parks (SITP)

Technical textile
industry

SITP was set up in 2005 to provide necessary infrastructure to new textile units; under
SITP, 40 projects (worth USD900 million) have been sanctioned
The planned outlay for the textiles and apparel sector under the 11th Five Year Plan
(2001217) was USD2.9 billion

Government of India has planned an increase in the fund outlay for technical textiles
industry to more than USD117 million during the current XII Five Year Plan (2012-17)

Name of SEZ and

status

State

Area
(Hectares)

Sector

Details
Mahindra City is Indias first integrated business city, divided
into business and lifestyle zones. It is a cluster of three sector
specific SEZs in Tamil Nadu, for apparels and fashion
accessories; IT and hardware; and auto ancillary. The business
zone provides plug-n-play working spaces. This zone comprises
a SEZ (primarily for exporters) and domestic tariff area (DTA) for
companies targeting domestic market

Mahindra City SEZ

(Functional)

Tamil Nadu

607.1

Apparel and
Fashion
Accessories

Surat Apparel Park

(Functional)

Gujarat

56.0

Textiles

Key industrial units include Safari Exports, Venus Garments,

Benchmark Clothings, P. K. International, Tormal Prints, J.R.
Fashion and Ganga Export

Brandix India
Apparel City (BIAC)
(Functional)

Andhra
Pradesh

Textiles

BIAC is an integrated apparel supply chain city, managed by

Brandix Lanka Ltd. It aims to be a end-to-end apparel solution
provider

Several
Sectors

Karnataka Industrial Areas Development Board (KIADB) is a

wholly owned infrastructure agency of Government of
Karnataka. Till date, KIADB has formed 132 industrial areas
spread all over the state

(KIADB)
(Functional)

Karnataka

404.7

16,129.0

Source: Aranca Research

Notes: KIADB - Karnataka Industrial Areas Development Board, SEZ - Special Economic Zone

For updated information, please visit www.ibef.org

North: Kashmir, Ludhiana and

Panipat account for 80 per cent of
woollens in India

East: Bihar for jute, parts of Uttar

Pradesh for woollen and Bengal
for cotton and jute industry

Major textile and

apparel zones

West:
Ahmedabad,
Mumbai,
Surat,
Rajkot,
Indore
and
Vadodara are the key places for
cotton industry

South: Tirpur, Coimabtore and

Madurai for hosiery
Bengaluru, Mysore and Chennai
for silk

Source: Aranca Research,

Note: All figures as of 2011-12

For updated information, please visit www.ibef.org

M&A activity in the sector has been picking up pace over the years; in fact, from January 2000 to May 2013, more than 482
M&A deals took place, and the trend is expected to continue in FY14 as well
Some of the major M&A deals* are listed below:

M&A scenario - details

Period: 1 January 2000 to 30 April 2014
Deals

Acquirer name

Target name

Deal size (USD million)

Grasim Industries

Terrace Bay Pulp

360.0

Madura Garments

Pantaloon Retail

333.3

Himachal Fibres

Balmukhi Textiles Pvt Ltd

NA

BR Machine Tools Pvt Ltd

Bombay Rayon Fashions Ltd

721.1

Group of investors

Provogue (India)Ltd

526.9

M C Spinners Pvt Ltd

Maxwell Industries

8.5

Source: M&A, Thompson ONE Banker, Grant Thornton, CMIE, Aranca Research
Note: * The value for 290 deals were not disclosed

Trends of FDI in textile industry (USD million)

100 per cent FDI is approved in the sector

190

FDI in the sector totaled USD1.39 billion between April 2000

and February 2014

167
165

160
140
130

The textiles industry in India is experiencing a significant

increase in collaboration between global majors and
domestic companies

90

International apparel giants, such as Hugo Boss, Liz

Claiborne, Diesel and Kanz, have already started
operations in India

129
104

40
9
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14*

Source: Ministry of Commerce and Industry,

DIPP, Aranca Research
Note: * - Data for FY14 is up to February 2014

For updated information, please visit www.ibef.org

Immense growth potential

The Indian textile industry is set

for strong growth, buoyed by

both
strong
domestic
consumption as well as export
demand

Proposed FDI in
multi-brand retail

Private sector participation

in silk production

The Central

Silk Board sets

targets for raw silk production
and encourages farmers and
private players to grow silk

For

the textile industry, the

proposed hike in FDI limit in
multi-brand retail will bring in
more players, thereby providing
more options to consumers

To
For the near term (2012), the

sector is valued at USD110

billion by the Confederation of
Indian Textile Industry (CITI)

achieve these targets,

alliances with the private sector,
especially major agro-based
industries in pre-cocoon and
post-cocoon segments has been
encouraged

It

will also bring in greater

investments along the entire
value chain from agricultural
production to final manufactured
goods

Estimates by the Alok Industries

Ltd put the sector market value

at USD220 billion by 2020

With global retail brands assured

of
a
domestic
foothold,
outsourcing
will
also
rise
significantly

Retail sector offers growth

potential

With

consumerism
and
disposable income on the rise,
the retail sector has experienced
a rapid growth in the past
decade with several international
players like Marks & Spencer,
Guess and Next having entered
Indian market

The organised apparel segment

is expected to grow at a
compound annual growth rate
(CAGR) of more than 13 per cent
over a 10-year period

Centers of Excellence (CoE) for

research and technical training

The CoEs are aimed at creating

testing and evaluation facilities

as well as developing resource
centres and training facilities
Existing four CoEs, BTRA for

Foreign investments

The

government is taking
initiatives to attract foreign
investments in the textile sector
through promotional visits to
countries such as Japan,
Germany, Italy and France

Geotech, SITRA for Meditech,

NITRA
for
Protech
and
SASMIRA for Agrotech, would
be upgraded in terms of
development
of
incubation
centre
and
support
for
development of prototypes
Fund support would be provided

for appointing experts to develop

these facilities

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

Launch of the
Makers brand 2011

Retail

Furnishings
Acquisition of
ColorPlus 2002

Corporate wear

Capacity of 40
MM -1996

Woollen outerwear

Apparels

Fabrics

FY14
USD766.5
million
turnover

JV with GAS in
India - 2007

Organic
growth in
textiles

1964
Vertical
integration in

multi-fibres

1980
Transformed
into industrial
conglomerate

FY08
USD595
million
turnover

With a retail presence of

956 stores across all
formats at the end of FY14
the company is looking to
modernise and
aggressively expand its
store network

1925 1958 1964 1968 1990 1996 2000 2002 2006 2007 2008 2010 2011 2012 2013 2014
Source: Company Presentation, Aranca Research
Notes: JV - Joint Venture; MM - Million Meters

Focus on speciality
fabrics; plans to
enter in technical
textiles

Polyester yarn

JV with NTC 2008

Home textile

Tie-ups With
Global Retail
Giants

Garments - woven &

knitted
Acquisition of
QS to gain retail
holding in the
UK -2007

Embroidery

Apparel fabric

Cotton and
blended yarn

Organic growth
in textiles

1995*
Financial and
technical
collaboration
through JV

FY13
USD2.4 billion
turnover

2007 ISO 9001,

2000 and three
other international
accreditations
FY05
USD272
million
turnover

1986 1988 1990 1992 1993 1995 2003 2004 2006 2007 2008 2010 2011 2012 2013
Source: Company Annual Reports and Presentation, Aranca 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

Welspun India was incorporated in 1985, with presence in more than 50 countries. The company is the world leader in a
range of home textiles products

Global
brand

Wide
distribution
network

Terry towels

Focus on
innovation

Bed linen products

Growth
strategy

Focused
approach
on home
textiles

Association
with top
brands and
clients

Rugs

Capacity - 43,800 MT/Year

Location - Anjar/Vapi

Capacity utilisation - 90 per cent

Capacity - 52 million metre/Year

Location - Anjar

Capacity utilisation - 96 per cent

Capacity - 10,151 MT/Year

Location - Vapi

Capacity utilisation - 59 per cent

Source: Company Presentation, Aranca Research

Welspun contributed 46 per cent to Indias towel exports to the US in 2012

The company accounts for 25 per cent for bed sheet exports to the US

Welspuns key clients are retailer giants such as Wal-Mart, Target, JC Penny, IKEA Christy and Mark & Spencer

Revenue (USD million)

EBITDA (USD million)

746
170

672

CAGR: 17.3%

CAGR: 21.9%

540

119

450

100

394
77
65

FY10

FY11

FY12

FY13

FY 14

FY10

FY11

FY12

FY13

FY 14

Source: Company Presentation, Aranca Research

Note: * In INR terms

Tirupurs textiles industry stands at USD4.2 billion in FY12 and is globally famous for hosiery products

The city has more than 5,000 garment manufacturing and job work units, and is one of the most organised processing and
finishing garment clusters in India

Its hosiery hub became the first textile cluster in India to comply with zero liquid discharge guidelines

The textiles industry in Tirupur contributes about 80 per

cent to Indias hosiery exports and around 3 per cent to
total export trade

Tirupur is expected to export textile products worth USD2.6

billion in FY14 compared to USD1.4 billion in FY05

The Government of India granted the city the status of

Town of Export Excellence

Exports from Tirupur (USD billion)

CAGR: 6.7%
2.4

2.5

2.5

2.4

2.7

2.6

2.6
2.4

1.9
1.4

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14E

Source: Ministry of Textiles, News articles, Aranca Research

The Textile Association (India) (TAI)

72-A, Santosh, Dr M B Raut Road, Shivaji Park, Dadar,
Mumbai- 400 028
Telefax: 91 22 24461145
Website: www.textileassociationindia.org

The South India Textile Research Association (SITRA)

13/37, Avanashi Road, Coimbatore - 641 014, Tamil Nadu
Phone: 91 422 2574367, 6544188, 4215333
Fax: 91 422 2571896, 4215300
E-mail: sitraindia@dataone.in
Website: www.sitra.org.in

Northern India Textile Mills Association (NITMA)

121, Gagandeep Building (First Floor), 12, Rajendra Palace,
New Delhi- 110 008
E-mail: nitma@vsnl.net, nitma@airtelmail.in
Website: www.nitma.org

BTRA: Bombay Textile Research Association

CAGR: Compound Annual Growth Rate
FDI: Foreign Direct Investment
FY: Indian Financial Year (April to March)
GOI: Government of India
INR: Indian Rupee
NITRA: Northern India Textile Research Association
NTC: National Textiles Corporation
NTP: National Textile Policy
SASMIRA: Synthetic & Art Silk Mills Research Association
SEZ: Special Economic Zone
SITP: Scheme for Integrated Textile Park

SITRA: South India Textile Research Association

TUFS: Technology Upgradation Fund Scheme
TMC: Technology Mission on Cotton
USD: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number

Exchange rates (Fiscal Year)

Exchange rates (Calendar Year)

Year

INR equivalent of one USD

Year

INR equivalent of one USD

2004-05

44.81

2005

43.98

2005-06

44.14

2006

45.18

2006-07

45.14

2007

41.34

2007-08

40.27

2008

43.62

2008-09

46.14

2009

48.42

2009-10

47.42

2010

45.72

2010-11

45.62

2011

46.85

2011-12

46.88

2012

53.46

2012-13

54.31

2013

58.44

2013-14

60.28

Q12014

61.58

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