Indian Textile Industry:Latest Initiatives

R D Udeshi
Reliance Industries Limited

India & South Asia Textile Summit 2017, India

7 Jun, 2017
Contents

 Asia significance in Global Economy

 Changing face of India

 Emerging Global Trends

• India: Meeting Global Needs

 Indian Textile Industry

• Latest Initiatives

 Summary

2
Economy: Asia Leading
GDP Growth Goods/Services Export Growth
5%
7% Emerging Economies

6% Emerging Asia
4% Emerging Asia

5% World
Emerging Economies
4%
4%
Advanced Economies
World
3% 3%

2%
Advanced Economies 3%
1%

0% 2%
2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022

Asia would be the key driver of global growth 3

Shifting Demographics, Rising Demand

Urban Consumption Growth  Working population will

outpace the growth of
dependants

 New tastes, new ideas,

urbanisation, nuclear
families will drive demand

 Apparels to have larger

share in spending
structure

Source: McKinsey
4
Changing Face of India
Indian Urbanisation – Global Playground
1950

17%
Urban

2015

33%
Urban
16% of world urban growth

India, largest contributor to the global urban growth by 2050 6

Indian Consumer Structure

Gen
Yesterday
Gen Vintage Youth Expenditure
(>55), 7%
(40-54), 16%
Clothes – 16%
Gen Future
(0-12), 22%
Gen Now
(25-39), Eating Out – 16%
25%

Gen Next
(13-24),
Soft Drinks/Beverages – 14%
30%

Snacks – 7%

Self reliant population reinforcing future consumer base 7

Emerging Global Trends
India: Meeting Global Needs
Changing Consumer Face

Then Now
• Shopping – Need based • Shopping – Experience
• Brand Loyalty • Experimental
• Low on Information • Super Informed
• Exclusivity • Service
• Seasonal Buying • All year buying
• Conventional channels • Multiple Channels

Changing customer priorities. Need for Innovation 9

Evolving Sourcing Preferences
Design/Branding

Logistics/Sourcing

Production

Raw Yarn Fabric Apparel Distribution

Materials Production Production Production Sales

Accessories

India Ideal Sourcing base

Equipment/
Machinery

Tangible Manufacturing Increasing Value Addition Intangible Services

Global buyers prefer suppliers who provide “Full Package” 10

India: Global Sourcing

Research and Training

Established
Manufacturing Robust Economy
Reliable and Financial
Facilities Logistics Backup

Adequate Raw Materials Further Focus Areas

Network of facilities make India a reliable sourcing hub 11

Indian Fibre Consumption Pattern
Global

Cotton
India 26%
Polyester
51% Viscose
Cotton 7%
63%
Polyester
30% Others
16%

Viscose
5%
Others
2%

Indian industry gradually moving the global way 12

Technical Textiles: New Growth Path
Global India
Technical
Technical
Textile
Textile
7%
14%
Home
Textile
17%
Home Apparel
Textile 58%
28%

Apparel
76%

Source: PCI, Internal Analysis

Renewed focus towards Technical Textiles 13

Moving Forward Sustainably

Government and brands join to conserve resources 14

Indian Textile Industry
INDIAN TEXTILE INDUSTRY

$ 650 Bn 2025

CAGR
19%

$ 140 Bn
2016

Textiles contributing to India’s robust growth & development 15

Indian Textile Industry: Heritage and Beyond

 Fast emerging styles and fashion

 Largest producer of Polyester in
design
South Asian Region
 Large base of diverse traditional
 Largest producer of cotton globally
clothing heritage
 2nd largest producer of silk
 Strong raw materials base
 20% of global spindle capacity
 Technically advanced Textile
operations  Highest loom capacity ~45% of
global installation

A platter of heritage, diversity, style and growth 16

Supportive Government
India: Policy & Infrastructure support
• Financial & Technical assistance through various packages & schemes

• Tie up with E-Commerce companies, providing direct interface for manufacturer & consumer

• Setting up Textile parks and Mega Cluster Zones to integrate textile industry.

• Established wide network of textile & apparel SEZs across India

• Loans to textile companies at international rates to provide impetus to textile investments

• GST implementation would simplify taxation structure

Firm & Friendly Government policy & support to stimulate

growth of Textile Industry 18
India: An Ideal Investment Destination
US $ Bn
2.0
India: Textile FDI
Make In India 1.6

• 100% FDI is allowed in the

Indian textile sector. In the 1.2
last 5 years, textile sector
FDIwitnessed
in textilesforeign 0.8
investments growing at a
compounded annual growth 0.4
of 15%.
Highest FDI 0.0
FY FY FY FY FY FY FY
globally 10 11 12 13 14 15 16
Source: ibef

Investment in textiles becoming attractive again

19
India: Ease of Doing Business

130
131

142
26
Days to start
business 6
2015

2016

2017

India Ranking
(Ease of Doing Business)

Government making India business friendly 20

India: Exploring Innovative Technologies
Agency Area of Excellence

ATIRA, Ahmadabad Composites

DKTE, Ichalkaranji Non-woven and Coated Textiles

NITRA, Ghaziabad Protective Textiles

PSG COLLEGE OF TECHNOLOGY, Filters, Acoustic Thermal Insulators,

Coimbatore Wipes

SASMIRA, Mumbai Agrotextiles and Packaging

SITRA,
Medical Textiles
Coimbatore

Government keen on innovation revolution 21

Reliance: Making India Self Reliant
Oil and Gas Oil and Gas
Exploration Production

Petroleum Petroleum
Refining Retailing

Olefins and
Aromatics

Fiber
Plastics Petrochemicals
Intermediates
(PE, PP, PVC, PET) (LAB, EO)
(PX, PTA & MEG)

Polyester
(Fiber, Filament)

Textiles

Strong integration aids consistency and reliability 22

Recycling, Reaching New Dimensions
Recron® GreenGold

>25% reduction in Green house gas emission as certified by SGS,

One of the greenest fibre globally

90% of water used is recycled

Eco-D fibres - 70% dyestuff and chemicals saved

Eco-D fibres - 90% energy usage reduced

Creating awareness at brand and consumer level

Developing value chains for eco-friendly products

Reliance dedicated for a green future 23

Summary
• Indian textile industry is poised for firm growth with robust domestic consumption as well as

rising export demand.

• Rising income, growing consumerism, urbanisation are expected to aid higher growth due to

emergence of new fashion & trends.

• FDI flow is expected to continue strengthening new investment in this sector.

• Technical textiles will be the next growth platform.

• These efforts will enhance investments, skill and development of world class manufacturing

textile base in India.

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Thank You

Thank You
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