1. Strengths of Indian Textile Industry And
Advantages of sourcing fabrics from India
Presentation by:
The Cotton Textiles Export Promotion Council of India
(Sponsored by: Ministry of Textiles, Government of India)
on 19th September, 2014
at TEXWORLD, Paris

2. Welcome
On behalf of Texprocil, I extend a very warm welcome to all the dignitaries and attendees at this Seminar.
We would like to thank all of you for taking time off to be with us to understand the “Strengths of Indian Textile industry and Advantages of Sourcing Fabrics from India”
We are grateful to the Embassy of India in Paris for taking initiative in organizing this Seminar for the benefit of both Indian exhibitors as well as visitors to the Fair

3. Structure of Presentation
About TEXPROCIL
Snapshot of Indian Textile Industry
Strengths of Indian Textile Industry
Advantages of Sourcing Fabrics from India
Import of T & C into EU and India’s position
Import of T & C into France and India’s position
Business Opportunities with India 3

4. About TEXPROCIL
Established in the year 1954 and this is the oldest Export Promotion Council in India, having over 3500 Members
Non-trading - Non-profit export promotion body sponsored by the Ministry of Textiles, Govt of India
Promotes the entire range of Indian Cotton, Cotton yarns, Fabrics and Made-ups / Home Textiles
The one-stop solution for sourcing Indian Cotton Textiles
Collection, Collation and dissemination of trade information
Market Research
Organising Group Participation in Trade Fairs/Exhibitions
Organising Buyer Seller Meets (BSM) / Delegation
Receiving Overseas Delegation 4

5. Snapshot of India Textile Industry
Role of T&C Industry in Indian Economy
Textile and Clothing (T&C) Industry constitutes 4% of India’s GDP, 14% of Industrial Production and over 12% of total exports of goods.
Second largest employer after agriculture : Provides direct employment to over 35 Million people and indirect employment to 45 Million.
Textile sector exports 1/3 of its production.
In exports reached to a level of US $ 33 Billion and the target for the year is US$ 41 billion.
India’s share in world trade is 6.43% in Textiles and 3.74% in Clothing in 2012.
The domestic home textile market is growing at a CAGR of 8%
Cotton based items predominate in India’s export to the world. 5

6. Snapshot of Textile Statistics (Contd….)
India’s Position in the World Textile Economy
Largest producer of organic cotton
Largest producer of jute
Second largest producer of raw cotton
Second largest producer of cellulosic fiber / yarn
Second largest producer of cotton yarn
Second largest producer of silk
Largest Exporter of Cotton Yarn (in Value)
Second largest Exporter of Cotton 6

7. Spinning (in millions)
Textiles Capacity – Global and Indian
Installed Capacity -2011
World
India
Share in world
India’s Rank
Spinning (in millions)
1. Spindles (Cotton system)
205 48
22 %
2 (China)
2. Spindles (Wool) 15
1.0
7 %
3 (China)
3. Rotors 9
0.8
8 %
4 (Russia)
Weaving (in millions)
1. Shuttle Looms
4.5
2.3
51 % 1
2. Shuttleless Looms
1.6
0.15 9%
4 (China)
3. Handlooms
3.6
2.4
67%
Total Looms
9.7
4.85
50%
India has the second largest textile manufacturing capacity globally.
In bracket is first rank country.
Source: ITMF reports and Govt. of India publications 7 7

8. Yarn & Fabrics Production
Production of Spun Yarn (Billion Kgs)  
% CAGR ( )
Cotton
2.52
3.56
4.4
Blended
0.59
0.83
4.3
Non Cotton
0.35
0.46
3.4
Total
3.46
4.85
Production of Fabrics (Billion Sqm)  
% CAGR ( )
Cotton
23.9
33.8
4.4
Blended
6.3
9.3
10.1
Non Cotton
18.6
17.6
-0.7
Total
48.8
60.7
2.7
Cotton drives growth both in Yarn and Fabrics production
Source: O/o Textile Commissioner, Mumbai 8 8

9. Fabrics Production of Different Sectors ( Billion. Sqr. Mtrs)
Production of Fabrics (Sector Wise)
Fabrics Production of Different Sectors ( Billion. Sqr. Mtrs)
   
% CAGR ( )
Mill Sector
1.7
1.8
2.0
2.8
6.6
Handloom Sector 
6.1
6.5
6.9
6.7
6.8
1.5
Decentralised Sector
(not composite with spinning)
30.6
32.9
34.7
33.6
36.6
36.7
2.3
Hosiery Sector
10.4
11.5
11.8
12.1
13.6
14.3
4.0
Grand Total
48.8
52.7
55.3
54.2
58.9
60.7
2.7
Source: O/o Textile Commissioner, India
Grown at a CAGR of 2.7% during , mainly driven by mill , power-loom and hosiery sectors 9 9

10. India’s Textiles & Clothing Exports
Value in US $ Billion
Year
World Exports
India's Exports
India's Share
2008
618.27
21.94
3.55%
2009
527.67
20.56
3.89%
2010
619.06
27.19
4.39%
2011
728.74
32.64
4.48%
2012
710.85
32.88
4.63%
Source: WTO/GTIS 10

11. India’s Textile Exports
Value in US $ Billion
Year
World Exports
India's Exports
India's Share
2008
253.36
10.45
4.12%
2009
211.05
9.11
4.31%
2010
283.78
16.57
5.83%
2011
337.17
19.18
5.69%
2012
323.65
19.93
6.16%
Source: WTO/GTIS 11

12. Value in US $ Million Year 2008 2009 2010 2011 2012 2012/ Yarn 1801
India’s Export of Cotton Textiles
 Value in US $ Million
CAGR
Year
2008
2009
2010
2011
2012
2012/
Yarn
1801
1304
2820
2700
3190
15.36 %
Fabrics
1126
1091
1350
1872
2020
15.73 %
Made Ups
2109
2560
3220
3918
4300
19.49 %
TOTAL
5036
4955
7390
8488
9510
17.23 %
Source: WTO/GTIS 12

13. Strengths of Indian Textile Industry13

14. Strong fundamentals for robust manufacturing activities
Strong and Diverse Raw Material Base: 12% of world’s production of textile fibres and yarn
Second largest producer and exporter of cotton and yarn: % share in world cotton yarn exports in 2012
Strong presence in entire textile value chain: vertically and horizontally integrated – from Fibres to Home Textiles and Fashion.
Unique blend of tradition and technology 14

15. LESSER KNOWN FACTS ABOUT INDIAN TEXTILE INDUSTRY
Extremely low overheads - a tiny fraction of the overheads of similar size companies in any other industry.
Five decades of benchmarking of production and cost data has helped the textile industry remain competitive.
Most mills follow ‘Lean Manufacturing’ - even if they do not know the concept!
Evolved labour involvement techniques like QC , Kaizen etc have been adopted
30% higher operating machine speed in spinning & weaving when compared to other major competing countries. 15

16. LABOUR PRODUCTIVITY
Productivity level and efficiency of workers in India is as good as the best in the world.
Almost all exporting companies across the various sectors have In-house training facilities, capable of converting unskilled, uneducated, even malnourished workers into world class operatives who can operate very sophisticated state of art machines, that too within three months 16

17. EQUIPMENTS & MODERNISATION
From an out dated industry in the late 1990’s, the textile industry has rapidly  transformed itself into  a very modern one with a fair degree of automation and mechanization, thanks to initiatives taken by the Government and the Industry.
Most of the world class machinery manufacturers have set up manufacturing bases in India and are offering world class cutting edge technology machines at Indian prices in the Spinning sector.
In the area of Weaving, Knitting and Processing , even though there is a good improvement in machinery availability in India, there is a huge potential for European machinery manufacturers to set up joint ventures in India.
Notwithstanding the down stream disadvantages in availability of certain types of domestically made machinery , India has reached international competitiveness, as our competing countries with lower costs also suffer similar disadvantages but to a larger extent ! 17

18. Large acreage ,second largest in the world under cotton cultivation
Cotton advantage
Large acreage ,second largest in the world under cotton cultivation
Fair price to farmers , floor prices fixed by a committee that takes into account all input costs and ensures fair return to farmers
All the cotton produced in India is in reality a ‘Fair trade cotton’ India has seen per acre yield going up sharply whenever a new technology gets introduced
Quantum jump in yields over the past few years 18

19. Cotton advantage (contd) Large acreage ,second largest in the world under cotton cultivation
More appropriate mix of natural and synthetic fertilizers will happen soon as the government is considering reaching farm subsidies directly to the farmer instead of through synthetic fertilisers and make cotton farming more sustainable with stable yields
Increased competition among seed producers is forcing many seed companies to take up farm extension activities as a value added service , this is rapidly increasing best practices dissemination to farmers— Better Cotton Initiatives , as happening naturally in India
India therefore will remain a cotton surplus country even when our spinning Industry grows at double digit growth rates 19

20. Yarn advantage
India is a surplus producer of all raw materials , be it Cotton , Polyester or Viscose
India has a very large producer of world class machines which maintains a very fair price for its machines , substantially below global machinery prices .This is forcing all International machinery producers to make cutting edge technology machines and sell them at Indian prices
With minimum wages going up across all sectors including agriculture thanks to government’s rural employment guarantee schemes , Textile Industry is increasingly being seen as the most important vehicle to absorb the redundant farm workers and create inclusive growth
Provincial governments which have cotton surplus are encouraging the setting up of spinning mills 20

21. Advantages of Sourcing
Fabrics from India 21

22. Fabric advantage
Given the huge advantage of having very high quality yarns at less than global prices, it is a natural corollary to have a vibrant fabric production base. 22

23. Woven Fabrics from India
India has a fairly strong shuttle less weaving capacity in all widths.
Most of them are sub 5 years old and all of them are less than 10 years old.
Acceleration in weaving capacity addition is anticipated.
Most air jet looms in India run at 30 to 40 % higher speed than air jet looms in other competing countries.
The number of hours and days run per year is also high in India.
Labour costs and real interest rate ( rate of interest after setting off the currency depreciation) is much lower in India as Indian currency depreciation offsets a seemingly higher interest rate in Rupees. 23

24. Woven Fabrics from India (Contd….)
When spinning and weaving is done at the same place , there are several cost advantages.
100% inspection of fabrics helps deliver the approved fabrics alone , eliminating the occasional faults that appear in fabrics due to yarn defects.
The interest cost , handling costs etc , when Fabric is bought instead of Yarn becomes a source of additional savings for the European importers. 24

25. Knitted fabrics from India
Fabrics when knitted show up , all the small yarn faults very prominently.
However as most of the spinning mills are also manufacturing knitted fabrics, yarn used for knitting in India is Quality controlled , thereby delivering almost defect free knitted fabrics.
Buying quality controlled Knit fabric completely eliminates all yarn related fabric issues.
India has a huge population of Imported knitting machines , many of them installed in spinning mills. 25

26. Knitted fabrics from India (Contd….)
Knitting becomes extremely cost competitive when knitting taken place in composite factories which recycle packing costs and have traceability within the factory to reduce yarn oriented defects immediately.
Fully inspected knit fabrics can give better quality assurance.
The savings in time , logistics cost and interest costs etc (as in woven fabrics) is an added advantage. 26

27. Processed fabrics
More and more large sized units are coming up with marine disposal of treated water and India will soon become competitive in processed fabrics too
India is very strong in Dyes and Chemical manufacturing and is also emerging as a major supplier of Dyes and Chemicals to different countries .This is also an added advantage for the processed fabric industry
Not withstanding the higher costs of processing ,the huge advantage upto grey fabrics is helping our processed fabric exports to go up too 27

28. Import of Textiles & Clothing into EU
and India’s position 28

29. EU(27) IMPORTS OF TEXTILES & CLOTHING
EU27 (External Trade) Imports of Textiles & Clothing
Rank
Country
Million US $
% Growth
2011  
2012  
Jan-Jun 2012
Jan-Jun 2013
World 
130,945.09
114,112.59
-12.85%
55,052.92
55,255.53
0.37% 1
China 
52,591.30
44,634.67
-15.13%
19,985.36
18,954.16
-5.16% 2
Turkey 
17,088.82
15,379.57
-10.00%
7,640.68
8,211.22
7.47% 3
Bangladesh 
11,132.14
11,074.88
-0.51%
5,505.09
5,887.67
6.95% 4
India 
10,334.67
8,085.37
-21.76%
4,421.68
4,477.46
1.26% 5
Pakistan 
4,551.80
3,637.99
-20.08%
1,808.10
1,991.52
10.14% 6
Tunisia 
3,774.62
3,083.59
-18.31%
1,693.66
1,594.37
-5.86% 7
Morocco 
3,326.58
2,847.26
-14.41%
1,432.55
1,563.27
9.13% 8
Vietnam 
2,673.93
2,552.78
-4.53%
1,133.08
1,147.02
1.23% 9
Indonesia 
2,404.78
2,050.45
-14.73%
1,014.09
959.15
-5.42% 10
United States 
1,963.08
1,890.99
-3.67%
938.20
984.95
4.98%
Source of Data: Eurostat
EU(27)’s total Textiles & Clothing imports declined by (-) 12.85% from US $ Bn in 2011 to US $ Bn in 2012; whereas the imports grew marginally by 0.37% during the first half of the current year 2013.
Though India’s exports (being 4th rank) declined by (-) 22% in 2012, it has picked up with a growth of 1.26% during current year 2013. 29

30. India’s position in EU market
EU (27) as a combined market is the largest market for export of T & C from India.
Export from India to EU in the year 2012 has declined at a much higher rate than all other top 10 supplying countries as well as percentage decline in total import.
First 6 months of the current year shows a positive growth, albeit not reaching to the level of trade in the year 2011.
Tariff advantages granted to other competing countries, such as Pakistan, Turkey, Bangladesh, Sri Lanka etc is the major deterrent for increasing India’s export to EU. 30

31. Import of Textiles & Clothing into France
and India’s position 31

32. IMPORTS OF TEXTILES & CLOTHING into FRANCE
France Imports of Textiles & Clothing
Rank
Country
Million US $
% Growth
2011  
2012  
Jan-Jun 2012
Jan-Jun 2013
World 
31,825.05
28,169.82
-11.49%
13,912.08
13,881.51
-0.22% 1
China 
9,045.44
8,077.13
-10.70%
3,673.06
3,506.81
-4.53% 2
Italy 
3,163.77
2,797.47
-11.58%
1,396.34
1,405.95
0.69% 3
Bangladesh 
1,920.39
1,713.70
-10.76%
813.79
938.45
15.32% 4
Turkey 
1,892.89
1,656.76
-12.47%
867.13
898.33
3.60% 5
India 
1,603.89
1,261.47
-21.35%
738.77
720.44
-2.48% 6
Germany 
1,422.57
1,226.75
-13.76%
640.49
585.57
-8.57% 7
Tunisia 
1,386.30
1,209.21
-12.77%
651.78
654.80
0.46% 8
Morocco 
1,238.18
1,086.71
-12.23%
567.77
580.33
2.21% 9
Belgium 
1,235.13
997.56
-19.23%
501.34
468.36
-6.58% 10
Portugal 
791.88
730.73
-7.72%
382.53
380.71
-0.47%
Source of Data: Eurostat
France’s total Textiles & Clothing imports declined by (-) 11.49% from US $ Bn in 2011 to US $ Bn in 2012; the imports during the first half of the current year 2013 also declined marginally by (-) 0.22.
India’s exports (being 5th rank) declined by (-) 22% in 2012 to US $ 1.26 Bn and imports during the first half of the current year 2013 also declined by (-) 2.48. 32

33. India’s position in French market
France is the 3rd largest market within EU for supply of Indian Textile & Clothing (next only to UK and Germany)
Like other countries in the EU, France also imports more of Clothing and less of Textiles.
Even though some of the French Brands have tie up with Indian garment suppliers, the Council is keen to take the partnership to the next stage by inviting increasing participation of French Brands and Designers to work together with Indian manufactures.
The Council is keen to be associated with important Associations and Designing Institutions in France so as to continuously keep in pace with changing designing requirements in the EU market thereby increasing our market share in supply of Textiles. 33

34. Business Opportunities with India
Invest in setting up vertically integrated large scale units .
Invest in India to manufacture Weaving, High end Knitting and Processing machinery.
Enter into marketing joint ventures with Indian companies.
Investing in India
Partner with large Indian companies having credibility in terms of capacities and quality.
Knitted Fabrics, Woven Fabrics and Home Textiles have ample opportunity, given India’s cost competitiveness.
Sourcing from India
Cotton Textiles, MMF, technical textiles and specialty products have increasing scope
Trade with India

35. Conclusion
India’s advantage in Raw Material; Labour Productivity; continuous Modernization in Manufacturing, world class Quality Standards delivered by Indian suppliers, increasing Investments in Capacity addition in the entire Textile value chain etc makes it a highly competitive supplier of Textiles & Clothing.
In spite of Tariff advantage enjoyed by other major competing countries, India is able to show impressive growth in export to major markets around the world.
Increasing demand for Textile and Clothing in the domestic market makes India an attractive destination for leading international brands.
We have 92 Indian exhibitors in this edition of TEXWORLD Paris. We are sure all the Indian exhibitors as well as visitors from EU and other countries have a fruitful discussion in this 4 days event for mutual growth in business. 35

36. Thank You The Cotton Textiles Export Promotion Council
(Sponsored by Government of INDIA)
Engineering Centre 5th Floor, 9 Mathew Road, MUMBAI –
Tel: (022) to 12 Fax: (022)
Website: 36