TEXTILES AND

APPAREL

For updated information, please visit www.ibef.org August 2020

Table of Contents

Executive Summary……………….….…......3

Advantage India…………………..….……...4

Market Overview …………….………..…….6

Recent Trends and Strategies…….……...15

Growth Drivers…………………….....….....19

Opportunities.....……………………….…...29

Industry Organisations……….…................32

Useful Information……….……….......….....34
 EXECUTIVE SUMMARY

▪ India is the world’s second largest producer of textiles and Textile and apparel industry in India (US$ billion)
garments.
250
▪ Rising per capita income, favourable demographics and a shift in
200
preference to branded products will boost demand.
150
▪ The domestic textile and apparel market is estimated to be US$ 100 100 220

billion in FY19 and has grown at a CAGR of 10 per cent since FY06. 50 80 90 100
0
▪ Growth in demand is expected to continue at 12 per cent CAGR to FY16 FY18 FY19E FY26P
reach US$ 220 billion by 2025.
Textiles and apparel exports from India (US$ billion)
▪ The textile industry has around 4.5 crore of workers employed in
textiles sector, including 35.22 lakh handloom workers all over the
CAGR 17.4%
country. 80
60 82.00
▪ Favourable trade policies and superior quality to drive textile exports.
40
39.20 38.70
▪ India’s textile and apparel export stood at US$ 38.70 billion in FY19 20
22.95
and is expected to increase to US$ 82.00 billion by 2021 from US$ 0
22.95 billion in FY20 (till November 2019). FY18 FY19 FY20# 2021E

▪ Cloth production in FY19 stood at 70.04 billion square meters and Total cloth production in India (billion square metres)
63.34 billion square meters in FY20 (till January 2020).
80.0
70.0

70.04
66.84
60.0

63.64
50.0
40.0
FY18 FY19 FY20P*
Notes: E – Estimate, F – Forecast, P - Provisional CAGR up to FY21, P – Provisional, *-till January 2020, #-till November 2019
Source: Ministry of Textiles, Make in India, Technopak, Annual Report on Indian textile and Apparel industry- Wazir Advisors

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 Textiles and Apparel

ADVANTAGE INDIA
 ADVANTAGE INDIA

▪ In order to attract private equity (PE) and

▪ Increased penetration of organised retail, employee more people, Government
favourable demographics and rising introduced various scheme such as Scheme
income level will drive demand for textiles. for Integrated Textile Parks (SITP) and
▪ Growth in building and construction will Technology Upgradation Fund Scheme
continue to drive demand for non-clothing (TUFS).
textiles. ▪ Industrial Entrepreneur Memorandum (IEMS)
filed in textiles industry stood at 15 of worth
Rs 1241 crore (US$ 176.05 million) in January
2020.

ADVANTAGE
INDIA
▪ 100 per cent FDI (automatic route) is allowed
▪ Abundant availability of raw materials such in the Indian textile sector.
as cotton, wool, silk and jute. ▪ Under Union Budget 2020-21, a National
▪ India enjoys a comparative advantage in Technical Textiles Mission is proposed for a
terms of skilled manpower and in cost of period from 2020-21 to 2023-24 at an
production relative to major textile estimated outlay of Rs 1,480 crore (US$
producers. 211.76 million).
▪ In 2020, New Textiles Policy 2020 is expected
to be released by the Ministry of Textiles.
▪ CCEA approved mandatory packaging of
foodgrains and sugar in jute material for the
Jute year 2019-20.

Note: SITP - Scheme for Integrated Textile Park; FDI - Foreign Direct Investment, ASEAN - Association of Southeast Asian Nations, CCEA- Cabinet Committee on Economic Affairs
Source: PHD Camber of Commerce; Federation of Indian Chambers of Commerce and Industry, India Ratings and Research

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 Textiles and Apparel

MARKET
OVERVIEW
 EVOLUTION OF THE INDIAN TEXTILE SECTOR

Pre 1990s 1901–2000 2000-2015 2016 onwards

▪ The first cotton textile mill of ▪ Number of mills increased ▪ SITP was implemented to ▪ Make in India campaign was
Mumbai was established in from 178 in 1901 to 417 in facilitate setting up of textile launched to attract
1854 1945 units with appropriate support manufacturers and FDI
▪ The first cotton mill of ▪ Out of 423 textile mills of the infrastructure
▪ Technology Mission for
Ahmedabad was found in undivided India, India received ▪ After MFA cotton prices are Technical Textile has been
1861; it emerged as a rival 409 after partition and the aligned with global prices. continued
centre to Mumbai remaining 14 went to Pakistan ▪ Technical textile industry will ▪ Under Union Budget 2020-21,
▪ In 1999, TUFS was set up to be a new growth avenue Government of India allocated
provide easy access to capital ▪ Free trade agreement with around Rs 3,515 crore (US$
for technological up gradation ASEAN countries and 502.93 million) to the Ministry
▪ TMC was launched to address proposed agreement with EU of Textiles
issues related to low under discussion ▪ 3,544 operational textile mills
productivity and infrastructure ▪ Restructured TUFS was – 2,184 non-small scale and
▪ In 2000, NTP was announced launched attracting a subsidy 1,360 small scale as of 2017-
for the overall development of cap of US$ 420.65 Million 2018*
the textile and apparel
industry

Note: 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, * As on October 31, 2017
Source: Union Budget 2020-21, Make In India

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 KEY FACTS

▪ 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’s textiles industry contributed seven per cent of the industry output (in value terms) in 2017-18.

▪ It contributed two per cent to the GDP of India and employed more than 45 million people in 2017-18.

▪ The sector contributed 12 per cent to export earning in 2018-19.

Key segments of the textile industry

Raw Garment/
Process Ginning Spinning Weaving/ Processing
material apparel
knitting production

Cotton, Processed Final

Output jute, silk, Fibre⁽¹⁾ Yarn Fabric garment/
fabric
wool apparel

Yarn and fibre segment ▪ Woollen textiles

▪ Silk textiles
▪ Jute textiles
▪ Technical textiles

Source: Textile Ministry, Make in India

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 THE SECTOR HAS BEEN POSTING STRONG GROWTH
OVER THE YEARS

▪ The size of India’s textile market is expected to touch US$ 223 billion Visakhapatnam
India's textile port
market
traffic
size(million
(US$ billion)
tonnes)
by 2021, growing at a CAGR of 10.23 per cent over 2016.

▪ The new textile policy aims to achieve US$ 300 billion worth in textile CAGR 10.23% 250
export by 2024-25 and create an additional 35 million jobs. By 2022,
the Indian textile sector will require additional 17 million workforce.

223.0
200

150

150.0
137.0
100

50

0
2016 2017 2021F

Note: F – Forecasted,
Source: Make in India, News articles, Ministry of Textiles

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 RAW COTTON AND MAN-MADE FIBRE PRODUCTION
INCREASING

Production of cotton (million bales) Production of fibre (million tonnes)

38.0 1.800
37.0 1.600

37.0

1.603
36.0 1.400

1.443
1.364
1.347
35.0

1.319
1.200
34.0
34.5

1.000
33.8

33.7
33.0 0.800
32.0
0.600

32.3
31.0
0.400
30.0
0.200
29.0
0.000
FY16

FY17

FY18

FY20*
FY19P

FY16

FY17

FY18

FY19P

FY20P^
▪ India is the world’s largest producer of cotton. Production of cotton in India grew from 33.8 million bales in FY16 to 33.7 million bales in FY19P.

▪ Cotton production in India is estimated to have reached 32.3 million bales in FY20*.

▪ Cotton and fibres are the two major segments in this category. Production of man-made fibre has also been on an upward trend.

▪ During FY19, production of fibre in India stood at 1.443 million tonnes, which reached 1.603 million tonnes in FY20 (till January 2020).

Note: E – Estimate, *- First advance estimate, P – Provisional, ^-till January 2020

Source: The Cotton Corporation of India Ltd, BusinessLine

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 COTTON IS THE MAJOR SEGMENT IN YARN AND
FABRIC

Production of yarn (million kgs) Yarn Production (million square metre)

7,000 8,000
1,164 1,159 1,187 1,160
6,000 7,000 1,426

5,862
6,000

5,680
5,665

5,659

5,000 1,682
5,000 1,527 1604 1,616

4,762
4,000 4,000 1,431
4138 4055 4,064 4,208
3,000 3,000 3,332
2,000
2,000
1,000
1,000 0
FY16 FY17 FY18 FY19 FY20^
0
FY16 FY17 FY18 FY19P FY20P^
Cotton 100% Non-Cotton Man- made filament

▪ Production of yarn grew to 5,862 million kgs in FY19 from 5,665 million kgs in FY16.

▪ Cotton yarn, a major segment in FY20^, accounted for more than 54 per cent share in yarn production.

Note: P – Provisional, ^-till January 2020

Source: Ministry of Textiles

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 EXPORT HAVE POSTED STRONG GROWTH OVER
THE YEARS

India's textile trade (US$ billion) Shares in India’s textile export (FY20*)

45 4.06%
40 3.14%
1.03% 7.15%

39.20
39.00

38.70
35
36.75

30
25 40.87%
20

22.95
15 43.74%

7.56
7.30
6.30

6.06
5.85

10
5
0
FY16 FY17 FY18 FY19P FY20P* FIBRE YARN / FABRICS / MADEUPS
Exports Imports RMG CARPET
JUTE OTHER ITEMS

▪ Export have been a core feature of India’s textile and apparel sector, a fact corroborated by trade figures.

▪ Export of textiles from India reached US$ 38.70 billon during FY19 and US$ 22.95 billion during April-November 2019.

▪ The Goods and Services Tax (GST) is expected to make imported garments cheaper by 5-6 per cent as the GST regime will levy 5 per cent tax for
both domestic textile manufacturers and importers.

▪ In September 2019, textile export witnessed an increase of 6.2 per cent post-GST compared to pre-GST.

Note: P – Provisional, *-till November 2019

Source: Ministry of Textiles

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 HOME TEXTILE INDUSTRY – GAINING ON DEMAND
FOR EXPORT

▪ India’s home textile industry is expected to expand at a CAGR of 8.3 Visakhapatnam

Indian home textile
port industry
traffic (million
(US$ billion)
tonnes)
per cent during 2014–21 and reach US$ 8.2 billion in 2021 from US$
4.7 billion in 2014.
CAGR 8.3%
9
▪ India accounts for seven per cent of the global home textiles trade.
Superior quality makes companies in India a leader in export –
8 8.20
almost two-third of India’s export of textiles is to US and UK.

▪ Indian products has gained a significant market share in global home 7

textiles in the past few years.
6
▪ The growth in the home textiles would be supported by growing
household income, increasing population and growth of end use
sectors like housing, hospitality, healthcare, etc. 5
4.95
4.70
▪ In FY19, Indian home textile industry reached US$ 4.95 billion. 4
▪ In June 2019, Cotton On, Australia's largest fashion retailer, entered
the Indian market through Myntra and signed contract with Flipkart 3
and Jabong as well.
2

0
2014 2018 2021E

Note: E – Estimates,
Source: Ministry of Textiles, Welspun Presentation

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 TECHNICAL TEXTILE INDUSTRY – A NEW ARENA OF
GROWTH

▪ Technical textile industries major service offerings include thermal Visakhapatnam

Technical Textile
portindustry
traffic (million
(US$ billion)
tonnes)
protection and blood-absorbing materials, seatbelts and adhesive
tapes.
CAGR 12.20%
35
▪ India is expected to be a key growth market for the technical textile
sector due to cost-effectiveness, durability and versatility of technical
textiles. 32
30
▪ The targeted market size would be achieved by targeting non-woven
technical textiles. Healthcare and infrastructure sectors are major
25
drivers of the technical textile industry.

▪ The Government has assigned 207 Harmonized System

Nomenclature (HSN) to promote India’s technical textile industry. 20

▪ The technical textile industry is expected to reach to US$ 32 billion in 18

FY23, growing at a CAGR of 12.20 per cent over FY18. The industry, 15
supported by various flagship schemes initiated by the Government
to promote its full potential, is forecast to grow 20 per cent y-o-y and
is expected to reach Rs 200,823 crore (US$ 29.96 billion) by FY21. 10

▪ As of 2019, 348 technical textiles products were developed

according to Bureau of Indian Standards (BIS). 5
▪ Government introduced six additional courses for technical textiles in
its skill development programme called Samarth.
0
FY18 FY23E

Note: SME - Small and Medium Enterprises, E – Estimates; Figures mentioned are as per latest data available
Source: Chamber of Commerce, Indian Technical Textile Association, Baseline Survey

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 Textiles and Apparel

RECENT TRENDS
AND STRATEGIES
 STEADY GROWTH IN TEXTILE MANUFACTURING HAS
AIDED GROWTH

▪ Textile manufacturing in India has been growing steadily. Textile Manufacturing growth under Index of Industrial
Visakhapatnam port traffic (million tonnes)
Production
▪ The size of India’s textile industry is expected to touch US$ 223
billion market by 2021.
1000%
▪ Index of Industrial Production (IIP) is a composite indicator of the
changes in the volume of production in a chosen base period (say

5.10
2011-2012).
500%

3.20
1.80
0%

-4.5

-1.40
-7.6
-500%

-3.9

-5.30

-6.80
-1000%

-13.10
-1500%

Nov-19

Dec-19
Jun-19

Jul-19

Jan-20

Mar-20
Feb-20
Aug-19

Sep-19

Oct-19
Source: Ministry of Statistics and Program Implementation

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 NOTABLE TRENDS IN INDIA’S TEXTILE SECTOR

▪ Since 2014, 59 textile park projects have been sanctioned under SITP and PPP with 40 per cent Government
Textile Parks assistance of up to Rs 40 crore (US$ 6 million). 22 textile parks out of these have been operational as of December
2019.

▪ The objective here has been to promote entrepreneurs in apparel manufacturing by providing them an integrated
Incubation in workspace and reducing operational and financial cost for establishing and growing a new business.
apparel
▪ As of July 2019, three projects were sanctioned by the Government, one each in Madhya Pradesh, Odisha and
manufacturing
Haryana.

Public Private ▪ The Ministry of Textiles commenced an initiative to establish institutes under PPP to encourage private sector
Partnership (PPP) participation in the development of the industry.

▪ Technical textiles industry, which had a market size of Rs 116,000 crore (US$ 18 billion) in FY20, is projected to grow
20 per cent y-o-y and reach Rs 200,000 crore (US$ 28.61 billion) by FY21.
Technical textiles
▪ US$ 70.83 million has been allocated to promote the use of geotechnical textiles in the Northeast.

▪ As of 2019, 348 technical textiles products were developed according to BIS.

▪ The Government plans to connect around 50 million women in Indian villages to charkha (spinning wheel) in the next
five years with the aim of providing employment and promoting brand khadi.

Promotion of ▪ In July 2020, Indian Red Cross Society (IRCS) to buy 1.80 lakh face masks from Khadi and Village Industries
khadi Commission (KVIC).

▪ On August 10, 2020, KVIC inaugurated the first of its kind Training cum Production Center of Silk in the tribal village of
Chullyu in Arunachal Pradesh.
Note: TUFS - Technology Upgradation Fund Scheme
Source: Ministry of Textiles, Geotechnical

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 STRATEGIES ADOPTED

▪ In August 2019, Synthetic and Rayon Textile Export Promotion Council (SRTEPC) organised a roadshow in
Focus on high collaboration with the Indian Mission.
growth domestic
▪ The Government of India has increased the basic custom duty to 20 per cent from 10 per cent on 501 textile products to
markets
boost Make in India and indigenous production.

▪ On July 17, 2020, Khadi and Village Industries Commission (KVIC) inaugurated the first-of-its-kind footwear training
Focus on
center in Delhi to train the marginalized community of leather artisans.
backward
▪ In August 2019, Ministry of Textiles signed MoUs with 16 state governments to impart skill training and covering the
integration
entire value chain of the textiles sector except spinning and weaving.

▪ In October 2019, Asahi Songwon Colors Limited entered into joint venture (JV) with Tennants Textile Colours (TTC)
Focus on forward Limited to set up a state-of-the-art red and yellow pigments plant.
integration ▪ On July 10, 2020, Flipkart Group bought a minority stake in Arvind Youth Brands, a subsidiary of Arvind Fashions Ltd
(AFL), for Rs 260 crore (US$ 36.88 million).

▪ Raymond group under its group company, J.K.Helene Curtis, is looking to ramp up male grooming segment by
unleashing new variants of shampoos and deodorants.
Diversification
▪ In June 2019, Aditya Birla Fashion and Retail Ltd (ABFRL) acquired ethnic wear brands, Jaypore and TG Apparel &
Decor Pvt Ltd.

Source: Annual Reports and Company Presentations

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 Textiles and Apparel

GROWTH DRIVERS
 STRONG FUNDAMENTALS AND POLICY SUPPORT
AIDING GROWTH

Growing demand Policy support Increasing investment

Growing domestic and foreign

Rising demand in exports 100 per cent FDI in textile sector
investments

Resulting in
Inviting

Increasing demand in domestic

Government setting up SITPs US$ 140 billion of foreign
market due to changing taste
and mega cluster zones investment expected
and preferences

Growing population driving Government investment

Increasing loans under TUF
demand for textiles schemes (TCIDS and APES)

Note: TCIDS - Textile Center Infrastructure Development Scheme, APES - Apparel Park for Exports Scheme
Source: Ministry of Textiles

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 RISING INCOMES AND A GROWING MIDDLE-CLASS
HAVE BEEN KEY DEMAND DRIVERS

Indian residents shifting from low to high income groups (%)

Visakhapatnam
Trends in per-capita
port traffic
income(million
in Indiatonnes)
(US$ )
Million Household, 100%
2,500 209.10 266.50 267 271.5 304.80
44.0% 31.0% 30.7% 27.6% 18.0%

2,000 46.0%

1,982.7
46.0%

1,800.4
45.0% 45.3%

1,500
1,750.3

42.0%
1,403.0

1,000 20.0%

16.2%
15.0% 15.0%

8.0% 7.3% 11.0%

500 6.4%
3.0% 6.0%
1.5% 2.0% 2.6% 2.9% 5.0%
2005 2016 2017 2018 2025F
Elite(>30800) Affluent(15400-30800)
0 Aspirers(7700-15400) Next billion(2300-7700)
FY16 FY17 FY18 FY19
Strugglers(<2300)

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

▪ Rising industrial activity would support the growth in per capita income.

Source: IMF, Mckinsey Global Institute

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 EXPORTERS GAINING FROM STRONG GLOBAL
DEMAND

▪ India is the world’s second largest textile exporter. Capacity built Growing textile and clothing export from India
Visakhapatnam port traffic (million tonnes)
over years has led to low cost of production per unit in India’s textile (US$ billion)
industry. This has lent a strong competitive advantage to country’s 45 *CAGR 4.22%
textile exporters over key global peers.

▪ The strong performance of textile export is reflected in the value of 40

39.20
39.00
export from the sector over these years. Textile export increased to

38.70
36.75
US$ 38.70 billion in FY19 at a CAGR of 4.22 per cent over FY16. It 35
reached US$ 22.94 billion in FY20^.
30
▪ In the coming decade, Africa and Latin America could very well turn
out to be the key markets for Indian textiles. 25

22.95
20

15

10

0
FY16 FY17 FY18 FY19 FY20^

Note: ^- between April- November 2019, *CAGR upto 2018-19

Source: Ministry of Textiles, Budget 2019-20

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 TEXTILE SEZs IN INDIA

▪ As of February 29, 2020, India had seven exporting SEZs for textiles, apparel and wool.

Name of SEZ and Area

State Sector Details
status (hectares)

Mahindra City is India’s first integrated business city, divided into

business and lifestyle zones. It is a cluster of 3 sector specific SEZs in
Apparel and
Mahindra City SEZ Tamil Nadu, for apparels and fashion accessories; IT and hardware;
Tamil Nadu 607.1 fashion
(Functional) and auto ancillary. The business zone provides plug-n-play working
accessories
spaces. This zone comprises a SEZ (primarily for exporters) and
Domestic Tariff Area (DTA) for companies targeting domestic market.

Key industrial units include Safari Exports, Venus Garments,

Surat Apparel Park
Gujarat 56.0 Textiles Benchmark Clothings, P. K. International, Tormal Prints, J.R. Fashion
(Functional)
and Ganga Export.

Brandix India Apparel Andhra BIAC is an integrated apparel supply chain city, managed by Brandix
404.7 Textiles
City (BIAC) (Functional) Pradesh Lanka Ltd. It aims to be a end-to-end apparel solution provider.

Karnataka Industrial Areas Development Board (KIADB) is a wholly

(KIADB) (Functional) Karnataka 16,129.0 Several sectors owned infrastructure agency of Government of Karnataka. Till date,
KIADB has formed 132 industrial areas spread all over the state.

Note: SEZ - Special Economic Zone

Source: SEZ India invest.com,

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 KEY TEXTILES AND APPAREL ZONES IN INDIA

▪ North: Kashmir, Ludhiana and Panipat account for

80 per cent of woollens in India

▪ West: Ahmedabad, Mumbai, ▪ East: Bihar for jute, parts of Uttar

Surat, Rajkot, Indore and Pradesh for woollen and Bengal
Vadodara are the key places for for cotton and jute industry
cotton industry

Major textile and apparel zones

▪ South: Tirupur, Coimbatore and Madurai for hosiery.

▪ Bengaluru, Mysore and Chennai for silk

Note: 2011-12 As Per Latest Available Information

Source: TechSci Research

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 POLICY SUPPORT HAS BEEN A KEY INGREDIENT TO
GROWTH (1/2)

Amended
Technology Up- ▪ Investment was made to promote modernisation and up-gradation of the textile industry by providing credit at reduced
gradation Fund rates. A subsidy of Rs 6,717.18 crore (US$ 952.93 million) was released under this scheme between FY16 and FY20.
Scheme (A-TUFS)

▪ Key areas of focus include technological upgrades, enhancement of productivity, product diversification and financing
arrangements.
National Textile
Policy - 2000 ▪ New draft for this policy ensures to employ 35 million by attracting foreign investment. It also focuses on establishing a
modern apparel garment manufacturing centre in every state in the Northeast for which the Government has invested
an amount of US$ 3.27 million.

FDI ▪ Foreign direct investment (FDI) of up to 100 per cent is allowed in the textile sector through the automatic route.

▪ The Union Ministry of Textiles, Government of India, along with Energy Efficiency Services Ltd (EESL), has launched a
SAATHI Scheme technology upgradation scheme called SAATHI (Sustainable and Accelerated Adoption of Efficient Textile
Technologies to Help Small Industries) for reviving the power loom sector of India.

Merchandise ▪ The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under the Merchandise Exports from
Exports from India India Scheme (MEIS) for two subsectors of textiles Industry - readymade garments and made-ups - from two per cent
Scheme to four per cent.

▪ The Cabinet Committee on Economic Affairs (CCEA), Government of India, has approved a new skill development
Scheme for scheme called 'Scheme for Capacity Building in Textile Sector (SCBTS)' with an outlay of Rs 1,300 crore (US$ 202.9
Capacity Building million) from FY18 to FY20.
in Textiles Sector
(SCBTS) ▪ The scheme is aimed at providing a demand driven and placement-oriented skilling programme to create jobs in the
organised textile sector and to promote skilling and skill up-gradation in the traditional sectors.

▪ The Textile Ministry of India earmarked Rs 690 crore (US$ 106.58 million) for setting up 21 readymade garment
Textile Incentives
manufacturing units in seven states for development and modernisation of Indian Textile Sector.

Source: Company website, Business Standard

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 POLICY SUPPORT HAS BEEN A KEY INGREDIENT TO
GROWTH (2/2)

▪ The Government of India announced a special package to boost export by US$ 31 billion, create one crore jobs and
attract investment worth Rs 800.00 billion (US$ 11.93 billion) during 2018-2020.
Government ▪ The Government of India has taken several measures including A-TUFS. The scheme is estimated to create
Incentives employment for 3.5 million people and enable investment worth Rs 950.00 billion (US$ 14.17 billion) by 2022.
▪ The Ministry of Textiles announced outlay of Rs 690 crore (US$ 106.58 million) for setting up 21 readymade garment
manufacturing units in seven states for development and modernisation of Indian textile sector.

▪ In 2019, Ministry of Textiles signed a pact with sixteen states for skilling around four lakh workers under the SAMARTH
SAMARTH scheme.
▪ Six additional courses were added for technical textiles in its skill development programme.

▪ Integrated Wool Development Programme (IWDP) approved by the Government of India to support the wool sector,
Integrated Wool starting from wool-rearer to end consumer, aimed to enhance the quality and increase the production during 2017-18
Development and 2019-20.
Programme
▪ Under Union Budget 2019-20, Rs 29 crore (US$ 4.14 million) was allocated to this programme.

Source: Press Releases

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 FOREIGN INVESTMENT FLOWING INTO THE SECTOR

▪ 100 per cent FDI is permitted in the sector. Cumulative FDI inflow in FDI in textiles
Visakhapatnam
(includingport
dyed,
traffic
printed)
(million
sector
tonnes)
(US$ billion)
the textiles sector stood at over US$ 3.45 billion between April 2000
and March 2020. 4.50

▪ The textiles industry in India is experiencing a significant increase in 4.00

collaboration between global majors and domestic companies. 0.32 3.45
3.50
▪ International apparel giants like Hugo Boss, Liz Claiborne, Diesel
and Kanz, have already started operations in India. 3.00
0.19
2.50
0.46
2.00

1.50 0.62
0.16 0.26
0.96
1.00 0.10 0.20
0.17
0.50

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20
FY01-FY11

FY01-FY20
Note:, Textiles sector FDI includes Dyed and Printed, FDI – Foreign Direct Investment
Source: Ministry of Commerce and Industry, DPIIT

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 M&A ACTIVITY UP IN THE SECTOR

▪ M&A activity in the sector has been picking up pace over the years.

• Some of the major M&A deals are listed below:

Prominent M&A deals

Deal size
Date Acquirer name Target name
(US$ million)

February 2020 Reliance Industries Ltd Alok Industries 35.47

Aditya Birla Fashion and Retail Ltd
June 2019 Jaypore E-Commerce Pvt Ltd 15.74
(ABFRL)
March 2019 Reliance Industries Ltd (ITC) John Players 21.79
March 2019 Grasim Industries Ltd Soktas India Pvt Ltd (SIPL) 22.87
July 2018 Future Lifestyle Koovs (29.9% Stake) 19.40
November 2017 Donear Industries Limited OCM Woolen Mills NA
Design, sales and distribution (DS&D) business and
October 2017 Sutlej Textiles and Industries Ltd (STIL) NA
brand of American Silk Mills (ASM) LLC
July 2017 Advent International Dixcy Textiles Pvt Ltd NA
April 2017 Myntra InLogg NA
February 2017 Saks and Company Aditya Birla Group NA
January 2017 Soch L Catterton, Westbridge and CX Partners 200
March 2016 Sutlej Textiles and Industries Ltd Birla Textile Mills NA

Source: MandA,Thompson ONE Banker, Grant Thornton, CMIE

28 Textiles and Apparels For updated information, please visit www.ibef.org

 Textiles and Apparel

OPPORTUNITIES
 OPPORTUNITIES … (1/2)

Private sector participation in silk

Immense growth potential Proposed FDI in multi-brand retail
production

▪ The Indian textile industry is set for ▪ The Central Silk Board sets target for raw ▪ For the textile industry, the proposed
strong growth, buoyed by both strong silk production and encourages farmers hike in FDI limit in multi-brand retail
domestic consumption as well as export and private players to grow silk. will bring in more players, thereby
demand. providing more options to consumers.
▪ To achieve these targets, alliances with
▪ The sector is expected to reach US$ the private sector, especially major agro- ▪ It will also bring in greater investment
226 billion by FY23. based industries in pre-cocoon and post- along the entire value chain – from
cocoon segments, are being encouraged. agricultural production to final
▪ Urbanisation is expected to support
manufactured goods.
higher growth due to change in fashion
and trends. ▪ With global retail brands assured of a
domestic foothold, outsourcing will
also rise significantly.

Union Budget 2020-21

▪ Under Union Budget 2020-21, the Government has allocated around Rs 3,515 crore (US$ 502.93 million) to the Ministry of Textiles.

▪ Rs 223 crore (US$ 31.91 million) is allocated to Textile Infrastructure.

▪ Rs 761.90 crore (US$ 109.01 million) is allocated for A-TUFS.

▪ Rs 159.08 crore (US$ 22.76 million) allocated towards schemes for powerloom units.

▪ Rs 80 crore (US$ 11.45 million) allocated for scheme targeted towards Integrated Textile Parks.

▪ The National Handloom Development Programme will get Rs 388.21 crore (US$ 55.55 million) and the Integrated Processing Development Scheme will get Rs
50 crore (US$ 7.15 million).

30 Textiles and Apparels For updated information, please visit www.ibef.org

 OPPORTUNITIES … (2/2)

Centers of Excellence (CoE) for

Retail sector offers growth potential Foreign investments
research and technical training

▪ With consumerism and disposable ▪ The CoEs are aimed at creating testing ▪ The Government is taking initiatives to attract
income on the rise, the retail sector has and evaluation facilities as well as foreign investment in the textile sector through
experienced a rapid growth in the past developing resource centres and training promotional visits to countries such as Japan,
decade as several international players facilities. Germany, Italy and France.
like Marks and Spencer, Guess and
▪ Existing 4 CoEs, BTRA for Geotech, ▪ According to the new Draft of the National
Next have entered the Indian market.
SITRA for Meditech, NITRA for Protech Textile Policy, the Government is planning to
▪ The organised apparel segment is and SASMIRA for Agrotech, would be attract foreign investment and creating
expected to grow at a CAGR of more upgraded in terms of development of employment opportunities for 35 million people.
than 13 per cent over a 10-year period. incubation centre and support for
▪ FDI inflow in textiles sector, inclusive of dyed
development of prototypes.
▪ Future Group plans to expand with 80 and printed textile, stood at US$ 3.41 billion
stores in order to reach the target sales ▪ Fund support would be provided for between April 2000 and December 2019.
of 80 million units. This would add to appointing experts to develop these
▪ In December 2019, online clothing brand, Henry
their portfolio of 300 stores spread facilities.
& Smith, raised US$ 1 million from WEH
across the country.
Ventures and Rukam Capital.
▪ In December 2019, Future Retail
▪ India can become the one-stop sourcing
Limited (FRL) and Amazon India
destination for companies from Association of
entered into an agreement under which,
Southeast Asian Nations (ASEAN) as there
FRL's existing infrastructure, product
exist several opportunities for textile
knowledge and brand portfolio will be
manufacturing companies from 10-nation bloc to
utilised by Amazon India across its
invest in India.
retail network.

Notes: BTRA - The Bombay Textile Research Association, SITRA - South India Textile Research Association, NITRA - Northern India Textile Research Association, SASMIRA - Synthetic
and Art Silk Mills Research Association
Source: Department for Promotion of Industry and Internal Trade (DPIIT)

31 Textiles and Apparels For updated information, please visit www.ibef.org

 Textiles and Apparel

KEY INDUSTRY
ORGANISATIONS
 INDUSTRY ORGANISATIONS

Visakhapatnam
The Textile Associationport traffic
(India) (million tonnes)
(TAI) The South India Textile Research Association (SITRA)

Address: 72-A, Santosh, Dr M B Raut Road, Shivaji Park, Address: 13/37, Avanashi Road, Coimbatore - 641 014,
Dadar, Tamil Nadu
Mumbai- 400 028 Phone: 91 422 2574367, 6544188, 4215333
Telefax: 91 22 24461145 Fax: 91 422 2571896, 4215300
Website: www.textileassociationindia.org E-mail: [email protected]
Website: www.sitra.org.in

Northern India Textile Mills’ Association (NITMA)

Address: 121, Gagandeep Building (First Floor), 12,

Rajendra Palace,
New Delhi- 110 008
E-mail: [email protected], [email protected]
Website: www.nitma.org

33 Textiles and Apparels For updated information, please visit www.ibef.org

 Textiles and Apparel

USEFUL
INFORMATION
 GLOSSARY

▪ BTRA: Bombay Textile Research Association ▪ TUFS: Technology Upgradation Fund Scheme

▪ CAGR: Compound Annual Growth Rate ▪ TMC: Technology Mission on Cotton

▪ FDI: Foreign Direct Investment ▪ US$: US Dollar

▪ FY: Indian Financial Year (April to March) ▪ Wherever applicable, numbers have been rounded off to
the nearest whole number
▪ GOI: Government of India

▪ INR: Indian Rupee

▪ NITRA: Northern India Textile Research Association

▪ NTC: National Textiles Corporation

▪ NTP: National Textile Policy SASMIRA: Synthetic and Art

Silk Mills Research Association

35 Textiles and Apparels For updated information, please visit www.ibef.org

 EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR INR Equivalent of one US$ Year INR Equivalent of one US$

2004–05 44.95 2005 44.11

2005–06 44.28 2006 45.33
2006–07 45.29 2007 41.29
2007–08 40.24 2008 43.42
2008–09 45.91
2009 48.35
2009–10 47.42
2010 45.74
2010–11 45.58
2011 46.67
2011–12 47.95
2012 53.49
2012–13 54.45
2013 58.63
2013–14 60.50
2014 61.03
2014-15 61.15
2015 64.15
2015-16 65.46
2016-17 67.09 2016 67.21

2017-18 64.45 2017 65.12

2018-19 69.89 2018 68.36

2019-20 70.49 2019 69.89

Source: Reserve Bank of India, Average for the year

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