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INDIA’S MARKET SHARE

BACKGROUND

India is the one of the world’s largest producer 

of textile and garments. Abundant availabilityof raw material such as cotton, wool, silk and

 jute as well as the skilled workforce have

made the country a sourcing hub. It is the

world’s second largest producer of textiles and

garments. The Indian textiles industry

accounts for about !" of world’s spindle

capacity and #" of global rotor capacity. The

 potential si$e of Indian textile and apparel

industry is expected to reach %& ' ( billion by )*.

The textiles industry has made a major contribution to the national economy in terms

of direct and indirect employment generationand net foreign exchange earnings. The sector 

contributes about *!" to industrial production, !" to the gross domestic product

+-/, and 0" to the country1s foreignexchange inflows. It provides direct

employment to over !2 million people. Thetextiles sector is the second largest provider of 

employment after agriculture. Thus, thegrowth and all round development of this

industry has a direct bearing on theimprovement of India1s economy.

India has overtaken Italy, ermany and

3angladesh to emerge as the world1s second

largest textile exporter. India1s share in lobal

Textiles increased by *0.2" in )*( compared

to )*. Textiles exports from India will touch%&' ()) billion by the year )!42.

In )*, apparel had a share of 56 per cent of 

the overall market7 textiles contributed the

remaining (* per cent.

India's Textile Market

Share ! "illi#n$

(*"

56"

TextileApparel

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MARKET SI%E

The Indian textiles industry,

currently estimated at around

%& '*)# billion, is expected

to reach %& ' *!* billion by

)*. The industry is the

second largest employer after 

agriculture, providing direct

employment to over !2

million and 5) million people

indirectly. The Indian Textile

Industry contributes

approximately 2" to -,

and *!" to overall Index of 

Industrial roduction +II/.

The Indian textile industry

has the potential to grow five4

fold over the next ten years totouch  %&' 2)) billion mark 

on the back of growing

demand for polyester fabric.

The %&' 2)) billion market

figure consists of domestic

sales of %&' (*2 billion and

exports of %&' *#2 billion.

The current industry si$e

comprises domestic market of 

%&' 5# billion and exports of 

%&' !) billion.

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Apparel exports from India have registered a growth of *0.5" in the period April 4

&eptember )*! over the same period in the previous financial year.

G&OBA& S DOMESTIC SCENERIO

The global trade of textile and garments was approximately '0#* billion in )*(. This is

almost !.5 per cent of the trade of all commodities, which is estimated at approximately

'*0 trillion. 8rom ))# to )*(, the global textile and garment trade has grown at a

9A: of ! per cent.

The current global garment market is estimated at approximately '*.*2 trillion which

form nearly *.# per cent of the world -. Almost 02" of this market is concentrated in

;urope, %&A, 9hina and 4

9hina

India

Italy

ermany

Turkey

China is the sin(le lar(est ex)#rter *ith +, )er -ent share *hile India st##d at a distant

se-#nd )la-e *ith . )er -ent share/

The top five textile and garment importing nations are %&, 9hina, ermany,

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a global trade share of approximately 2 per cent.

The Indian domestic consumption of textile and garment is valued at %&' 5( billion in )*(.

=ithin this, garment retail has the highest share of 0( per cent contributing '!5 billion,

technical textile contributes '*( billion with a share of * per cent and home textiles

contribute '! billion with a 5 per cent share.

In )*(, India became second largest exporter of textile @ garment in the world surpassing

Italy and ermany. India exported textile and garment goods worth '!) billion, with a share

of about 2 per cent of global textile and garment trade. In terms of value, Indian textile and

garment exports is dominated by garment category which has a majority share of !) per cent

followed by yarn, fabrics, fibre, made4ups and other textiles including carpets, nonwovens,

etc.

MARKET 0OTENTIA&

=ith regard to marketability of the product in general, printed items have good market potential

 both in domestic and export market. In populated country like India, there is no problem of 

marketing printed fabrics as the reuirement tends to increase and also these items will satisfy

individual customer’s needs and reuirements in terms of colour combination, design

reuirements etc.

G&OBA& DIGITA& TE1TI&E 0RINTING MARKET OERIE2

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Di(ital Textiles 0rintin( DT0$ -3rrentl4 a--#3nts 5#r less than 6/78 #5 the #9erall textiles

)rintin( ind3str4: *hi-h *as ar#3nd 6;:.77/7 SIS

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Bur intention of starting our textile printing business in strategic locations of 4

• small initial customer base

• new staff

• lack of leverage with new relationships

  O00ORTUNITIES

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The fact that we are going to install our plant in some of the busiest places of 4

• new products, processes and technology

• Innovation

• Diring new talent

CHA&&ENGES

4

• retaining key staff members

• market demand fluctuations

• technologies developed by competitors

This projection is done based on what is obtainable in the industry and with the assumption

that there won’t be any major economic meltdown.

0ORTER’S ?IE ?ORCE MODE&

Anal#( s/ Di(ital Textiles 0rintin( 0r#-ess

 

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  0ROMOTIONA& STRATEG>@ INDUSTRIA& 0ROMOTION$

The printed furnishing textile industry, however, is a mature industry, of a traditional competitive

type with established firms and markets. It produced more expensive products that were boughtless freuently and were less affected by sudden fashion change or technical innovation +classic

styles are used, that will remain acceptable for long periods, with an emphasis on uality and

skill in production process C hand print processes and designs using many blocks or rollers are

common/.

As an established industry selling a smaller range of products, marketing is focused on corporate

 brands, not product brands. The type of marketing reuired for such a mature industry type tends

to be more 33 communication, with regular visits by established networks of sales travellers

and little use of advertising. The advertising used focuses on known corporate brand

characteristics, reminding known consumer segments of brand ualities. As a more durable,

expensive, Eshopping’ product, longer time is spent on the product searchF evaluation of 

alternatives process  and thus more focus on the actual product C so advertisements may show

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specific textile prints rather than broader signifiers of the product brand benefits. It is also likely

that as more expensive, lower turnover product, there will be more focus on particular market

segments in price or style preference.

As an established industry, however, it would be more threatened by sudden change in its

environment, whether economic +macroeconomic changes, resulting in loss of spending powerF

disposable income by market segment/ or by the intervention of a significant productF style

change. This may mean that it responds by increasing the use of advertising during these periods

of uncertainty. &ignificant changes in product offering are likely in such a climate, especially

reductions in price and changes in style to reflect the consumer taste changes.!* There may also

 be increased observation of consumption trends from purchasing behaviour and attention to trend

 prediction by the trade journals.

The bulk of the printed textile industry focused on 33 marketing, with personal selling by

representatives to customers within the value structure, promotion at trade fairs and limited

advertising.

0r#

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• ;ngage in road show from time to time

• -istribute our fliers and handbills in target areas

osition our 8lexi 3anners at strategic positions in the location where our textile printing plant

will be located.

STRATEGIC A&&IANCES

A leading objective of our company is the development of key strategic alliances. =e will pursue

alliances with branded national companies like>4

3BH3A -;IJ

-;GDI 9GBTD @ ;J;:AG HIGG& 8A3 IJ-IA

:BKB%;

KA:-DHAJ :B% B8 9BHAJI;&

SA&ES AND DISTRIBUTION STRATEG>

=e will pursue distribution agreements with large regional and national distributors. %ntil these

agreements are in place, we will sell directly to the local distributors. =e will also pursue

relationships with nationally4branded companies.

%nder the direction of executive management, we will employ an outside sales staff as well as an

inside sales staff, to handle general customer service calls. The outside sales staff will focus

 primarily on trade show attendance, comprehensive follow up, relationship building, closing

deals, and securing referrals.

COM0ETITIE EDGE

large raw material base.

 positive developments in textile policy.

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flexibility in production.

short printing cycles, low energy consumption, reduced chemical waste, printing

flexibility and availability of variety of creative design options as compared to traditional

analog printing technology.

=e will attempt to leverage the strong position to establish and solidify our brand in the

market. As a small company looking to establish itself, we will be attentive and flexible in

meeting our customer1s demands.

KE> 0&A>ERS IN INDIA

RA>MOND

BOMBA> D>EING 

CENTUR> TE1TI&ES &IMITED 

A&UE 0RO0OSITION

Bur customers will derive immediate and lasting value from our product. Bur company will

 both expand existing markets and create new ones. The uality of the product will work to

satisfy existing customers and to attract new ones.

0RICING STRATEG> AND 0A>MENT O0TIONS

3elow are the sales projections that we were able to come up with for the first three years of

operations7

• ?irst >ear

•  Se-#nd >ear

• Third >ear

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CREATIE 0OSSIBI&ITIES 2ITH TE1TI&E 0RINTING

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