Indian Textile Industry

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  • Topic: Textile industry, Textile, Textile manufacturing
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Indian Textile IndustryStructure, Problems and
Solutions

Subject: Term Paper of Organization Management

Under Guidance of Dr. Vinayshil Gautam

Written By
Jaimeen Rana
Entry# 2012SMF6890

1

INDEX

a) Introduction

3

b) History

3

c) Structure of Indian Textile Industry

3

d) Communication and Effectiveness

4

e) Problems faced by Textile Industry in India

5

f) Steps taken by government till now

7

g) Strategies for growth

8

h) Conclusion

9

i) References

10

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a) Introduction
Indian Textile and Apparel Industry is second largest manufacturer in the world with an estimated export value of US$ 34 billion and domestic consumption of US$ 57 billion. It stands at number two position in generating huge employment for both educated and uneducated labor in India. Over 350 lakh people are employed in this industry in India. 14% of total industrial production is done by this sector. 4% of India’s GDP is obtained by this sector. It contributes 17% to the India’s total export earnings. Top companies in Textile industry in India:

Bombay Dyeing
Fabindia
JCT Limited
Welspun India ltd
Lakshmi Mills
Mysore Silk Factory
Arvind Mills
Raymonds
Reliance Textiles
Grasim Industries
b) History
India’s textile industry evolved and developed at a very early stage and its manufacturing technology was one of the best ones. India’s manually operated textile machines were among the best in the world, and served as a model for production of the first textile machines in newly industrialized countries like England. Marco Polo’s records show that Indian textiles used to be exported to many Asian countries. Textiles have also comprised a significant portion of the Portuguese trade with India. These included embroidered bedspreads, wall hangings and quits of embroidered wild silk on a cotton or jute ground.

A big success of Indian textile industry led to the foundation of the London East India Company in 1600, followed by Dutch and French companies. By 1670, there was serious demand for their governments to ban the import of these cottons from India. The legacy of the Indian textile industry stemmed from its wealth in natural resources cotton, jute and silk. The technology used was superior and the skills of the weavers gave the finished product a most beautiful and ethnic look.

c) Structure of Indian Textile Industry
The structure of this industry is very complex with the modern, automated and highly mechanized mill sector on one side and hand spinning and hand weaving (handloom sector) on the other side. The small scale power loom sector, which is decentralized, lies in between of the two.

3

Indian Textile Industry is divided into major 3 segments:
1) Cotton Textiles
2) Synthetic Textiles
3) Others (wool, jute, silk etc)
Till today cotton textiles are on top with 73% share in total Indian textiles. Coexistence of old technologies of hand working (spinning, weaving, and knitting) with the advanced automatic spindles and loom makes the structure of cotton textile industry very complex. Indian textile industry consists of small scale, non integrated spinning, weaving, knitting, fabric finishing and clothing enterprises, which is not the case in other countries. This unique structure is because of government policies that have promoted labor intensive small scale operations and discriminated against big scale organizations. d) Communication and effectiveness:

The study regarding this was conducted within city of Coimbatore, which is considered “Manchester of South India”. Six textile organizations (3 small and 3 large) were selected within the city. The objective of the study was to examine the difference between small and large organizations in terms of structure, communication and effectiveness.

The difference based on structure, communication and effectiveness between large and small organizations show that the two organizations differ significantly with respect...
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