Textile Industry and Related Sectors in India

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The Textile Industry and Related Sector in India

Source: New Cloth Market

The Textile Industry and Related Sector in India
Source: New Cloth Market
This market research study on Textiles and related sectors in India has been commissioned by Italian Trade Commission (Trade Promotion Section of the Consulate General of Italy), Mumbai, for which Ace Global Private Limited, a consultancy company based in New Delhi, has been appointed. The main objectives of the market research are to carry out a detailed market analysis o~ the industry, in order to identify potential opportunities for Italian entrepreneurs interested in the Indian market. The scope of the market research covers the following key segments of the industry: Textiles Apparel & Clothing; Undergarments; Home Textiles, and Accessories. The findings of the research are presented in the following sections. Market Characteristics The Textile Industry in India is one of the largest and most important industrial segments of the Indian economy accounting for over one fifth of the country's industrial production. It provides employment to around 15 million people who have helped produce one of the largest varieties of yarn, fabrics, textiles, clothing and garments, home furnishings and other textile products in the world. Textiles industry, including related subsectors, is worth about Euros 38 billion of which domestic segment constitutes 65% while 35% comes from exports. The textiles segment accounts for 59% of the industry, with apparel and other made ups constituting the balance. This industry also accounts for nearly 21 % of total employment in the country. Besides the textiles, apparels & clothing, the industry covers a wide range of home furnishings (bed linen, curtains and upholstery, floor coverings, kitchen linen, bath linen, etc.) and Accessories (including apparel accessories, like stoles, scarves, etc., hard accessories like bags, wallets, fashion jewellery, time wear and eyewear etc.). Market Size The total market size for the sub-sectors covered in this study is estimated at Euro 21.7 billion in the year 200809 with textile clothing and garments having a major share of 93%. Home textiles and furnishings, and textile usage in accessories was insignificant with a collective share of less than 0.5% of the total market.

Textiles Apparel and Clothing India's domestic market for apparel & clothing is currently worth Euro 20,219 million in 2008-09. It has registered a steady compounded annual growth rate (CAGA) of 13.6% in the past 5 years. Volume wise, apparel market has grown from 4.8 billion units in 2004' to 5.9 billion units in 2008-09 at a CAGA of 5.3%. Apparel and Clothing is the second largest retail category in India. India's domestic market for apparels is currently worth over Euro 20 billion in 2008-09. It has registered a steady compounded annual growth ~ate (CAGA) of 13.6% in the past 5 years. Volume wise, apparel market has grown from 4.8 billion units in 200405 to 5.9 billion units in 2008-09 at a CAGA of 5.3%.

Undergarments The 70's witnessed the entry of undergarments in India when Peter Pan from Dawn Mills entered the market with lingerie styles of the West. The undergarment market further proliferated and flourished in India significantly when international majors forayed in to Indian market in a big way since the onset of the 90's. India's domestic market for undergarments is currently worth about Euro 1.5 billion in 2008-09. It has grown at a CAGA of about 15% in the past three years. Volume wise, apparel· market has grown from 914 million units in 2006-07 to 1.05 billion units in 2008-09 at a CAGA of 7%.

The total urban market for the home textiles in India in 2005-06 was estimated to be Euro 1.45 billion. With a modest growth rate of about 14%, the market in 2008-09 is about Euros 2.16 billion and is expected to cross Euros 3.12 billion by 2011-12. The 2004-05 Volume (million units) Menswear Women's wpar Unisex apparel Kids'...
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