A PROJECT REPORT

On
TEXTILE INDUSTRY

Submitted By
DISHA BHATT
DHWANI PAREKH
DIXITA SHARMA
DIBYARANJAN BEHERA
EKTA SINGH

Submitted to
Savitribai Phule Pune University

Elective – INDUSTRY ANALYSIS – DESK RESEARCH

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 DECLARATION

We hereby declare that the project titled “TEXTILE

INDUSTRY” is an original piece of research work carried out
by us under the guidance of Prof. DEVDATT SANT.The
information has been collected from genuine and authentic
sources. The work has been submitted in partial fulfilment of the
requirement of the elective ‘INDUSTRY Analysis and Desk
Research’of Master of Business Administration to Savitribai
Phule Pune University.

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 ACKNOWLEDGEMENT

Any accomplishments require the efforts of many people and this work is no
difference. We have been fortunate enough to get help and guidance from many
people. It is pleasure to acknowledge them, though it is still an inadequate
appreciation for their contribution.

We would not have completed this journey without help, guidance &support of
certain people who acted as guides and friends along the way. We would like to
express my deepest and sincere thanks to my faculty guide Prof. DEVDATT
SANT for her invaluable guidance and help. The project could not be completed
without her support and guidance.

She acted as a continuous source of inspiration and motivated us throughout the

duration of the project.

Again, we sincerely thank her.

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 contents

SL. NO. TOPIC PAGE NO.

1 Industry analysis – The basis 5-15
2 Promoters and management ethos 16-22
3 External environment 23-32
4 Financials 33-35
5 Recent developments 36-42
6 References 43
7 Bibliographic 43

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Introduction
India’s textiles sector is one of the oldest industries in Indian economy dating back several
centuries. India's overall textile exports during FY 2017-18 stood at US$ 39.2 billion.
The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles
sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the
other end of the spectrum. The decentralised power looms/ hosiery and knitting sector form the
largest component of the textiles sector. The close linkage of the textile industry to agriculture
(for raw materials such as cotton) and the ancient culture and traditions of the country in terms
of textiles make the Indian textiles sector unique in comparison to the industries of other
countries. The Indian textile industry has the capacity to produce a wide variety of products
suitable to different market segments, both within India and across the world.
Market Size
The Indian textiles industry, currently estimated at around US$ 150 billion, is expected to reach
US$ 250 billion by 2019. India’s textiles industry contributed seven per cent of the industry
output (in value terms) of India in 2017-18.It contributed two per cent to the GDP of India and
employs more than 45 million people in 2017-18.The sector contributed 15 per cent to the
export earnings of India in 2017-18.
The production of raw cotton in India is estimated to have reached 34.9 million bales in FY18^.
Investment
The textiles sector has witnessed a spurt in investment during the last five years. The industry
(including dyed and printed) attracted Foreign Direct Investment (FDI) worth US$ 2.97 billion
during April 2000 to June 2018.
Some of the major investments in the Indian textiles industry are as follows:

 In May 2018, textiles sector recorded investments worth Rs 27,000 crore (US$ 4.19
billion) since June 2017.
 The Government of India announced a Special Package to boost exports by US$ 31
billion, create one crore job opportunities and attract investments worth Rs 800.00
billion (US$ 11.93 billion) during 2018-2020. As of August 2018, it generated
additional investments worth Rs 253.45 billion (US$ 3.78 billion) and exports worth
Rs 57.28 billion (US$ 854.42 million).

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Government Initiatives
The Indian government has come up with a number of export promotion policies for the textiles
sector. It has also allowed 100 per cent FDI in the Indian textiles sector under the automatic
route.
Initiatives taken by Government of India are:

 The Directorate General of Foreign Trade (DGFT) has revised rates for incentives
under the Merchandise Exports from India Scheme (MEIS) for two subsectors of
Textiles Industry - Readymade garments and Made ups - from 2 per cent to 4 per cent.
 As of August 2018, the Government of India has increased the basic custom duty to 20
per cent from 10 per cent on 501 textile products, to boost Make in India and indigenous
production.
 The Government of India announced a Special Package to boost exports by US$ 31
billion, create one crore job opportunity and attract investments worth Rs 80,000 crore
(US$ 11.93 billion) during 2018-2020. As of August 2018 it generated additional
investments worth Rs 25,345 crore (US$ 3.78 billion) and exports worth Rs 57.28
billion (US$ 854.42 million).
 The Government of India has taken several measures including Amended Technology
Up-gradation Fund Scheme (A-TUFS), scheme is estimated to create employment for
35 lakh people and enable investments worth Rs 95,000 crore (US$ 14.17 billion) by
2022.
 Integrated Wool Development Programme (IWDP) approved by Government of India
to provide support to the wool sector starting from wool rearer to end consumer which
aims to enhance the quality and increase the production during 2017-18 and 2019-20.
 The Cabinet Committee on Economic Affairs (CCEA), Government of India has
approved a new skill development scheme named 'Scheme for Capacity Building in
Textile Sector (SCBTS)' with an outlay of Rs 1,300 crore (US$ 202.9 million) from
2017-18 to 2019-20.

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Achievements
Following are the achievements of the government in the past four years:

 I-ATUFS, a web-based claims monitoring and tracking mechanism was launched on

April 21, 2016.
 381 new block level clusters were sanctioned.
 20 new textile parks were sanctioned
 Employment increased to 8.62 million in FY18 from 8.03 in FY15.

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

 Exports in textile and apparel sector stood at US$ 36.63 billion in FY17. Exports of textiles
from India reached US$ 27.85 billion during April – December 2017.

 As of November 2016, the government has extended the duty drawback facility on all textile
products and increased the rates in some cases for 1 year to boost exports in the sector

 The Goods and Services Tax that rolled out in July 2017 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.

 India took the top spot in market share in the men/boys knitwear shirts cotton' category with
respect to garment exports to the US between January-June 2017,

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MAJOR PLAYERS IN TEXTILE INDUSTRY

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The Indian textile and apparel market was worth US$ 90 Billion in 2017. The market is further
projected to reach US$ 198 Billion by 2023, at a CAGR of around 14% during 2018-2023. Textile is a
term widely used for referring to woven fabrics, yarns and fibers made from jute, polyester, cotton,
wool, etc. In India, the textile and apparel industry is one of the oldest industries that has witnessed
numerous developments over the years. The modern textile industry, however, came into recognition
in the early 19th Century with the establishment of the first textile mill in Calcutta. Today, the textile
and apparel market has become a vital contributor to the Indian economy. This can be attributed to the
abundant availability of raw materials used for manufacturing apparel such as cotton, silk, wool, etc.
The Government is also making investments under the Scheme for Integrated Textile Parks and the
Technology Upgradation Fund Scheme for training workforce and to encourage private investment in
the

India represents the largest producer of jute and cotton, and the second largest producer of silk.
Due to the high abundance of raw materials coupled by cheap labour costs, the cost of manufacturing
textile and apparel is significantly lower than many other competing countries.

India currently has one of the world’s largest young population. Currently around half of the total
population is below 25 years of age. This age group represents one of the biggest consumer group of
textiles and apparel and is expected to drive the spending over the next five years.

Catalyzed by increasing penetration of the internet, online retailing has witnessed strong growth in the
country. Consumers are now looking for ease of shopping, multiple options, better offers and easy
return policies. The growth in online sales have enabled the textile industry to reach consumers
residing across every corner of the nation.

Due to a change in buying habits, consumers are now shifting from need-based clothing to aspiration-
based clothing. Contrary to previous years, where Indian consumers purchased fashion items as and
when required, buying clothes has become more than a basic need; it is now a reflection of aspiration,
personality, and a status symbol. Though basic textiles continue to represent a part of the consumer’s
basket, the demand for aspirational clothing has increased significantly in recent years.

Breakup by Application:

The textile and apparel market has been segmented on the basis of applications which mainly include
clothing, technical, household and fashion. Amongst these, clothing is the largest segment.

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Breakup by Raw Material:

Based on raw materials, the market has been segmented into natural and man-made fibers. Currently,
natural fibers represent the largest segment.

Breakup by Product Type:

On the basis of product type, the market has been categorized into yarn, fabric and fiber. Amongst
these, yarn is the most popular product type.

Breakup by State:

On a regional basis, Maharashtra represents the largest market for textiles and apparels in India. Some
of the other major markets include Uttar Pradesh, Tamil Nadu, Gujarat and Karnataka.

Competitive Landscape:

The competitive landscape of the Indian textile and apparel market has also been examined in this
report along with the profiles of the leading players operating in the market.

This report provides a deep insight into the Indian textiles and apparels market covering all its
essential aspects. This ranges from macro overview of the market to micro details of the industry
performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces
analysis, value chain analysis, etc. This report is a must-read for entrepreneurs, investors, researchers,
consultants, business strategists, and all those who have any kind of stake or are planning to foray into
the Indian textile and apparel market in any manner.

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11
Protective Fabrics Market by Raw Material (Aramid, PBI, Polyester, Cotton fiber, Polyolefin,
Polyamide, and Others), by Type ( Fire & Heat-resistant fabric, Chemical resistant fabric, UV
resistant fabric, and others), by End-use Industry ( Building & Construction, Oil & Gas, Firefighting,
Healthcare, Law enforcement & military, and Others) - Global Trends & Forecast to 2021"

The market size of protective fabrics is estimated to have been USD 3.13 billion in 2015 and is
projected to reach USD 4.0 billion by 2021, registering a CAGR of 4.2% between 2016 and 2021. The
market is largely driven by the increased demand from end-use industries. In addition, the rising
concern for the safety of industrial workers increases the demand for protective fabrics, globally.

Protective fabrics are used to manufacture protective clothing such as contamination suits, radiation
suits, surgical masks, gloves, and others. Rising medical hygiene standards in Asia-Pacific are
expected to boost the market for protective fabrics in the healthcare segment. The government,
through various initiatives, reforms, policies, and regulations is focusing to raise these standards in the
healthcare sector.

The rising demand for specialized clothing is driving the market for protective fabrics in
Asia-Pacific. The market in the region is driven by the increased demand from China and
India. China is the largest market in the region. Professionals in the oil & gas industry are
exposed to fire, explosion, and harmful chemicals. In order to prevent them from these

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hazards, protective clothing is required. Hence, the demand for protective fabrics is estimated
rise in China. Furthermore, the rising demand from building & construction and healthcare
industries is estimated to boost the market for protective fabrics in the region.

In the process of determining and verifying the market size for the several segments and
subsegments gathered through secondary research, extensive primary interviews were
conducted as follows:

- By Company Type: Tier 1 (37%), Tier 2 (50%), and Tier 3 (13%).

- By Designation: C-level (50%), Director Level (31%), and others (19%)
- By Region: North America (28%), Europe (33%), Asia-Pacific (22%), Latin America
(11%), and the Middle East & Africa (6%).

Various key players profiled in the report include 3M Company (U.S.), Koninklijke Ten Cate
NV (Netherlands), Teijin Ltd (Japan), E. I. du Pont de Nemours and Company (U.S.), Kolon
Industries Inc. (South Korea), Lakeland Industries, Inc. (U.S.). Milliken & Company (U.S.),
W. L. Gore & Associates, Inc. (U.S.), Klopman International (Italy), Glen Raven, Inc. (U.S.),
and Cetriko, SL (Spain).

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The textiles sector has witnessed a spurt in investment during the last five years. The industry
(including dyed and printed) attracted Foreign Direct Investment (FDI) worth US$ 1.85 billion
during April 2000 to March 2016.
Some of the major investments in the Indian textiles industry are as follows:

 Trident Group, one of the leading manufacturers and exporters of terry towel, home
textile, yarn and paper in India, has entered into a partnership with French firm
Lagardere Active Group, to launch a premium range of home textiles under the
renowned French lifestyle brand Elle Décor in India.
 Raymond Group has signed a Memorandum of Understanding (MoU) with
Maharashtra government for setting up a textile manufacturing plant with an investment
of Rs 1,400 crore (US$ 208.76 million) in Maharashtra’s Amravati district.
 Reliance Industries Ltd (RIL) plans to enter into a joint venture (JV) with China-based
Shandong Ruyi Science and Technology Group Co. The JV will leverage RIL's existing
textile business and distribution network in India and Ruyi's state-of-the-art technology
and its global reach.
 Giving Indian sarees a ‘green’ touch, Dupont has joined hands with RIL and Vipul
Sarees for use of its renewable fibre product Sorona to make an ‘environment-friendly’
version of this ethnic ladies wear.
 Snapdeal has partnered with India Post to jointly work on bringing thousands of
weavers and artisans from Varanasi through its website. “This is an endeavour by
Snapdeal and India Post to empower local artisans, small and medium entrepreneurs to
sustain their livelihood by providing a platform to popularise their indigenous
products,” said Mr Kunal Bahl, CEO and Co-Founder, Snapdeal.
 Welspun India Ltd (WIL), part of the Welspun Group has unveiled its new spinning
facility at Anjar, Gujarat - the largest under one roof in India. The expansion project
reflects the ethos of the Government of Gujarat’s recent ‘Farm-Factory-Fabric-Fashion-
Foreign’ Textile Policy, which is aimed at strengthening the entire textile value-chain.

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India is the second largest producer of fibre in the world and the major fibre produced is cotton.
Other fibres produced in India include silk, jute, wool, and man-made fibers. 60% of the Indian
textile Industry is cotton based. The strong domestic demand and the revival of the Economic
markets by 2009 has led to huge growth of the Indian textiles industry. In December 2010, the
domestic cotton price was up by 50% as compared to the December 2009 prices. The causes
behind high cotton price are due to the floods in Pakistan and China . India projected a high
production of textile (325 lakh bales for 2010 -11).[6] There has been increase in India's share
of global textile trading to seven percent in five years.[6]The rising prices are the major concern
of the domestic producers of the country.

 Man Made Fibres: This includes manufacturing of clothes using fibre or filament synthetic
yarns. It is produced in the large power loom factories. They account for the largest sector
of the textile production in India.This sector has a share of 62% of the India's total
production and provides employment to about 4.8 million people.[7]
 The Cotton Sector: It is the second most developed sector in the Indian Textile industries.
It provides employment to a huge number of people but its productions and employment is
seasonal depending upon the seasonal nature of the production.
 The Handloom Sector: It is well developed and is mainly dependent on the SHGs for their
funds. Its market share is 13%.[7] of the total cloth produced in India.
 The Woolen Sector: India is the 7th largest producer.[7] of the wool in the world. India also
produces 1.8% of the world's total wool.
 The Jute Sector: The jute or the golden fibre in India is mainly produced in the Eastern
states of India like Assam and West Bengal. India is the largest producer of jute in the
world.
 The Sericulture and Silk Sector: India is the second largest producer of silk in the world.
India produces 18% of the world's total silk. Mulberry, Eri, Tasar, and Muga are the main
types of silk produced in the country. It is a labour-intensive sector.

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VISION, STRATEGY AND ACTION PLAN FOR INDIAN TEXTILE
AND APPAREL SECTOR

Vision 2024-25

The Indian textile industry has strength across the entire value chain from natural to man-made fiber

to apparel to home furnishings. Its share in the nation’s GDP is 6% and in exports is 13%. The sector

is the second largest employer after agriculture. After the phasing out of export quotas in 2005

India’s export performance has been below expectations. Its share of global exports is around 5%

whereas it was expected to rise quickly towards China’s level. The Chinese share in global exports is

39%. Vietnam and Bangladesh have shown remarkable success. Vietnam could achieve a peak export

growth rate of 30% while Bangladesh could achieve a growth rate of 18%.

Taking innovative measures in partnership with the industry and learning from experience, India

could aspire to achieve 20% growth in exports over the next decade. In any case the achievement of

15% growth rate in exports should be feasible. In the domestic market, sustaining an annual growth

rate of 12% should also not be difficult.

This implies that with a 12% CAGR in domestic sales the industry should reach a production level of

US$ 350 billion by 2024-25 from the current level of about US$ 100 billion for the domestic market.

With a 20% CAGR in exports India would be exporting about US$ 300 billion of textile and apparel by

2024-25 while with the lower15% CAGR in exports, India would be exporting about US$ 185 billion
of

textile and apparel by 2024-25.Considering the targeted growth in exports,India should by then have

a market share of 15% to 20% of the global textile and apparel trade from the present level of 5%.

During this period India should also attempt a structural transformation whereby it becomes a net

exporter of finished products. This would imply that growth rates in exports of fibre and yarn should

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start declining and growth rates of apparel, homes furnishing, technical textiles and other finished

products should grow very rapidly. This would maximise employment generation and value creation

within the country and the fulfilment of the Prime Minister’s Vision of “Make of India”. In the

process, investment of about US$ 180 billion to US$ 200 billion would take place and about 35

million additional jobs would get created.

Strategy

Achieving the ambitious Vision of exports of US$ 300 billion and 20% share of global trade by 2024-

25 is not going to be easy andis unlikely with business-as-usual approach. A clear Strategy which can

be implemented and would enable success would be an essential prerequisite. Accordingly, the

following 10 point Strategy is suggested for adoption.

2.1 Achieving Scale across the Value Chain

In the Indian textile and apparel sector, the sub sectors of weaving, processing and garmenting are

fragmented and lacking in the requisite scale for success in global markets.

Most of the manufacturing units have small capacities and low manufacturing efficiencies which are

a disadvantage in the global arena. To bring them at par with global counterparts there is a need to

facilitate rapid growth and modernization of existing firms with potential for success.

In addition, it would be necessary to attract large scale investment for manufacturing world class

facilities for realising the Prime Ministers vision “Make in India”with “Zero Effect; Zero Defect” at

each level of the value chain. The advent of large manufacturing plantswith economies of scale will

help India in achieving global competitiveness. Large scale capacity additions will enable India to

achieve the vision of higher share of global trade and create 35 million jobs to help India eliminate

poverty.

Man-made fiber production would need to grow very rapidly to reach manifold levels to make

possible the achievement of the Vision.

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2.2 Attract Investment into the Sector

The sector needs to be made attractive enough for investors. It needs to get US$ 180 billion

toUS$200 billion investment for achieving theproduction capacity of about US$ 650 billion by 2024-

25. This is a formidable challenge.

The key to getting investments on this scale is for returns on investments to appear attractive

enough. Investments need to be adequately incentivised. The most important requirement is the

maintenance of a competitive exchange rate.

The essential prerequisitesfor getting investments on the scale requiredwould be ready availability

of developed land with adequate infrastructure, skilled manpower and easy connectivity to ports.

Creating new mega textile parks would be the way forward.

Lowering the cost of production as well as the cost of logistics would be of paramount importance

and should be given highest priority.

Attracting new entry, both through start-ups and FDI is essential and would need to be given

focussed attention.

2.3 Skill,Quality and Productivity

For achieving the production capacities envisaged,additional skilled manpower of 35 million would

be needed. This is going to be difficult.

Productive and skilled manpower is the only way to achieve global competitiveness and to derive the

full benefit of the demographic and wage advantage that India would clearly have over the next

decade. Investment in improving the skills and productivity of the workforce, by both private

industry as well as the Government in genuine partnership, has been a weakness.

The recent initiatives on skill development through the Textile Skill Sector Council in partnership

with Industry need to be scaled up vigorously. Abundant availability of trained and certified

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manpower should become the norm in three years.

The objective should be to achieve average per man hour, per machine output in terms of quality

and quantity of the levels prevailing in China over the next three to five years.

The Ministry of Textiles needs to evolve a credible mechanism for tracking improvements in quality

and productivity across the value chain as well as across individual enterprises. A program for

assisting individual firms in improving on both parameters needs to be implemented.

2.4 Reforming Labour Laws

The regulatory framework for labour with multiplicity of laws and reporting requirements with

oneroustransaction costs is one of the major reasons for the inability of the sector to expand and

acquire global scale. This is specifically true for the labour intensive segments of the value chain.

In order to attract large scale investments,acquire global scale and bring the Indian sector at par

with other competing countries, there is an immediate need to review the labour laws to make them

investor and labour friendly. The regulatory framework for labour should be in full compliance with

India’s ILO obligations. This should be seen as a prerequisite for sustained growth as a part of global

supply chains.

The 44 labour laws, most of which were drafted in the earlier part of the last century, need to be

repealed and replaced by one, or, at best a few, user-friendly law(s) suited to the conditions of the

21st century.

2.5 Structural Shift with increasing Value Addition in India

India has a share of approximately 5% of the global textile and apparel trade.The break-up of our

current exports are as follows:

i. Cotton Fibre: 9%

ii. Cotton Yarn, Fabrics and Made ups: 23%

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iii. Man-made Textiles: 14%

iv. Garments: 39%

v. Handlooms & Handicrafts: 11%

vi. Others: 4%

The structural transformation that needs to be pursued is towards enhancement of domestic value

addition and gradually increasing the share of value added and finished products in our exports. By

2024-25, India should endeavour to become a net exporter of finished products only.

2.6 Diversification of Exports in terms of Products and Markets

Indian exports of textile and apparel products have been growingsteadily; but they have been

limited to only a few markets. The EU and the US remain the major export destinations with 50%

share of the Indian export market.

The higher share of global trade that is envisaged can be attained only if Indian exporters also start

looking beyond traditional products and markets and begin succeeding soon.

Specific strategies for achieving a significant share would need to be evolved for individual countries

such as Japan, China, Brazil, Russia, etc. The product mix would need to be tailor made for each

major market.This would need to be worked out by the Ministry of Textiles in partnership with the

Indian industry. Country specific market studies by institutions in that country would need to be

financed by the Ministry for this purpose. The study would form the basis for implementation of the

country specific marketing strategy.

2.7 Promoting Innovation and R&D

The Indian textile and apparel sector is known for its traditional products.

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India is yet to make its presence felt on the global stage with brands, chains, products and processes.

Without innovation and R&D this would not happen. Government and industry need to work in

partnership for this transformation. Business process innovation, building brands and creating

designs should be the immediate priority.

Environmental concerns would keep rising in this century and India should try and position itself in

the globalfrontier as an eco-friendly hub in the entire value chain of the textile and apparel sector.

This combined with being seen as labour friendly could become India’sUSP as it tries to achieve a

20% share of the global trade over the next 10 years.

It would be necessary to sustain the increase in output of cotton per hectare through improved seed

varieties and better farm practices. The objective should be to match the global output per hectare

yields.

Silk, wool and jute production also need to sustain adoption of better technology and practices to

increase production and improve quality.

2.8 New Approach towards Handloom and Handicrafts

Handloom and Handicraft sectors employ 15 million people and provide livelihood to some of the

weakest sections of the society. They embody the rich cultural heritage and traditions of India.

With development, increasing per capita incomes and change in popular tastes, the scale and share

of production in this sector is experiencing a decline. This is a part of a historical process. According

to the handloom survey conducted by NCAER on behalf of Ministry of Textiles the number of

working handlooms have decreased from 3.61 million in the year 1987 to 2.15 million in the year2010.

It is necessary to ensure that the weaker sections who are dependant for their livelihood on

Handloom and Handicraft do not experience distress. Measures for supporting the sector need to be

augmented for attainment of this objective.

It is also necessary to ensure that these rich crafts and traditions survive with higher wages as per

21
capita income in the country rises. This would be possible only if the demand for these products at

higher prices reflecting higher wages is nurtured, both in the domestic as well as the international

market. This would need imaginative and sustained promotional efforts.

2.9 Partnership with State Government

Realizing the employment and value addition potential of the textile and apparel manufacturing

sector, several State Governments have come out with their own Textile policies tailored to attract

investment in specific sub-segments and specific areas within the State. This is a positive

development for the sector.

Genuine and constructive partnership with the State Governmentsis absolutely essential.

To achieve their full potential the schemes and programmes of the Ministry of Textiles need the

cooperation and support of the State Governments. The initiatives of the Central and

StateGovernments need to complement each other for the attainment of the shared national

objective.

2.10 Reengineering of Existing Schemes and Policies

Ministry of Textiles has a large number of schemesand programmes for the textile and apparel

sector. Some of the flagship schemes are Technology Upgradation fund Scheme (TUFS), Scheme for

Integrated Textile Parks (SITP), Mega Cluster, Integrated Skill Development Scheme (ISDS), etc.

These have been useful and have been contributing to the increasing growth and development of

the sector. For the scale and growth momentum that is envisaged, these schemes need to be scaled

up substantially. They also need re-engineering and re-calibration to suit the ambitious goals being

adopted.

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  MINISTRY OF TEXTILES-

The Ministry of Textiles is responsible for the formulation of policy, planning,

development, export promotion and regulation of the textile industry in India. This includes all natural,
artificial, and cellulosic fibers that go into the making of textiles, clothing and Handicrafts.

The current Minister of Textiles is Smriti Zubin Irani.

Main functions of the Ministry

 Textile Policy & Coordination

 Man-made Fibre/ Filament Yarn Industry
 Cotton Textile Industry
 Jute Industry
 Silk and Silk Textile Industry
 Wool & Woollen Industry
 Decentralised Powerloom Sector

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 Export Promotion
 Planning & Economic Analysis

 ETHICAL ISSUES IN THE TEXTILE INDUSTRY-

Today, the most significant concerns in the highly globalized fashion industry are ethical and
sustainable business practices. A lot of companies in this industry are taking the ethical issues
with seriousness, and have been carefully monitoring and responding to all concerns raised by
customers, who are taking a different direction by taking actions against firms that violate
ethical practices including holding protests and calling for boycotts for products from such
firms. This paper explores ethical issues in the fashion industry, and how it impacts customers
buying behaviors.

Theoretical Background:

Today, the customer’s demand is not only limited to purchasing of high-quality cloth brands
but is also involving social responsibility and sustainability by the companies. As a result,
clothing companies are now taking the issue of adhering to ethical and sustainable practices as
a major concern, which influences their success in the fashion industry. In relation to sustainable
practices, the clothing firms are working hard to ensure that they meet the needs of the present
customers in the market without compromising the prospect generations to meet their needs.
That is, the clothing industry has been working hard to deal with the social and environmental
concerns not only to meet the current concerns of the society but for future considerations
((Cataldi et al., 2010).

According to Bray et al. (2011), in the recent, there has been a growing expectation by
customers in relation to social responsibility and ethical practices by companies as in the recent
people are identifying themselves with what they are wearing. In a study conducted in the
United Kingdom in 2014, on ethical consumerism, it revealed that $2 percent consumers
shopped for clothes for ethical reasons compared to 2002 report with 27 percent (Niinimäki &
Hassi, 2011). Indeed, customers are now increasingly becoming interested in digging deep into

24
 reliable information on the background of the commodities they purchase in the market. Also,
customers are showing interest in activities related to supply chain and are demanding for
honest and transparent communication by the clothing companies, which they use to make their
purchasing decisions

Social Well-being Issues:

The social ethical issues affecting the clothing industry include a broad collection of factors
including violation of employees’ rights, use of child labor, sweatshops, underpayment of labor
as well as poor working conditions. The social ethical practices aim at ensuring the well-being
of the community. There have been complaints that most cloth industries subject their workers
under sweatshop conditions and with the lowest payments, long working hours, child labor and
labor abuse (Chan & Wong, 2012).

 Child Labour
Most of clothes manufacturing companies practices forced labor, exploitation and child labor
in their daily activities practices. Child labor amounts to denying children their right to
education and subjects them to mental and physical effects as a result of unfair treatments
geared by lack of transparency, unauthorized trafficking poor monitoring services within the
apparel industries (Goworek, 2011).

The fact that clothing industries are busy and involve a lot of activities has been making the
companies seek for cheap labor which is readily available from children. According to a report
released by an international labor organization in 2015, indicated that although over years the
number of child labor have been decreasing globally from around 246 million in 2002 to about
169 million in 2015, the number is still high in most apparel manufacturing
companies(Goworek, 2011).

 Sweatshops
Most cloth companies have accused of sweatshop internationally. The apparels companies have
been accused of subjecting their workers to unacceptable conditions that violate human rights.
Most of the company pay their employee lower wages than minimum wage limit set for
international corporations. Also, most of them pay their workers based on pieces rather than a
guaranteed hourly payment. Furthermore, there have been complaints with regard to force
overtime, safety and health risks as well as violations of rules as a result of negligence. Also,

25
 since most of the employees are casual most apparel companies disregard employees’ welfare
willingly to avoid expenses (Harrison & Scors, 2010).

In some instances, workers get dismissed from their work without salary payment regardless of
working for months. Also, most companies do not get into any written agreement with the
workers, hence terminates their services anytime without giving them notice. Although most
companies within the clothing industry claim to comply with the ethical standards, customers
have been pushing them to adhere to offering fashion with a conscience. In spite, of cutting
prices to customer-friendly prices, customers feel that these companies have a responsibility in
ensuring practices which do not violate the set standards on the welfare of employees (Harrison
& Scors, 2010). As a result, most customers have been going for products from the companies
which adhere to supporting and observing human rights practices against their employees
(Chan, & Wong, 2012).

 Poor Infrastructure
Another social ethical concern surrounding the apparel industry is poor factory condition, which
subjects workers to the dangerous working environment. In most developing nations, most
clothe industries operate in buildings meant for commercial purposes, which leads to congestion
and poor waste disposal; hence subjecting the workers to unfavorable working conditions
(Goworek, 2011).

Additionally, there have been complaints about defective and overloaded electric wiring, lack
of emergency exits, poor designed building and lift machines, defective equipment subjecting,
which subjects employees to work manually in dangerous operations, as well as barred windows
leading to poor ventilation. However, in spite of the push by the MNCs to the apparel
companies to improve working conditions, most of them, especially in the developing nations,
operate under very poor working conditions (Goworek, 2011).

 REGULATORY POLICIES-

Make In India Investment Cell

Textile Export Quota Policy 2000-2004

26
National Jute Policy-2005

National Textile Policy -- 2000

 KEY ISSUES AFFECTING THE INDUSTRY-

The global textile industry is undergoing a very challenging period since the beginning of
this century. Several structural changes have led to a new business environment that the global
textile industry needed to adapt to and still does. In 2001 China joined the World Trade
Organization (WTO) and thus a country with approx. 1.3 billion people was suddenly having
easier access to markets around the world and was thus becoming an important player in the
global trade arena. In 2004 the traditional quota system for textiles and clothing finally phased
out. This provided new opportunities to countries that were so far restricted by the quota system
and posed challenges to those countries that had benefited from the quota system.

Of course the global financial and economic crisis in 2008/2009 (also referred to as the Great
Recession), the worst since the Great Depression in the 1930s, had a negative effect on the
globaleconomy in general and the global textile industry in particular.

Challenges-

One very important factor is how innovative the textile industry is, together with the research
community serving it, and how innovative it is going to be in future. Historically, strong and
innovative materials, chemicals and machinery/component manufacturers have made vital
contributions towards helping the textile and clothing industry in their efforts .

The growth of the technical textiles sector in recent decades has been remarkable. Innovation,
mainly originating in the industrialized world, has benefited all stages of the supply chain .

In order to make better use of the ideas generated in the research community of textile research
institutes and universities, the innovation-driven research and development work in these
institutions needs to be strongly prioritized. The transfer of knowledge to the industry should

27
 be made much more effective than it is today; introducing the right environment in
academic research establishments would facilitate interaction with textile and clothing
companies. In order to attract top-class scientists and technologists, academic and industrial
partners in the value chain of the textile and clothing industry must encourage and reward
innovative experimentation, from ideas to applications. Because the textile industry is
becoming more and more interdisciplinary in the nature of materials and production
processes, the current undergraduate and postgraduate textile education systems must be
redefined and redesigned in order to better suit the future needs of scientists, engineers and
technicians, both in the industrial and academic spheres.

It is important to look at the current structure of the global textile industry, especially as the
result of the ongoing process of globalization. Various types of textile supply chains and
customer interactions with the industry are significantly affecting company strategies as regards
design, product development, manufacturing and marketing of textiles and textile products.

.
At the World Textile Summit, held for the fi rst time in connection with ITMA 2011 trade-fair
in Barcelona, the agenda was designed to offer a global perspective on the opportunities and
challenges likely to face the textile industry in the years ahead. The importance of cooperation
across the supply chain to drive sustainability and innovation, sustainable
programmes incorporating reduction of energy and water consumption, the growing influence
of technical textiles, China’s increasing challenges and the growingopportunities for India were
some of the key points of discussions at this Summit. The contents of the present book were
designed and planned a long time prior to the World Textile Summit and the issues discussed
in this book include many of those which were discussed at the World Textile Summit in
September 2011.

 Initiatives of the New Government in the Textiles Sector-

The new government, under the leadership of Prime Minister Shri Narendra Modi has
stressed an economic vision based on increasing production, export and generating
employment giving particular attention to:
Generate productive employment opportunity for the youth
Inclusive and participative growth

28
 Skill, Scale and Speed
Make in India brand.
Zero defect - Zero Effect (on environment)
Adarsh Gram
India’s textiles and clothing industry is one of the mainstays of the national economy.
It is also one of the largest contributing sectors of India’s exports contributing nearly
13.25% of the country’s total exports basket. The textiles industry is labour intensive
and is one of the largest employers. Textile industry has realized export earnings worth
of 41.57 billion USD in 2013-14
The Textile industry has two broad segments, namely handloom, handicrafts,
sericulture, powerlooms in the unorganized sector and spinning, apparel, garmenting,
made ups in the organised sector.
New Government has taken many initiatives for the development of the textiles sector.
Some of the initiatives are as follows.
Setting up Integrated Textile Parks
The Scheme of Integrated Textile Parks is one of the flagship schemes of the Ministry
of Textiles. It aims to assist small and medium entrepreneurs in the textile industry to
clusterize investments in textile parks by providing financial support for world class
infrastructure in the parks.
The implementation of the scheme was held up during the last one year due to
administrative bottlenecks and no sanction was given for new parks. The new
government moved swiftly to resolve the issues and 13 new textiles parks were
approved by the Project Approval Committee (PAC) chaired by the Minister of State
for Textiles (independent Charge) Shri Santosh Kumar Gangwar. While these 13 textile
parks will receive a grant to the extent of Rs 520 crores from government for
infrastructure development, they are estimated to bring in private sector investment
of about Rs 3240 crores into the sector and generate direct employment for about
35,000 persons over the next three years. Besides, a fresh advertisement would be
issued calling for proposals for more ITPs for utilization of the balance provision during
the 12thplan period.
Exports
During April-Aug 2014, the textile exports registered a growth of 9.5% against the
corresponding period of last year, while RMG exports grew 17.7% and carpets
22.2%,
29
With a vision to create an export friendly economy the government introduced several
initiatives –
Duty free entitlement to garment exporters for import of trimmings,
embellishments and other specified items increased from 3% to 5%. This initiative is
expected to generate an additional RMG exports estimated at Rs.10,000 Crore.
The government has also proposed to extend 24/7 customs clearance facility at 13
airports and 14 sea ports resulting in faster clearance of import and export cargo.
The proposal for imposing duty on branded items was dropped providing relief to
the entire value chain.
Development of Handloom:
Specific steps have been initiated for revival of handloom industry based on its inherent
strength for production of high value items. Focus is on assisting weavers with designs,
marketing and improved wages. National Institute of Fashion Technology and
leading members of the fashion industry have been roped in for design support to
weavers. At the same time equipment and raw material for producing clothes for the
high end customers and niche market are also being provided. Higher wage coming
from high value production and reducing level of transactions in marketing would
enhance the wage of the handloom weavers substantially.
In order to provide better marketing reach, the Ministry has launched an E-commerce
initiative Flipkart. This will strengthen the existing Primary Weaver Cooperative
Society by assisting entrepreneur from the weavers families for taking up production
and supply directly to the customers. Proposed Trade Facilitation Centre and a Craft
Museum will also provide much needed visibility to handloom products. Lakme fashion
week this year dedicated a day showcasing the vibrancy and magic of Indian weavers
and crafts.
Synergy of handloom, handicraft with tourism has been worked out in consultation
with Ministry of Tourism. State Chief Secretaries have been requested for
identifying traditional handloom weavers/handicraft artisans villages for
development as “Adarsh Gram” as tourists destination.
Development of Tassar handloom products like sarees, dress material and wide range
of home furnishing fabric for exports typical to Bhagalpur in Bihar has been initiated
under Handloom Mega Cluster Scheme. Another mega cluster is being developed at
Trichy, Tamilnadu. Over 15,000 handloom weavers will be directly benefited under
each these two clusters. The remaining new megaclusters at Surat, Bareilly, Lucknow,

30
 Kutch and Mysore announced in the Budget Speech are at various stages of
implementation.
Handicraft
Promotion of major crafts of Varanasi namely wood carving, carpet and durry weaving,
meenakari and zardozi and pottery etc. have been taken up by providing assistance to
the artisans with better skill, design and supply of toolkits etc. This was formally
launched by the Textiles Minister on 26.9.2014. A Skill Development Programme
for training 5000 carpet weavers has been taken up through the Carpet Export
Promotion Council (CEPC). An Integrated Design Project of 5 months duration for
wooden toys would be organized by National Centre for Design and Product
Development (NCDPD). Electric wheels were given to potters under the Design and
Technological Upgradation Scheme of Handicrafts in Delhi and later at Bareilly.
Silk and Pashmina
India is the 2nd largest producer of Silk in the world and employs large number of skilled
and unskilled tribal women. During his recent visit to Jammu & Kashmir the Hon’ble
Prime minister declared a scheme for the development of nomads.
Provision of Rs. 30 crore for same was made in the 2014-15 Budget, which would be
utilized for
Promotion of Pashmina in Leh, ladakh region of Jammu and Kashmir
Setting up a dehairing plant in Ladakh to increase productivity
Setting up Solar Powered Community Centers, Sheds for animals and Pucca
shelters for nomads.
Recognizing their contribution and efforts the Textiles Minister felicitated 54 women
engaged in sericulture.

 ENVIRONMENTAL ISSUES-

One of the central ethical concerns by the clothing industry is on the relationship between
environment and the people. A lot of customers want to associate with companies which
incorporate fair trade practices with sweatshop-free workforce conditions without causing any

31
harm to the environment or employees by making use of biodegradable and organic fabrics
(Kozlowski et al., 2012).
The most common environmental concerns facing the clothing industry is on the dangerous
impact on the environment and world at large since fashion industry forms the second largest
environment polluter after oil industry. Clothing industry engages in large production which
leads to huge disposals and consequently amounting to high levels of waste which increases the
challenge of shortage of natural resources. Also, the high demand of clothes by customers have
made most clothing firms to manufacture low-quality clothing mostly made from artificial
fibers and unsafe dyes that leads to negative impacts on the environment (Kozlowski et al.,
2012).
However, customers are playing part in controlling the materials and products that the clothing
industries are manufacturing as most of them are now supporting the companies and retailers
who are employing green practices. The customers are even willing to pay high for brands that
include environmental and ethical labeling in their products as part of promoting
environmentally friendly practices. Consequently, most cloth companies are now becoming
more environmentally mindful, and are manufacturing clothes using less dangerous chemicals
and dyes (Shen et al., 2012).
The other environmental concern is with regard to violation of animal rights leading to
endangering of many species (Kozlowski et al., 2012. The clothing industry uses animal
products such as wool, fur, skins and leather in their production processes. Fur and leather
apparels are highly regarded within the society as they symbolize with high-status people.
Animal activists term the acquisition process of these products from the animals as inhumane.
As a result, they have been advocating against clothes manufactured from animal products with
some customers becoming very aggressive on purchasing of fur and leather products
(Kozlowski et al., 2012).
The fact that a lot of customers make a decision based on the information available; thus there
is a high possibility that protests and campaigns on the ethical handling of animals and
sustainable fashion affects customers’ decision on purchasing and consumption of clothes
manufactured from animal products. Consequently, the customers are taking adverse actions
against products that fail to follow ethical practices in manufacturing their products (Shen et
al., 2012).

32
FINANCIALS

Financial Performance Of The Textile Companies

Sangam India Ltd. (SIL)

SIL is engaged into manufacturing of synthetic and blended dyed/grey spun yarn, cotton yarn
and fabrics (synthetic, blended, denim, knitted and flock fabrics). The company has been
operating in both domestic as well as overseas market and the income ratio is around 80:20.The
company has also taken recent initiative in the field of denim manufacturing and the
contribution has grown from 12% in FY11 to 20% in FY12.Textile manufacturing forms the
core activity of the company.

Table -1.1 Financial Performance (Sangam India Ltd.) (Rs. Crore)

2- BSL Ltd. (BSL)

BSL is one of the group companies of the LNJ Bhilwara group and was incorporated in 1970
as a Private Limited Company under the name of Rajasthan General Udyog Pvt. Ltd. In 1971
the company commenced production with an initial capacity of 8 looms for weaving of
Polyester/ Viscose blended grey cloth at Bhilwara in Rajasthan. In 1976, the company was
converted into public limited company and its name was subsequently changed to the BSL
Limited in July, 1994.BSL is primarily engaged in the manufacturing of woolen/worsted yarn,
synthetic polyester yarn, synthetics blended viscose fabrics and premium range of worsted
suiting, readymade and silk garments. BSL enjoys a Trading House status and is an ISO – 9001
certified company. The company is present both in domestic and overseas market, exports to
over 40 countries. BSL markets its products under various brand names such as BSL Suitings,
Geoffrey Hammonds and La Italia. The company has aggregated capacity 18192 spindles for
yarn manufacturing, 8768 spindles for worsted, Vortex Spinning 400 Positions, 168 looms for

33
fabric weaving with fabric processing capacity of 264 lakhs meter of Fibre & Yarn Dyeing
1382 mts supported by in-house design studio and new product development center as on
31.03.2012.The company also set up a 2.40 MW wind power plant at Jaisalmer, Rajasthan for
captive consumption and has power purchase agreement with Rajasthan Rajya Vidyut Prasaran
Nigam Limited.

Table -1.2 Financial Performance ( BSL Ltd.) (Rs. Crore)

Maharaja Shree Ummaid Mills Ltd.(MSMUL)

MSUML promoted by Shri L N Bangur, belongs to Bangur group. It was incorporated in 1939
as a Private Limited company at Pali, Rajasthan about 72 kms from Jodhpur. MSUML
commenced business in 1941 and became a Public Limited Company in 1952. The company
is engaged in the manufacturing of cotton and blended yarn and cotton fabric. It is one of the
oldest Textile mills of our country. The company has been consistently expanding and
modernizing its manufacturing facilities since its inception and its present installed capacity is
109344 Spindles, 1896 Rotors and 494 looms, Process House etc. and a 10.3 MW Heavy Fuel
Oil (HFO) based Captive power plant. The company has further planned for expansion in fabric
segment. The company has in-house R & D Department, whose efforts are at present directed
to process control and improving quality standards of the existing products through a
reasonably equipped Standards Quality Control Cell and a Chemical Laboratory. The company
enjoys the market leadership in Dyed Poplin of 100% Cotton for domestic market. Its market
is spread out over the Northern, Central, Southern and Western India, the company has also

34
marked its entry into the Eastern India as well. Very recently, the Company entered into suiting
/ shirting segment and has generated good growth.

Table -1.3 Financial Performance (MSMUL Ltd) (Rs. in crore)

35
Recent Development in Textile Industry

The textile industry is primarily concerned with the design, production and distribution

of yarn, cloth and clothing. The raw material may be natural, or synthetic using products of

the chemical industry.

The worldwide market for textiles and apparel exports in 2013 according to United Nations

Commodity Trade Statistics Database stood at $772 billion.

The largest exporters of textiles in 2013 were China ($274 billion), India ($40

billion), Italy ($36 billion), Germany ($35 billion), Bangladesh ($28 billion)

In 2016, the largest apparel exporting nations were China ($161 billion), Bangladesh ($28

billion), Vietnam ($25 billion), India ($18 billion), Hong Kong ($16 billion), Turkey ($15

billion) and Indonesia ($7 billion).

Indian textile industry is one of the largest industries in India. It is the second largest industry

in terms of providing employment opportunities to more than 35 million people in the

country.

36
Lets take a look at some facts about Indian Textile Industry:

Indian Textile industry contributes to 7 per cent of industrial output in terms of value,

2 per cent of India's GDP and to 15 per cent of country's export earnings.

India's overall textile exports during FY 2017-18 stood at US$ 39.2 billion.

India is the second largest producer and exporter of cotton in the world at $6.3 billion,

marginally close to China.

India has emerged as the largest producer of cotton in the world with the production

of 345 lakh bales in 2016-17 and second largest exporter after China.

Currently, the cotton industry is sustaining livelihoods of 5.8 million farmers and 40-

50 million people engaged in other activities like processing and trading.

India is the largest producer of jute in the world.

The Sericulture and Silk Sector: India is the second largest producer of silk in the

world, producing around 18 per cent of the world's total silk.

Mulberry, Eri, Tasar, and Muga are the main types of silk produced in the country. It

is a labor-intensive sector.

37
Government Initiative:

In order to follow the goal of making India's development inclusive, the central
government

is focusing on a number of policies in providing best manufacturing and infrastructure to

local artisans, technology and innovation, enhancing skills and strengths of the local industry.

Some of these major initiatives are listed below:

The government has been implementing various policy initiatives and programmes for

development of textiles and handicrafts, particularly for technology, infrastructure creation,

skill development, including:

Amended Technology Upgradation Funds Scheme (ATUFS)

PowerTex India Scheme

Scheme for Integrated Textile Parks

SAMARTH- scheme for capacity building in Textile Sector

Silk Samagra- integrated silk development scheme

North Eastern Region Textile Promotion Scheme (NERTPS)

National Handicraft Development Programme (NHDP)

Enhancement of rates under MEIS:

DGFT has enhanced the rates under Merchandise exports from India Scheme on readymade

garments and made ups from 2 per cent to 4 per cent to boost exports in the textile world.

Prime minister Narendra Modi launched the 'Make in India' campaign on

September 25,

2014, to boost domestic manufacturing units. The aim of this campaign was to increase the

38
contribution of manufacturing in GDP from 15 per cent to 25 per cent. PM mentioned this

phrase in his Independence day speech 2014 emphasising on his concern that most

entrepreneurs are moving out of the country. In the process, the government expects to

generate jobs, attract much foreign direct investment, and transform India into a

manufacturing hub preferred around the globe.

Smriti Irani, the recently appointed textiles minister, August 1, started the #IWearHandloom

campaign on Twitter and Facebook, in a bid to promote the Indian textile tradition. The

campaign also strives to support 43 lakh weavers and their families. It will culminate on the

National Handloom Day, which is August 7.

In India, textiles have evolved over a period of thousand years. They are important for their

attachment with the culture, which has been shaping Indian societies for hundreds of years.

The history of the textiles dates back to the period when the Indian subcontinent did business

with Kabul, the Balkans and the European countries.

India's first textile mill, the Bombay Spinning and Weaving Mill, was set up on February
22,

1854. Indian textile industry is one of largest Industries in the Indian economy.

some more facts about the first textile in India:

In the year 1854, the first cotton textile mill of Mumbai was established by a Parsi cotton

merchant

The first cotton mill established in the year 1861 was at Ahmedabad, which later emerged
as

a rival centre to Mumbai's textile mill

39
 The cotton textile industry made rapid progress in the second half of the 19th century and
by

the end of the century, there were 178 cotton textile mills

In the year 1900, the textile mill experienced a huge setback due to the great famine. A

number of mills had to be closed for a long period at that time

When the Indian Textile Industry came into existence in India, it accounted for 14 per cent
of

the total industrial production and contributed to nearly 30 per cent of the total exports

It was also the second largest employment generator after agriculture in India

Most of the international brands like Marks & Spencer, JC penny, and Gap acquired
most of

their fabrics from India

The Indian Textile Industry today has approximately 1,200 textile mills in India

The cotton yarn it manufactures accounts for 70 per cent of India's textile exports.
Textile and

clothing export from India rose a marginal 5.4 per cent in 2014-15

Knitted garments account for almost 32 per cent of all exported garments

Some of the reputed names in the textile companies in India are: Raymonds, Arvind Mills,

Reliance Textiles, Vardhaman Spinning, Welspun India, Morarjee Mills, Century Textiles,

Ginni Filaments Ltd, Mafatlal Textiles, S. Kumar Synfabs, Bombay Dyeing Ltd, BSL Ltd,

Banswara Syntex, Grasim Industries, Oswal Knit India, Fabindia, Lakshmi Mills, National

Rayon Corp, etc

According to the reports, the Indian Textile Industry covers 61 per cent of the international

40
textile market and over 20 per cent of the global market

In a data released for the marketing year of 2014-2015, India became the largest producer of

cotton in the world.

Prime Minister Narendra Modi, in 2015, declared August 7 as the National

Handloom Day to mark Swadeshi movement on its 115 th anniversary

On National Handloom Day, here are the initiatives taken in the past by the

government:

To promote textile industry and handloom, the government increased the import of garments

and other products

Government has made import and export efficient by facilitating about 13 airports and 14

seaports

The Ministry of Textiles has approved a 'Scheme for promoting usage of geotechnical
textiles

in North East Region (NER)' which benefits the economy and financial outlay of the
country

The Ministry of Textiles has signed an agreement with Flipkart to provide an online platform

for handloom weavers in order to sell their products

Narendra Modi laid the foundation stone at the Trade Facilitation Centre and Craft Museum.

41
Conclusion

Indian textile industry contributes 14% of the total industrial production of the country. This paper has
explored the financial position of textile companies. Financial position of textile companies in India is
sound and they are exploring their available resource. The profitability margins has slightly different
due to volatile textiles market and volatility in raw material prices. The moreover liquidity position of
companies is also sound, they maintained sufficient funds to meet their short term obligations and there
total net worth is quiet enough to repay total outside liabilities of the companies, so solvency position
is almost same in all the companies. The textile industry has traditionally remained a highly capital
intensive industry and therefore general trend is of high gearing ratio. Through the comparative ratios
analysis researcher has come to know that the null hypothesis is accepted which shows that there is
no significant difference in the profitability, liquidity and solvency position in the selected textile
companies.

42
REFERENCES \ BIBLIOGRAPHY

1. India Brand Equity Foundation (“IBEF”)

2. ARTICLES

1. Saman Kelagama and Roshen Epaarachchi, “Garment Industry in Sri Lanka”, Institute of Policy
Studies, Sri Lanka, 2001.

2. ICRA - Industry Comment, “Textile Industry Dominated by Decentralized Powerloom Sector”, ICRA
Information Services, New Delhi, 2002, p.9.

3. Nasreen Khundker, “Garment Industry in Bangladesh”, The paper was prepared under the UNDP
Dhaka funded globalization SPPD and is being published by the H.O as a part of the Globalization
Report titled, Bangladesh: Economic and Social Challenges of Globalization, University Press Ltd.,
Dhaka, 2002.

43