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INDIAN TEXTILE INDUSTRY

FOCUS: HOME TEXTILES

Bhoomica Sheth 2013A29

Bhavna Kaul 2013B11

Synaica Pinto 2013B27

Jayshree Shankar 2013C71

Naman Gupta

2013B33Akansha Agarwal 2013C03

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2nd largest producer of textiles after China.

2ndlargest producer of cotton in the world.

2ndlargest employer in India after Agriculture; Provides employment to 35 millionpeople.

Constitutes about 12% of Indias exports. India earns about 27% of its total foreign

exchange through textile exports.

Contributes about 14% to Industrial production.

Contributes about 4% to GDP.

India has the potential to increase its textile share in the world trade from 4.5% currently to 8%& reach US$80 billion by 2020.

INDUSTRY OVERVIEW - INTRODUCTION

TEXTILEINDUSTR

Y

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8998

108119

131144

159 175

192

212

233

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012

INDIA'S TEXTILE MARKET SIZE (USD BILLION)

69%

31%

Apparel

Home Textile

Source: www.ibef.org

SHARE OF HOME TEXTILE & APPARELSECTOR of INDIA

SHARE IN INDIAS TEXTILE EXPORTS

39%

34%

17%

3%3%4%

Ready madeGarments

Cotton Textiles

Man-Made Textiles

Handicrafts

Silk & Handloom

Wollen & Others

INDUSTRY OVERVIEW GROWTH, SECTORS

TEXTILEINDUSTR

Y

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COMPANY BUSINESS AREAS

Home textiles, bathrobes, terry towels

Yarn, fabric, sewing threads, acrylic fibre

Home textiles, woven and knitted apparel fabric, garments and polyester yarn

Worsted suiting, tailored clothing, denim, shirting, woollen outerwear

Spinning, weaving, processing & garment production (denims, shirting, khakis, knitwear)

Bed linen, towels, furnishings, fabric for suits, shirts, dresses and saris in cotton & polyester blends

Dyed and printed fabric

Shirting, poplins, bottom wear fabrics, voiles

Madura Garments lifestyle market (Louis Philippe, Van Heusen, Allen Solly, The Collective)

Jayashree Textiles domestic linen and worsted yarn

Indian Rayon viscose filament yarn

Lifestyle market

Fabric, formal menswear

INDUSTRY OVERVIEW KEY PLAYERS

TEXTILEINDUSTR

Y

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Cotton Textiles

Silk Textiles

Woolen Textiles

Readymade Garments

Hand-crafted Textiles

Jute and Coir

Indian textile industry can be divided into several segments which are:

Yarn & fibre (natural & man made)

Processed fabrics (woollen, cotton, jute, silk & technical textiles), readymade garments & apparels.

The textile industry can be broadly divided into two segments:

INDUSTRY OVERVIEW SEGMENTS

TEXTILEINDUSTR

Y

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Home Textile market in India is estimated to be Rs. 17,000 crore which is growing at over 9

per cent annually.

The home textiles and furnishings market is expected to reach Rs. 26,600 crore by2015.

Key growth drivers: Growth in the no. of households and discretionary incomes,and growth of end-use sectors like housing, office, hospitality and healthcare.

The unorganised sector dominates this market. Less than 10 per cent of the market isorganised, and hence, a huge opportunity for organised players to grow.

Various segments within home textiles include bed linen, bath linen, kitchen linen, curtains,upholstery , table linen and rugs/carpets. Bath & Bed linen contribute to two-thirds of thetotal market size.

HOMETEX

TILEINDUS

TRY

INTRODUCTION TO HOME TEXTILES

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HOMETEX

TILEINDUS

TRY

STATISTICS

55%

13%

3%

10%

11%

8%

Bed LinenBath Linen

Kitchen Linen

Curtains

Upholstry

Others

HOME TEXTILE MARKET SEGMENTS-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2011 2016(P) 2021(P)

DOMESTIC TEXTILE MARKET

CATEGORIES 2011 2016(P) 2021(P)CAGR 2011-

2012

Bed Linen 8965 13170 19350 8%

Towels 3320 4840 7060 8%

Curtains 1850 2975 4790 10%

Blankets 1465 2040 2850 7%

Upholstery 1190 1915 3080 10%

Kitchen Linen 1110 1635 2400 8%

Rugs & Carpets 500 790 1250 9.50%

Total 18,400 27,360 40,800 8%

Source: Technopak

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MULTI BRAND SINGLE BRAND

SHOP IN SHOP

The shop in shop retail concept is where a brand owner or retailer takes space in another

retailers' store and fits it out to provide selling space dedicated to that secondary companys

product.

Example: Nilkamal Store in Star Bazar , Ebok in Hypercity

There are benefits to both retailers e.g. shared cost, shared marketing, demand generation etc.

HOMETEX

TILEINDUS

TRY

KEY PLAYERS

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COMPETITION

The competition is maximum in the bed and bath linen segment.

BrandingKey players are developing and promoting their brands to make a distinct mark in themarket. Bombay dyeing carries greatest recognition in case of bed linen.

Brands like Welspun & Portico are mainly known in the metros where as Bombay dyeing haspresence in rural as well as urban markets.

Buying behaviour of home textiles is mainly governed by attractive designs and patterns. Hence,companies are actively spending on R&D and design to be abreast with the trends and increaseuniqueness in their products.

With the big players exporting their products to western countries, they have established theirdesign studios in USA & other European countries to keep abreast with latest trends andfashions.

Most of these companies have targeted this industry by understanding the purchasing power ofIndian consumer. Companies have launched their products in two-three categories like economy,premium and super premium segments. Eg : Welspun has Spaces brand for its premiumcustomers and Welhome for the mass market.

Most large manufacturers in India are vertically integrated which provides greater flexibility, andreduces the overall operations cost.

HOMETEX

TILEINDUS

TRY

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@ HOME

@Home (Private Label)

Portico

Spaces

Tangerine

Obsession

HOMESTOP

HomeStop is part of the Shoppers Stop group.

Stop (Private Label)Ivy (Private Label)

Sonnet (Private Label)

Esprit

Maishaa

Portico

Bombay Dyeing

BIG BAZAAR

Dreamline (Private Label)

CeylonBombay Dyeing

Serenity of ladak

Heritage

Easy Life

HYPERCITY

Swayam

Stellar

Bombay Dyeing

Ebano (Private Label)

Evok

Portico

HOMETEX

TILEINDUS

TRY

PRIVATE LABEL PROLIFERATION

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Projected Market Size: $2,550 million in 2015Customers: Residents of mini metros & Tier II cities

Range: Rs. 2500 Rs. 17000

UPCOMING BRANDSCURRENT BRANDS

Source: Economic Times- Luxury Home Market

(29thJan, 2012)

HOMETEX

TILEINDUS

TRY

LUXURY BRANDS

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Consumers in undeveloped or moderately developed regions will be more price conscious

PRICE

Since consumers are more brand conscious in the home linen industry, a brand that iseasily available will sell more.

AVAILABILITY OF BRAND

Residents of North India would be ready to spend more on woolen clothes than residentsof the south.

REGIONAL CLIMATE

Media and magazines have played a big role in exposing Indians to the western styles ofhome dcor, which in turn is causing them to be relatively more conscious about brandsand aesthetics.

WESTERN INFLUENCE

In India, festivals play a large role in influencing purchase decisions of home linen. Forinstance, during Diwali, homes are renovated and maximum purchase of home linen

occurs.

FESTIVE SEASONS

CONSUMER BEHAVIOUR

HOMETEX

TILEINDUS

TRY

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Roadside Hoardings Fresh arrivals Gift Vouchers

Event SponsorshipsAdvertisements /

Features in Magazines +

TV & Electronic Media

Window POS Displays

Discount Offers Celebrity Endorsements

HOMETEX

TILEINDUS

TRY

FACTORS AFFECTING CONSUMER CHOICE

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Maharashtra, Gujarat &Punjab are the hubs of

cotton production

Tamil Nadu & Karnatakaare the hubs for silk

production

North-eastern India is thehub for production of

handicrafts usinghandlooms.

HOMETEX

TILEINDUS

TRY

PRODUCTION CENTRE & RAW MATERIAL

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Strengths

1) Expertise in cotton textiles2) Backward & Forward integrations leading toreduction of cost

3) Availability of cheap, skilled labour

4) Strong R&D and design capability

5) Government support for textile exports

Weaknesses

1) Industry highly dependent on cotton

2) Low technology levels

3) Infrastructural bottlenecks (lag intransportation, bumpy roads)

4) Imports of textiles of other Asian textileindustries

Opportunities

1) Booming retail sector

2) Increase in purchasing power

3) Brand conscious customer base

4) Promising prospects for foreign investment

Threats

1) Volatility of currencies and fluctuation of therupee with regards to $ and the euro

2) Increase in social awareness worldwidebringing increased pressure to comply withlabour laws

3) Absence of standardization and an organizedvendor base

4) Increased global competition

SWOTANALYSIS

HOMETEX

TILEINDUS

TRY

CHALLENGES FACED

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E-tailing in India will grow @ 75% CAGR over the next decade and has the possibility to reach US$ 60-75 Billion by2020.

Home textiles are very suitable products for E-tailing channel because

No challenge on size fit

Less issues with touch and feel

Easy to pack and ship

E-channel provides abetter medium for stocking a wide range & provide excellent effective product display

Negligible incremental cost in reaching out to customers in small cities and upcoming hot-spots

The growth drivers in India are as follows:

Need to save time Increasing popularity of Internet

New generation expectations

Rising property cost

The Barriers to growth are as follows:

Less popularity of high margin goods like apparel as touch and feel factor is missing

Fear of using credit card as Indians feel what they see, they might not get

Problem with complaint resolution incase of wrong goods or delayed delivery

HOMETEX

TILEINDUS

TRY

E-TAILING

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REFERENCES

http://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landing/351/1

http://www.rediff.com/money/2007/dec/08bed.htm

http://www.hghindia.com/sites/default/files/HGH%20India_Indian%20Market_Home%20Textiles.

pdf

http://www.equitymaster.com/research-it/sector-info/textiles/Textiles-Sector-Analysis-Report.asp

http://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-

fendi-casa-corneliani

http://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landing/351/1http://www.rediff.com/money/2007/dec/08bed.htmhttp://www.hghindia.com/sites/default/files/HGH%20India_Indian%20Market_Home%20Textiles.pdfhttp://www.hghindia.com/sites/default/files/HGH%20India_Indian%20Market_Home%20Textiles.pdfhttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://articles.economictimes.indiatimes.com/2012-01-29/news/30674038_1_luxury-market-fendi-casa-cornelianihttp://www.hghindia.com/sites/default/files/HGH%20India_Indian%20Market_Home%20Textiles.pdfhttp://www.hghindia.com/sites/default/files/HGH%20India_Indian%20Market_Home%20Textiles.pdfhttp://www.rediff.com/money/2007/dec/08bed.htmhttp://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landing/351/1

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