Indian-German Exchange Programme (IGEP)
Exchange of Jamnabai Narsee School, Mumbai, India and
Rudolf-Eberle-Schule, Bad Säckingen, Germany
Marketing – Products or Oppor-tunities?
IGEP
2017
TVET1 – Technical and Vocational Education and Training
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 1
Introduction
The IGEP (Indo-German Exchange Programme) was introduced in the Spring of 2013 as a vibrant
cultural and educational exchange initiative between the leading International Baccalaureate (IB)
school, Jamnabai International School in Mumbai, India and the vocational education school
Rudolf-Eberle-Schule at Bad Säckingen, Germany. The EUMIND (Europe Meets India) Project TVET
1 (Technical and Vocational Education and Training 1) was added on to a small, existing
international studies programme for young adults in the school education system.
While in 2014, students focused on studying “History of TVET in Germany and India”, 2015 inves-
tigated “Production Lines- Challenge of Companies”. The 2016 chapter aimed at exploring a new
dimension of the economic system, “Distribution- Transport or Transformation?”. The 2017 topic
challenges the students with “Marketing – Products or Opportunities?”
As part of this project, students observed the labour intensive Indian Textile Manufacture at Shri
Khemisati Processors step by step. In Germany, on the other hand, the students had a field visit to
the KBC in Lörrach where an automated sorting, selecting and preparing system that prepares
different cloths for printing by some workers.
The project generally aims at the following objectives:
1. To expose the students to an integral system of an economy
2. To acquaint the students of each country with the socio-economic context
3. To reflect on the similarities and differences between the two economies and societies
4. To evaluate the impact of the changes in the Indian Textile Industries on society and the
welfare system
In order to achieve the objectives, the project adopts an inter-disciplinary method of inquiry and
investigation, under the following topics:
1. History of Marketing
2. Exposition and Analysis of the Indian Textile Industry -SHRI KHEMISATI PROCESSORS
3. Exposition and Analysis of the German Textile Industry - KBC
4. Technological View and Perspective for the Production System of the Textile Industries
5. Social Impact of changings in production system
6. KBC as Model for Indian Textile Industries
7. Creation of future gross prospects of Textile Industries
8. Future Models of Textile Industries
By Balamani Garlenki, Dagmar Wolff
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 2
History of marketing
Marketing emerged in the early 1900s. Issues such as price setting and consumer purchase
behaviors existed. Advertising was viewed as an economic concept. Marketing emerged in order
to direct the relationship between the buyers and sellers.
Before the 1950s, marketing simply meant adopting strategies to sell more products with no or
little regard for consumer wants. People used the strategy of “sell as much as you can” with little
concern for long term relationships. Post 1950s, competition increased and companies adopted
philosophy and understanding consumer needs.
Marketing advanced from trade to technology over the years as technology advanced. A belief
stands that it started with trying to present goods in a certain way and sell them to survive. Efforts
to develop persuasive communications for selling goods have been around since ancient China and
India. The Industrial Revolution in the 18th century introduced marketing as we know it today. The
social change was motivated by scientific and technological changes. The purchasing of products
became easier than producing the products. Mass production served the needs of growing
consumer markets. As time passed, different brands and high quality products were developed.
International marketing was increased by the evolution of the web. Websites acted as a tool for
communication and commercialization.
Textile exports play a significant role in earning foreign exchange for India. In the FY 2010-11 , the
total exports of textiles and clothing amounted to US $ 26.82 billion. Presently, the share of
textiles in India’s total exports is in the range of 10 %.
It is seen that export firms that adopt marketing mix elements get competitive advantage and
have better returns.
During our recent visit to the KBC textile industry, we came to know about some of the most
important marketing strategies adopted by the textiles of Germany. The producers focus on the
choices of the customers based on the following criteria.
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 3
Customer‘s criteria when purchasing textiles
Marketing strategies for textiles
Marketing is the process of developing and communicating value to your customers. The following
chat shows the marketing plan
They focus on the following:
• Expression of one‘s own image
– Age
– Sex
– Philosophy of life
The pricing strategy used by the textiles is usually competitive pricing as firms aim to lower their
costs and look for cheaper distributers. Production is currently made through automation as in
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 4
case of KBC, the German company, and is usually more capital intensive as opposed to being
labour intensive in the past.
The industries do not usually promote since they have a set list of buyers, in case of KBC they have
large buyers who are MNCs like Zara and H & M.
By Muskaan Berry, Ashna Arora, Felicitas Neumann, Saskia Yildiz
Source:
http://vaibhavmathankar.blogspot.de/2013/01/marketing-strategies-of-garments.html
https://www.termpaperwarehouse.com/essay-on/Export-Marketing-Strategies-For-Indian-
Textile/192208
https://www.ioew.de/fileadmin/user_upload/DOKUMENTE/Veranstaltungen/2003/SuA2Back.pdf
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 5
Exposition and Analysis of the Indian Textile Industry -SHRI KHEMISATI PROCESSORS
During our trip in Mumbai, India, we visited the textile industry Shri Khemisati Processors on 4th
February 2017 which is located in Bhiwandi, a city in the Thane district of Maharashtra state.
Spread over an area of more than 2, 00,000 sq. feet, it produces an average monthly production of
45 – 50 hundred thousand metres and 60 tonnes of hosiery (knitted fabric). This company was
founded by Mr. B. L. Tibrewal in 1979 but has regularly been updated in order to meet with the
demands of the consumers. In 1990, it converted from a hand-processed industry to a power-
processed industry in order to produce more refined products at a lower cost of production. While
still employing large number of employees it became less labor intensive in the process of this
conversion. Although a separate company, it lies under the same promoters as Shri Khemisati
Polysacks pvt. Ltd
The industry employs approximately 250 regular workers and 700 casual workers who rotate in
shifts. Like many other industries, it works towards the welfare and safety of the employees
including a government regulated Employee Provident Fund.
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 6
Figure 1
There are hundreds of different types of fabrics which go
through different kinds of processes as shown in figure 1.
Figure 2
Each fabric goes through various processes. It
starts with Pretreatment of the fabric which
includes bleaching, mercerizing, textile sizing as
shown in figure 2. This removes all impurities and
dirt from the fabric and the unprocessed fabric is
then separated for dyeing depending on the fabric
base like cotton, polyester, viscose, high twist or
blended.
Figure 3
Polyester goes to a high temperature and high pres-
sure machine while cotton is dyed in an open bath
machine as shown in figure 3.
Polyester and cotton blended fabrics are put
through both processes, starting with polyester
and followed by cotton. After figure 3 dyeing, the
fabrics are put through finishing processes where
several additives are added which make the fabric
quality better. The cloth is dried using a stenter
machine. It is then measured and packaged
according to the orders.
The company is best known for Indian dress materials which are sold as end products in numerous
outlet stores.
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 7
The company plans to expand in the future in order to meet the increasing demands and level up
in technology.
By Dayana Annalingam, Sanchita Tibrewal, Yasshvi Nandu and Lukas Lauber
Source:
http://khemisati.co.in/about_us.html (13.06.2017 at 10:45)
http://www.maiervidorno.com/indian-textile-industry-ancient-tradition-rising-star/(13.06.2017 at
11:12)
http://www.khemisatipolysacks.com/index.html (13.06.2017 at 11:42)
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 8
Exposition and Analysis of the German Textile Industry - KBC
We visited KBC Fashion GmbH& Co.KG, on 9th June, 2017. It was founded in the year 1753. It is
represented in more than 16 countries and sells to 115 different countries worldwide.
The purpose of our visit was to draw a comparison between the textile industries of Germany and
India. In Germany we found KBC was the largest textile industry which uses high technology and
specialized employees counting about 450, to produce good quality textiles.
They are the main producers for various multinational corporations such as Tommy Hilfiger, Zara,
H&M, Bershka, etc. They spin and weave garments. They receive their silk and polyester from Asia
and cotton from the United States of America. They occupy a large percentage of the textile
industry and have a high concentration ratio. They are an oligopoly and they face competition
from other large companies such as A&S Umann GmbH, A. Berger GmbH & Co. KG, A. Müller &
Söhne GmbH & Co.KG. It offers inkjet printing and rotary printing; technical fabrics, such as
sailcloth; and fashionable fabrics for hobby tailors, carnival, and culture and sport clubs through its
outlet store.
Changes in ownership of KBC over time
In 1808, the brothers Merian from Basel and the entrepreneur Koechlin from Mulhouse buy the
indienne printing plant. They start the production under the name “Großherzogliche Badische Zitz-
und Cotton-Fabrik”. The Koechlins keep the company a family property until 1917.
In 1856, the company changes its name from “Peter Koechlin & Söhne” to “Koechlin, Baumgartner
& Cie.”, registered as limited partnership.
In 1897, the private enterprise is transformed into the “Koechlin, Baumgartner & Cie. Plc.”. How-
ever, KBC still remains the property of the Koechlin family. The company name is still used today,
only the legal form has changed from Plc. to Ltd.
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 9
In 1917, the German Reich Chancellor enacts a regulation against French capital holdings; as a
result KBC is expropriated from the family French Koechlin and becomes German.
In 1928, the shares are transferred from the German “Blumenstein-Konzern”, to the French in-
dustrial group “Lederlin-Thaon” which, under the name “Gillet-Thaon-Konzern” and together with
“Dolfuss-Mieg & Cie.” (DMC) establish the “Texunion” in 1935.
We saw that they have two different types of printing: Rotary and Inkjet printing. The production
process is completely automated which leads to mass production. This helps KBC benefit from
economies of scale which helps lower their average cost. We also managed to see their various
machines and their new printing machines which helped us understand how they produce so
much quantity in such a short period of time.
KBC operates in only Fabrics and Garments and they obtain Fibers and Yarn as raw materials.
How did KBC become prosperous?
In 1753, Johann Friedrich Küpfer acquired the company in Lörrach, Germany with the financial support of
Peter Merian from Basel which led to its prosperity.
Horace Koechlin propelled the company to the top of the international printing plants focusing on the key
elements of design originality and quality fabrics. It also had an advantage as it used Rotation and InkJet
machines and thus relies on its automation for its success.
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 10
The table below shows the SWOT analysis of KBC textiles.
From the SWOT Analysis we can see the various opportunities and threats that KBC may face. For example
some opportunities are that they can be exempted from paying a large amount of Tax. They can also
provide to a wide range of European countries, thus adding to their revenue. Some threats are that this
kind of a market has high barriers to entry. Also they face a lot of competition which may erode some of
their profits.
There are strengths of operating in the market as it takes up the largest proportion of the European
economy. Also they do not need a large number of employees as everything is automated.
The weakness however is that it is very expensive to buy a large number of machines. Also the negotiations
with the stores occur at a very slow rate. Lastly the labor unions demand that more jobs are created for the
people.
To conclude, through the progression of time, KBC has evolved and shaped into one of the leading textile
industries in the world through various changes in ownership, funding, originality in design and quality
fabrics.
By Omar Furniturewallah, Ishaan Boxwalla and Riona Makshana
Source:
Primary Sources (Company Visit)
Secondary Sources – Internet – www.kbc.de
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 11
Technological View and Perspective for the Production System of the Textile Industries
Comparison
India (SHRI KHEMISATI PROCESSORS)
They are a labour intensive firm as they are located in India which has cheap labour available. The
inventory and funds possessed by the firm is lower as it is a sole proprietorship hence is a small
scale and has less market share in the industry.
Germany (KBC)
KBC is one of the largest producers of garments in Germany and has more efficient and productive
machines. They have invested significant amounts of funds in the buying capital goods as labour is
expensive in Germany. KBC hence is a capital intensive company, where all the processes of
production are automated and efficient.
1. Pre-treatment
SHRI KHEMISATI PROCESSORS (India)
One of the most renowned Indian textile firm, Shri Khemisati Processors, situated in Bhiwandi,
Mumbai produces 4,500,000 to 5,000,000 meters and 60 tonnes of knitted fabric per month. They
occupy a wide area of more than 200,000 square feet.
The most integral machine of this process is the super jumbo jigger (JT-10). This machine is used to
soak out the unnecessary, harmful, toxic chemicals from the raw cloth. This is vital to ensure the
standard of quality set by the Quality Council of India (QCI) is met.
Most of the parts are made of non-corrosive
stainless steel to make sure that capital does
not depreciate in effectiveness and doesn’t
decrease from its high output frequency of
20KHZ and working speed of 0-20m/min. the
red/brown rust could also cause significant
problems with the quality of the cloth which is
of utmost importance for the firm, as creating a
brand image through is vital as the cloth
industry is a form of monopolistic competition,
hence product differentiation is what helps gain
a higher market share and increase consumer base.
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 12
KBC (Germany)
KBC has been using the Inkjet printing process
since 1990. What makes the Inkjet printer
special is, that the design is sent directly from
the computer to the printer, so the printing
process can start immediately.
One print head consists of 16 small print
heads. Each of them prints one color.
One small print head consists of 2.500 jets.
One jet splashes 10.000 drops per second. In
contrast to the other printing processes in KBC, the colors are added directly to the textile.
With this nine-years-old machine, KBC can imprint up to 40.000 meters of fabric a day. Different
kinds of fabric, like cotton, viscose, linen and silk, are imprinted with the Injekt printer.
2. Dyeing
SHRI KHEMISATI PROCESSORS (India)
Winch Dyeing
They mainly deal with dyeing and processing of a wide range of fabrics as cotton, polyester,
viscose, high twist and multi blended yarns. With 3 decades of experience in textile business, Shri
Khemisati Processors in India climbed the ladder of success with gigantic efforts and constant
innovation to meet up with their company policy, “ Provide the best of quality.”
One of the most common types of machine for fabric dying is the winch dyeing machine. Fabric is
sewn in long continuous ropes but the overall speed of fabric movement is slow and it may take
several minutes for the rope to complete a full circuit of the machine.
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 13
The machine has high and chemical consumption which must also subsequently be remediated
before discharging into the environment, which is an extra cost to the company but they have to
incur it due to the legal requirements of India. Though India being a developing nation it has fewer
legal regulations than Germany which is a developed nation with a high standard of living, the cost
of production tends to be lower in India. Extensive heating involved in the process puts pressure
on fossil fuels and leads to pollution, hence is a drawback of this process.
KBC (Germany)
KBC also produces fabrics with rotary printers. In
the rotary process, templates with fine
openings press the design on the fabric. For
each color, one template is needed. Up to
19 colors per design can be used.
The colors will be mixed in an approach
station before printing. With their four
rotary printers they can imprint up to
50.000 meters a day fabrics like polyester,
silk and wool. Altogether KBC produces up
to 100.000 meters a day and each day
energy costs them € 25.000.
By Akshat Chhabra, Ishan Rajgarhia, Jasmine Colucci and Janna Küchle
Source:
http://www.khemisatipolysacks.com/images/pp_hdpe_woven_fabrics.jpg
http://khemisati.co.in/about_us.html
https://www.merriam-webster.com/dictionary/cross-dyeing
https://www.wateractionplan.com/documents/186210/186332/Best+Technology_Low+Liquor+Dy
eing+Machines.pdf/7483805e-604a-4c44-9f1c-9f81cda8fa02
http://www.kbc.de/en/home/
http://kbengineers.co.in/?product=super-jumbo-jigger-jt-10-machine
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 14
Social Impact of changings in production system
Social impact of the textile industry in India
Shri Khemisati Processors has its state of the art
manufacturing facilities at Maharashtra in India,
well equipped with latest manufacturing facilities.
On our visit there we saw that, their unit is said to
be a cotton based unit occupying a wide area of
more than 200,000 square feet. They deal with
dyeing and processing of a wide range of fabrics
as cotton, polyester, viscose, high twist and multi
blended yarns and manufacture fabrics based on
the domestic as well as international market
requirements. On average they produce 4.5-5.0 million meters and 60 tonnes of hosiery (knitted
fabric) per month, their motive staying quality is their priority. Hence, all the products that are
produced by them are cost effective.
Because of the high population of India even if the company had the best machines it would not
be possible to have the low labor like KBC, the fabric company in Germany. Shri Khemisati is not as
big a monopoly as KBC and so may find it more difficult to achieve various economies of scale,
namely financial economies of scale and bulk buying. This can restrict their production to some
extent whereas the production is encouraged in Germany as this industry is a large part of their
GDP. In India, people are less affected by any changes made to the company as there are more
companies that consumers and customers can depend on.
The company is more inclined towards labor intensive production rather than automation. This
may lead to an increase in employment levels, but the Indian textile industry suffers from lower
specialization and division of labor slowing production compared to the German textile industry.
Also the employees that are hired by the Indian textile industry aren’t very skilled and require
more training and education because of the low literacy rates so that they can operate the
machines in the factory efficiently. However, the wages that the employees earn are much lower
when compared to Germany due to the excess supply of labor which will have a negative effect on
the social life of the people. When compared to Germany, lesser importance is given to the
protection of the environment because measures are not taken in order to reduce air pollution
levels.
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 15
Social impact of the Textile Industry in Germany
KBC Fashion GmbH & Co. KG, with its 450
employees, is a German textile company
based in Lörrach, with a 270 year
tradition. We visited the factory on 9th
June, 2017 seeing the differences of its
impact in Germany compared to Shri
Khemisati in India. KBC has been
producing textiles and fabrics since 1753
and is one of the most important textile
printing companies in Europe and is
represented in more than 16 countries
worldwide. Their main consumers are Zara,
Top shop, s.Oliver, Bershka. They not only produce designer clothes through inkjet printing, rotary
print but also have a whole separate department for sail cloths.
The German government imposes heavy taxes on KBC in order to prevent it from becoming a
monopoly. The company delivers to 150 countries hence having so many stakeholders.
The priorities that the textile industry and the KBC industry are based on are very different to
those in India. KBC operates in the quaternary sector due to the merging of the secondary and
tertiary sectors of the textile industries. Production of fabrics in KBC, or for any fabric industry, is
extremely systematic and organized because of the division of labor in the factories which
ultimately leads to specialization. The laborers are divided into different departments according to
their level of skills and comfort due to which they can achieve increased productivity.
The company affects all sectors of society so any change in the company, especially since it has
been running for so many years, affects the entire country. Their regular clothing is bought by
everyone; the carpets keep the entire nation warm in the chilly winters; the sail materials keep the
summers fun. This affects daily life environmentally, economically and socially. In Germany rules
are stricter and measures need to be taken like to improve conditions for workers and reduce
pollution. Textile producers, manufacturers and distributors launch initiatives built around
sustainable development in Germany, opposed to India where it is more economically based.
After the company reached prosperity due to huge amounts of funding and after four years of
shutdown, the brothers Merian from Basel and the entrepreneur Koechlin from Mulhouse bought
the indienne printing plant, seeing how important it really was. It stayed unaffected during the
world wars showing how mechanical it has been since the beginning. The company is capital
intensive and has one main person operating it. At KBC all the operations including, printing,
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 16
stitching, coloring, washing were being done mechanically with few workers actually operating it.
Every action is recorded and closely viewed via cameras instead of people and even the quality
checks are not visual like in India. This is possible because of the low population in the country
opposed to India where, if so mechanical, the unemployment rates would be even higher.
The textile production at KBC is extremely capital intensive with just a few employees who operate
the machines. This can ultimately lead to increased productivity and output since a larger volume
of textile can be produced. An example of this is when KBC uses digital printing in order to inno-
vate and mass produce its products. However, on the other hand, it leads to a certain level of un-
employment too since the demand for labor will be lower. In this way, Germany can experience
structural unemployment which can harm the economy.
The visit was a great learning experience and helped us understand the true impact that each
industry has on the country and the differences in every system throughout the world.
By Noshir Langrana, Aadhya Kocha, Phil Fischer, Anna Vierling
Source:
http://www.kbc.de/en/business/about-kbc/
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 17
KBC as Model for Indian Textile Industries
India’s Textile Industry
The fastest growing economy in the world, India’s industrial sector is largely dependent on
exports, precisely 11%. Almost at par with the agricultural industry, the textile industry comprises
of nearly 40 million laborers making it a labor intensive manner of manufacturing. India's overall
textile exports during FY 2015-16 stood at US$ 40 billion.
The textile industry is part of India’s unorganized sector which consists of handlooms, handicrafts
and sericulture using traditional tools and methods. The evolution of this industry has been aided
by the Indian government’s efforts, which include establishing vocational courses to upgrade the
skill of the laborers and increase employment. Adding on to this the government also encourage
new entrepreneurs to invest in sectors such as knitwear by increasing allocation of funds to banks
from Rs 1,36,000 crore (US$ 20.4 billion) to Rs 2,44,000 crore (US$ 36.6 billion). India’s textiles
have now also been purchased by market moguls such as Raymond and Snap deal. As a result
India has generated crores of rupees of revenue through the industry. However there is still a
backlog in the technological advancements that this industry is prone to.
India’s labor intensive approach is heavily contrasted with the mechanization observed in the
globally acknowledged KBC textile industry.
German Textile Industries – KBC
If we shift our attention to KBC in Lörrach, a technological boom is primarily observed in its overtly mecha-
nized and optimized textile industry. Using a digital printer in their manufacturing process, KBC is able to
increase its primary supply of output, thereby increasing the influence of the textile industry, and is
boosting the export industry of the German economic sector. As compared to India’s 40 million labor force,
KBC wields the skills of only 450 employees, thereby highlighting its dependence on increased investments
through capital. These factors have helped in establishing KBC as a monopoly of the German textile
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 18
industry, increasing its scope of distribution with multinational companies such as Zara, Mango and Forever
New.
Applying KBC's model to the Indian textile industry
KBC’s automated approach would greatly stimulate growth in India’s textile industries, since it
would better cater to its millions of patrons through an accelerated rate of production of various
fabrics and garments. Certain machines such as the digital printer and segregation into depart-
ments for washing and designing would require more capital investments, but would also provide
large rates of return on the aforementioned investment. Moreover, KBC’s internationally renow-
ned fabric and craftsmanship could seep into the workings of the Indian industry, with technologi-
cal advancements that could be provided by the Indian government. Apart from being beneficial
to just the industries, KBC’s optimized manufacturing methods also decrease the rate of emission
from the factory machines, decreasing the overall levels of pollution in the area. Were this philo-
sophy to be adopted in Indian industries, it would increase the general sanitation followed by in-
dustries in India. In saying that, India’s overwhelming population size often limits further invest-
ment owing to a need to employ more workers. However, with increased government aid and
facilitation, there is no reason that India and Germany cannot be at par with each other in the
future.
The government of India has various initiatives for this industry. It plans to introduce a mega
package for the power loom sector, which will include social welfare schemes, insurance cover,
cluster development, and up gradation of obsolete looms, along with tax benefits and marketing
support, which is expected to improve the status of power loom weavers in the country.
The most relevant implementation would be increased government subsidies on modern machi-
nery The Revised Restructured Technology Up gradation Fund Scheme (RRTUFS) covers manufac-
turing of major machinery for technical textiles for 5 per cent interest reimbursement and 10 per
cent capital subsidy in addition to 5 per cent interest reimbursement also provided to the specified
technical textile machinery under RRTUFS.
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 19
Under the Scheme for Integrated Textile Parks (SITP), the Government of India provides assistance
for creation of infrastructure in the parks to the extent of 40 per cent with a limit up to Rs 40 crore
(US$ 6 million). Under this scheme the technical textile units can also avail its benefits.
The major machinery for production of technical textiles receives a concessional customs duty list
of 5 per cent.
The future for the Indian textile industry looks promising, buoyed by both strong domestic con-
sumption and export demand. With consumerism and disposable income on the rise, the retail
sector has experienced a rapid growth in the past decade with the entry of several international
players like Marks & Spencer, Guess and Next into the Indian market.
In conclusion KBC advocates the following methodologies:
More structured layout of departments.
Increase in capital investment.
Optimization of manufacturing.
Increase in distribution with major companies.
If India were to adopt this, the surge in growth of Germany’s textile industries can undoubtedly be
observed even in India’s more primitive manufacturing methods. Helping the families and promo-
ting the social well-being of India’s citizens would also follow the increase in economic growth.
By Vikram Kishinchandani, Dhvani Dalal, Ryan Whyte, Lisa-Marie Roniger
Source:
https://www.ibef.org/industry/textiles.aspx
https://swarajyamag.com/business/modi-sarkars-latest-labour-law-reform-can-help-create-
millions-of-low-skilled-jobs-india-needs
http://www.kbc.de/en/home/
http://www.fibre2fashion.com/market-intelligence/countryprofile/germany-textile-industry-
overview/
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 20
Creation of future gross prospects of Textile Industries
Export of textiles
In 2013 India has overtaken Germany and Italy to emerge as the world's
second largest textile exporter. But China is still the leading position, whose
exports are almost seven times higher.
Data showed that India's textiles exports were estimated at $40 billion in
2013, compared with China's $274 billion. Textiles includes everything from
fibre and yarn to fabric, made-ups and readymade garments made of
cotton, silk, wool and synthetic yarn.
As the graphic shows, the exports of Indian textiles
are decreasing, but India, in this graphic at least, is
still the leading position right after China. It also
shows that Vietnam and Bangladesh are always
behind India. But in the year 2015 and 2016 you can
see, that Vietnam and Bangladesh increased their
exports and India decreased.
Textile Industry in India
India’s textiles sector is one of the oldest sectors in Indian economy. Even today, the textile sector is one of the largest contributors to India’s exports with about 11 per cent of total exports. The textiles industry is also labour intensive and provides employment to a major sector. The textile industry has two broad segments. First, the unorganized sector consists of handloom, handicrafts and sericulture, which are ope-rated on a small scale and through traditional tools and methods. The second, organized sector consisting of spinning, apparel and garments segment which apply modern machinery and tech-niques such as economies of scale. The textile industry employs about 40 million workers and 60 million indirectly. India's overall textile exports during FY 2015-16 stood at US$ 40 billion.
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 21
Market Size
By 2021 the Indian textiles industry is expected to reach at least US$ 223 billion. Currently it is estimated at around 108 billion$. The industry is the second largest employer after agriculture. It provides employment to over 45 million people directly and 60 million people indirectly. The Indian Textile Industry contributes approximately 5 per cent to India’s Gross Domestic Product (GDP), and 14 per cent to overall Index of Industrial Production
(IIP). The Indian textile industry has the potential to reach US$ 500 billion in size. The growth implies domestic sales to rise to US$ 315 billion from currently US$ 68 billion. At the same time, exports are implied to increase to US$ 185 billion from approximately US$ 41 billion currently. Indian exports of locally made retail and lifestyle products grew at a compound annual growth rate of 10 per cent from 2013 to 2016, mainly led by bedding bath and home decor products and textiles.
Textile industry in Germany
Germany is a major player in foreign trade with textiles and clothing. The country is the fourth largest exporter of textiles and clothing worldwide. At the same time, the country is also the second largest textile importer after the United States and has become an attractive market for many textile exporting countries since the 1980s. Especially in the clothing segment, Germany
Marketing – Products or Opportunities?
Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 22
imports a vast majority of apparel products, thus offering an appealing opportunity for foreign companies.
The domestic industry is made up of almost 1200 mostly small and medium sized enterprises with a national workforce of 120,000 in the different industry segments. The structural change during the past decades has transformed the national textile industry from low-tech manufacturing into an innovative high-tech sector. Today the German textile industry is the global market leader for technical textiles with a market share of 45 percent.
What trends determine the future of the location “Germany” and what are its prospects for
development?
The future of the T&C industry is driven by the megatrends “Demographic transition”, “Globaliza-
tion III”, “Sustainability in environmental preservation and energy efficiency”, “Volatility and
Knowledge” and “Individualization”. All of these share a high demand for innovation, which hap-
pens to be one of Germany’s main strengths. If used properly, Germany will be able to improve its
competitiveness in the T&C industry in a decisive measure. If the country can maintain constant
progress on its competitive edge - quality and technological expertise - demand for German T&C
products is likely to increase in the next decades. However, due to demographic change this
demand will shift from Europe to developing and newly industrialized countries. Many of these,
which are already actively investing in German T/C products and services, are growing vigorously
in size. However, these countries are also gaining economical power and along with it wealth,
therefore these nations will, as Germany did decades ago, shift strategically from “Cost
leadership” to “Differentiation”. This is the most serious threat for the German T&C industry, next
to decreasing inland supply of skilled personnel due to an aging population. Additional
opportunities for the German T&C industry arise from the growing demand of sustainability,
another of Germany’s strengths, and the increasing trend towards synergy between branches.
By Jennifer Rychlik, Muskaan Kukreja, Adviti Bali and Friedrich Knoll
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Future Models of Textile Industries
Textile engineering today is shattering decade-old stereotypes of a
labor-intensive, factory-based industry in which men and women
toiled over looms and spinning jacks. The clang of the early produc-
tion machinery has been replaced by a computer-driven enterprise.
Special scientists will be using high levels of nanotechnology, to
develop smart fabrics, in order to progress in the field of textiles.
Overtime, people are going to rely on individual personalized desig-
ners instead of large retail stores. Textile manufacturers will use 3D
printers, heavy machinery, and barely any manual labour. Everything
will be computerized and processed using binomial data.
The futuristic fantasy of fashion is going to
change the way textiles are produced and
worn. People are going to embrace mood-
responsive clothing and try to replicate
their personalities in how they dress. There
are going to be 6 major scientific
breakthroughs. The future of textiles id
called smart textiles. Firstly, in the last 12
months 3D-printing has taken off however
it is very grounded, over the next few years
designers will exploit this method in order
to make fashion more expressive. Secondly, while parts of the fashion world obsess over an ever-
changing parade of “This Season’s Hottest Color,” then future holds clothing that changes color.
The first ideas were drawn from the Sensitive Hyper-color T-shirts of the 90’s, however, modern
advances in photo chromatic technology are throwing up some more intriguing possibilities. The
scientists at the University of Michigan are exploring a membrane of tiny crystals that react
differently when exposed to various wavelengths of light. Thirdly, at Concordia University in
Montreal scientists are trying to harness electricity from the movement of the human body and
use it to power a new kind of “electronic fabric.” Using a very subtle current, the material would
trigger super-fine wires woven into its makeup to change its color or illuminate according to the
wearer’s actions. This type of textile would act like “Karma Chameleon,” changing color depending
on the surroundings. Furthermore, there are fabrics which protect from ultraviolet wave, and
radioactive rays. Moreover, an independent university at Budapest is trying to make use of small
12v Arduino controller the technology transforms sound waves into low level heat, which in turn
affects the properties of the dye in the fabrics to change their appearance almost instantaneously.
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They
call this project “Chromo sonic“. Lastly, scientists at Deakin University in Australia are creating
fabrics that can repair itself in case of any rips, tears, liquids spilling, or any dirt. These are water
proof garments.
By Marvin Enderlein, Florian Kürz, Eesha Jain
Source:
Gwilliam, AJ. "5 Future Textile Technologies to Change Fashion | Highsnobiety." Highsnobiety.
Highsnobiety, 03 June 2015. Web. 13 June 2017.
"Transforming the Textile Industry." ASME.org. N.p., n.d. Web. 13 June 2017.