Readymade Garments

7/24/2019 Readymade Garments

1/19


2/19

The textile industry occupies a leading position in the hierarchy of the Indian

manufacturing industry. It has witnessed se!eral new directions in the era of

liberali#ation. $hile textile exports are increasing and India has become the largest

exporter in world trade in cotton yarn and is an important player of readymade

garments" country7s international textile trade constitutes a mere 3% of the total world

textile trade. =e!eral mills ha!e opted for moderni#ation and expansion and are goingin for export-oriented units +A0


3/19

$any of the engineers, project consultant & industrial consultancy firms in !ndia and

worldwide use our project reports as one of the input in doing their analysis.


4/19

PREFACE

We are going to make our project on textile industry in order to know the Readymade

Garments process. This project also gives the some important information of textile industry

those brands, different product, ew business, ew technologies, ew partnership. !ecause

technologies also shape corporate destines.

The "areer of the #erson depends upon many things. $ne of them is the knowledge. %t

ac&uires through theory is not sufficient to develop. 'er personality and to develop some

skills, but now a days, it is no more. #ractical training is necessary to implement the theories

( ac&uire the knowledge, so for this purpose our institute )Global %nstitute of *anagement )

affiliated by Gujarat Technological +niversity.

The report is made with clear objective of study of textile industry- its working. The

report will give the details of #roduction .$ur report provides you all the information

related to the Readymade Garments. We hope this report fulfils need of the educational

re&uirements.


5/19

ACKNOWLEDGEMENT

We are heartily thankful to the /hraddha *aam, which has given us the

golden opportunity to prepare or analy0e project report of textile industry-. We

are also thankful to honorable professor /hraddhamaam who has leaded us to

enlighten ourselves in preparation of this project.

We are heartily thankful to *anagement 1aculty without whose constant

guidance this work would have been an impossible task to complete. 'er

inspiration and encouragement has leaded me to come with a successful task.
https://sites.google.com/site/gimt794/academic-resources/ms-anupama-ambujakshanhttps://sites.google.com/site/gimt794/academic-resources/ms-anupama-ambujakshan


6/19

INDEX

$

PARTICULAR #2G3

$.4 PREFACE

5 ACKNOWLEDGEMENT

6 OVERVIEW OF TEXTILE INDUSTRY

7

8

9

:

;

< BIBLIOGRAPHY


7/19

OVERVIEW OF TEXTILE INDUSTRY

*oderni0ation %s 2 "ontinuous #rocess 2nd There /hould !e "oncerted 3fforts To

*oderni0e !oth *achinery 2nd *anufacturing #rocesses Regularly. %t %s General3xperience That +nits Which *aintained The #rocess $f *oderni0ation /ystematically

"ould *anage To /ustain Their Growth %n The =ong Run.

*oderni0ation %n 1act %s eeded To %ncrease #roduction, Reduce The "ost $f #roduction,

Rationali0e =abour, Reduce *aintenance 2nd #ower "ost #er +nit $f #roduction 3tc. >ue

To 2 umber $f 1actors, The ?ast *ajority $f The Textile +nits %n %ndia ever Tried To

Regularly *oderni0e Their +nits. 2s 2 Result The %ndian Textile %ndustry 'ad !een

/uffering 1rom Technological $bsolescence /ince The !eginning $f The 5@th "entury.

Textile %ndustry %s $ne $f The =eading Textile %ndustries %n The World. Though Was

#redominantly +norgani0ed %ndustry 3ven 2 1ew Aears !ack, !ut The /cenario /tarted"hanging 2fter The 3conomic =iberali0ation $f %ndian 3conomy %n 4


8/19

market is still in a budding phase. Due to the higher the introduction

cost of brand in India for the foreign players, domestic players hae no

fear of any outside competition. !he main obstacle to the organi"ed

players is the huge unorgani"ed scenario of the market. In a moe to

compete, the organi"ed players hae rolled out their own strategy of

standardi"ing the goods. !he brands introduced by these ma#or te$tile

players hold much intrinsic power and high on %uality and pricing

factors. !hey present the inheritance and constancy in the garment

piece. Siyaram&s is enturing into readymade garment to grip the

continuously changing fashion trends. It is becoming a prominent

designer of men's readymade garments and accessories from fabric

manufacturer. !he two ma#or uni%ue selling points of the recently

launched Siyaram&s brand, (onday to Sunday Dressing would be the

widespread 3),))) retail outlets, where it is selling fabrics and second,

the fabric %uality that Siyaram&s has, which guarantees that the buyer

gets the high %uality at a cheaper price.

GRASIM INDUSTRIES: TEXTILE SECTOR

*rasim Industries has a strong presence in the te$tile industry in India in the

fabrics and synthetic yarns sector through its subsidiary *rasim +hiwani

!e$tiles imited. *rasim is well known for its branded suitings, *rasim and

*raiera, mainly in the polyester - cellulosic branded menswear. Its te$tile

plants are located at +hiwani /aryana0 and (alanpur (adhya radesh0. 2ne

of the leading fabric manufacturers in India, *rasim&s fabric operations arecentralised at +hiwani with a processing capacity of 1 million metres a year.

4ikram 5oollens, (alanpur, a unit of *rasim manufactures worsted dyed yarn

spun from 1)) per cent merino wool along with polyester and other blends.

*rasim&s strong nationwide retail network includes e$clusie showrooms,

wholesalers and multi-brand outlets through which it reaches its customers.

*rasim also has a strong presence in the international market, catering to

international fashion houses in the US and the U6, supplying fabric for

manufacturing garments. !hese garments are aailable in retail chain storesaround the world.
http://www.adityabirla.com/about/Grasim-Industries-Grasim-Suitinghttp://www.adityabirla.com/about/Grasim-Industries-Grasim-Suiting


9/19

*rasim&s state-of-the-art manufacturing facilities has the latest technology in

7bre dyeing, yarn spinning, weaing, processing and folding, which ensures

that the company is at par with leading te$tile manufacturers in India. *rasim

has a strong design and deelopment team which conceptualises and

deelops designs as per the latest international fashion trends and marketneeds.

Rle ! Te"tile Ind#$try in India GD%

Rle ! Te"tile Ind#$try in India GD%has been %uite bene7cial in theeconomic life of the country. !he worldwide trade of te$tiles and clothing hasboosted up the *D of India to a great e$tent as this sector has brought in a hugeamount of reenue in the country.

In the past one year, there has been a massie upsurge in the te$tile industry ofIndia. !he industry si"e has e$panded from USD 3 billion in ))9-): to USD 9;billion in ))

India coers


10/19

Aollowing are the statistics calculated as per the contribution of the sectors in !e$tileindustry in India *D>

India holds percent share in the te$tile market in Burope and 93 percentshare in the apparel market of the country. US@ holds 1) percent and 3.< percentshares in Indian te$tiles and apparel.

Aew other global countries apart from US@ and Burope, where India has amarked presence include U@B, Saudi @rabia, Canada, +angladesh, China, !urkey and

apan

?eady made garments accounts for 9: percent share holding in the totalte$tile e$ports and 8. percent in e$port production of India

B$port production of carpets has witnessed a ma#or growth of 9.3 percent,

which apparently stands at USD


11/19

PORTER FIVE FORCE ANALYSIS OF TEXTILE INDUSTRY IN PAKISTAN

Porter five force analysis consist of following five forces

Entry & Exit barrier

Level of competition

Bargaining power of buyers

Bargaining power of supplier

Threat of substitute

ENTRY & EXIT BARRIER

In entry and exit barrier we are choosing following indicators to understand this force

a) Legal environment and Incentive from government in textile industryb) Energy crises

Lets start with legal environment regarding textile industry

a) LEGAL ENVIRONMENT

!enerally spea"ing legal environment is not in the favor of textile industry#

The Textile Industry was one of those five industries of Pa"istan that en$oyed %

rating facility' which means that their products were not sub$ect to any sales tax# This

exem!i"# $as %ie# '( !he %"e#me#! !h"*%h SRO +,- .I)/0,,1 2a!e2 -!h

3*#e4 0,,15 B*! e6e#!7( a #e$ SRO 089.I)/0,99 2a!e2 9+!h Ma6h4 0,99 has

'ee# issued to have changes in the previous one# The applicability of the new sales

tax regime for textile sector has become applicable from (pril ' *% instead of date

of the promulgation of the Presidential +rdinance or issuance of relevant notification

i#e#' ,arch -' *%# This new ./+ finished the facility of %% 0ero rating and

imposed a tax of 1 if the finished fabrics have been sold to the un2registered

persons li"e wholesale mar"et


12/19

(ll Pa"istan Textile ,ills (ssociation 3(PT,() has told that governments actions are

not matching with its words for the textile industry# 4hairman (PT,( said that this

government policy is textile industry friendly#

a) NO SUBSIDY FROM T:E GOVERNNMENT

Especially the provisions of 5inance Bill *%%62% are not textile industry friendly at

all# Provisions li"e

/eintroduction of %#- minimum tax on domestic sales

withholding tax on import of textile and articles

7 5ederal Excise 8uty on ban"ing and insurance services besides

/eintroduction of minimum tax on domestic sales would invite unavoidable li9uidityproblem' which is already reached to the alarming level# The textile industry was

facing negative generation of funds due to unaffordable mar" up rate

The %"e#me#! has aise2 se6ia7 ex6ise 2*!( ;"m "#e e 6e#! !" 0+ e

6e#!5

.o instead of given subsidy to the textile industry the government of Pa"istan is

ma"ing unfriendly policies for the textile industry#

.o we conclude that entry and exit barrier are very high#

') INFLATION RATE


13/19

The categories which recorded the highest price increases were: (lcoholic

Beverages and Tobacco 3;#- percent)< /ecreation and 4ulture 3= percent)ealth 4are 3?#* percent)< /estaurants and

>otels 36#; percent) and ,iscellaneous !oods and .ervices 3;#7 percent)#

The increase in inflation causes the increase in the cost of production of textile good

which return in downsi0ing# The increase inflation also cause reduction in exports of

textile#

6)ENERGY CRISES

In spite of the rates of utilities in Pa"istan being higher than competing countries'

their tariffs are increased on regular basis ma"ing the industry un2competitive# The

cost of production has also risen due to instant increase in electricity tariff# (s a

conse9uence of load2shedding the textile production capacity of various sub2sectors

has been reduced by up to ?% percent which' along with other conse9uences' has

also reduced the export order# 8ue to load shedding some mill owner uses

alternative source of energy li"e generator which increase their cost of production

further# 8ue to such dramatic situation the capability of competitiveness of this

industry in international mar"et affected badly#

A s"


14/19

a66e! ex"! "2es 6"mi#% i# ;"m a"*#2 !he %7"'e4 as a es*7! "; %as 7"a2

she22i#%5

(nother $er" has been given to the industry in the form of a @Two2day wee"endA for

the conservation of energy# Either ade9uate energy resources are unavailable to the

industry or the prices of fuel are out of range of the industry# The textile industry

being an energy intensive sector is vulnerable to a higher rate of energy losses

across various production processes resulting in higher energy bills' and productivity

losses2 all of which have significant financial impact

e conclude that in extile industry entry and exit barrier are very high#

LEVEL OF COMPETITION

Two types of competition is facing by textile industry

Internal

External

+n national stage the level of competition is low because textile industry needs huge

investment# ,ost importantly now a days our country legal and tax policies are not in

the favour of textile industry Cow a days Pa"istan is also facing severe energy crisis#

The high cost of production resulting is because of increasing energy crisis#

S" "# i#!e#a7 7ee7 !his 6"me!i!i"# is 7"$ 'e6a*se "; *#a!!a6!ie#ess "; !his

i#2*s!(5

>hi7e "# i#!e#a!i"#a7 7ee7 i#2*s!( is ;a6i#% 6"me!i!i"# ;"m "!he

2ee7"i#% 6"*#!ies 7i


15/19

Co of player is low to moderate but the rule of game is very high#

.o' we conclude that in textile industry level of competition is very high#

BARGAINING PO>ER OF BUYERS

Bargaining power of buyer is very high because of new emerging trends of >+ # In

past D.( and ED was the ma$or importer of Pa"istani textile goods but not now#

Pa"istani textile industry is achieving the national 9uality standards very hardly It is

not easy for Pa"istani textile industry to achieving international 9uality standards#

Cow a day >+ 9uality standard is !he me!a7s "; m"s! imme2ia!e 6"#6e# ae

6h"mi*m4 ?i#64 i"#4 me6*( a#2 7ea25 The fate of these chemicals varies'

ranging from %% retention on the fabric to %% discharge with the effluent# ,ost

of these metals are non2degradable into non2toxic end products# Experts say that

textile wastewater contains substantial pollution loads in terms of 4+8' B+8' T..'

T8. and heavy metals# The values of these parameters are very high as compared

to the values in Cational Environment uality .tandards 3CE.) set by the

government#

U#i!e2 S!a!es 6a#6e7 m"e !ha# +,@ "; !ex!i7e "2es "; PaER OF SUPPLIER

Bargaining power of supplier is low because of the new emerging trends of >+

#Cow the buyers have very much power to exercise as compare to suppliers#

.o' bargaining power of supplier level is low#


16/19

T:REAT OF SUBSTITUTE

In textile industry threat of substitute is low because people dont have any option to

purchase another product to satisfy their need#

(s D.( cut off -% textile trade from Pa"istan but it does not mean that D.( find a

substitution for textile products #In fact they shift to another suppliers as 4hina

'Bangladesh or India#

.o we conclude that threat of substitute is low #

P"!e Fie

;"6esLO> MEDIUM :IG:

Entry & Exit barrier

Levelof competition

Barganing power of

buyers

Barganing power of

suppliers

Threat +f .ubstitute


17/19

CONCLUSION

Porter five forces results show that textile industry is not a favorable business in

Pa"istan to operate#

(mong the five porter forces three are listed on table as high and remaining two are

listed as low #.o simply the answer to start a textile business in Pa"istan is in no#

BCG matrix

Portfolio plan of Boston 4onsulting !roup 3B4!) that has been developing since

=%Fs is based on the assessment analysis of existing products' possibilities of

modifying products or manufacturing new ones# .tarting from researches done by

B4!' it has been concluded that a strategic position of business is determined in

accordance with relative mar"et participation and a mar"et growth rate#

/elative mar"et participation is considered to be a mar"et participation of a product

in relationship with a leading competitor in the production of similar garments#

!rowth rate can be positive 3meaning growing mar"et)' nought 3standing for

stagnated mar"et) and negative 3i#e# falling mar"et in future)# ,ar"et growth rate is

indicated with GlowG and GhighG in B4! matrix meaning that mar"et growth rate of

that garment manufactures is lower or higher than growth of an entire economy of

the region#

(t so called Boston matrix' products are indicated as follows:
http://gordanacolovic.blogspot.com/p/blog-page.htmlhttp://gordanacolovic.blogspot.com/p/blog-page.html


18/19

H .tars 2 products with a high participation on a mar"et and a high mar"et growth

rate 3garments that bring profit but needs a large investment in textile material as

well as a technological process of production)#

H 4ash cows 2 garments that are main sources of profit

H 8ogs 2 products with low growth rate and low rate of mar"et participation

3garments with low participation on a mar"et that stagnates 2 stops producing them)#

H Problem children 39uestion mar") 2 products with a high growth rate and small

mar"et participation 3garments that bring small profit' but are promising so theycannot be neglected)#

(ccording to this matrix an integral indicator of all mar"et characteristics stands for

a growth from the following reasons:

2 growth is the best measure of life cycles of a product'2 it is easier to win a mar"et share when product attracts new customers'2 it is easier to "eep than to con9uer a mar"et'2 mar"et is larger and non2competitive on a growing mar"et'2 new competitors can be discouraged by aggressive appearance on a growing

mar"et#

Trying to remove the shortage of B4! matrix' Boston 4onsulting !roup hasdesigned a new portfolio matrix# Cew B4! matrix has a changed coordinate ofrelative mar"et participation with Ga great advantage that is going to be designed inregards to other competitorsG' and a mar"et growth rate has been changed by Galarge number of uni9ue ways used for creating advantagesG#


19/19

Readymade Garments

Documents

Transcript of Readymade Garments