A Brief Report on Environmental Scanning Of Textile Industry

Submitted to:

Sumitted By:

Dr.Sheenu Jain Marketing Management-I

Group- Microsoft PGDM 2012-14

OVERVIEW OF INDIAN TEXTILE INDUSTRY

India Textile Industry is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world. India textile industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. Indian textile industry can be divided into several segments, some of which can be listed as below:

Hand-crafted Textiles

INTERNAL ENVIRONMENTAL FACTORS

TARGET CONSUMER: Being as essential product of society,the whole population is the target consumer.

PRODUCT: Shirtings- It offers shirtings in multifarious designs and colours with unique patterns of textures and weaves, which suit casual aswell as formal occasions. Prints. Voiles- The Company specialize in premium voiles. These voiles are available in floral prints, solids, lenos and dobbies. Sleepwear- The Company caters to sleepwear products which hold immense value for its superior quality and comfortable clothing, namely, lawn, voiles, satins and flannels. Beachwear Bottom wear- the Company offers a range of chinos and twills in 100% cotton & blend with surface, elegantly styled and available in two/ three folds and soft finish for you to enjoy a comfortable and an eye-catching wear.

Kids wear- Mafatlals has always had great endeavors to delight kids with bright colour
schemes for wovens and character prints along with soft and smooth flannels, which are eco-friendly, keeping in mind the comfort of the wearer.

PRICE: The very reason for price change in RGI was the increase in raw material cost. Other factors like demand, competition and stock clearance hardy made any difference to the cost.

PLACE: Gujrat, Maharasthra, Andhra Pradesh, Punjab, Haryana; are the major states where most of the textile industry are situated due to easy availability and cheap cost of cotton.

PROMOTION: At initial stage the company would not need a great extension towards promotion but after the materials are made at finished goods the company had to decide and formulate a plan to promote the finished goods of the different companies through different strategies. Each company has a different strategies toward promotion. Such as Ried & Taylor endorses Amitabh Bachchan for promoting its brand. These kinds of promoting a brand is quiet impressive and attractive towards everyone.

MICRO ENVIRONMENT FACTORS PRODUCTION:

It includes labour cost, quality weaving,fuel expenses,power expenses and rise in electricity tariff further added pressure on industry. These factors affect quality to the production of Textile Industries.

FINANCE: The Industry has pointed out that infrastructure,labour,fiscal levies,exim policies are the main heindrances to growth, even as power, water, raw material are being tackled by the company. Investments in the high technology is also an issue.

MARKETING: Today there are many sources through which we can promote
market. Our product like online marketing,print media,advertiseming through television by mouth of words. Tagline of the company also effect its demand like Raymond says The Complete Man it make the consumer feel a satisfaction of being perfect. Like Puma says Puma Safe Puma Peace Puma Creative it make feel the consumer the dress he wear in unique and safe in itself.

COMPETITOR: Competitor is generally measured by comparison of market

shares. Today there is a hook and crook competition in market cause these companies like Raymonds, Siyarams, BIBA, Westside, Globus all have different features with innovative ideas.

INTERMEDIARIES: For many in the fabric or fashion industry, reactive dyes are the way to go for textile resins and other textile chemicals. Not only do fiber

reactive dyes work well on the widest range of materials -- cotton, silk and many other cellulose fibers -- but many reactive dyes can also be used with cold water, which means big savings in utilities since you don't have to pay for the cost of heating the water commonly used in dye baths. Reactive dyes are also more and more the dye of choice since they form a covalent bond with the fiber protein and become a part of the fiber -- making the fabric safe to wash without the chance of color transfer.

Get the most out of both traditional and reactive dyes by considering the following:

1. A textile auxiliaries manufacturer who specializes in reactive and craft dyes

2. Dyes from eco-conscious companies

3. Pre-treating enzymes.

RESEARCH & DEVELOPMENT: Currently, Indian Textiles sector contributes about 14% to industrial production, 4% to the GDP, and 17% to the country's export earnings. It provides direct employment to over 35 million people. The Textiles sector is the second largest provider of employment after agriculture. However, the Indian textiles industry has only a small fraction of revenue derived from innovative, technology intensive or emerging products. Our strength has very much been in commodity products susceptible to intense competition and few entry barriers. FICCI believes to make the textiles sector fundamentally strong and foray in emerging areas, there is a need to develop a comprehensive R & D policy

for Indian Textiles sector. FICCI has suggested below some of the outlines of R & D policy for Indian Textiles Sector.

MACRO ENVIRONMENT FACTORS

POLITICAL: An industry will not be able to gain success,good reputation and trust if it will not consider legal and political sector as part of its strategy. It includes the policies,rules & regulation of the government like political stability. Frequent change in political party will lead frequent change in laws and strategies.

ECONOMIC: The Textile Industry occupies a vital place in the Indian economy and contributes substantially to its exports earnings. Textiles exports represent nearly 30 per cent of the country's total exports. It has a high weight age of over 20 per cent in the National production.It provides direct employment to over 15 million persons in the mill, powerloom and handloom sectors. India is the worlds second largest producer of textiles after China. It is the worlds third largest producer of cotton-after China and the USA- and the second largest cotton consumer after China. The textile industry in India is one of the oldest manufacturing sectors in the country and is currently its largest. The Textile industry occupies an important place in the Economy of the country because of its contribution to the industrial output, employment generation and foreign exchange.

SOCIAL: In todays scenario social factors is the important factor to survive in the market for long term like NIKE produces eco-friendly clothes.

TECHNOLOGICAL: Technological refers to how technology can change and tooks automation. Some industry are labour intensive and some are machine intensive. Labour intensive considered many less technique and whereas machine intensive considered mostly recent techniques,technology and machines. Frequent changes in technology needs updated employees which again increase the cost of the organization.

ENVIRONMENTAL: The present and future liability of an enterprise is impacted by the environment.For e.g; No T.V manufacturers can be expected to survive by making only B&W Television set when consumer preference has clearly shifted to colour television sets.

LEGAL: Business may be doomed to non starters due to restrictive business environment which may take the form of rigid environment laws(no polluting industry can even be located in around 50 km radius),state of competition(car manufacturing in india presently in far in excess of demand)etc.

CONCLUSION
The Indian textile industry has a significant presence in the Indian economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. The industry also contributes significantly to the world production of textile fibres and yarns including jute. In the world textile scenario, it is the largest producer of jute, second largest producer of silk, third largest producer of cotton and cellulosic fibre\yarn and fifth largest producer of synthetic fibre\yarn. Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. The Government of India has also included new schemes in the Annual Plan for 2007-08 to provide a boost to the textile sector. These include schemes for Foreign Investment Promotion to attract foreign direct investment in textiles, clothing and machinery etc.

REFERENCES
1. "Textile Companies in India". 2. "A BRIEF REPORT TEXTILE INDUSTRY IN INDIA January, 2010". 3. "Indian Textile". 4. www.wikipedia.com 5. www.google.com 6. www.slideshare.com