INDIAN GARMENT INDUSTRY

ACKNOWLEDGEMENT
The fulfillment of any research project work is in consequence of integrated effort of a number of people. This project report has been possible only through the guidance and help of many people. I here by take an opportunity to express our sincere thanks to Dr A.Lakshamana Swamy Head of the Department, MBA for his support and

encouragement thoughout the course of the project work. I would like to express my genuine gratitude to Mr P.Srinivas Asst.professor for his valuable guidance in research and analysis through out the project. With his unfaltering support and direction, I am able to complete this project and learn a lot. The two log submissions during the project period really helped us in identifying and rectifying the mistakes and shortcomings in the project.

I would finally thank all those friends who helped us in the completion of this project.

TABLE OF CONTENTS
Executive Summary Objective

1. Indian Garment Industry

y y History Growth of Industry

2. Major Segments 3. Types of Merchandise and their Demand 4. Supply Chain in Apparel Sector 5. Key Players 6. Key Issues in Indian Garment Sector 7. Exports in Garment Sector 8. Analysis of Decade Performance 9. Retail Scenario 10. Indian Apparel Sector Trends 11. Technology and Indian garment Industry 12. Budgeting implications 13. Monetary Policy 14. Overview of Fashion Industry Advertising 15. SWOT Analysis 16. Recommendations 17. Conclusion References

EXECUTIVE SUMMARY
Fashion is serious business, everywhere. Admittedly, India was a latecomer in the scene, but the pace now is scintillating. This is testified through the escalating figures of the garment market as also by the growing tally of fashion brands and retailers who have occupied substantial share of the countrys retail space. Truly, the clock cannot be turned back now.

Over the past year, the garment industry has been building up on its capacities at various levels, expanding its product base, incorporating innovative technology, and engineering newer avenues of business. This sector, being one of the largest industrial sectors of the country, is a major propellant of the economys growth. Inherent issues and challenges dominate the industry. With the changing dynamics of doing business in a rapidlychanging global economic scenario, the sector needs to identify scopes for potential business ideas and overcome challenges by converting them into fresh opportunities.

The project aim is to understand how various movements in the economy affect the garment industry. An in-depth analysis for implications of various government policies on garment industry has also been done. The project work also highlights how important is the garment industry to the growth of our economy. The study also gives insights about the demographics and psychographics of Indian consumers, the key players in the industry and recent trends in the industry.

OBJECTIVES
The objectives of the project work are:

To understand the impact of various government policies on Garment industry.

To analyze various opportunities and threats confronted to Garment industry.

y y

To understand the demographics and psychographics of Indian consumers To understand the reasons for Indias recent sluggish performance in for textiles & garments. exports

To understand the entire process of garment manufacturing and implications at each stage of manufacturing process.

budgeting

To study the trends in the apparel industry (Retail, Exports & Technology).

INDIAN GARMENT INDUSTRY

The apparel and industry occupies a unique and important place in India. It is one of the earliest industries to come into existence in the country. The apparel industry caters to one of the most basic requirements of people and holds importance; maintaining the prolonged growth for improved quality of life. The sector has a unique position as a selfreliant industry, from the production of raw materials to the delivery of end products, with considerable value-addition at every stage of processing. Over the years, the sector has proved to be a major contributor to the nations' economy. Its immense potential for generation of employment opportunities in the industrial, agricultural, organized and decentralized sectors & rural and urban areas, especially for women and the disadvantaged is noteworthy.

History
The history of apparel in India dates back to the use of mordant dyes and printing blocks around 3000 BC. The foundations of the India's textile trade with other countries started as early as the second century BC. A hoard of block printed and resist-dyed fabrics, primarily of Gujarati origin, discovered in the tombs of Fostat, Egypt, are the proof of large scale Indian export of cotton textiles to the Egypt in medieval periods. During the 13th century, Indian silk was used as barter for spices from the western countries. Towards the end of the 17th century, the British East India Company begun exports of Indian silks and several other cotton fabrics to other economies. These included the famous fine Muslin cloth of Bengal, Orissa and Bihar. Painted and printed cottons or chintz was widely practiced between India, Java, China and the Philippines, long before the arrival of the Europeans.

Growth of Indian Garment Industry

The industry has already given ample hint of ingenuity, as is evident from the\ revival of consumer enthusiasm in the seemingly stagnant menswear segment, besides remarkable

growth in categories like sports wear, casual wear and party wear. The apparel market has grown 15.5% to INR 1,224 billion

Compound Annual Growth Rate (CAGR) of different segments

Type Yarn Fabric Made-ups Garment

CAGR (2003-08) 31.79% 9.04% 6.18% 15.795%

MAJOR SEGMENTS
Apparel industry has been broadly classified into three segments: 1. Men 24.9% 2. Women 40.2% 3. Kids 34.8%Market Share of Major Apparel Segments

Total Size: Rs 122,400 Crore Kids' Apparel + Uniforms Mens' Apparel Womens' Apparel

TYPES OF MERCHANDISE AND THEIR DEMAND

The consumer has all kinds of demands for apparel. The consumer demand can bebroadly trifurcated into three segments: Basic, Basic Fashion and Fashion Apparel. Basic apparel consists of highest volume with moderate demand uncertainty and is priced relatively low. On the other hand, fashionable attire comprises lowest volume with volatile demand, but is highly priced. Mass-product is the feature of basic-product segment and customized merchandise becomes the hallmark of fashion-product category. Therefore, depending to which demand-segment they cater to, apparel organization needs to formulate suitable supply strategy.

SUPPLY CHAIN IN APPAREL SECTOR

Supply Chain Management is the integration of key business processes from end user to original suppliers that provides products, services, and information that add value for customers and other stakeholders.

The Apparel Supply Chain

The Apparel Supply Chain comprises diverse raw material sectors, ginning facilities, spinning and extrusion processes, processing sector, weaving and knitting factories and garment (and other stitched and non-stitched) manufacturing that supply an extensive distribution channel. This supply chain is perhaps one of the most diverse in terms of the raw materials used, technologies deployed and products produced. This supply chain supplies about 70 per cent by value of its production to the domestic market. The distribution channel comprises wholesalers, distributors and a large number of small retailers selling garments and textiles. It is only recently that large retail formats are emerging thereby increasing variety as well as volume on display at a single location. Another feature of the distribution channel is the strong presence of agents who secure and consolidate orders for producers. Exports are traditionally executed through Export Houses or procurement/commissioning offices of large global apparel retailers.

It is estimated that there exist 65,000 garment units in the organized sector, of which about 88 per cent are for woven cloth while the remaining are for knits. However, only 3040 units are large in size (as a result of long years of reservation of non-exporting garment units for the small scale sectors a regulation that was removed recently). While these firms are spread all over the country, there are clusters emerging in the National Capital Region (NCR), Mumbai, Bangalore, Tirupur/Coimbatore, and Ludhiana employing about 3.5 million people. According to our estimate, the total value of production in the garment sector is around Rs.1,0501,100 billion of which about 81 per cent comes from the domestic market. The value of Indian garments (e.g. saree, dhoti, salwar kurta, etc.) is around Rs.200250 billion. About 40 per cent of fabric for garment production is imported a figure that is expected to rise in coming years.

The weaving and knits sector lies at the heart of the industry. In 2004-05, of the total production from the weaving sector, about 46 per cent was cotton cloth, 41 per cent was 100% non-cotton including khadi, wool and silk and 13 per cent was blended cloth. Three distinctive technologies are used in the sector handlooms, powerlooms and knitting machines. They also represent very distinctive supply chains. The handloom sector (including khadi, silk and some wool) serves the low and the high ends of the value chain both mass consumption products for use in rural India as well as niche products for urban & exports markets. It produces, chiefly, textiles with geographical characterization (e.g., cotton and silk sarees in Pochampally or Varanasi) and in small batches. Handloom production in 2003-04 was around 5493 mn.sq.meters of which about 82 per cent was using cotton fiber. Handloom production is mostly rural (employing about 10 million, mostly, household weavers) and revolves around master-weavers who provide designs, raw material and often the loom. Weaving, using power looms was traditionally done by composite mills that combined it with spinning and processing operations. Over the years, government incentives and demand for low cost, high volume, standard products (especially sarees and grey cloth) moved the production towards power loom factories and away from composite mills (that were essentially full line variety producers). While some like Arvind Mills or Ashima transformed themselves into competitive units, others gradually closed down. In 2003-04, there remained 223

composite mills that produced 1434 million. sq. mts. of cloth. Most of these mills are located in Gujarat and Maharashtra. Most of the woven cloth comes from the power looms (chiefly at Surat, Bhiwandi, NCR, Chennai). In 2005, there were 425,792 registered power loom units that produced 26,947 mn. sq. mts of cloth and employed about 4,757,383 workers. Weaving sector is predominantly small scale, has on an average 4.5 power looms per unit, suffers from outdated technology, and incurs high co-ordination costs. Knits have been more successful especially in export channels. Strong production clusters like Tirupur and Ludhiana have led to growth of accessories sector as well, albeit slowly. The hosiery sector, on the other hand, has largely a domestic focus and is growing rapidly. The spinning sector is perhaps most competitive globally in terms of variety, unit prices and production quantity. Though cotton is the fiber of preference, man-made fiber (polyster fibre and polyster filament yarn) is also produced by about 100 large and medium size producers. Spinning is done by 1566 mills and 1170 Small and Medium Enterprises (SME). Mills, chiefly located in North India, deploy 34.24 mn. spindles and 0.385 mn rotors while the SME units produce their yarn on 3.29 mn spindles and 0.119 mn. Rotors producing 2270 mn kg of cotton yarn, 950 mn kg of blended yarn and about 1106 mn kg of man-made filament yarn every year. Worsted and non-worsted spindles (producing woolen yarn) have also progressively grown to 0.604 mn and 0.437 mn respectively. Spinning sector is technology intensive and productivity is affected by the quality of cotton and the cleaning process used during ginning.

The processing sector, i.e., dyeing, finishing and printing is mostly small in scale. The largest amongst these would dye and finish about 5000 m/day. The remaining are independent process houses (or part of composite mills) that use automated large batch or continuous processing and have an average scale of about 20,000 m of cloth daily. About 82.5 per cent or 10,397 units are hand processors who dye cloth or yarn manually and dry in open sunshine. Of the remaining (and these use automated and semi-automated equipment), 2076 are independent process houses. Cotton remains the most significant raw material for the Indian textile industry. In 2003-04, 3009 mn kg of cotton was grown over 7.785 mn acres.

Other fibers produced are silk (15742 tonnes), jute (10985000 bales), wool (50.7 mn kg) and man-made fibers (1100.65 mn kg). Cotton grows mostly in western and central India, silk in southern India, jute in eastern and wool in northern India. Significant qualities of cotton, silk and wool fibers are also imported by the spinning and knitting sectors. (Except for garments, al data in this section was obtained from OTC 2004 and Texmin 2005.)

RETAIL SCENARIO
This can be sub divided into brand and non-brand. The branded retail sector is not more than 10 % of the total. A retailer ( whether shop owner or mall) has to keep a higher margin for branded garments than for unbranded to take care of returns on his investments as well as discount on end of season sales or out of fashion stocks and overheads.

The retail mark up is 50% for branded and 25% for non branded garments. On this basis, the size of the retail market for garments can be estimated to be around Rs. 4 to 5 trillion or around Rs. 500,000 crore. With malls coming up all over Indian metros, retail trade in garments is getting better organized than earlier. Attention is now shifting to B class and C class cities as well as the rural sector. With the growth of the economy, thanks to economic liberalization, the result of which is percolating to our farm lands as well as spread of education in the rural population is fast picking up to the urban level. Farm produce is being is better organized to reduce wastage and increase the income of farmers, Rural indebtedness is being better bank managed than the earlier system of dependence on money-lender sharks.

Better some villages, especially in Maharashtra, the rest can claim a standard of life about equal, and in some villages, even better than their urban cousins. In the last six months or so, inflation has been a bug-bear. But this is due to two factors namely unseasonable weather and strident increase in global oil prices.

INDIAN APPAREL SECTOR TRENDS

Salient feature of India Apparel Sector

Maximum employment with minimum invest ment.

Hgh percentage of women employment 35 %

95% production in small-scale sector

3% share in global apparel exports

Cluster based growth concentrated primarily in 8 clusters, i.e Tirupur, Banglore, Delhi /Noida /Gurgaon, Mumbai, Kolkatta, Jaipur and Indore

Contributes around 8% to India s overall exports and 48% to textile Exports

Production in Apparel Sector

The apparel sector is expected to record a CAGR of nearly 15% in quantity terms and 20 % in value terms in 11th plan period. By 2001-12, production is expected to reach 19 bn pcs , amounting to rs 299300 crs, 32% of this population is expected to be generated by the export sector. In value terms, 51 % of the population is expected to be contributed by exports. The accent is on the value added growth both for domestic and export market India in recent years has been the focal point of continuous growth and development making it one of the fastest growing economies of the world. It is the 4th largest economy in terms of Purchasing Power Parity, after USA, China & Japan, and is rated among the top 10 FDI destinations.

The Indian consumer is evolving and driving retail growth due to increased consumption. Private consumption growth contributes to more than half of the GDP growth and is growing in double digit figures. Several businesses are reacting to this evolution positively, both through pull and push phenomenon. Following a similar trend, the Indian textile and apparel industry is also experiencing rapid changes and growth. Apparel today has the largest share of the modern organized retail in India i.e. 20% of the current market of Rs. 56,000 crore and this is expected to grow at a constant rate of 20% over the next 4 years.

These are few recent trends pertaining to the garment industry:

Trend 1
y Indian consumers are converting from stitched apparel to ready-to causing a surge in discount retailing. wear

Trend 2
y Consumers now desire branded products in all aspects of their life

Trend 3
y Designers realize the huge opportunities in ready-to-wear market and are introducing prt lines

Trend 4
y Indian companies see a huge opportunity in partnering with luxury brands wishing to enter India

Trend 5
y Worldwide surge in demand for organic and eco-friendly products

Trend 6
y Kids and youth are influenced by icons & characters and since they identify with these characters and icons more strongly.

Trend 7
y Companies are exploring new' locations to retail in order to increase visibility of their brand

Trend 8
y Textile companies are strengthening front and back end operations through mergers and acquisitions

TECHNOLOGY AND INDIAN GARMENT INDUSTRY

The Indian garment industry is characterized by constant change. What is in vogue today will be pass tomorrow. The size of India garment industry is has also been expanding and it is expected to drive exports worth US$ 25 billion by 2010. In order to meet this growth, Indian manufacturers would have to scale up their manufacturing capacity fivefold, despite an expansion of 30 percent planned by top players. The liberalization of world trade and abolition of the quota regime have opened up new opportunities for Indian manufacturers.

The challenges for Indian garment manufacturers are multifold

y y y y

Keeping abreast of the market trends Material usage patterns Knowledge of resource points Being in a position to deliver high quality goods in shorter lead times at competitive rates.

The garment industry specializes in offering a plethora of products with multipart specifications catering to diverse customer needs across markets viz. culture, climate and seasonal variations. Customers and retailers are forcing manufacturers to deliver higher quality at lower costs in short delivery times. To survive in this cut-throat business, garment manufacturers need to out think and out perform competition. They have to meet all of the following quality standards: y y y y Dimensional stability Seam strength Abrasion resistance Seam slippage and other test descriptions.

Also, the regulatory concern for safeguarding the environment makes it necessary for manufacturers to strictly conform to ecological requirements. The moot point for Indian

Players will be volume-driven efficiencies combined with superior design capabilities, scalable and flexible manufacturing processes and a well integrated supply chain. Automation of the various processes from raw fabric to finished garment (maintenance of inventory records, inventory planning, sales forecasting, distribution and transportation management) and smooth integration with the supply chain can be achieved in a costeffective manner, using an efficient IT solution like ERP. In order to adopt to play on the world stage, garment manufacturers have to adopt IT as a strategic option to scale up efficiencies and improve business performances.

Technology plays a very vital role in following areas of Garment Industry:

Season collection planning

Garment style management

Sales order management

Material requirement planning

Material procurement management

Inventory management

Production management

Quality management

Exports & quota management

Over the past few years Computer Aided Designing (CAD) has also become a very important part of both textile and garment industries. CAD is industry specific design system using computer as a tool. CAD is used to design anything from an aircraft to knitwear. Originally CAD was used in designing high precision machinery solely it found its way in other industries also. In 1970's it made an entry in the textile and apparel industry. Most companies abroad have now integrated some form of CAD into their design and production process.

In fact, according to National Knitwear Association of US, of 228 Apparel manufacturers: 65% use CAD to create color ways

60% use CAD to create printed fabric design

48% use CAD to create merchandising presentation

41% use CAD to create Knitwear designs

Design choices and visual possibilities can be infinite if the designer is given the time and freedom to be creative and to experiment using the computer. Today in our country automation is not only used for substituting the labour, it is also adopted for improving quality and producing quantity in lesser time. However, a CAD system is only as good (or as bad) as the designer working on it. Computer only speeds up the process of say repeat making, color changing, motif manipulation etc. It is actually the CAM

Types of CAD Systems

Textile Design Systems
Woven textiles are used by designers and merchandisers for fabrics for home furnishing and to men-women-children wear. Most fabrics whether yarn dyes, plain weaves, jacquards or dobbies can be designed and infact are invariably used abroad using a CAD system for textiles. Similarly embroideries are also developed at CAD workstations.

Knitted Fabrics
Some systems specialize in knitwear production and final knitted design can be viewed on screen with indication of all stitch formation. For instance a CAD program will produce a pullover graph that will indicate information on amount of yarn needed by color for each piece. Another example of the new technology in the industries using a yarn scanner which is attached to the computer scans a thousand meters of yarn and then simulates a knitted/ woven fabric on-screen. This simulation will show how the fabric will look like if woven from that yarn.

Printed Fabrics
The process involves use of computers in design, development and manipulation of motif. The motif can then be resized, recoloured, rotated or multiplied depending on the designer's goal. Textures and weave structures can be indicated so that printout either on paper or actual fabric looks very much the way the final product will look. The textile design system can show color ways in an instant rather than taking hours needed for hand painting. New systems are coming which have built-in software to match swatch color to screen color to printer color automatically i.e. what you see is what you get.

Illustrations/ Sketch Pad Systems

These are graphic programmes that allow the designer to use pen or stylus on electronic pad or tablet thereby creating freehand images which are then stored in the computer. The end product is no different from those sketches made on paper with pencil. They have additional advantage of improvement and manipulation. Different knit and weave simulations can be stored in a library and imposed over these sketches to show texture and dimensions.

Embroidery Systems
The designs used for embroidery can be incorporated on the fabric for making garment. For this special computerized embroidery machines are used. Designers can create their embroidery designs or motifs straight on the computer or can work with scanned images of existing designs. All they need to do is assign color and stitch to different parts of the design. This data is then fed into an embroidery machine with one or multiple heads for stitching.

Apparel Industry and Computers Digitising Systems

Digitisers put original patterns into the computer for use and storage. It can be done by defining the X, Y co-ordinates of series of selected points around the pattern. These basic patterns can be manipulated with the help of a computer, for example in case of trousers, darts can be moved, pleats can be created or flair can be introduced. This way new design can be created on screen from pre-existing patterns. Today large scanners are also used to input pattern shapes instead of tracing patterns on a digitizer.

Grading Systems
After a sample size pattern has been put, it has to be graded up and down in size. Certain points on the pattern are considered as "growth points" or places at which the pattern has

to be increased or decreased to accommodate changing body size. At each growth point the operator indicates the grade rule to the computer. The system will then automatically produce the pattern shapes in all the pre-specified sizes. Say if we define pattern for size 30, it can be easily graded for size 32/34/36 and so on.

BUDGETING IMPLICATIONS
Like other industries, garments sector also has its wish-list for consideration in the recent union budget. The wish list segregated into segments viz.

a. Policy issue

b. Issues pertaining to domestic industry

c. Issue pertaining to the export industry

d. Procedural issues

Policy Issues
Removal of state and corporation Taxes on export of garments Export of garments are burdened with taxes and duties levied by :

a) Central government

b) State government

c) Municipal corporation

Appreciation of the rupee has further lowered earnings of Indian exporters ,where as those of our Asian competitors have either appreciated less or even depreciated. As a result, prices of Indian garments have become uncompetitive against Asian competitors. Exporters are attempting to reduce the hardship of RUPEE appreciation by quoting in other currencies but importers take advantage of dollar quotation by our competitors and insist on dollar quotations. Recent increase in drawback rates has to some extent but the major burden of the state and corporation levies continues to hinder exports. These collectively work out to 6 percent FOB. Further, introduction of vat was expected to reduce prices but since textiles have not been included in vat , garments units are not able to offset taxes and duties paid on inputs.

Import Duty of Garment Machinery

Import duty on most garment machinery is 5 percent plus countervailing duty. Indigenous machinery manufactures do not manufacture garments machinery of similar speeds and or stitches per minute and further, since countervailing is levied with the sole objective of the protecting the domestic industry, it is hoped that the budget proposals will remove countervailing duty from all garments machinery entitled to concessional duty.

Labour Reforms
Immediate reforms in labour laws to help improve production and productivity of garments are called for:

These include: -

Increase in working hours from 48 to 60 per week with suitable provision for rest period

y y

Female workers to be employed in the entire second shift In view of the second nature of the garment industry, contract labors be permitted on condition of a guaranteed employment 100 days in a year.

The sector did get some sops in the budget, these were:

SEZ- SEZ scheme is likely to continue, as per the assurance given by the Prime Minister. Six mega clusters are proposed to be developed in power looms, handlooms and handicrafts. Allocation of Rs.70 crore per cluster. With an immediate provision of Rs 100 crore this year has been envisaged.

Textile Up gradation Fund (TUF) - Allocation for textiles up gradation fund (TUF) has been increased from Rs. 911 crore to Rs 1090 crore. The budget has also maintained the provision for Scheme for Integrated Textile Parks (SITP) at Rs. 450 crore. However, the schemes would not provide immediate support to textiles sector, which is need of the hour. Increases in subsidy under the TUF scheme can hardly be considered a relief package looking to the outstanding claims pending with the banks. There are already Rs 600cr plus outstanding according to the banks

Reduction in Excise Duty

The excise duty has been reduced from 16% to 14% under 2008-09 budget but the concession would prove to be highly elusive for apparel exporters as textile manufacturers, already struggling with stiff margins, may not be able to pass on the benefit down the line to exporters.

Non Profit Corporations

The FM has proposed to establish a non profit corporation with intention to garner Rs 15,000 crore as capital from government, the public and private sector and bilateral and multilateral sources for establishing training institutes including 300 additional ITIs. A noticeable thing in budget 2008-09 is its silence about how to arrest the slump in employment intensive industries like textile, garments, leather and handicrafts. Apparel exports promotion council estimates that if situation remains unchanged, the job losses this year would be six lakh.

COTTON THE PRIME RAW MATERIAL

India produces about 5,000 crore square meters of fabric annually with per capita availability of cloth being 36.2 square meters. As of now 60% of the total produce is consumed within the country but the share of exports It expected to increase substantially over the next few years. In value terms is estimated that the apparel and textile market will be worth USD 87 billion by year 2010 with exports worth USD 45 billion and local consumption of USD 42 billion. The domestic market for clothing and home textiles is Estimated to be worth Rs 137,100 crore, of which pure cotton contributes 33% of the value share, various cotton blends make up 39% and the Remaining 28% value is realized from non-cottons. Of the 137,100 crore clothing and home textiles domestic market, cotton and cotton blends contribute approximately Rs 98,766 crore. Of this share of 100% cotton products is 45,200 crore and that of cotton blends is Rs 53,560 crore. Mens shirts, kids wear, mens trousers, salwar suits, mens formal suits and jackets record maximum usage of cotton and cotton blends. After cotton, pure silk, synthetics and wool are mostly commonly used fabrics.

The Cotton market

As of 2007, the ten largest producers of cotton in the world are: China, India, USA, Pakistan, Brazil, Uzbekistan, Turkey, Greece Turkmenistan and Syria. The five leading exporters of cotton are: USA, Uzbekistan, India, Brazil and Burkia Faso. The largest nonproducing importers are Bangladesh, Indonesia, Thailand, Russia and Taiwan. The demand for cotton is strongly influenced by comparative prices vis- vis manmade fibers, also known as artificial and synthetic fibers. Artificial fibers like viscose rayon and acetates are made from organic polymers derived from natural raw materials, mainly cellulose. Synthetic fibers including acrylics, polyamides and polyesters are generally derived from petrochemicals and petroleum products. India Demand and Supply situation for cotton

Supply
Opening Stock Crop size Imports Total availability 47.50 310.00 6.50 364.00

Demand
Mill consumption 207.00 Small-mill consumption 23.00 Non-mill consumption Total Consumption Exports Total Disappearance Carry forward 15.00 245.00 65.00 310.00 54.00

KEY PLAYERS
S. no. Menswear Womenswear Kidswear
1. Aditya Birla Nuvo Lilliput

2. Raymonds

3 .Arvind Mills Benetton Kids

4. Koutons ITC Wills Catmos

Brief Profile of Key Players

Aditya Birla Nuvo
Aditya Birla Group is in the league of Fortune 500.\ It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged "The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. The apparel business of Aditya Birla Nuvo dominates the premium and popular segments of the Indian lifestyle market with its companies, Madura Garments Lifestyle & Retail and Peter England Fashions & Retail.

Aditya Birla Nuvo Brands:

y y y y y

Esprit Peter England Allen Solley Van Heusen Louis Philippe

Aditya Birla Group balance sheet20

(Rs Crore)

2007-08

2006-07

2005-06

2004-05

2003-04

Net fixed assets Investments Long-term Investments Other Investments Total Investments Net current Assets Capital Employed Net worth represented Equity share capital # Share Warrants $ Reserves and surplus (Net of Miscellaneous expenditure not w/o) Net worth Loan fund loans Long term Loans

1,501.6

1,308.1

1,135.5

810.28

737.5

3909.3

3,473.9

1,410.2

618.3

581.6

144.9

375.5

265.6

81.3

160.0

4,054.2

3,849.4

1,675.8

699.7

741.6

1,411.7

972.9

1,127.6

462.7

318.9

6,967.5

6,130.5

3,938.9

1,972.61

1,798.0

95.0

93.3

83.5

59.9

59.9

377.4 - - - - - - - - -

3,551.3 4,023.7

3,031.2 3,124.5

2,124.1 2,207.6

1,294.2 1,354.1

1,204.8 1,264.7

1,841.2

1,869.2

972.5

285.3

211.5

Short term Loans Total loan Funds Deferred tax Capital Employed 6,967.5 6,130.5 3,938.9 1,972.6 1,798.0 2,743.4 200.3 2,831.8 174.1 1,563.6 167.7 493.0 125.5 405.8 127.5 902.2 962.7 591.1 207.7 194.3

cash Flow of Aditya Mills Ltd

------------------- in Rs. Cr. ------------------Mar '06 12 mths Mar '07 12 mths -0.27 -0.05 0.31 -0.04 0.22 1.05 1.27 Mar '08 12 mths -0.22 -0.28 0.04 0.00 -0.24 1.27 1.03 Mar '09 12 mths -0.21 -0.07 0.10 0.00 0.03 1.03 1.06 Mar '10 12 mths -0.04 -0.09 0.07 0.00 -0.02 1.06 1.03

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

0.18 1.02 0.09 -0.10 1.01 0.04 1.05

Raymond
A 100% subsidiary of Raymond Limited, Raymond Apparel Ltd. (RAL) ranks amongst India's largest and most respected apparel companies. RAL entered into the ready-to-wear business with the introduction of Park Avenue in 1986 catering to the men's formal wear market. Parx was launched in 1998 to address the growing trend of smart casuals. In 2000, Manzoni, a luxury lifestyle brand was launched offering a super-premium formal range of men's shirts, suits, trousers, jackets, ties and leather accessories. Raymond identified the vacuum for a high end, casual wear brand and hence decided to acquire ColorPlus as a part of strategic expansion plan for their ready-to-wear business. Notting Hill was launched in 2007 to cater to the popular price segment. In addition to this, Raymond Apparel has also ventured into the kidswear segment with its exclusive Brand Zapp!

Raymond Brands
y y y y y y y y y Raymond Finely Crafted Garments Manzoni Park Avenue Park Avenue Woman ColorPlus ColorPlus Woman Parx Notting Hill Zapp!

Cash Flow of Raymond ------------------- in Rs. Cr. ------------------Mar '07 12 mths Mar '08 12 mths Mar '09 Mar '10 Mar '11

12 mths 12 mths 12 mths

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

156.99 57.18

86.15 -58.75 15.52 120.54

18.88 100.02 75.14 -8.40

-194.22 -13.11 -361.13 137.62 0.58 25.03 25.61

23.90 115.39

-6.20 265.57 -119.27 -101.79 -3.79 25.61 21.82 24.97 -20.24 21.82 46.80 46.80 26.56 5.19 26.56 31.75

Koutons
Koutons retail is the leading manufacture of readymade and stylish fashion wear brand in the country today. With more than 1365 outlets across 493 cities in India, Koutons a wide range of apparels in men, women and children wear. This brand caters to young women in the age group of 16-34 years and includes apparels like t shirt party wear etc. it also launched their brands kids junior catering to young boys and girls in the age group 2-14 years. Koutons further plan to enter the footwear segment in October and add mens innerwear in its portfolio..

Koutons Brands:
y y y y Koutons Menswear Charlie Outlaw Les Femme Koutons Junior

balance Sheet of Koutons Retail India Mar '06 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 4.99 4.99 0.00 0.00 15.08 0.00 20.07 32.58 18.68 51.26 71.33 Mar '06 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets 13.71 3.07 10.64 0.00 0.00 97.73 8.16 2.14 108.03 17.30 0.00 125.33 0.00 58.41 6.27 64.68 60.65

------------------- in Rs. Cr. ------------------Mar '07 12 mths Mar '08 12 mths Mar '09 12 mths Mar '10 12 mths

27.34 27.34 0.00 0.00 135.98 0.00 163.32 162.43 47.00 209.43 372.75 Mar '07 12 mths

30.55 30.55 0.00 0.00 319.08 0.00 349.63 206.58 212.69 419.27 768.90 Mar '08 12 mths

30.55 30.55 0.00 0.00 394.64 0.00 425.19 520.02 102.91 622.93 1,048.12 Mar '09 12 mths

30.55 30.55 0.00 0.00 474.17 0.00 504.72 526.18 133.72 659.90 1,164.62 Mar '10 12 mths

49.84 6.96 42.88 7.14 0.00 373.84 20.39 6.98 401.21 44.57 10.28 456.06 0.00 133.96 0.00 133.96 322.10

75.12 16.54 58.58 13.68 40.52 544.34 34.94 18.30 597.58 215.43 0.88 813.89 0.00 160.26 0.00 160.26 653.63

146.02 31.34 114.68 9.57 2.02 747.76 66.23 34.09 848.08 240.95 1.19 1,090.22 0.00 171.95 0.00 171.95 918.27

153.99 47.77 106.22 54.35 1.97 680.03 148.79 36.86 865.68 338.59 0.19 1,204.46 0.00 205.17 0.00 205.17 999.29

Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

0.04 71.33 0.00 40.21

0.62 372.74 2.44 59.73

2.49 768.90 2.44 114.44

3.58 1,048.12 10.39 139.17

2.79 1,164.62 0.94 165.20

Cash Flow of Koutons Retail India ------------------- in Rs. Cr. ------------------Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 52.61 105.16 120.83 124.52 -201.25 -212.25 -35.86 -72.27 -68.84 107.97 -30.99 -52.95 -53.25 1.77 35.28 37.05

252.22 286.45 115.53 15.12 2.14 17.26 1.93 17.26 19.18 15.69 19.59 35.28

Arvind Mills
Arvind Mills was established in 1931. It was founded by Kasturbhai Lalbhai, one of the leading families of Ahmedabad. Arvinds brand portfolio includes: Lee , wrangler, nautical, Jansport, Kipling, Tommy, Flying Machine, Excalibur, Arrow, US Polo , Izod, Pierre Cardin , Palm beach ,Cherokee, Gant, Hart Schaffner, Marx, Sanabelt. It manufactures denims, shirting, khakhis, knits, and garments. The company has a turnover of approx $500 million and is a part of over 100 years old Lalbhai group. Arvind entered into exports of garments setting up shirts factories in Bangalore 2001. This modest beginning has quickly grown to a capacity of around 4.50 million shirts, annum and the list of customers includes dockers, gap, next, Espirit, FCUK, Osh, Kosh and many others.

The lalbhai group subsidiary Arvind Mills said recently that it temporarily suspending expansion plans for two apparel brands, Rider and Hero, which the company had jointly developed with the US based branded lifestyle apparel player VF Corporation. The two companies had signed the JV agreement in 2006 establishing the VF Arvind Brands to design market and distribute VFs branded lifestyle apparel in India.

Arvind Millss Brands

Flying Machine Newport Ruf & Tuf Excalibur Arrow Lee

y y y y y y

Cash Flow of Arvind Mar '05 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

------------------- in Rs. Cr. ------------------Mar '06 12 mths Mar '07 12 mths 27.71 Mar '08 12 mths Mar '09 12 mths

129.30 136.38

29.61 -46.96

-37.06 221.79 247.22 345.57 224.96 -143.52 -345.74 40.47 -212.06

-32.74

180.75 120.67 202.66 139.50 181.71

0.17 12.70 12.87

-3.28 12.87 9.59

4.09 18.22 22.31

-5.99 22.31 16.32

10.51 16.32 26.83

Wills Lifestyle
ITCs lifestyle retailing business division has established a nationwide speciality retail presence through its Wills Lifestyle, a chain of exclusive speciality stores. Wills Lifestyle, as a fashion destination, offers Wills Classic work wear, wills lifestyle, as a fashion destination, offers Wills Classic work wear, Wills clublife evening wear and fashion accessories. Wills Signature designer wear. ITC forayed into the youth segment with the launch of john players in December 2002. The brand available pan India through a network of over 1300 multi brands outlets. The launch of Miss Player is currently available at select exclusive stores, select John Players stores and multi brand outlets. Wills lifestyle currently command retail space with 50 EBOs of 2,500 sq ft each and plans to add 50 additional EBOs in next two years. John players and miss players is available in 250 EBOs and 1300 MBOs with plan of add 100 more EBOs in next two years.

aditya raymond arvind koutons

KEY ISSUES IN INDIAN GARMENT SECTOR Post-MFA Scenario

The Multi-Fiber Agreement (MFA) had been forced in India since 1962, governing the textile trade between various countries. It was later abolished in 2005. When the MFA was abolished, it was expected that tariff distortions, which were prevalent earlier, would gradually disappear, facilitating global trade of textile and apparel. The abolishment of the quotas did fuel growth of the sector with textile exports growing from US$17 billion in 2005-06 to US$19.24 billion in 2006-07. The readymade garments segment benefited the most with the abolishment of the quotas. According to the Apparel Export Promotion Council (AEPC), readymade garments export from India is expected to reach US$14.5 billion by 2009-10. Presently, it accounts for 43 percent of total textile exports and six percent of Indias total export.

Fluctuation Rupee Value

The subsequent spurt in exports did elude exporters in the segment as most focused on short-term gains. But with the economy growing and appreciation in the rupee value, there was a rather different tale to unfold. With an appreciation in rupee value, the apparel and textile export industry now needs more introspection to reduce the extent to the blow. Export agreements, which were conducted in US dollars, faced the most severe blows.

Though India enjoys the advantage of a host of low costs in textile and apparel manufacturing, subsidies and supply of cheap labour currently faces threat from its neighbouring competitors- Bangladesh, Vietnam and Sri Lanka. These countries with minimal cost, under valued exchanged rates, low taxes, subsidies and plentiful cheap labour could result in sail of the industry to these locations.

Lagging in Cost and Technology Spheres

Post MFA, exports splurged and substantial capital expenditures were made to diverse and also re-inforce production capacity to meet the growing domestic demand. For the short term this may be fine but mere increasing the productivity was not a solution rather improving productivity and cost efficiency ought to be the long term goal. In this segment, Indian Apparel and Textiles companies face threat from low-cost Chinese Companies while negotiating with tough global buyers. It has also been observed that the textile and apparel sector witnessed more investment in existing technology than on new technology. Although nanotechnology has helped in developing manmade fibres (and filament yarn), the industry still lags behind it counterparts in the United States, china, Europe and Taiwan. Import of new and advanced technology could certainly compensate for the losses on account of exports due to declining dollar.

Existence of long and complex Supply Chains causing lengthening of lead time
The supply chain in India is highly fragmented mainly due to government (SSI reservation) and lack of coordination between industry and trade bodies. Existence of large number of intermediaries adds to the cost but also lengthen the lead times. The countries who have significantly consolidated their supply chain are globally competitive Korea, China, Mexico, Turkey.

EXPORTS IN GARMENTS SECTOR

SN Country 2010 2009 2008 2007 2006
5 UAE 438.57 513.17 625.65 38.63 35.12 6 357.85 437.75 422.72 53.40 46.29 Italy 7 Nlands 258 .61 342.56 338.20 37.31 30.90 8 Spain 333.69 330.96 333.71 32.39 33.69 9 Canada 263.74 290.89 252.93 24.88 26.08 10 Saudi Arbia 193.12 196.07 209.12 10.98 11.27 12 Belgium 120 .70 162.20 176.45 16.99 15.37 13 Japan 106.74 127.74 101.38 10.70 13.83 14 Sweden 62.58 77.63 76.23 5.44 7.66 15 Russia 23.30 57.05 67.32 13.70 5.00 16 Mexico 49.54 61.57 66.72 7.14 5.61 17 South Africa 59 .28 50.88 60.74 3.73 2.94 18 Ireland 63.18 46.60 56.23 4.62 4.80 11 Denmark 162 .17 191.02 197.92 25.21 21.73 0 1 2 UK 3 4

TOTAL USA

Germny France 615 .15 670.92 582.75 683.42 668.81 69.39 67.03

8078.05 2678.30 905.58 8948.44 2937.10 919.39

9218.84 2815.24 1106.62 766.35 826.81 831.21 263.66 278.57 78.21 93.68 63.35 57.45

EXPORT TO WORLD (VALUE IN US$ MILLION)

Exporting

2002 2003 2004

2005

2006

Bangladesh

4964 4413

5067

6296

7751

Cambodia

1313

1600 1981

2193

2675

China

20562 41302

26900

52061

33428

India

6028

6037

6846

6625

7009

Indonesia

2909

3875

2921

4052

2961

Pakistan

4790

2228

5811

2710

6125

Reasons for Indias recent sluggish export performance in textiles and clothing include:
y Slowdown in demand from some major importers.

The depreciation of the US dollar, resulting in an appreciation of the rupee vis-vis competitor countries that were partially or wholly pegged to the US dollar.

Labour laws and scale economics: Countries like China have historically had high labour flexibility in their export oriented units. This has allowed them to achieve large scale in terms of labour force employed in each manufacturing facility and reap the benefit of scale economies and use the latest advanced machinery from developed countries. India, in contrast, because of fragmentation of units and small scale (to avoid labour laws applicable to employees above 100 and procedural biases and rigidities), has purchased relatively less of such advanced machinery.

Logistical delays and costs: though the national highways are improving, this is not true of connectivity to all sources and destinations. The turnaround time in major ports of India and movement of cargo between ships and source or

destination within India is still plagued by monopolistic bureaucratic structures with little accountability and incentives for efficient service delivery to the exporter and importer.

High cost of power in India this is 1.5-2 times higher then in competing nations.

MONETARY POLICY FOR THE YEAR 2008-09

Bank Rate and Repo Rate kept unchanged.

High priority to price stability, well-anchored inflation expectations and orderly conditions in financial markets while sustaining the growth momentum,

Swift response on a continuous basis to evolving adverse international and domestic developments through both conventional and unconventional measures.

Emphasis on credit quality and credit delivery while pursuin Financial inclusion.

Scheduled banks required to maintain CRR of 8.25 per cent with effect from the fortnight beginning May 24, 2008.

GDP growth projection for 2008-09 in the range of 8.0- 8.5 per cent.

Inflation to be brought down to around 5.5 per cent in 2008-09 with a preference for bringing it close to 5.0 per cent as soon as possible.

Going forward, the resolve is to condition policy and perceptions for inflation in the range of 4.0-4.5 per cent so that an inflation rate of around 3.0 per cent becomes a medium-term objective.

Deposits projected to increase by around 17.0 per cent or Rs.5,50,000 crore during 2008-09.

Adjusted non-food credit projected to increase by around 20.0 per cent during 2008-09.

Active demand management of liquidity through appropriate use of the CRR stipulations and open market operations (OMO).

Impact of various monetary policy measures

Recent money shortage in market has forced RBI to make changes in its policies so that the money supply in the market can be increased. Following are the recent changes that RBI has done in the market. These changes have had positive impact on every industry in the economy:

Top Fashion Brands Advertised on TV

Rank 2006 2007
1 Set Wet Zatak Set Wet Zatak

2 D'damas Gold Expressions Forever Mark - DTC

3 D'damas Collection G set Wet Zatak Gold

4 Reid & Taylor Raymond Suitings

5 Koutons Readymades Axe Deodorant

6 Raymond Suitings Axe Vice

7 Integriti Readymades Rexona Deo Roll On

8 Axe Click Wild Stone

9 Titan Quartz Belmonte

10 Siyaram Reid & Taylor

Print
y 13% growth in advertising volumes of fashion industry on print during 2007, over 2006. y Fashion industry used newspapers and magazines in an advertising ratio of 81:19 during 2007. y Maximum advertising of fashion brands on general-interest newspapers and women- interest magazines. y Koutons ready-mades maintained its first rank in the top 10 brand list in print across both 2006 & 2007. y The average ad per day by fashion industry has seen a rise of 27% in print during 2007.

Radio
y Fashion industry advertising saw a growth of 173% on radio during 2007, as compared to 2006. y Radio advertising by fashion industry skewed towards Delhi & Mumbai. y Pantaloons was the top name in the top 10 brand list on radio during 2007. y . Two-time rise in average ads aired per day by fashion brands on radio during 2007, over 2006

SWOT ANALYSIS

Strengths
Abundant raw material availability
India is one of the leading producers of natural and man made fibers. The abundance of raw material allows industry to control cost and reduce over all lead time.

Low cost skilled labour

India has third lowest wage rate as compared to other key garment manufacturing companies. This provides industry with a distinct competitive advantage.

Presence across value chain

Indian industry has manufacturing capacity present across completeproduct range, that allows garment manufacturers to source raw material locally and thus reduces the lead time.

Growing domestic market

The Indian domestic market is extremely sensitive to fashion fads and this has resulted in development of very responsive garment industry.

Weaknesses
Fragmented industry
Global buyers prefer to source their requirements from two to three vendors and Indian garment manufacturers find it difficult to fulfill the capacity requirements.

Effect of historical government policies

The industries continues to be affected by several historical regulations, or instance there is still an absence of viable exit options for industry players. These regulations resulted in complex industry structure, which is currently an obstacle. In the Pre 2000 era garmenting sector was reserved for the Small scale Sector, which has resulted in most units being set up with small capacities. Till now, knitted garment sector is reserved for the small scale sector. Though the historical regulations are relaxed now, they continue to be an impediment to global competitiveness.

Lower productivity & cost competitiveness

Lower cost competitiveness has hampered ability to compete with lower cost global players because the labour force in India has a much lower productivity as compared to competing countries like China, Sri Lanka.

y Technological obsolescence
A large portion of the industrys processing capacity is obsolete. This has resulted in low value addition in the industry and a need has risen for significant technology investments to achieve world class quality.

Opportunities Rising Disposable Income Fifth largest consumer Liberalizing economy Sizeable urban middle class

OPPORTUNITY MATRIX

Liberalizing economy
Opening up of Indian economy has presented the players with lots of opportunities; Indian companies are tying with global brands. They are leveraging the brand name of global brands.

Growing dual income

With number of working womens increasing the dual incomes are income thus income available at peoples discrete has also increased.

Rising Disposable Income

According to McKinsey Global Institute (MGI), by 2035 over 23 million Indians will number among the countrys wealthiest citizens. Forecasts for Indias real GDP growth rate over the coming two decades generally range between 6 and 9% per year. MGI forecast real compound annual growth of 7.3% from 2005-2025. Average real household disposable income will grow from 113,744 Rs in 2005 to 318,896 Rs by 2005, a compound annual growth rate of 5.3%. This is significantly more rapidthan the 3.6% annual growth of the last two decades.

Sizeable urban middle class

As Indian incomes rise, the shape of the countrys income pyramid will also change dramatically. Apart from a substantial reduction in poverty, India will create a sizeable and largely urban middle class. Middle class comprises two economic segments - seekers with real annual household disposable income of 200,000 to 500,000 Indian rupees and strivers at 500,000 to 1,000,000 Indian rupees. In 2005, the Indian middle class was still relatively small comprising approximately 5% of the population, however middle class is expected to reach 41% of population by 2025.

Fifth largest consumer

India will become the worlds fifth largest consumer market by 2025. thecombination of rapidly rising household incomes and a robustly growing population will lead to a striking increase in overall consumer spending. The aggregate consumption in India will grow in real terms from 17 trillion Indian rupees today to 34 trillion by 2015 and 70 trillion by 2025 a fourfold increase.

Threats :
State of Recession in the economy Competition from global players Fluctuation in rupee value Ecological & Social Awareness

THREAT MATRIX

Fluctuation in rupee value

The fluctuation in rupee value posses a big threat in front of importers and exporters. The exchange value of Rupee against UD Dollar has depreciated to Rs 50.03 which has resulted in huge losses for the importers. Thus there is always a great threat for players in

international trade. But since it affects only international players thus it is not as big a threat as some of other threats.
_ State

of Recession in the economy

The apparel industry gets severely hit during recession because of less liquidity in the market. This industry is an export-oriented industry which lies in doldrums during this stage.

Competition from global players

The major exporters of garments from all over the world are giving tough competition to India as they are providing higher productivity with lower costs. Competition is not likely to remain just in the exports space, the industry is likely to face competition from cheaper imports as well. This is likely to effect the domestic market and may lead to increased consolidation.

FINDINGS
After understanding the industrial and economic scenarios we would like to List out my findings to Indian companies operating in garment industry:

Industrialists are consider the expenditure on R&D and technology as a cost, it should be considered as an investment because it pays rich dividend in future.

There is no way of communicating to customers, like sending information about new products, offers, stocks, etc

retails apparel stores did not rely upon their own Brand name they just rely upon the brand names of the wears available in the stores

Industrialists are not improving the standard of labors why because garment manufacturing is a labor intensive industry. The productivity of industry directly depends upon the productivity of labor.

y y

They didt give priority to consumers opinion. Give priority to consumers opinion. Keep in touch with customers by creating loyalty clubs and online data bases and opinion leaders.

Apparel retail stores that mostly Instore advertisements to communicate various promotional offers, thus only that part of population is reached that is already visiting the stores.

RECOMMENDATIONS
After understanding the industrial and economic scenarios we would like to give following recommendations to Indian companies operating in garment industry:

More emphasis should be given on the micro and macro level economic factors. These factors indirectly or sometimes directly affects each and every business in the economy, marketers should be proactive enough to foresee the future impact of these factors on their business.

Look for co-branding: It involves merging two or more well known brands into a single product. It is an effective way to leverage strong brands and helps in gaining synergy by having the best combination of unique strength each brand has. Co-branding can be based on innovation, ingredient, alliance, supply chain or any other.

Find out new ways of communicating to customers, like sending information about new products, offers, stocks, etc through sms to cell phones.

Industrialists shouldnt consider the expenditure on R&D and technology as a cost, it should be considered as an investment because it pays rich dividend in future.

Industrialists must emphasize on improving the standard of labors because garment manufacturing is a labor intensive industry. The productivity of industry directly depends upon the productivity of labor.

Give priority to consumers opinion. Keep in touch with customers by creating loyalty clubs and online data bases and opinion leaders.

Marketers are under estimating the importance of Visual merchandising, visual merchandisers not only makes the store look impressive but they also makes sure right wears are kept at the right

Blend up the bollywood, cricket and other entertainment mix with other areas such as product design, distribution channel, price, promotion activities. Give

priority to consumers opinion. Keep in touch with customers by creating loyalty clubs and online data bases and opinion leaders. y It has been seen in apparel retail stores that mostly Instore advertisements to communicate various promotional offers, thus only that part of population is reached that is already visiting the stores. Thus using Outdoor advertising & promotional campaigns is quite important. y Through research it was revealed that majority of customers prefer to buy with family members or with friends, and such partners also influence the purchase decisions of the buyer. Thus its necessary to have a strategy to impress these influencers. Having an associate loyalty card thus should always be a part of the loyalty program. y For retails apparel stores its imperative to build their own Brand name they cant just rely upon the brand names of the wears available in the stores.

CONCLUSION :
The trends discussed above clearly show that the fashion business is exploring all aspects of expansion i.e. it is bound for a multilateral expansion rather than only unilateral expansion.

Multi lateral expansion is happening at every part of the value chain as well as for every consumer segment.

The Indian Garment Industry is taking cue from international standards as well as the burgeoning consumer appetite to create their own growth path.

Fashion companies are taking a much larger perspective of this industry in India and consolidating their position to face it.

On the other hand, the Indian consumer is at a preliminary stage of development and yet due to international exposure trying to keep pace with the international fashion scene creating unprecedented pressure on companies to perform.

This is a window of opportunity which the Indian Garment industry should make the most of before it reaches maturity which will signify slowdown.

Companies need to react as well as participate through in-depth understanding of fashion, consumer demands & micro/macro level economic factors to take on this challenge.

BIBILOGRAPHY :
www.ncaer.com www.fibre2fashion.com www.indiaexports.com Images Year Book 2008 India Retail Report 2009 Apparel Talk Magazine July 2008 Issue Apparel Export Promotion Council Marketing White Book 2007 Marketing Management by Philip Kotler