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Textiles





Evolving landscape

  • India contributes about 25 per cent share in the world trade of cotton yarn.  It is the world’s third-largest producer of cotton and second-largest producer of cotton yarn and textiles.
  • The Indian textile industry has about 22 per cent of the world’s spindleage and about six per cent of the world rotor capacity installed. It has the second highest spindleage in the world after China with an installed capacity of 38.60 million.
  • The country has the highest loomage (including handlooms) in the world, ie. 61 per cent. It contributes about 12 per cent to the world production of textile fibres and yarns.
  • India is one of the largest consumers of cotton in the world, ranking second to China in production of cotton yarn and fabrics and first in installed spinning and weaving capacity
  • Through export friendly government policies and positive efforts by those in business, textile exports have more than doubled from US $7.55 billion in 1993-94 to US $17 billion in 2005-06.
  • The readymade garment sector is the biggest segment in India’s textile export basket, contributing over 46 per cent of total textile exports.
  • Export of cotton based items continue to predominate. This is natural since India is the world’s third-largest producer of cotton.
  • Exports have grown at an average of 9.47 per cent per annum over the last decade. Textile exports in recent years shot up to US $17 billion, markedly higher than in yesteryear.
Emerging textile hub
  •  The textile history of Madhya Pradesh dates back to the latter part of 19th century when a cotton textile unit was established at Indore in 1866 by the Holkar.
  • Currently, the state’s textile industry is largely based in the south-west (Malwa) region. A large number of cotton textile mills are concentrated around Indore, Ujjain, Burhanpur etc.
  • Easy availability of cotton, ginning and pressing units, reasonably skilled manpower, entrepreneurial skills etc are some of the reasons behind the rapid growth
  • Presence of major textile players like the Bhilwaras, Indo-Rama, Bhaskar, Oswals, Parasrampuria, Maikal, SKumar’s etc and their proposed expansion plans are a measure of the state’s potential.
  • The state is focused on cluster development around sectors of strategic advantage. Infrastructure will be developed around these clusters. Growth of export oriented spinning and large scale knitted garment units near Indore along with the growth of Chanderi and Maheshwari varieties are excellent examples of cluster development
  • Companies in Indore can expect manpower cost savings of 20-30 per cent compared to companies in Chennai, Mumbai, Surat, Ahmedabad etc. Manpower costs in make up 8-10 per cent of total costs.
Infrastructure at a glance
Spinning Units
40
Spindles
14,14,000
Export-Oriented Spinning Units
12
Rotors
14,348
Looms
6,500
Exclusive Weaving Units
8
Power Looms
43,290
Power Loom Units
17,524
Handlooms
47,000
Composite Mills
20
 
Strengths across the value chain
Raw Material
  • Conducive climate for cotton production with large varieties available locally as well as in neighbouring states
  • Centrally located and well connected, the raw material can be brought into the state at short notice from any part
Spinning
  • Over 40 spinning units
  • Over 1.4 million spindles
  • The manpower has on the job experience in latest technology
  • Several units are available for procurement by investors
Weaving/Knitting
  • Over 47,000 handlooms are installed in MP
  • Over 43,000 power looms
  • Rich tradition of weaving and knitting
Processing
  • Several export oriented processing units are functioning which can be further developed
  • The state has a blend of both new age and traditional processing capabilities essential to promote Indian products internationally
Stitching (garment/ apparel)
  • The state’s populace is renowned for skills in stitching garments
  • Manpower is well trained and is capable of producing world-class garments/ apparels
  • The states leather industry can complement the textile industry
Market
  • Strategic location can help in developing warehousing facilities
  • Proximity to ports in Maharashtra and Gujarat make exports and imports cost effective
Would-be investment destination
  • Several power loom/handloom units are cluttered around a small stretch of land. To kick start businesses, there is thus a significant opportunity to target and acquire these units.
  • The clusters also have significant locational advantages. For example, the Malwa region near the Indore cluster is a leading cotton growing belt which can give textile companies a competitive edge. The material costs account for nearly 55-60 per cent of the cost of production. Even a 10 per cent saving due to proximity to the Malwa region could result in a five per cent increase in operating margins.
  • As further support, the state government has created specialized infrastructure in the form of apparel parks. Also provided are special fiscal and non fiscal incentives to state units.
Some special incentives
  • Benefits under Central schemes such as the Apparel Park Scheme, and the Textile Centre Infrastructure Development Scheme
  • Modernization of units through the Technology Upgradation Fund  Scheme (TUFS), Group Work Shed Scheme
  • Exemption from daily minimum wage fixation
  • Plans to set up an apparel training institute with the help of the Apparel Export Promotion Council to generate employment in the ready made garment industry
  • Plans to establish a national level fashion designing technology institute to facilitate the textile industry regarding the information for design development and to provide forecasts.
  • To accelerate the pace of modernization of the unorganized power loom sector, modern power loom clusters would be developed at Burhanpur, Indore and Ujjain with financial assistance sought under the Centre’s Group Shed Scheme.
  • Development of the process house through private participation by providing necessary facilities. Their cases would, if necessary, be considered by the committee for mega projects.
  • Labour law provisions declared for the Special Economic Zone (SEZ) will be applicable to projects such as Apparel Park, Garment Complex and established units transferred under the Group Work Shed Scheme.
  • Cotton ginning and pressing units would be provided high quality cotton and encouraged to modernize under centrally sponsored schemes with the help of their recognized  associations
  • Construction of tar roads for smooth transportation to cotton mandi and construction of cement platform  for storage of cotton using the Mandi Board's fund would be taken up on priority basis
  • Units purchasing yarn produced locally would be given a "set off" of two per cent on commercial tax

Potential Projects
Segment
Investment Required (US$ Million)
No. of Units
Output
Employment
Quantity in Million
Value
 (US$ Million)
Spinning (1 mn Spindels)
 489
10
131 Kgs
 408
16,000
Weaving (1000 looms)
 171
21
117 Kgs
 104
2984
Processing
 102
4
120 Kgs
 200
1,600
Circular Knitting (1000)
 111
33
127 Kgs
 378
1,700
Garment Woven
 254
520
130 pcs
 722
107,000
Knitwear
 185
333
100 Pcs
 389
35,000
Total
 1,313
921

 

 2,200
164,240

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25 Nov 2017
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