Term paper submitted in partial fulfillment of the requirements of the Undergraduate Degree in
Bachelor of Business Administration (Honours)
J. D. Birla Institute
at the
Jadavpur University
at
Kolkata
DECLARATION
I declare the following:
The word count of the dissertation is 11,200 words (approx)
The material contained in this dissertation is the end result of my own work. Due acknowledgement has been given in the bibliography and references to all sources be they printed, electronic or personal.
I am aware that my dissertation may be submitted to a plagiarism detection service where it will be stored in a database and compared against work submitted from this institute or from any other institutions.
In the event that there is a high degree of similarity in content detected, further investigations may lead to disciplinary actions including the cancellation of my degree according to Jadavpur University rules and regulations.
I declare that ethical issues have been considered, evaluated and appropriately addressed in this research.
I agree to an entire electronic copy or sections of the dissertation to being placed on the e-learning portal, if deemed appropriate, to allow future students the opportunity to see examples of past dissertations and be able to print and download copies if they so desire.
Signed:
Date:
Name: Sweta Prahaladka
Roll no - 119
Supervisor: Mr. Shantanu P.Chakraborty
ACKNOWLEDGMENT
A project can be comprehended as a supplementary , long term educational assignment necessitating personal initiative that is planned , devised and contemplated by an either an individual or a group of individuals.
Hence, in lieu of this statement I extend my deep sense of gratitude and indebtedness to my Director Dr. Asit Datta for his initiative for the preparation of this paper. I would like to thank Mr. Shantanu P. Chakraborty for his guidance and support for continuous improvement of this dissertation.
I am thankful to all mighty laptop of mine, who without failing even once, helped me make my term paper, along with the Microsoft office suit, which have made things simpler for us.
I am thankful to our librarians for allowing me to access library resources, books and other reading material for the preparation of this dissertation.
I would also like to thank my friends who have helped me a lot with continuous improvement tips in writing the term paper.
Last but not the least I would like to thank my father for his support and encouragement, by providing me complete details about this industry and so without him, my project would not have been successful, since he is also a hosiery and apparel manufacturer in Kolkata under a brand name Hillman Hosiery.
ABSTRACT
Hosiery in dictionary terms means stockings, socks, and knitted underclothing collectively, also it’s known as the business of a hosier.
With China leading the global textile trade, India ranks second with 8 per cent of the total. India contributes to nearly 4 per cent of total textile exports and 3 per cent of total apparel exports in the world. India has the highest number of looms- 1.8 million shuttle looms (at 45 per cent of global capacity) and 200,000 shuttle-less looms (at 3 per cent of global capacity) and 3.9 million hand looms (at 85 per cent of global capacity).
This sector expects to increase, by 2011 the exports up to 25 billion US$.
INDEX
|Serial No. |CONTENTS |Page Nos. |
| 1. |Introduction | |
| |Overview | 6. |
| | 1.2 Scope | 6. |
| | 1.4 Objective | 10. |
| 2. | Literature Review | 11. |
| 3. |Research and Methodology | |
| | 3.1 Introduction to research methodology | 29. |
| | 3.2 Quantitative and Qualitative Date | 29. |
| | 3.3 Tools related to research methodology | 31. |
| 4. |Data Analysis | 34. |
| 5. |Hypothesis | 39. |
| 6. |Results | |
| | 6.1 Findings | 41. |
| | 6.2 Recommendations | 41. |
| 7. | Conclusion | |
| | 7.1 Limitation | 42. |
| | 7.2 Future Scope | 43. |
| 8. | Executive Summary | 44. |
| 9. | Annexure | 46. |
The hosiery & Apparel Industry of India
1. INTRODUCTION
1. Over view (West Bengal annual hosiery association journal) & (http://shodhganga.inflibnet.ac.in/bitstream/10603/2895/4/04_table%20of%20content.pdf)
Indian hosiery and apparel industry sources estimate that India’s domestic production of readymade apparel totaled about $19 billion (Rs700billion) in 1997. The GOI had “reserved” apparel production (including knitting) for domestic consumption for SSI units and required non-SSI sector firms, or export-oriented units (EOUs), to export at least 50 percent of their output.
India’s apparel sector is highly fragmented, comprising about 30,000 units and employing some 3 million people. Most apparel sector units are family-run businesses having 50-60 sewing machines, often on contract to apparel wholesalers, usually using old production equipment and methods.
The EOUs tend to operate on a much larger scale in more modern facilities and offer brand-name quality goods, especially menswear.
Exporters of ready-made apparel are classified as either manufacturer-exporters or merchant-exporters. Some 2,000 manufacturer-exporters export apparel, while the roughly 26,000 merchant-exporters serve as export brokers on behalf of apparel manufacturer
The production of apparel in India was, until recently, reserved for small sector industries (SSI), which was defined as a unit having an investment in plant and machinery equivalent to less than $230,000.
Indian hosiery and apparel industry benefits from a large pool of skilled workers and competent technical and managerial personals. Also the labor rates here are highly inexpensive, which is less than 5 percent, from those in U.S. apparel industry.
The apparel industry as by GOI recent decision is now open for the U.S. market to enter through joint-venture and licensing with local firms without any export obligations, thereby apparel industry is to earn large foreign exchange earnings helping the National Income (NI) of the country.
With such benefits, Indian apparel and hosiery industry is listed as the second largest manufacturer of hosiery and apparel industry after China, which is the global leader in the garment production. India is known for its high quality garment for men.
India has an advantage in producing garments, as it produces and exports garments at economical prices due to cheap labor rate. Also technical advancement and use to sophisticated machinery enabled the manufactures to achieve better quality and make well designed garments.
The country is booming with fashion and lifestyle, with the organized retail trade growing at a rate of 30% per annum. The Indian apparel and the Indian hosiery industry are pegged at more than 90000 crores and nearly 13% growth per annum. The men’s garments or the clothing segments constitute nearly 45% of the total apparel market growing at a constant rate each year. The share of organized branded segment is fast increasing in the Indian apparel market.
India is the second preferred country after China for textile and apparel sourcing. Its apparel sourcing is likely to achieve exports target of US$ 25 billion by 2011-2012.
Some of the major factor for rise in India of the hosiery and apparel industry are:
• Vast sources of Raw Materials.
• Low Labor cost.
• Entrepreurial and design skills of the Indian traders
• Changes in the policies to open up Indian Economy to the outer world.
Indian’s largest leverage that the industry uses to its fullest advantage are:-
• India the largest producer of jute
• The second largest producer of cotton
• The largest producer of raw – cotton
• The fourth largest producer f synthetic fiber.
Globally apparel sector is one of the most important sectors of the economy in the terms of investment, revenue, and trade and employment generation all over the country.
Some of the important sector of the apparel sector includes:
• Kids clothing
• Men’s clothing
• Clothing for women
The main production centers in India for hosiery and apparel garments are:
• Delhi
• Mumbai
• Tirupur
• Bangalore
• Chennai
Where the major leading brands are are residing in Kolkata.
Some of the major producing and knitting yarns and garments in India are as follows:
• Tirupur
• Ludhiana
• Himachal Pradesh
Tirupur
Tirupur located 55 km to the east of Coimbatore city in Tamil Nadu is known as the hosiery capital of India. It accounts for 90% of India's cotton knitwear export which is worth an estimated Rs 4,000 crores. In spite of being severely handicapped by poor infrastructure. Tirupur has a unique significant presence at the lower end of the international knitwear and hosiery market. Local market of Tirupur is around 800 crore Indian rupees. There are more than 2500 apparel manufacturing units and 750 dyeing units in the city. Tirupur also has 300 printing units, 100 embroidery units and 200 other units like compacting, raising and calendaring units. Market of Tirupur is around Rs8500 crores and local market is about 1500 crores according to a recent report. Every year, millions of pieces of underwear come out of Tirupur. Tirupur hosiery factories are profitable successes and are considered as small jewels in India's economy. Tirupur is one of the largest sources of Foreign Exchange for the country because of its exports. This city is famous for the export of all Knit wears like T-Shirts, Polo - Shirts, Sweat Shirts, Banyans, Pajamas & Night Dresses on various fabrics like Single Jersey, Interlock, Fleece, Polar Fleece, Drop Needle, Pique Jersey, Pointelle Jersey, Pointelle RIB, RIB, etc. The hosiery and knitwear business in this city has long been held out as a model for the export-led export path.
Ludhiana
It is also known as the Manchester of India, Ludhiana in the State of Punjab is a big center for knitwear production. Ludhiana started its first hosiery unit in the beginning of 20th century and today the city boasts of housing more than 6000 small to medium size knitwear factories, 10 big hosiery yarns mills, about 150 small to medium size worsted and some woolen yarn factories, about 120 yarn and fabric dyeing factories, besides manufacturers of knitting machines, stitching machines, knitting needles, labels and packaging materials. About one third of the population of the city is engaged in the knitwear business, directly and indirectly. Ludhiana makes a hosiery turnover of approximately US$ 40 million annually with exports equivalent to 30 percent of its production. The countries to which exports are mainly made are Europe, USA and Middle East countries.
Himachal Pradesh
Himachal Pradesh has a long tradition of hand knitting. There is various small scale knitting mills in Himachal Pradesh.
Baddi and Nalagarh are two important towns in the state.Himachal Pradesh is exempted from paying income tax and central excise duties for 10years and there are concessions in sales tax too.
1.2 SCOPE – The scope of any industry cannot be defined in any lay man terms, nor can be projected here completely. So, knowing the vastness, I have searched about certain sectors which provides the most of whole industry information namely, export values, import values, market size, sales figures, trend in market and along with this a gist about few most leading brands in the apparel sector, their sales figure, there market trend and size.
The data depicting the factors have been carefully chosen keeping in mind the need and the requirements, so that with little information we get to know about the industry as a whole. Also these data’s have been taken from different best sources available (names given in the following pages) and for last ten year, so that the industry trend, its scope to prosper, if any, and its advantages and disadvantages are broadly explained.
3. OBJECTIVE – My main objective behind making my term paper, on Apparel & Hosiery industry, is to show that there are few things whose want and value do not rather cannot change by the change in fashion and trend.
This sector has flourished immensely, in past few years, despite of several obstructions and regulations, this sector has grown and hugely contributed in earning national income as well as foreign earning. It has given many young and prospering entrepreneurs a platform to put in their ideas, and horizon and create a new brand and a name to gain fame.
It’s one of the leading industries and comes under Textile Industry, and it’s because of this industry that India has created name worldwide, it has its market all over, and has been one which helps people rely on completely. It has taken India forward and will take India forward, technologically, socially and business wise.
2. LITERATURE REVIEW (sources refer to bibliography)
Hosiery in dictionary terms means stockings, socks, and knitted underclothing collectively, also it’s known as the business of a hosier.
The history of Hosiery Industry dates back to 3000 BC.
With China leading the global textile trade, India ranks second with 8 per cent of the total. India contributes to nearly 4 per cent of total textile exports and 3 per cent of total apparel exports in the world.India has the highest number of looms- 1.8 million shuttle looms (at 45 per cent of global capacity) and 200,000 shuttle-less looms (at 3 per cent of global capacity) and 3.9 million hand looms (at 85 per cent of global capacity).
India has the second highest number of spindles in the world with 40 million spindles (at 23 per cent of global capacity).
India ranks first in jute production (at 1,900 million kilograms), second in silk production (at 15 million kilograms of raw silk), second in cotton exports (at 2,000 million kilograms), second in cotton production (at 2,700 million kilograms of cotton fibre), fifth in man-made fibres (at 2,000 million kilograms) and ranks eighth in the total production of wool (at 51 million kilograms) in the world.
The textile and apparel industry contributes significantly to the Indian economy. It accounts for 14 per cent of total industry output and nearly 5 per cent of Gross Domestic Product (GDP). It provides direct employment to 38 million people and is the largest foreign exchange earner, contributing nearly 20 per cent to India’s total exports.
In the last three years, the sector has attracted a total investment of US$ 5,770 million. The cumulative Foreign Direct Investment (FDI) made in this sector between 1991 and 2007 has been US$ 575 million, representing 1.22 per cent of the total FDI attracted by the country.
Where the diversity of fibers found in India, intricate weaving on its state-of-art manual looms and its organic dyes attracted buyers from all over the world for centuries.
Therefore, India saw the building up of hosiery and textile capabilities, diversification of its product base, and its emergence, once again, as an important global player.
It was then in India that hosiery under Small Sector Industry (SSI) sector emerged and attracted many young entrepreneurs then to come up and join this field.
The hosiery industry reached its peak during the 2nd world war and became an important landmark in its evolution. This period saw migration of the industry in West Bengal which became the pioneer in indigenous Hosiery Industry. It developed as a leading centre for cotton hosiery products, due to better marketability prospects, cheap labor and easier transport communications facilities with other part of the countries.
The British rule controlled practically all aspects and product lines of the hosiery products. Therefore the units then had extremely difficult time fighting against hurdles and agencies. But later the spirit of Swadesh gave the Indian Knitting Industry strength to fight against foreign competition in the twenties, great depression in the thirties and the pain of partition.
After swadeshi movement it was tariff protection accorded to the industry by the government of India In 1936, which gave impetus growth and development. During the pre-independence era hosiery products were also imported from Japan and Hong Kong. The import of machines however continued under open general license even up to 1954-55. Later import restrictions boosted the indigenous machines manufacturing industries. After the end of the Second World War the hosiery industry began to expand rapidly in and unplanned way. This led to over expansion that made a beginning of unhealthy competition. Many of the composite units closed their bleaching and stitching divisions of the industry. Thus hosiery industry started working in separate establishments like knitting, bleaching, dyeing, cutting and stitching section, the process lies beneath.
PRODUCTION PROCESS (first hand data collected from father’s processig unit)
Defining some new terms: (www.busniessdictinory.com)
1. Raw Cotton – Cotton is probably one of the most common fabrics you're likely to have in your home as clothing. Cotton is a natural fiber and is used in a wide variety of clothing and home furnishings. Cotton is easily washed and/or dries cleaner. Cotton is a good strong fabric that is absorbent, and easy to work with. Cotton has a tendency to wrinkle very easily, so cotton/polyester blends began to be popular.
2. Yarn – It is of two types namely Spurn yarn and Man-Made Filament yarn. Spurn yarn consists of cotton yarn, blended yarn and 100% non-cotton yarn whereas Man Made yarn consists of viscose, polyester, nylon and propylene. The major players for cotton and blended yarn in India include Vardhma Textiles Rajasthan Spinning and Weaving Mills (RSWM), Nahar Industrial Enterprise, Aditya Birla Nuvo, Nahar Exports and Alok Industries. Major companies for polyester yarn are Reliance Industries, Indo Rama Synthetics, Recron Synthetics, Modern Syntex, and Garden Silk Mills. For woolen yarn, the major players include Indoworth India Ltd., Oswal Woolen Mills, and BSL ltd.
3. Weaving/ knitting - In knitting, weaving is a family of techniques for introducing extra yarn(s) into a knitted fabric without knitting them. The extra yarns almost always follow the horizontal rows (courses) of knitting and, if visible, resemble a woven texture. Thus, with sufficient force, a woven yarn can be pulled out of a knitted fabric, as in a woven fabric. Multi-yarn weaving is sometimes called couching. The woven yarn(s) need not be the same thickness or color as the knitted yarn. India’s weaving/knitting sector is highly unorganised, with the organised sector contributing to just 5 per cent of the total production. There are about 3.9 million hand looms and 1.8 million power-looms in India. Hand looms cater to both ends of the value chain, i.e. mass consumption, as well as specialty use. Hand looms are located mostly in rural areas such as Pochampally in Andhra Pradesh and Kanchipuram in Tamil Nadu. Demand for standardisation in apparel segments such as sarees has given a significant impetus to powerlooms, which contribute to 62 per cent of the total cloth production. Knitting units are successful in export channels. Some of the prominent weaving/knitting clusters include Tirupur in Tamil Nadu and Ludhiana in Punjab.This is the weakest link in the supply chain suffering from problems such as high power tariffs and low investments in technology.
4. Bleaching- A process of whitening fibers, yarns, or fabrics by removing the natural and artificial impurities to obtain clear whites for finished fabric, or in preparation for dyeing and finishing. The materials may be treated with chemicals or exposed to sun, air, and moisture.
5. Dying (Piece) - Dyeing of the fabric into solid colors after weaving or knitting.
(Yarn) - Dyeing of the yarn into solid colors before weaving or knitting.
6. Calendaring - A process of passing cloths between one or more rollers (or calenders), usually under carefully controlled heat and pressure, to produce a variety of surface effects or textures in a fabric such as high luster, glazing, embossing, and moiré.
7. Embroidery - An embellishment of a fabric or garment in which colored threads are sewn on to the fabric to create a design. Embroidery may be done either by hand or machine.
8. Processing - Indian processing sector is largely decentralised with low levels of automation, marked by hand/independent processing units. This has lead to inconsistency in production and lack of conformance to quality. About 2,300 processors are operating throughout India, including about 2,100 independent units and 200 units that are integrated with spinning, weaving or knitting unit.
9. Spinning - The spinning sector in India is completely (100 per cent) organised and is globally competitive in terms of variety, process and production quantity. India has about 40 million spindles (23 per cent of the world). Independent spinning mills account for about 75 per cent of total capacity and 92 per cent of the total production. These mills are chiefly located in North India. The spinning process is technologically intensive, the output is affected by the quality of fibre and the cleaning process of raw material.
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Till about the sixties Bengal produced 75 to 80% of the country’s output. However the picture changed diametrically and prominence reversed from East to South was seen. Also, centers like Delhi and Mumbai for socks, Ludhiana for woolens and Kanpur, Varanasi, Ahmedabad for cotton knitwear prospered.
Labor problem in 70s and 80s took the hosiery industry away from Bengal and it lost its sheen and was no more the primary centre for the hosiery Industry. Bengal is still important centre for domestic hosiery production but lack of proper export production and capability is a sore point. Efforts are now underway to regain its past glory, mainly in production sector, as all leading brands have their base in Kolkata while the production process is carried in Tirupur (Tamil Nadu).
PROBLEMS:
1. The organized retail industry in India is faced with stiff competition from the unorganized sector.
2. There is a shortage of quality real estate and infrastructure requirements in our country.
3. Opposition to Foreign Direct Investment from small traders affects retail industry.
4. Very high stamp duties on transfer of property affect the industry.
5. Shortage of retail space in central and downtown locations also hinders the growth of retail industry.
6. Presence of strong Pro-tenancy laws makes it difficult to evict tenants and this is posing problems.
7. Land-use conversion is time consuming and becoming complex.
8. For settling property disputes, it consumes lot of time.
9. Rigid building laws makes procurement of retail space difficult.
10. Non residents are not allowed to own property except they are of Indian origin.
11. Prohibition of Foreign investment in real estate business.
12. Customs duties are levied on import of goods in India.
After discussing the problem we all know that the success of any industry depends on its own and its competitor’s strategy. For Indian garment industry to compete successfully, various factors should be analyzed that forms basis
To develop a positive strategy a company needs to match its business‘s internal resource and its skills and the opportunities and risks created by its external environment.
Internal and external environment analysis
A vast majority of articles and books have focused on importance of analyzing internal and external environment of firms to understand their present and predict the future. It is known that the environment under which the firm operates, changes over time. Through external analysis, the garment units can identify the threats and opportunities facing its competitive environment. It can recognize how the competition in the market is likely to evolve and the implications this would have on them.
Internal analysis helps them to identify its strengths and weaknesses. The Resource Based View (RBV) of internal analysis helps to understand the scarce resources and capabilities of a firm required to be a source of competitive advantage. . It focuses on firm’s specific resources and includes assets, capabilities, organizational processes, attributes, information and knowledge.
External analysis helps to identify the uncertainty that exists in a firm due to its external environment if the decision makers do not understand the future events or are unable to assign probabilities about the particular changes that will be incurred. Also “Environmental change is one of the major influences upon the performance of business” which is far from control by the organization. These trends and events have potential to affect strategies of garment manufacturing units in a particular country.
For analyzing the macro-environment, the important variables that influence the supply, demand, and its costs should be identified. The key dimensions for environmental analysis are political, economic, social and cultural, and technological factors (PEST) There analysis consequently, should be used to develop contingency plans for threats, and the advantages should be harvested by identifying the opportunities, while preparing strategic plans for these units claims PEST analysis as an important strategic tool which is useful for understanding the position of business, its potential, and the direction for operations. These factors have been highlighted below:
PEST ANALYSIS
Political environment
The political factors are those in which “organizations and interest groups compete for attention, resources, and a voice of overseeing the body of laws and regulations guiding the interactions among nations. Garment units are affected by the government at both national and local levels not only for a short period through laws, policies, and authority but also on strategic level by creating opportunities and threats. Political decisions have an effect on markets, industrial structure, economic and social trends, employment law, tax policies, trade restrictions and tariffs. The impact of these vital changes should be anticipated by the garment manufacturers.
Economic environment
It refers to the nature and direction of the economy that may have an impact on the activities of an industry, here specifically the garment industry in which it competes. Therefore, it is important for firms to study the economic environment, identify the changing trends, and their strategic implications also supported the viewpoint, and said that the economic environment provides both threats and opportunities, and therefore should be analyzed. The key economic variables leading to economic change are effects of economic cycle, government policies, world trade pattern, commodity prices, changes in currency conversation rate, capital markets, and labor markets and their rates, inflation, tax rates, and interest rates.
Social and Cultural Environment
Social and cultural factors such as changes in work patterns, population growth, age structure, and family structure, changes in tastes and habits, and fashion have a direct impact on attitudes of people, consumers, business behavior, and cultural values within a society. A cornerstone of a society can be formed by often driving demographic, economic, political/legal, and technological conditions and changes that may increase the opportunities for segmenting and differentiating the market. Their effect on the garment industry is required to be studied.
Technological Environment
To gain competitive advantage, it is vital for firms to innovate continuously. This view has been supported by vast literature on strategic management. The strategic and operational decision-making depends on knowledge and technological conditions of the external economy. The further aspects are detailed by expressing that, technological change effect particularly through new products, processes, materials, and distribution channels. Developments in technology offer the firms to purchase in higher quantity, better quality, and replace labor with capital. It also has the power to change the economic rationale of an industry
Therefore, it is important for garment manufacturing units to conduct PEST analysis and focus on changes in the external environment that are particularly essential for their businesses.
Apart from PEST factors, for distributors, active end users, market characteristics, competition, suppliers and natural/physical factors to the list of external factors that affect an organization. It is difficult for a firm to react to the environment changes quickly due to uncertainty in their occurrence and therefore the implications cannot be predicted.
POTER’S FIVE FORCES
Therefore in addition to these factors, Porter (1980, 1985) analyzed the industries environment as a part of external analysis. Defined an industry as, a group of firms producing close substitutes. The changes in the external environment affect organizations; however, the degree of benefit or loss provided varies. The industry environment has more direct effect on the strategic competitiveness of firms in comparison to the general environment The five forces model developed by Michael Porter (1980, 2008) is powerful in its ability to position a firm by analyzing the economic forces that are weakest within an industry. Five major variables that determine the competition in the market between garment industries have been outlined below:
Threat of New Entrants
High industry attractiveness and low barriers to entry leads to high threat of entry. New competition poses a threat to the existing firms by bringing in additional production capacity which results in lower revenue and returns for the competing firms if demand of product is not increasing. Porter (2008) argued that changes in the barriers can raise or lower the threat of new entrants. For instance, new competitors may be unleashed on expiry of patents, or may be reduced if the space to keep new products is limited. Due to low barriers to entry in the garment industry, competition is gradually increasing.
Threat of Substitutes
The availability of products or services performing similar or same functions with the actual product produced in that industry, and satisfying the customer needs, causes high threat of substitution in that industry. With advances in technology, the threat of new substitutes being developed increases over time. To overcome this, Porter (2008) suggested that the companies could introduce new features in the existing product or provide wider accessibility thereby offering better value to customers (Porter, 2008). Hitt et al (2003) also supported by stating that the attractiveness of substitute products can be reduced by distinguishing a product or service through various element valued by customers such as price, quality, after sales service, and location.
Bargaining Power of Suppliers
High bargaining power of suppliers is when it is difficult to switch between different suppliers “or if the total supply in this industry is only a small part of the suppliers total output”. Thus, suppliers can exert power over firms by
Raising the prices and lowering the quality of its products. Porter (2008) said that the power of suppliers changes with time. For example, the airlines industry was earlier only dependent on travel agents to sell tickets, now due to advent of internet, these companies are able to sell tickets online directly to customers. With this the bargaining power of airlines companies increased so as to cut down agent’s commission.
Bargaining Power of Buyers
As said by Porter (2008), “Powerful customers-the flip side of powerful suppliers-can capture more value by forcing down prices, demanding better quality or more service (thereby driving up costs), and generally playing industry participants off against one another, at all the expense of industry profitability.” With tremendous competition in the garment industry, this factor needs to be analyzed. High bargaining power of buyers is when buyers are easily able to switch between suppliers of the products required to gain discounts or any additional services. To counter this, Porter (2008) suggested that services should be expanded by companies; thereby raise the switching costs of buyers, or by finding alternative ways to reach customers so as to neutralize the powerful channels.
Extent of Industrial Rivalry
According to Porter (2008), “Rivalry among existing competitors takes many familiar forms, including price discounting, new product introductions, advertising campaigns, and service improvements”. Existence of high rivalry in the garment industry is a cause of limited profitability. Porter (2008) believed that the nature of industrial rivalry can be altered by mergers and consolidations or by technological advances. He also said that companies could invest heavily in unique products or expand its support services to customers.
Further, Global marketplace is going through drastic changes and industry players find their marketing playbook becoming obsolete. Market today consists of hundreds of salesmen, all pushing their products which are similar in nature and shoppers keep moving from store to store, bargaining. The prices fall eventually, a decision taken by the business owners hoping for a lasting relationship with the consumer. There is an increase in the amount of disposable income of the people, and media has created a change in their lifestyle. Despite consumers tend to spend more, marketers are finding it difficult to maintain or increase their wallet share due to globalization and cut-throat competition.
But successful products touch the customer emotionally. A clear understanding of the customer’s psychology is essential for companies to sustain themselves in the market. Businesses formulate their strategies in such a way that the product become more appealing to the consumers, and turns an ordinary shopper into a long term consumer. Brands plan their marketing so as to create and maintain a long term relationship with the consumer.
Various components are used in the marketing plans of a business; advertising, promotion, packaging, media weight level, sales force number etc. But, the number of inputs and the resulting outcome in terms of sales or profit is the workhorse. Marketing mix modeling is the art of using statistical analysis on sales and marketing to estimate and manipulate various promotional tactics on sales, and further forecast the result of promotional tactics.
Place
Consumers are getting quickly immune to the marketing tactics of businesses, and margins are being squeezed by demanding customers. Focus is getting shifted from mass advertising to making of new trends. Clothing industry is a very competitive arena. Due to the highly fragmented nature of apparels, and fashion sector, an apparel brand must differentiate itself from its competitors right from the stage it enters the market.
Price:
In case of apparels, especially in fashion, price is not of big importance. Gone are the times when companies competed on price. Service is the key today which will shift to focus on personality in the future. Innovative designs are no longer a competitive advantage. New sketches are transformed into garments and make their way in store shelves within a span of three weeks. New disposable fashion has shortened the product development cycle from 16 months to 20 days. Promotion:
In integrated communication is as essential part of the marketing mix. This is even more important for clothing industry as communication is a critical tool in creating an impression in the minds of the consumers. An apparel, to become acceptable by public must first be adopted by a group which has acknowledged respect in the society. Celebrities are the most influential people who can influence public opinion. CPR (Consumer Personal Reference) marketing refers to the process of marketing where a customer publicizes a brand by accepting the product and spreading the trend by word of mouth.
Product:
Product not only refers to tangible items but also to intangible attributes such as brand name and customer service. Earlier it was believed that a good product will sell itself. In today’s competitive market, there is no such commodity as bad product. So, manufacturers must focus on creating a product or service that will satisfy the demands of the consumers. The product characteristics must be defined with functionality, quality, appearance, brand service, support and warranty.
SWOT ANNALYSIS OF HOSIERY AND APPAREL INDUSTRY
The strength (S) of the hosiery industry is:
1. abundant raw material availability
2. low cost skilled labor
3. presence across the value chain
4. growing domestic market
5. change in fashion and style there by increasing the product variety and demand
Major PROBLEMS/WEAKNESS (W) faced by the hosiery industry today are:
1. Government regulations- so as to mention the recent inducement of excise duty by the government on hosiery goods which is 10% on 45% of the MRP... (these are the exact figures)
2. Unfavorable climatic conditions - as known cotton using industries are mainly located in places which have a warm climate, but as seen now, there is no fixed period for the weather change, which is widely affecting the hosiery industries.
3. Obsolete Technology - because of low capital availability
4.Low- cost competitiveness - The Indian labor force as a very low productivity as compared to other states like China and Sri- Lanka so they take much longer time to produce less of what their labor produces, also there is Indian industries lack economies of scale, have a higher indirect tax, large cost in power and interest.
5. Lack of support from Bank’s for loan
6. Unavailability of working capital
7, Lack of proper infrastructure
8. venture capital availability
9. insufficient export credit
10. marketing inadequate.
The OPPORTUNITY/SCOPE (O)
1. New product development
2, Research and development of industry and whole
THREATS (T) for the industry
1. competition in domestic market
2. ecological and social awareness
3. regional alliances.
DOMESTIC INDUSTRIES: (www.hosieryassocation.com)
The major leading players in Indian market are:
1. Pantaloon retail (India)
2. Aditya Birla NUVO
3. Rupa & Co.
4. Lux Industries
5. Dollar Industries.
Pantaloon retail (India)- As India’s leading retailer, Pantaloon Retail inspires trust through innovative offerings, quality products and affordable prices that help customers achieve a better quality of life every day. They serve customers in 85 cities and 60 rural locations across the country through over 15 million square feet of retail space.
Pantaloon Retail is the flagship company of Future Group, India’s retail pioneer catering to the entire Indian consumption space. Through multiple retail formats, they connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. This number is set to grow, while mainly specializing in apparel garment sector; it manufactures good in its home factory and serves the need for the ongoing trend of the urban as well as rural sector, of India.
1. Aditya Birla Nuvo - Aditya Birla Nuvo Ltd is a US$4 billion, diversified conglomerate and the platform that has launched many new businesses for India’s premier business house, the Aditya Birla Group. Aditya Birla Nuvo has a portfolio of manufacturing as well as service sector businesses under its umbrella ranging from textiles to financial services. The razor sharp focus on each business has made it a leading player in most segments, including viscose filament yarn, carbon black, branded garments, agro business, textiles and insulators.
As a leading player, Aditya Birla Nuvo ranks as:
• India's second largest producer of viscose filament yarn (VFY).
|The country's largest premium branded apparel company |
|The second largest producer of carbon black in India |
|Largest manufacturer of linen fabric in India |
|Among the most energy efficient fertilizer plants |
|India’s largest and the world’s fourth largest producer of insulators |
2. Rupa- Rupa today is the unquestioned No.1 knitwear brand in India, covering the entire range of knitted garments from innerwear to casual wear. Starting as a dream in the far-sighted mindscape of three men of vision and enterprise, Rupa has evolved to become the frontrunner in India and a leading player in global markets with far-reaching footprints and millions of satisfied customers
Along with quality and durability, Rupa brands are integrated across the hosiery value chain. They enjoy top-of-the-mind recall across all segments and have earned the trust of millions across the globe.
• Rupa has a daily capacity to produce over 700,000 pieces of finished goods. • Rupa products are made from the finest yarns sourced from across the globe • Rupa uses imported technology for dyeing and bleaching to maintain competitive quality standards. • Rupa invests in considerable research to produce environment-friendly clothes and minimize carbon footprints
3. Lux - Lux is well-known for manufacturing innerwear of uncompromising quality and comfort, which have been recognized for their top quality by the highest standards bodies. With consistent customer satisfaction over many years, Lux has witnessed a massive growth of over 100 times in just 20 years! After making its mark firmly in the hosiery sphere, Lux is now moving into the outerwear, premium-wear and women-wear segments, with a key focus on today’s youth
4. Dollar industries - From a laid-back industry of the Fifties and Sixties to a grand market that today is worth about 10,000 crore, the hosiery business in India has undergone a remarkable metamorphosis, contributed in no small. From humble beginnings in 1996, the Company has become a force to reckon within the innerwear market. Today the Company’s reach spans 26 states, making us one of the country’s top five hosiery undergarment manufacturers. Dollar received three national awards in 2006, 2007 and 2009 for best brand and excellence in Men’s Innerwear from CMAI. The brand has a strong presence in international retail chains like Carrefour and Lulus and a growing market in the Middle East. Ongoing mission is to continue to push boundaries to deliver the experience and excitement that our customers expect. The Company anticipates a 400 crore turnover by the end of 2010-11.
3. RESEARCHES AND METHODOLOGY:
1. INTRODUCTION TO RESEARCH AND METHADOLOGY (webopedia.com) & (businessdictornary.com)
Research is common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of investigation. According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Like every subject this topic of the handloom sector has also been thoroughly researched and the relevant information has been rightly used.
2. QUALITATIVE AND QUANTATIVE DATA GATHERINGS:
Quantitative Data
Information that can be counted or expressed numerically. This type of data is often collected in experiments, manipulated and statistically analyzed. Quantitative data can be represented visually in graphs and charts.
Qualitative Data
Qualitative data is extremely varied in nature. It includes virtually any information that can be captured that is not numerical in nature. 'Soft' data that approximates but does not measure the attributes, characteristics, properties, etc., of a thing or phenomenon.
There are two methods of collecting data. They are:
1. Primary Data
It is is a term for data collected on source which has not been subjected to processing or any other manipulation. It is the Data that has been compiled for a specific purpose, and has not been collated or merged with others. Primary data is always collected from firsthand experience.
2. Secondary Data
Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases than would be unfeasible for any individual researcher to collect on their own.
Advantages of Secondary data
• It is economical. It saves efforts and expenses. • It is time saving. • It helps to make primary data collection more specific since with the help of secondary data, we are able to make out what are the gaps and deficiencies and what additional information needs to be collected. • It helps to improve the understanding of the problem. • It provides a basis for comparison for the data that is collected by the researcher.
Disadvantages of Secondary Data
• Difficult or costly access • Unsuitable aggregations and definitions • Does not meet the purpose of study • No real control over data quality
3.3 TOOLS RELATED TO RESEARCH METHDOLOGY:
Correlation
The word correlation is used to denote the degree of association between variables. If two variables x and y are so related that variations in the magnitude of one variable tend to be accompanied by variations in the magnitude of other variables, they are said to be correlated. If y tends to increase as x increases, the variables are said to be positively related. If y tends to decrease as x increases the variables are negatively correlated. If the values of y are not affected by changes in the value of x, the variables are said to be uncorrelated.
Properties of correlation coefficient
The correlation coefficient ‘r’ is independent of the choice of both origin and scale of observations the correlation coefficient ‘r’ is a pure number and is independent of the units of measurement. The correlation coefficient
‘R’ lies between –1& +1.
Formulae,
[pic]
Regression:
In statistics, linear regression refers to any approach to modeling the relationship between one or more variables denoted y and one or more variables denoted X, such that the model depends linearly on the unknown parameters to be estimated from the data. Such a model is called a "linear model." Most commonly, linear regression refers to a model in which the conditional mean of y given the value of X is an affine function of X. Less commonly, linear regression could refer to a model in which the median, or some other quintile of the conditional distribution of y given X is expressed as a linear function of X. Like all forms of regression analysis, linear regression focuses on the conditional probability distribution of y given X, rather than on the joint probability distribution of y and X, which is the domain of multivariate analysis.
P Value
The P value is the probability of seeing a result as extreme as getting in a collection of random data in which the variable had no effect. A P of 5% or less is the generally accepted point at which to reject the null hypothesis. With a P value of 5% (or .05) there is only a 5% chance that results you are seeing would have come up in a random distribution, so we can say with a 95% probability of being correct that the variable is having some effect, assuming your model is specified correctly. The size of the P value for a coefficient says nothing about the size of the effect that variable is having on your dependent variable - it is possible to have a highly significant result (very small P-value) for a miniscule effect.
R-Squared
The R-squared of the regression is the fraction of the variation in dependent variable that is accounted for (or predicted by) independent variables. (In regression with a single independent variable, it is the same as the square of the correlation between the dependent and independent variable.) The R-squared is generally of secondary importance, unless the main concern is using the regression equation to make accurate predictions.
Bar graph (from webopedia)
A bar graph is a pictorial rendition of statistical data in which the independent variable can attain only certain discrete values. The dependent variable may be discrete or continuous. The most common form of bar graph is the vertical bar graph, also called a column graph.
In a vertical bar graph, values of the independent variable are plotted along a horizontal axis from left to right. Function values are shown as shaded or colored vertical bars of equal thickness extending upward from the horizontal axis to various heights. In a horizontal bar graph, the independent variable is plotted along a vertical axis from the bottom up. Values of the function are shown as shaded or colored horizontal bars of equal thickness extending toward the right, with their left ends vertically aligned. Line graph (from business dictionary)
Graphical device that displays quantitative information or illustrates relationships between two changing quantities (variables) with a line or curve that connects a series of successive data points. A grouped line graph compares a trend with one or more other trends, and shows if its rate of change is increasing, decreasing, fluctuating, or remaining constant. Line graphs are the most versatile and most extensively used family of graphs. Also called line chart.
Histogram (from business dictionary)
Step-column chart that displays a summary of the variations in (frequency distribution of) quantities (called Classes) that fall within certain lower and upper limits in a set of data. Classes are measured on the horizontal ('X') axis, and the number of times they occur (or the percentages of their occurrences) are measured on the vertical ('Y') axis. To construct a histogram, rectangles or blocks are drawn on the x-axis (without any spaces between them) whose areas are proportional to the classes they represent. Histograms are used commonly where the subject item is discrete (such as the number of students in a school) instead of being continuous (such as the variations in their heights). A histogram is usually preferred over a histogram where the number of classes is less than eight, also called frequency diagram.
Pie chart (from business dictionary)
Proportional area chart used almost exclusively in showing relative sizes of the components of a data-set, in comparison to one another and to the whole set. It consists of a circle (disc) divided into several (usually not exceeding six) segments. Area of each segment (called slice or wedge) is of the same percentage of the circle as the component it represents is of the whole data set. Most important segment is commonly shown in the '12 o'clock' position with each successive less important segment following in a clockwise direction, also called circle diagram, circle graph, pizza chart, or sector graph.
3. Data Analysis
Refer table 1
Import
The import value Cleary indicates massive increase in import during the years 2000 to 2009 which is very fast and increasing as at a massive rate each year. But looking at the industries prosperity and hope that can also be seen in year 2010, the import from foreign country might decrease, and export might increase in the upcoming years.
Refer table 2
Export
Looking at the export figures, we can say that the export has been steady without many fluctuations during the year 2000 to 2007 where as in year 2008 we see a decline. But again the export increases in year 2009, in spite of global recession, which continues and show that it will prosper more and more in the upcoming years.
Refer table 3
Export and import regression
The influence of import value on the export value is given by the regression equation:
y = a +bX
y = 20154.26951328 + 51.5724934717512
where:
Y = dependent variable (Export Value)
X = independent variable (Import Value)
The hypothesis test with the regression equation is as follows:
H02 = Import value does not have a significant influence on the export value.
H12 = Import value does have a significant influence on the export value.
R Square
0.885615777552695
which shows that 88% of the change in the export value is due to the change in the import value.
P Value
0.0000157333937099167
which shows that the P Value is less than 0.05 which indicates that the null hypothesis (H01) is rejected and the alternative hypothesis (H11) is accepted.
Thus, the import value does have a significant influence on the export value.
Refer table 4
Market size
The market size data show how fast and vast the market size of the hosiery and apparel industry is growing in the last ten years. It’s been drastic and emended, clearly showing how this industry is immensely helping in economic development of the country as well as creating employment while increasing market size. Data for ten years 2000- 2010 is shown.
Refer table 5
Influence of market size on the export value
The influence of market size on the export value is given by the regression equation:
y = a +bX
y = 17602.0017007118 + 1.48208625510546
where:
Y = dependent variable (Export Value)
X = independent variable (Market Size)
The hypothesis test with the regression equation is as follows:
H01 = Market size does have a significant influence on the export value.
H11 = Market size does not have a significant influence on the export value.
R Square
0.92724241017153
which shows that 92% of the change in the export value is due to the change in the market size.
P Value
2.01642122663512E-06
which shows that the P Value is more than 0.05 which indicates that the null hypothesis (H01) is accepted and the alternative hypothesis (H11) is rejected.
Thus, the market size does not have a significant influence on the export value.
Refer table 6
Sales value
Values for last ten years 2000- 2010 us shown and it shows as the demand Is growing market is growing which eventually leads to growth in sale, therefore the sales value show how the industry in year 2000 to 2009 grew at steady rate, and then after took a jump and started growing much faster, and have a larger sale, with an increase in production and demand.
Refer table 7
Regression between export and sales
❖ Influence of Sales Value on the export value
The influence of sales value on the export value is given by the regression equation:
y = a +bX
y = 17551.5781593078 + 1.5236297697892
where:
Y = dependent variable (Export Value)
X = independent variable (Sales Value)
The hypothesis test with the regression equation is as follows:
H04 = Sales value does not have a significant influence on the export value.
H14 = Sales Value does have a significant influence on the export value.
R Square
0.927076791411393
which shows that 93% of the change in the export value is due to the change in the sales value.
P Value
2.03730592884244E-06
which shows that the P Value is more than 0.05 which indicates that the null hypothesis (H01) is accepted and the alternative hypothesis (H11) is rejected.
Thus, the sales value does not have a significant influence on the export value.
Refer table 8
This table shows the 5 top most leading brands for last ten years 2000- 2010
1. Pantaloons retail
2. Aditya Birla Nuvo
3. Rupa
4. Lux
5. Dollar
This data shows the market share of the above top brands, and their hold in the apparel market. Amongst them as seen pantaloon holds the largest market share, as it properly uses all the marketing mix strategies as stated in the literature review. And after it follows, NUVO. The pie charts shown show the market share of the last 5 years market share among these brands.
Refer table 9
This table shows the market share of the top 5 most leading brands as mentioned above, and their market share is depicted in the form of pie charts for the last 5 years where as the table shows the data for years 10 years from 2000- 2010. The data cleary shows that pantaloon retail is the most strongest, followed by aditya birla Nuvo.
Refer table 10
This table shows that the apparel sector has the most export increasing in sector wise when compare to the other textile industry. This segment is shown percent wise increase in apparel sector than other segments.
Refer table 11
This table shows that knitwear which is a major product of the apparel and hosiery sector is most exported among the other textile products like jute, leather, chemicals, etc. which in return tells, that hosiery sector helps India in earning foreign exchange , create employment and help india economically and industrially.
Refer Table 12
This table shows the amount of yarn production.
4. Hypothesis
What is Hypothesis?
Hypothesis testing is a common practice in science that involves conducting tests and experiments to see if a proposed explanation for an observed phenomenon works in practice. A hypothesis is a tentative explanation for some kind of observed phenomenon, and is an important part of the scientific method. The scientific method is a set of steps that is commonly employed by those in scientific fields to give scientific explanations for various phenomena.
Null hypothesis:
A type of hypothesis used in statistics that proposes that no statistical significance exists in a set of given observations. The null hypothesis attempts to show that no variation exists between variables, or that a single variable is no different than zero. It is presumed to be true until statistical evidence nullifies it for an alternative hypothesis.
Alternative hypothesis:
The alternative hypothesis is the hypothesis used in hypothesis testing that is contrary to the null hypothesis. It is usually taken to be that the observations are the result of a real effect (with some amount of chance variation superposed).
1. H01 = Market size does not have a significant influence on the export value.
H11 = Market size does have a significant influence on the export value.
2. H02 = Import value does not have a significant influence on the export value.
H12 = Import value does have a significant influence on the export value.
3. H03 = Production does not have a significant influence on the export value.
H13 = Production does have a significant influence on the export value.
4. H04 = Sales value does not have a significant influence on the export value.
H14 = Sales Value does have a significant influence on the export value.
6. Results
6.1 Findings
1. The export value of the hosiery and apparel industry is being influenced by factors such as market size, import value of the apparel products, production level of the apparel products. Therefore a change in anyone factor mentioned above will have a corresponding affect on the apparel industry.
2. The market size is seen to increase from 2006 – 2010
3. The import value is seen to have a steady increase from years 2000 to 2005 where are from year 2005 to 2010 we can we a high increase in the import values of the industry.
4. The export value is seen to increase despite of being affected of global recession in the year 2009.
5. However the provisional overall export during the period 2007 reached 40280.8, registering a decline in year 2008.
6. Whereas, by 2011 the exports are likely to increase by 25 billion US$.
2. Recommendations
1. The industry should keep in mind to safeguard the environment and direct its production towards eco-friendly system of production by adopted newer and greener technologies in the production process.
2. The Government should introduce and frame policies and programs to effectively replenish the livestock such as sheep, goats, buffaloes and other domesticated animal.
3. The Indian industry as a whole is facing tremendous disadvantage from other competitive countries like China, Brazil regarding the transportation and logistics, which can be further improved and modernized.
7. Conclusion
The hosiery and the apparel has experienced growth and has been an important contributor in the economic growth of the country; however the cut throat competition and the intense government regulations and taxes have had a negative impact on the revenue of the players. Despite the challenges the hosiery and apparel sector will thrive and prosper because of the young emerging entrepreneur’s who have enough potential to make the industry prosper. The effort of every person associated with the industry helped industry grow and become the second largest apparel industry in world. It has helped not to India earn foreign exchange, but also make employment opportunities for the people in and outside the country. This industry has acquired a considerable stake in the Indian companies, and has grown from small scale to medium and large scale industries. The favorable climatic condition and cheap labor has helped India have a greater hold of this industry.
7.1 Limitations
This research has faced a lot of limitations due to time, words and resource constraints.
• No primary data has been collected, the research has been based on secondary data due to which the facts and figures used may vary and might not be that accurate too.
• Secondly, the Indian cellular service industry is a huge industry and therefore all aspects of the industry cannot be covered properly. The focus was mainly on the total cellular subscribers and the various factors affecting it. Certain area like taxation could not be covered due to lack of time and resources.
• Thirdly, literature review had to be covered in a very precise manner to avoid overshooting of word limit. This restriction also had affect on other sections of the project.
By overcoming the above limitations I would be able to deliver a much better project. Other statistical tools could be used to determine impact on production more effectively and efficiently by conducting the research on actual companies based on primary data. This would help me to test the results and findings realistic grounds and examine whether they stand true in the practical world.
7.2 Future Scope
Growth in the hosiery and the apparel industry is expected to remain strong, given the revival in the housing market, continued government spending on the rural sector and the gradual increase in the infrastructural projects being executed by the private sector. India is the second preferred country after China for textile and apparel sourcing. Its apparel sourcing is likely to achieve exports target of US$ 25 billion by 2011-2012. Also the Indian market for domestic readymade apparel is estimated at $5.5 billion (Rs200 billion) to $8 billion (Rs300 billion) annually.
This sector seems to keep growing and prosper and help India earn foreign earnings and open to the world economy. Along with it, help India gain name, and have his hold over the industry.
8. Executive summary
From the study of the industry it is known that the industry is growing and has great future prospects. Production IS growing year after year which is a healthy sign for an industry. Production is increasing in line with the rise in consumption and demand created due to it.
The literature review gives a brief overview of the industry, dating back to its history, giving details about the structure of the industry, Moreover, highlighting the importance of this industry in India, along with the issue concerning the industry, problems related to the industry, the environmental aspects faced by industries, the challenges faced by the industries, and the strategies used by industries for marketing.
Data was collected for the research to be done. Both qualitative and quantitative tools have been used to present the data and make logical conclusions out of it. Correlation, regression, pie charts, line graphs and bar diagrams have been used to interpret the data.
The material found has been summarized, analyzed and interpreted to prepare the report. Thus the data used in the project is accurate and, giving justice to the analysis made using several statistical tools, such as column diagrams and pie charts to interpret then data in the project and to the conclusions drawn thereof.
The analysis of the data has been done in a way to get insights about the industry and to help us know the industry better. The study of growth and different aspects such as production, consumption, production costs and problems faced by the industry gives better idea about the functioning of the industry, and hence the report indicates how domestic consumption, various costs during garment production and the environmental issues has a huge impact on production of cement.
The findings of the analysis have been concisely presented to clearly show the objective of the research and present it in best possible manner. Along with the findings few suggestions or recommendations about the functioning of the industry has also been worked upon to have the knowledge about the use of results of a research.
As the topic worked on is the factors affecting garment production of the garment industry in India, and with limited time period in hand only secondary source of data had been collected. Had there been more time in hand secondary data for more years could have been worked on.
9. Annexure
Import values
Table 1.
|IMPORT VALUES |Indicator units | |
| | |Import Value |
|Of Apparel Industry |Expression | Rs.crore |
| | | |
| |Dec-00 |69.9 |
| |Dec-01 |98.9 |
| |Dec-02 |172.5 |
| |Dec-03 |115.9 |
| |Dec-04 |177.8 |
| |Dec-05 |149.5 |
| |Dec-06 |251.6 |
| |Dec-07 |333.9 |
| |Dec-08 |453.8 |
| |Dec-09 |637.7 |
| |Dec-10 |509.6 |
Source: EIS portal
Export value
Table 2.
|Indicator Units |Apparels: Exports Value |
| |Rs.crore |
|Expression |Ival |
|Dec-00 |20697.4 |
|Dec-01 |25565.1 |
|Dec-02 |23941.5 |
|Dec-03 |27771.3 |
|Dec-04 |28688 |
|Dec-05 |29537.8 |
|Dec-06 |38193.1 |
|Dec-07 |40280.3 |
|Dec-08 |39027.7 |
|Dec-09 |50389.7 |
|Dec-10 |50832.1 |
Source: EIS portal
Regression between Export and Import (author’s calculation)
Table 3
|SUM| | |
|MAR| | |
|Y | | |
|OUT| | |
|PUT| | |
| | |Rs.crore |
| |Expression |Ival |
| |Dec-00 |3865 |
| |Dec-01 |6118.9 |
| |Dec-02 |6126.9 |
| |Dec-03 |6271.2 |
| |Dec-04 |6221.1 |
| |Dec-05 |7951.3 |
| |Dec-06 |10157.7 |
| |Dec-07 |13805.7 |
| |Dec-08 |17615.3 |
| |Dec-09 |21678.5 |
| |Dec-10 |22517.3 |
Regression between market size and export (author’s calculation)
Table 5
|SUMMARY OUTPUT | | |
| |Units |Rs.crore |
| |Expression |Ival |
| |Dec-00 |3795 |
| |Dec-01 |6019.9 |
| |Dec-02 |5954.3 |
| |Dec-03 |6155.3 |
| |Dec-04 |6043.3 |
| |Dec-05 |7801.7 |
| |Dec-06 |9906.1 |
| |Dec-07 |13471.8 |
| |Dec-08 |17161.5 |
| |Dec-09 |21040.9 |
| |Dec-10 |22007.7 |
Source: EIS portal
Regression of export and sales
Table 7
|SUMMARY OUTPUT | | |
| | | |
| |Expression |Ival |
| |Dec-00 |1.81 |
| |Dec-01 |1.62 |
| |Dec-02 |2.82 |
| |Dec-03 |1.85 |
| |Dec-04 |2.86 |
| |Dec-05 |1.88 |
| |Dec-06 |2.48 |
| |Dec-07 |2.42 |
| |Dec-08 |2.58 |
| |Dec-09 |2.94 |
| |Dec-10 |2.26 |
Source: EIS portal
Company wise market sale
TABLE 9 (Source: EIS portal)
|Indicator Units | Pantaloon Retail (India) |Aditya Birla Nuvo |Rupa & Co. |Lux Industries | Dollar Industries |
| |Rs.crore |Rs.crore |Rs.crore |Rs.crore |Rs.crore |
|Expression |Ival |Ival |Ival |Ival |Ival |
|Dec-00 |42.91 |52.33 |124.17 | | |
|Dec-01 |74.75 |326.66 |149.52 |8.34 | |
|Dec-02 |78.65 |356.99 |186.19 |16.3 | |
|Dec-03 |220.2 |347.56 |221.92 |15.33 | |
|Dec-04 |394.73 |413.34 |208.05 |100.57 | |
|Dec-05 |631.01 |476.07 |224.61 |146.23 |87.83 |
|Dec-06 |1134.28 |615.8 |259.75 |179.13 |141.76 |
|Dec-07 |2010.14 |693.65 |293.41 |164.93 |143.05 |
|Dec-08 |3159.38 |817.94 |337.62 |225.92 |188.96 |
|Dec-09 |4140.38 |897.33 |398.15 |291.89 |213.57 |
|Dec-10 |4480.63 |1063.96 |509.9 |333.72 |286.28 |
Trend in market share of the leading brands
Table 10
|Indicator Units | Pantaloon Retail |Aditya Birla Nuvo |Rupa & Co. |Lux Industries | Dollar Industries |
| |(India) | | | | |
| |Per cent | Per cent |Per cent |Per cent |Per cent |
|Expression |Ival | Ival |Ival |Ival |Ival |
|Dec-00 |1.11 | 1.35 |3.21 | | |
|Dec-01 |1.22 | 5.34 |2.44 |0.14 | |
|Dec-02 |1.28 | 5.83 |3.04 |0.27 | |
|Dec-03 |3.51 |5.54 |3.54 |0.24 | |
|Dec-04 |6.35 |6.64 |3.34 |1.62 | |
|Dec-05 |7.94 |5.99 |2.82 |1.84 |1.1 |
|Dec-06 |11.17 |6.06 |2.56 |1.76 |1.4 |
|Dec-07 |14.56 |5.02 |2.13 |1.19 |1.04 |
|Dec-08 |17.94 |4.64 |1.92 |1.28 |1.07 |
|Dec-09 |19.1 |4.14 |1.84 |1.35 |0.99 |
|Dec-10 |19.9 |4.73 |2.26 |1.48 |1.27 |
Table 11
Table 12
Table 13
Table 14
Table 15
Bibliography
For completing my project I have taken data and matter from the following links.
Along with some people working under this firm, like my father and his few employees, while my due course of visiting his factory, where as the links are:
• EIS portal
• India today’s journals
• West Bengal hosiery association yearly book
• file:///C:/Documents%20and%20Settings/Hillman/My%20Documents/Downloads/swetaaa.htm
• http://shodhganga.inflibnet.ac.in/bitstream/10603/2895/4/04_table%20of%20content.pdf
• http://www.facebook.com/pages/Hosiery-Garment-Industry-of-India-Innerwear-Outerwear-/122993347789455
• http://en.wikipedia.org/wiki/Tirupur
• http://www.hosieryassociation.com/
• http://www.google.co.in/url?sa=t&rct=j&q=history%20hosiery%20and%20apparel%20industry%20in%20india&source=web&cd=8&ved=0CF8QFjAH&url=http%3A%2F%2Fwww.economywatch.com%2Fbusiness-and-economy%2Ftextile-industry.html&ei=DfbgTreaNYnJrAfHor2nCw&usg=AFQjCNEll4AtcZ6Hzc-G0XfIZAXuuml_4Q&sig2=iiMmDGk5Q9iC_UrdhM4kwA (literature review)
• http://msmefdp.net/ResourceBank/Diagnostic%20Study/Tirupur-DS.pdf
• http://sourcing.indiamart.com/apparel/(literature review)
• http://www.mse.ac.in/pub/working%20paper%2017%20%20pdf.pdf (literature review)
• http://www.niir.org/profiles/profiles/textile-amp-textile-auxiliaries-hosiery-spinning-jeans-readymade-garments-under-garments/z,,1b,0,a/index.html
• http://www.msmefoundation.org/DSR_temp/Diagnostic%20Study%20Report%20of%20Readymade%20Garment%20Cluster%20-%20Bangalore.pdf(literature review)
• http://www.eiribooksandprojectreports.com/index.php?route=product/category&path=38_118
• http://www.indialawoffices.com/pdf/textileindustry.pdf
• http://www.slideshare.net/333jack333/global-textiles-and-clothing-industry-by-hiresh-ahluwalia(literature review)
• www.usitc.gov/publications/332/PUB3401.pdf(literature review)
• http://www.ibef.org/download/Textiles_Apparel_220708.pdf
• http://www.unido.org/fileadmin/media/documents/pdf/Services_Modules/Apparel_Value_Chain.pdf
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Name – Sweta Prahalakda
Roll no – 119
Semester – 5th
Supervisor – Mr Shantanu P.Chakraborty
Industry – Hosiery and Apparel
Title – Trend and condition of Hosiery and Apparel Industry.
7.3 