History of textiles in India dates back to 3000 B.C. Thediversity of fibers available in India and the state of the art looms, andorganic dyes have always attracted buyers from all over the world. India is perceived as a country with the biggest growth potential after China with an estimatedgrowth of 7% per annum. Export revenue generation from the Indian apparelindustry is expected to reach $34 billion USD by 2010. End user's tastes andpreferences, and relative manufacturing costs are the two main driving factorsmanipulating the garment sector. The level of operational efficiency, and itsability to capture deals with more clothing marketers, both at the national,and international level also are the key factors for the success of theindustry.
Enhanced with skilled manpower, variety of fabrics, andresources, Indian apparel industry is now undergoing a rapid metamorphosis,shaping out to become an integral part of the global supply chain. The share ofthe Indian textile economy in the global market is around 5.9%. India is one among the handful of countries that owns the entire supply chain in proximityfrom diverse fibers to a large market. The supply chain provides around 70% ofits production to the domestic market, and is capable to offer a mix and matchof variety of products and applications.
During the past decade, the textile industry was infectedwith low productivity at both ends of the supply chain; low farm yields, andinefficiency in the garment sector. Lead times across the sector were alsoaffected by variations in the supply chain. Currently, the supply chainscompete on low cost, accurate delivery, good quality, and flexibility inquantity and diversity.
&sec=article&uinfo=<%=server.URLEncode(2040)%>" target="_blank">Fibre2fashionhad an exclusive interview with Mr Amit Ladsaria, Director, Turtle Ltd, aguiding force behind the Turtle brand. He spoke about the current situation inthe sector, elaborating the core competencies of their brand and exportmarkets.
- Highlight the major changes which you have seen in the Indian textile industry.
"The domestic market is witnessing a perceptible shiftby a large segment of customers shifting from high end brands to middle leveland value for money brands. The upbeat mood of the customers seen in the pastfew years is definitely missing and purchases have been downsized. The currentscenario represents the major opportunity for brands like us in the mediumprice range. We are able to expand our market by addressing the needs of newentrants in the branded wear market and also customers moving down from highend brands".
- What are the core competencies of your product, and how do you maintain the market in a fiercely competitive segment?
"Our core competencies can be classified as costconscious procurement and production and a lean, focused sales team isaddressing the needs of our target customers and our customers get qualityproducts at affordable prices and thus we contribute in a small way to ourcustomer's personality and confidence".
- Who according to you are the competitors for India in the global market?
"The Indian textile industry is currently passing through a difficult phase. Apparel exports have been affected by the recession in major markets of the world. Further, countries like Bangladesh and Vietnam are offering attractive prices and have been able to create a further dent to Indian exports". "We are currently exporting to the U.K and the Middle East and have just started looking at Africa which we feel will be the next booming market".
While the domestic market for Indian apparel sector is competitive at the low end of the value chain, the mid or higher ranges are overpriced. Big firms need to take advantage of the large domestic market in producing economies of scale to deliver cost advantage to the export markets, as ignoring the domestic markets will create issues in the export markets for domestic producers. Organizations must make their supply chain more flexible to overcome these issues. Efficiency in supply chain can bring a savings of 10-15% in the final cost of apparels and Indian producers can compete better in the global market.
References:
- &sec=article&uinfo=<%=server.URLEncode(2040)%>" target="_blank">http://www.andhranews.net
- &sec=article&uinfo=<%=server.URLEncode(2040)%>" target="_blank">www.iimahd.ernet.in
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