Readymade garments. Contents

Transcription

1 Readymade garments Summary Rising incomes and growing preference for readymade garments vis-à-vis tailored garments will contribute to 7.4 per cent CAGR for the domestic market. Within the domestic market, the rural market is expected to outperform the urban RMG market. Annual Review July 2009 Apparel exports which have been adversely affected due to slowdown in demand from the US and EU are expected to revive in 2010, to grow at a CAGR of 4.6 per cent. However, India faces stiff competition in prices from cost-competitive countries like China, Bangladesh and Vietnam. Contents Part A: Domestic market to outpace exports growth; exports to revive in 2010 Executive summary A-1 Domestic apparel market A-3 Apparel export market A-23 Competitiveness in the export market A-37 Part B: State of the industry Industry overview B-1 Demand B-7 Exports B-13 Supply and competition B-23 Key financials of the apparel industry B-27 Government policies and regulations B-35 Manufacturing process B-40 Part C: Industry statistics C-13 This document has been prepared by Manisha Salecha, and Sridhar C (Head of Research). For any queries please get in touch with our client servicing desk. (clientservicing@crisil.com. Ph )

2 Opinion Sections Executive summary A Domestic apparel market A-3 - Key demand drivers A-5 - Other demand drivers A-7 - All-India category-wise outlook A Apparel export market A-23 - US market A-24 - EU-27 market A Competitiveness in the export market A-37 - Need of the hour for Indian exporters A-42 Box 1.0 Domestic apparel market 01 Urban and rural area classification A-5 Figures 1.0 Domestic apparel market 01 Readymade garments market size - Forecast A-3 02 All-India demand for readymade garments A-4 03 Demand for RMG in urban and rural areas A-4 04 Income versus textile expenditure A-5 05 Per capita expenditure on readymade garments A-6 06 Urban - Rural income A-6 07 Per capita expenditure pattern - Urban ( ) A-7 08 Per capita expenditure pattern - Rural ( ) A-7 09 Proportion of readymade garments to continue to rise A-8 10 India Increasing urbanisation A-8 11 Urban Segment-wise break-up A-9 12 Rural Segment-wise break-up A Men s apparel market A Break-up of men s apparel market in value (2009) A Break-up of men s apparel market in value (2014) A Market size of men s shirts segment to grow A Market size of men s trousers to expand A Market size of men s T-shirts segment to rise A Market size of men s casual bottomwear segment to increase A Women s apparel market A-14 Continued A-i

3 continued Figures 21 Break-up of women s apparel market in value terms (2009) A Break-up of women s apparel market in value terms (2014) A Market size of sarees to grow A Market size of traditional dresses segment to see an increasing trend A Market size of women s T-shirts and tops A Market size of women s bottomwear A Kids apparel market to see growing trend A Break-up of kid s apparel market (2009) A Break-up of kids apparel market (2014) A Market size of school uniforms A Market size of non-uniform/casual wear A Profitability margins of a sample of domestic garment manufacturers A Apparel export market 01 India s total exports A Destination-wise exports A Currency movement against dollar A Currency movement against euro A India exports to US A US Retail sales A India's exports to US Outlook A Cotton apparel exports to the US from India A Men/boys knitted cotton shirt A Women/girls knitted cotton shirt A Mens/Boys woven cotton shirt A Women/girls woven cotton shirt A Men/boys cotton trousers A Women/girls cotton trousers A India exports to EU 27 A EU Retail sales A India's exports to EU Outlook A T-shirt A Jerseys A Women/girls trousers A Women/girls shirt A Men/boys shirt A Men/boys trousers A Profitability margins of a sample of exports oriented units A-35 continued A-ii

4 continued Figures 3.0 Competitiveness in the export market 01 Cumulative shipments of machinery from A Garmenting labour costs Country-wise comparison A India Cost structure per square metre of garment A China Cost structure per square metre of garment A Cost comparison A-40 Tables 2.0 Apparel export market 01 India s apparel exports to the US Category-wise forecast A India's garment export basket vis-à-vis US' garment import basket A India s apparel exports to the EU Category-wise forecast A EU RMG import basket vis-à-vis India s RMG export basket to EU 2009 A Competitiveness in the export market 01 Summary of competitive factors A-42 A-iii

5 State of the industry Sections 1.0 Industry overview B-1 - Segment-wise size of domestic apparel market B Demand B-7 - Introduction B-7 - Domestic demand B Exports B Supply and competition B-23 - Introduction B-23 - Business models in the Indian RMG industry B-23 - Domestic market B Key financials of the apparel industry B Government policies and regulations B-35 - Introduction B-35 - Recent government measures B-35 - National Textile Policy B Manufacturing process B-40 - Introduction B-41 - Manufacturing process B-41 Charts 1.0 Industry overview 01 Industry overview 2008 B-1 02 RMG industry - Integral part of the textile value chain B Supply and competition 01 RMG industry - Key business models B RMG industry - Distribution channels B-25 Figures 1.0 Industry overview 01 Break-up of RMG industry (2008) B-3 02 RMG - Market size across segments (2008) B-3 03 Segment-wise size of export market B-4 04 Region-wise size exports of RMG (2008) B-4 Continued B-i

6 continued 2.0 Demand 01 RMG - Market size across segments (2008) B-8 02 Men's wear segment B Share of different categories in women's wear segment B Government policies and regulations 01 Apparel manufacturers - Distribution of revenue for domestic apparel manufacturers ( ) B Apparel manufacturers - Distribution of revenue for apparel manufacturers cum exporters ( ) B-31 Tables 1.0 Industry overview 01 Degree of fragmentation in the apparel industry B Demand 01 Domestic market break-up in 2008 B-7 02 Brands in India B Exports 01 US imports of apparel B India's exports of apparel to US B China's apparel exports to US B Break-up of apparel exports in US market B India's exports of different apparel categories to US B US imports of men s and boys cotton knit shirts B US imports of women s and girls cotton knit shirts or blouses B US imports of men s and boy s cotton woven shirts B US imports of women s and girls cotton woven shirts or blouses B US imports of men s and boys cotton bottom wear B US imports of women s and girls cotton bottom-wear B EU-27 Extra apparel imports B India's apparel exports to EU B China's apparel exports to EU B India's exports of different apparel categories to EU B EU imports of men s and boy's bottom wear B EU imports of women s and girl s bottomwear B EU imports of women s and girl s blouses/ shirts B EU imports of men s and boy s shirts B EU imports of jerseys/ pullovers B EU imports of T-shirts and vests B-22 Continued B-ii

7 continued 5.0 Key financials of the apparel industry 01 Key data aggregates - Sample of domestic apparel manufacturers B Balance sheet aggregates B Key data aggregates - Sample of apparel manufacturers cum exporters B Balance sheet aggregates B Cost structures - Sample for domestic apparel manufacturers B Cost structures - Sample for apparel manufacturers cum exporters B Government policies and regulations 01 Customs duties in textile sector B Excise duties in textile sector B-38 B-iii

8 Industry statistics Sections Tables 1.0 Industry statistics C Industry statistics 01 Key ratios - Financial aggregates C-1 02 Balance sheet aggregates C-2 03 Profit & loss account aggregates C-3 04 Acknit Industries Ltd C-4 05 Gokaldas Exports Ltd C-4 06 Pearl Global Ltd C-5 07 Samtex Fashions Ltd C-5 08 Kewal Kiran Clothing Ltd C-6 09 Cravatex Ltd C-6 10 Provogue (India) Ltd C-7 11 Zodiac Clothing Company Ltd C-7 12 Categorywise apparels imports - EU-27 C-8 13 Category-wise apparel imports: USA C-12 C-i