With the 'Incredible India' slogan cheering for India, the global markets is looking upon India with a positive view towards investments. With the government opening upto FDI in many industries, the SME sector in India is looking forward to future growth with high expectations.
Focus Segment: Textile
Capitalising on new and emerging opportunities will pose a challenge for the Textile industry. For the textile industry to be globally competitive it has to follow the following practices:
Source: D&B
Growth driver in the domestic industry
As per the projections the real growth driver in the textile industry is going to come from the 'readymade garment' part of the business. The Indian customer as is moving up the value chain, while buying capacities are increasing and so is the consumption, is showing signs of fast and uptrend consumerism which prompts many textile companies to focus on ready-made garment segment seriously.
What changes are happening in the industry?
Forward business integration - look at Raymonds for an example. A family owned business, Raymonds has been a brand since ages in India. Younger generations today hear from their father's as to how they used to get quality cloth from Raymonds and how they still do. But looking at the current trends they have recently forayed into "custom tailoring" which is a part of almost every retail showroom that they have. Its now a one stop shop for all your tailoring needs.
What are other growth options?
Most of the big players in the industry are looking at in-organic growth strategies of which acquisitions are a major part. This obviously is a step towards going up the value chain. Though we have not seen large International acquisitions, but domestically there sure is some action happening on the ground. One of the major reasons for the same is for domestic players to rise up to the scale and size to win large orders from EU and US.
What resultants do we see for SMEs from here?
SMEs will sure see a major churn in the market. The weaving industry which will see a move upwards in the value chain as it becomes the backbone of the readymade garment industry. With India's key assets in terms of low cost labor and an increasingly young working class with increasing consumer consumption levels the textile industry will sustain a good growth momentum.
India though is poised to become a major outsourcing hub for the textiles globally, the one negative which will really have to be worked upon for the cumulative growth of the industry will be the fragmented nature of the industry.
Drop in your comments with your thoughts on the post and we will be happy to discuss and feature them here on our blog!!
Focus Segment: Textile
Capitalising on new and emerging opportunities will pose a challenge for the Textile industry. For the textile industry to be globally competitive it has to follow the following practices:
- Learn and take note of the global best practices
- Adopt the emerging technology
- Innovate: in terms of product offerings
- Creating a link to the global value chain
Source: D&B
Source: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVwrJxUB6alULLID8JgSu3aUAzeKO0LptWykd2zt5BWsxPM_pgEOTrbHYFmMpPXGnqii0paZyOwouxlXbEdGqJiYzmqUB89yjPDVW0zglMFWneYuTwVNRYzHV4uVVJKbivjD2DNK-ILQjg/s320/india+textile+industry2
Growth driver in the domestic industry
As per the projections the real growth driver in the textile industry is going to come from the 'readymade garment' part of the business. The Indian customer as is moving up the value chain, while buying capacities are increasing and so is the consumption, is showing signs of fast and uptrend consumerism which prompts many textile companies to focus on ready-made garment segment seriously.
What changes are happening in the industry?
Forward business integration - look at Raymonds for an example. A family owned business, Raymonds has been a brand since ages in India. Younger generations today hear from their father's as to how they used to get quality cloth from Raymonds and how they still do. But looking at the current trends they have recently forayed into "custom tailoring" which is a part of almost every retail showroom that they have. Its now a one stop shop for all your tailoring needs.
What are other growth options?
Most of the big players in the industry are looking at in-organic growth strategies of which acquisitions are a major part. This obviously is a step towards going up the value chain. Though we have not seen large International acquisitions, but domestically there sure is some action happening on the ground. One of the major reasons for the same is for domestic players to rise up to the scale and size to win large orders from EU and US.
What resultants do we see for SMEs from here?
SMEs will sure see a major churn in the market. The weaving industry which will see a move upwards in the value chain as it becomes the backbone of the readymade garment industry. With India's key assets in terms of low cost labor and an increasingly young working class with increasing consumer consumption levels the textile industry will sustain a good growth momentum.
India though is poised to become a major outsourcing hub for the textiles globally, the one negative which will really have to be worked upon for the cumulative growth of the industry will be the fragmented nature of the industry.
Drop in your comments with your thoughts on the post and we will be happy to discuss and feature them here on our blog!!
Oh!yes future is textile Industry field for very improvement and good future textile industry field people...
ReplyDeleteAegan industries limited
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