India : National Apparel Summit 03 Discuss Future Of Apparel Sector

The Indian textile and apparel industry size, which is at $13.5 billion ($6 billion from yarn and textiles, $7.5 billion from apparels) currently, is expected to touch $30 billion ($20 billion from yarn and textiles, $10 billion from apparels) by the end of 2010-11, growing at a compounded annual rate of 12 per cent, according to KSA Technopak, a Mumbai-based consulting company.

"However, while prices of other consumer goods are decreasing, branded apparel prices are going up - hampering the growth of industry, which otherwise would have grown at a much higher rate. The industry should value engineer the entire supply chain to offer better products at lower prices," Arvind Singhal, the chairman of KSA Technopak said at National Apparel Summit '03 here on May 16.

Analysing the trends in retailing, Singhal said all-under-one-roof or all-under-one mall-option were enabling consumers to compare and select more easily - implying tougher competition for brands to retain or increase "share of spend".

Over all cost of retailing is increasing for large format and modern retailers - leading to increased pressure for seeking higher margins from suppliers and brands, he said.

On the organised retailing, he said the segment ws expected to drive the branded apparel growth to Rs 3000 crore from Rs 225 crore now.

Most major yarn and textile mills had not yet truly realised the potential of vertical integration for exports, especially post-quota regime, he opined.

The Indian textile industry contributes 31 to overall exports and provides 18 per cent of total employment with 30 million people working in the industry, Naishadh Parikh, the director of Arvind Products, said.

It has a nine per cent share in central excise revenue and 12 per cent of country's manufactured production comes from this industry.

The very low per capita consumption of fibre at 23 kilos per annum, compared to China's 56 kilos and world average of 75 kilos, offers tremendous growth potential, provided the industry rises to the occasion.