II.
INDUSTRY PROFILE
INDUSTRY PROFILE
The term textile is derived from the Latin word “Texere” means to weave. Textile industry came
into existence even before independence and occupied a very unique position in the world itself
due to its contribution made in the field of employment, natural economy and exporting .In olden
days, structure and functioning pattern of these industries were extremely complex that it is
mainly carried out with the help of hand spinning machines in unorganized manner. However, as
technology started to expand, its application in textile industry changed its structure and resulting
in a highly sophisticated and mechanized mill sector or industry. Small-scale power loom sector
and an organized mill sector played a major role in the growth of the mill industry. Cotton
producing states in India are Punjab, Haryana, Gujarat, Maharashtra, Rajasthan and Andhra
Pradesh. Though India has the largest cotton production in the world amounting to 9 millio n
hectors (25% of the world), only 15% of world production is taking place in the country, mainly
due to the low yield per hectare prevailing in the country.
The first mill in India came into existence due to attempt made by the Bowrea cotton Mill in
Kolkata by English enterprise but it did not worked well. Later in 1854 in Bombay, C N Daver, a
Paris business man established the first cotton mill in Bombay.
In India there are 1767 textile mills of which 192 are in the public sectors, 151 in the co-
operative sectors and 1424 in the private sector. During 1985-86 production of yarn was 1454
million, which was raised up to 3005 million in the year 1997-98.ng in the country.
In Tamil Nadu, there are 40 co-operative power looms, 170 private units concentrated in the
districts of Kannur, Ernakulum, Trissur and Trivandrum. Units which are held by the Central and
state public sector are units taken over by them when these private units turned sick at different
periods. Units in co-operative sectors are mostly newly installed plants during various periods.
The Indian textile industry is passing through a great crisis recently, mainly because of the
changes in the world market. In the international market, whereas Pakistan, China, Korea, Japan,
Thailand, and other countries were able to increase their share, India’s shares were declined.
Textile industry is one of the traditional businesses in India. In addition, it shares a huge
income to the people who are working in this industry. Training and development is one of the
main important functions of human resource management. Employee training is a specialized
function and is one of the fundamental operative functions for human resource management. We
are considering training to the textile employees is must because of the following benefits to the
organization and employees:-
Leads to improved profitability
Improved job knowledge
Helps to people identify with organizational goals
Improves labour management relations
Improves interpersonal relations
Improves job satisfaction and recognition
Through training and development, motivational variables of recognition,
achievement, growth, responsibility and advancement are internalized and
operationalised and so on.
This study will give a brief description and details regarding training and development in relation
to textile industry.
Cotton Textile Industry in India. Cotton textile industry is one of the oldest & largest
industries in India. The Textile industry plays an important role in Indian economy as it accounts
for nearly one fifth of the total industrial production and large-scale employment. It is also a
major foreign exchange earner as it contributes over 30% of the country’s total export. In a
country, like India, with a low precipitate annual textile consumption of about 3 kg, less than the
half the world average of nearly 7 kg, the importance of textile is obvious. The cotton textile
industry is largest organized industry in India and occupies second place among the countries of
the world in cloth production. The first Indian cotton mill was started at Bombay in 1851 by an
industrialist Mr.C.N.Davar. The industry provides direct employment to many more millions like
the cotton growing processors, handlooms and power looms weavers etc.
In India, the cotton textile mills re located in those states like Maharashtra, Gujarath,
TamilNadu, West- Bengal, Kerala, Andhra Pradesh and Bihar. The cotton production influences
the fortunes of the textile industries. The cost of cotton forms about 45% of the total cost of cloth
and 72% of the total raw material mix.
The Government has been raising cotton support prices to compensate the farmers for
raising the cost. The Government of India is implementing centrally sponsored schemes of
Intensive cotton development Programme (ICDP) in important cotton growing states as to
increase the production of all types of cotton including short staple.
The Indian textile industrial sector is one of the oldest industrial sectors in the country,
which is also energy intensive. It is currently undergoing several studies to reduce its energy
consumption and hence energy conservation (EC) in this context offers an excellent opportunity.
This paper, at the beginning, addresses the experiences of the authors with a textile industry,
which has already carried out some fruitful EC measures. Then it highlights the EC potential
availability and suggests some practicable environmental friendly EC policies suitable for the
Indian context to achieve the estimated potential, and finally it highlights the Government's role
in the EC Endeavour.
The Indian textile industry is one of the largest in the world with a massive raw material
and textiles manufacturing base. Our economy is largely dependent on the textile manufacturing
and trade in addition to other major industries. About 27% of the foreign exchange earnings are
on account of export of textiles and clothing alone. The textiles and clothing sector contributes
about 14% to the industrial production and 3% to the gross domestic product of the country.
Around 8% of the total excise revenue collection is contributed by the textile industry. So much
so, the textile industry accounts for as large as 21% of the total employment generated in the
economy.
Around 35 million people are directly employed in the textile manufacturing activities.
Indirect employment including the manpower engaged in agricultural based raw-material
production like cotton and related trade and handling could be stated to be around another 60
million. This industry is poised to meet the increased global competition in the post 2005 Trade
regine under WTO. The consequent effects of unleashing a flood of imported textiles into India
and also making the export markets far more competitive are being felt from now onwards. The
textile industry in India has a strong multi-fiber raw material production base, vast pool of skilled
personnel, entrepreneurial talent, good export potential and low import content. Production
systems are flexible, dynamic and vibrant.
However, the industry’s above strengths get substantially diluted on account of
production process disadvantages in certain areas in terms of technology and supply-chain
management deficiencies. It is high time that adequate corrective measures were taken to prepare
technology savvy industry to meet the challenges ahead.
The ongoing globalization process is replete with threats from our competitors,
particularly the export-led economies like China to de-stabilize our export and local markets. At
the same time, one should also realize that it offers unlimited opportunities. In order to withstand
the competition both in international and domestic markets and accelerate our export growth, it is
imperative to identify the strengths and weaknesses of the textile industry hindering its growth.
Considering the inherent strengths of this industry in terms of a strong raw material base, skilled
manpower and low wage costs, this industry has immense potential in the globalize textile
economy.
However, given the nature and extent of the fragmentation and technology obsolescence
in the decentralized sector, it calls for a focused action plan and programmes to accelerate and
sustain the growth level of the different segments of the industry. In the above background, the
Government of India as well as the important state governments having a significant presence of
the textile industry reviewed the whole spectrum of textile industry. Based on the above review
and discussions, appropriate roadmaps have been drawn up for the development and promotion
of all the sectors of the textile industry from cotton to finished products. The National Textile
Policy 2000 has envisaged a foreign exchange earning to the tune of US $ 50 billion by the year
2010.
Besides, many important measures have been spelt out in the policy document. Before
formulating the textile policy, the Government of India had set up a Committee under the
chairmanship of Mr. Sathyam to examine and draw up action points on various sectors of the
textile industry. Accordingly, the committee in its report had outlined critical issues for
development and growth. In the textile industry, the weaving sector has been identified as one of
the poorest technological links in the value chain. What makes the problem more serious is that
the decentralized sector, both the power looms and the handlooms, which are accounting for the
production of 76% of our fabrics needs, is marked by an overabundance.
The textile industry can be broadly classified into two categories, the organized mill
sector and the unorganized decentralized sector.
Being a controlled sector, the organized mill sector has a complete information base on
the organizational set-up, machinery installation, production pattern, employment etc. However,
information-base on the decentralized sector on the above parameters are inadequate and policy
planning has so far been based on hearsay and rough indirect estimates.
The organized sector of the textile industry represents the mills. It could be a spinning
mill or a composite mill. Composite mill is one where the spinning, weaving and processing
facilities are carried out under one roof. On the other hand, the decentralized sector has been
found to be engaged mainly in the weaving activity, which makes it heavily dependent on the
organized sector for their yarn requirements. This decentralized sector is comprised of the three
major segments viz., power loom, handloom and hosiery. In addition to the above, there are
readymade garments, khadi as well as carpet manufacturing units in the decentralized sector.
In a country like ours where labour is abundant and the unemployment poses a serious
threat to the economic growth of the country, there is always a controversy about the production
technology to be adopted. The mill sector’s competitiveness is at stake given the mushrooming
of a large power loom sector that has production-function advantages. The textile productions in
case of the later entrants like power looms have therefore upset the entire production scenario.
The power looms and mills are able to go for mass production with better quality products. In
spite of the fact that the industry could assimilate high technology levels for better quality
production in the market, it has never adapted to the modern technology and, therefore, has
remained obsolete. In the advent of globalization, the Government of India, as part of its
modernization efforts, has decided to induct about 50,000 shuttle less looms and upgrade 2.5
lakh looms into automatic and semi automatic power looms and make it cost effective.
This slide got momentum with the currency in South East Asia. Similarly, the off take
yarn in the consuming countries has also gone down considerably which eventually resulted in a
40% cut in the power loom cloth production and 25% cut in mill cloth production.
Corresponding fall in exports was about 20%.
The de-licensing policy of the government led to the establishment of many mills
throughout the country resulting in excess capacity building. The reasons for the present crisis
can be summarized as follows;
(1) The currency crisis in the South East Asian countries and consequent fall in international
prices for yarn and textiles.
(2) The production of cotton has not increased in relation to the capacity addition in the
industry.
(3) The policy of allowing export of cotton disregarding the requirement of domestic
industry. As a result, the price of the raw material shot up making production
uneconomical.
(4) It may also be mentioned that while the other countries are rapidly making their industry
more competitive by modernizing and restructuring, we lag behind on this score also.
China’s exports have increased by an overall 34.92% from the last year as against India’s
lowering exports.
A large number of power looms are closed due to the abnormal delay in getting payments from
buyers of fabrics. About 2.64 lakhs workers have been rendered jobless in our country due to
closure of textile mills. Nearly 1.05 lakhs from Gujarat, M.P, Tamil Nadu, and West Bengal have
reported unemployed in the range of 15000 &30000 due to closure of textile industries.
GLOBAL SCENARIO OF TEXTILE INDUSTRY
The Textile & Clothing trade in the global market is fast changing with the scaling up of uses of
textiles in diverse areas. Asian countries including India play a dominant role in the international
trade of the global market. China has the major share in Textile & Clothing trade in the
International market and both Bangladesh & Hong Kong have a significant share. It is reported
that Asian countries export most of Textile & Clothing apparel to Europe, North America, and
USA etc.
Asian countries are gaining in textile trade due to lower costs compared to African, Europe &
South American countries. As per the Global Textile & Apparel Industry: vision 2015, World
textile and apparel trade is expected to reach US$805bn by 2015 from US$650bn in 2010. At
present few countries like Bangladesh, Thailand, Cambodia, Sri Lanka, Pakistan contribute
major share in Forex earnings of their country from Textile and Clothing trade, though their
share in the world market is not very significant.
Asian countries are facing challenges in the global market due to volatility in price, rising input
cost, energy crisis and lack of marketing initiative / exposure etc. In addition, initiatives need to
be made in the area of Research and Development, skill development and Capacity building of
the industry as a whole. Industry has to be in demand driven mode.
It is also noticed that tariff rate in few Asian countries are extremely high, which became a
barrier to scale up the share in international market. At present a few Asian countries are
enjoying a special status in the global market as per WTO guidelines and able to retain share till
date. But this may not last long because of growing competition emerging from other countries.
Government of the concerned countries also facilitated the sector to grow by framing policy and
keeping provision of incentives/ concessions to encourage for international marketing. However,
India is not enjoying such status and over the years.
India’s contribution from textile and clothing trade in country’s total Forex earning shows a
declining trend in the last decade. Government of India has made a good number of initiatives
for capacity building, skill development, product diversification and enhancing global share.
CURRENT SCENARIO OF TEXTILE INDUSTRY IN INDIA
Indian textile enjoys a rich heritage and the origin of textiles in India traces back to theIndus
valley Civilization where people used homespun cotton for weaving their cloths. RigVeda, the
earliest of the Veda contains the literary information about textiles and it refers to weaving.
Ramayana and Mahabharata, the eminent Indian epics depict the existence of wide variety of
fabrics in ancient India. These epics refer both to rich and stylized garment worn by the
aristocrats and ordinary simple cloths worn by the common people. The contemporary Indian
textile not only reflects the splendid past but also cater to the requirements of the modern times.
India is the second largest producer of textiles and garments in the world. The Indian textiles and
apparel industry is expected to grow to a size of US$223bn by 2021, according to a report by
Techno park Advisors. This industry accounts for almost 24% of the worlds’ spindle capacity
and 8% of global rotor capacity. Abundant availability of raw materials such as cotton, wool, silk
and jute as well as skilled workforce have made the country a sourcing hub.
The textiles industry has made a major contribution to the national economy in terms of direct
and indirect employment generation and net foreign exchange earnings.
The sector contributes about 14 per cent to industrial production, 4 per cent to the gross domestic
product (GDP) and 27% to the country’s foreign exchange inflows. It provides direct
employment to over 45 million people. The textiles sector is the second largest provider of
employment after agriculture. Thus, growth and all round development of the industry has a
direct bearing on the improvement the India’s economy.
COTTON TEXTILE INDUSTRY IN TAMIL NADU
As in the country as a whole, in Tamil Nadu too it was cotton mill industry, which pioneered the
industrialized of the state today it is one among the most important medium and large scale
industries in the state. A large number of people get direct employment in the mills and on even
large number get undirected employment.
Textile mill of Tamil Nadu now operate in a hazardous situation most of privately owned mill
are closed down resulting in large-scale unemployment. Some of the mill was taken over by the
Textile Corporation of Tamil Nadu Government and National Textile Corporation. There taken
over mill made huge losses within about thirty different cotton mills. The workers complained
that for a long period, then have been no revision in this wage structures. The workers
themselves acknowledged the facts that then in no possibility of establishing new textile mills. In
Tamil Nadu most of the long staple cotton growing areas went to other states. Although much
headway has been made to improve the production of raw cotton, its supply has always fallen
short of the demand. labor strikes are common in the industrial sector but cotton textile industry
suffers a lot due to frequent strikes by a labor force gently, much of the long staple cotton
requirements are met by resorting to imports. In Tamil Nadu Most of the textile mills are old
with obsolete machinery. This results in low productivity and inferior quality. In the developed
countries, the textile machinery installed even 10-15 years ago has become out dated and
obsolete, whereas in Tamil Nadu about 60-75% machinery is 25-30 years old it affect overall
efficiency of Tamil Nadu cotton textile industry.
GOVERNMENT INITIATIVES.
The Indian government has come up with a number of export promotion policies for the textiles
sector. It has also allowed 100% FDI in the Indian textile sector under the automatic route.
GROWTH
The Indian textiles industry is set for strong growth, buoyed by strong domestic consumption as
well as export demand. The most significant change in the Indian textile industry has been
advent of man-made fibers (MMF).India has successfully placed its innovation range of MMF
textiles in almost all the countries across the globe.
MMF production recorded an increase of 10% and filament yarn production due 6% in
the month of February.2014. MMF production increased by about 4% during the period
of April 2013- February 2014.
During April 2013- February.2014cotton yarn production increased by about
10%.Blended and 100% non-cotton yarn production increased by 6%
duringFebruary.2014 and by 8% during the period of April 2013- February.2014.
Cloth production by mill sector registered a growth of 9% in the month of
February.2014& of 6% during April 2013- February.2014.
India’s textiles sector is one of the mainstays of the national economy. It is also one of
the largest contributing sectors of India’s exports contributing 11% to the country’s total
exports basket.
The textiles industry is labor intensive and is one of the largest employers. The industry
realized export earnings worth US$41.51bn in 2013-2014.
The textile industry has two broad segments, namely handloom, handicrafts, sericulture,
power looms in the unorganized sector and spinning, apparel, garmenting, made ups in
the organized sector.
The Indian textile industry is extremely varied, with a hand-spun & hand woven at one end of the
spectrum, and the capital-intensive sophisticated mill sector at the other. The decentralized
power looms or hosiery and knitting sector form the largest section of the Textile Sector. The
close linkage of the industry to agriculture and the ancient culture, the traditions of the country
make the Indian textiles sector unique in comparison to the textile industry of other countries.
This also provides the industry with the capacity to produce a variety of product suitable to the
different market segments, both within and outside the country
PROCESS FLOW CHART OF TEXTILE INDUSTRY
Raw Material
Bale Borah
Mill
Spinning Mill Composite Mill
Yarn
Hand Loom Power Loom
Knitting
Knitted Cloth
Market
