Analysis of the textile market in India
The relevance of research
The textile fabric market occupies an important place in the list of state priorities and has a high social significance.
Purpose of the study
Analysis of the state of the fabric market, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the fabric market.
Content
Part 1. Overview of the Indian textile market
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of fabric fabric 2017-2021 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Fabric market life cycle stage
1.5. Competition from substitute products
Part 2: Competitive Analysis in the Woven Fabric Market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3: Analysis of fabric production
3.1. Volume and dynamics of domestic production of textile fabric
3.2. Share of exports in the production of woven fabric
3.3. Segmentation of fabric production by regions
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade supplies of fabric fabric
4.1. The volume and dynamics of imports of fabrics
4.2. Import structure
4.3. The volume and dynamics of exports of textile fabrics
4.4. Export structure
Part 5. Fabric web consumption analysis
5.1. Dynamics of the volume of consumption of fabric fabric
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast for the development of the fabric web market until 2026
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian textile market
1.1. Main characteristics of the market
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The activity of the industry occupies one of the important places in the structure of indicators that form the gross national product and plays a significant role in the country's economy. The enterprises of the industry carry out both the primary processing of raw materials and the production of finished products that satisfy the demand of the population, as well as form the turnover and economic indicators.
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The woven fabric market in this study includes ready-made silk, wool, cotton, linen, jute and other vegetable textile fibers, synthetic and man-made yarns and fibers, pile and chenille fabrics, and terry fabrics.
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1.2. Dynamics of the market volume of fabric fabric 2017-2021 Potential market capacity
For 2017-2021 the volume of the textile fabric market increased by …%. Growth was facilitated by government support measures: government orders for a number of goods, subsidizing part of the cost of producing school uniforms from Indian fabrics, etc.
The market contraction was observed only in 2019 against the background of a decrease in import supplies.
At the end of 2020, despite the pandemic, the volume of the fabric web market grew by …%. In 2021, the market volume amounted to … bln sq. m. m of fabric, demonstrating the maximum increase in the study period.
Diagram 1. Dynamics of the market volume of fabric fabric, 2017-2021, mln sq. m
There is little objective information in the public domain about the current state of the fabric web market, which is influenced by conflicting factors. However, the potential market capacity by GidMarket analysts in the long term is estimated at “plus” …% relative to 2021.
The main growth drivers will be:
- development of the production of eco-textiles (primarily from flax);
- ...
- ...
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In the structure of revenue from the sale of fabric fabric throughout the entire study period, the Central Union Territories dominates, occupying in 2021 …% of the total volume. In second place is the Volga Union Territories with a share of …%.
Diagram 2. Revenue (net) from the sale of fabric fabric by union territories for 2017-2021, %
1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
- Economic
India GDP
GDP is a macroeconomic indicator that reflects the market value of all final goods and services produced in a year in all sectors of the economy on the territory of the state for consumption, export and accumulation. The dynamics of India's GDP is decisive in the vector of development of the entire economy of the country and determines the key trends in consumer effective demand and economic activity.
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The consequences of the Indian military special operation in Ukraine, together with tough sanctions, have a negative impact on GDP and, accordingly, on the market under study.
Dollar rate
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The real value of the rupee is currently impossible to estimate, as India is in the midst of a strategic change in the structure of the world economy. Significant fluctuations in the US dollar exchange rate have a negative impact on the market under study.
- Социальные
Population
During 2014–2017 India's population has shown a positive trend. However, in 2018, the vector changed – the population decreased due to the natural population decline in 2016–2019.
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Real income of the population
Dynamics of real incomes of the population during 2014-2017 population is negative, so in 2014 real incomes decreased by …% compared to 2013, in 2015 – by …% compared to 2014, in 2016 – the situation worsened even more – the decrease was 4,5% compared to 2015, in 2017 – decreased by another …% compared to 2016.
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According to Rosstat, the real disposable cash income of Indians in 2020 decreased by …% compared to 2019. The consequences of the covid-19 pandemic and quarantine restrictions were a reduction in the earnings of Indians, the transfer of workers to part-time jobs, sending them on unpaid leave and layoffs. From the assessment of SberData analysts, it follows that every second employee in India had their salary reduced during the pandemic (from March to May 2020).
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- technological
Raw material base
Yarn - both from artificial and natural materials - as well as dyes, which together make up about ...% of the cost of fabric, are purchased abroad. Cotton yarn is imported mainly from Uzbekistan, mixed yarns - from India, Pakistan and China, polyethylene terephthalate (PET) - from China and Latvia.
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Range
There is a low demand for fabric fabrics of domestic production on the market. In India, there are few factories that can produce clothes in large volumes, so big brands do not see the point in buying domestic fabrics and taking them to China to sew things there.
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- Political
Governmental support
The state provides support measures to many light industry enterprises. Thanks to them, large and small representatives of the industry can count on assistance in modernizing existing and creating new industries, support in entering the international arena and assistance in increasing production volumes. In 2021, representatives of the light industry were offered support in the form of state subsidies: to compensate for the cost of making school uniforms; to stimulate demand and increase the competitiveness of products; to compensate for the costs of producing yarn and blended fabrics containing flax.
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Table 3. STEP Analysis of Factors Affecting the Woven Fabric Market
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1.4. Fabric market life cycle stage
The woven fabric market is in the stage of maturity. The maturity stage is the longest of all life cycle stages. It is built on the consumption of conservative consumers, on the popularity and wide representation of the product, which ensures a stable level of sales over a long period.
The level of competition in the market has reached its maximum and is stabilizing, which, in the face of a slowdown in growth, creates a more aggressive struggle for existing consumers. A high value at the stage of maturity gets the speed of the company's reaction to the actions of competitors.
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1.5. Competition from substitute products
By themselves, fabric canvases do not have substitute products. It is different types of fabrics that are competing objects with each other.
Depending on the composition of the fabric are divided into natural, blended and synthetic. The type of fabric largely determines its consumer properties of the fabric and its appearance.
The type of fabric is determined by what threads it is made from:
- Natural fabrics. Made from natural threads of cotton, linen, wool;
- ...
- ...
Thus, the absence of substitute goods from other groups of goods has a positive effect on the development of the market.
Part 2: Competitive Analysis in the Woven Fabric Market
2.1. Major players in the market
The number of small and medium-sized enterprises in the industry is declining as market players gradually become larger, both in vertical and horizontal production chains.
Table 4. The main companies participating in the fabric web market in 2021
2.2. Market shares of the largest competitors
Estimating the shares of companies is complicated by the existing error, which is associated with the impossibility of dividing the proceeds from the sale of fabric and other categories of their products.
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Diagram 7. Shares of the largest competitors in the fabric web market in 2021,%
2.3. Profiles of major players
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Part 3: Analysis of fabric production
3.1. Volume and dynamics of domestic production of textile fabric
The dynamics of the production of fabric fabric in physical terms has a wave-like character, however, in general, for 2017-2021. an upward trend can be noted.
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Diagram 9. Dynamics of the total revenue of the largest manufacturers (TOP-5) of fabric fabric in India, 2017-2021, million Rs.
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Part 5. Fabric web consumption analysis
5.1. Dynamics of the volume of consumption of fabric fabric
Estimation of consumption volume per capita was made by GidMarket on the basis of the ratio of the market volume of fabric fabric to the population of India.
There is a dynamics of increase in the consumption of fabric fabric in physical terms. In 2021, consumption compared to 2017 increased by …% and amounted to … sq. m. m/person
5.2. Analysis of the results of tenders for the purchase
For 2021-Jun. In 2022, about 8 thousand tenders for the purchase of fabric fabric were announced. Most of the tenders were held as a purchase from a single supplier - ...% and in the form of a small purchase - ...%.
Due to the large number of purchases, the table includes completed tenders with contract amounts from 9 million Rs.
Part 6. Price Analysis
6.1. Average producer prices by union territories
Here are the average producer prices for cotton fabrics in the federal districts where the main production capacities are concentrated.
Despite the fact that the Central Federal District is the leader in terms of production, the cost of cotton fabrics in the district is higher compared to other districts. In May 2022, average producer prices in the Central Union Territories amounted to about … Rs./linear m, in the Siberian – … Rs., in the Southern – … Rs.
6.2. Average consumer prices by states in India
Here are the average retail prices for various fabrics in the regions of India according to Rosstat. Retail prices in different regions vary considerably.
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Part 7. Assessment of factors of investment attractiveness of the market
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A comprehensive assessment of the factors of investment attractiveness is ... points - a neutral investment climate. The assessment of investment attractiveness was made for companies considering the possibility of entering the market.
Part 8. Forecast for the development of the fabric web market until 2026
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Part 9. Recommendations and conclusions
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For both new and existing operators in the textile web market, the following recommendations can be made:
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Diagrams
Diagram 1. The ratio of imported and domestic products in the fabric fabric market, 2017-2021,%
Diagram 2. Dynamics of the market volume of fabric fabric, 2017-2021, mln sq. m
Diagram 3. Revenue (net) from the sale of fabric fabric by union territories for 2017-2021, %
Chart 4. Dynamics of India's GDP, 2013–Q1 2022, % to the previous year
Chart 5. Monthly dynamics of the US dollar against the rupee, 2017-Jul. 2022, Rs. for 1 US dollar
Diagram 6. Population dynamics in India, as of 01 Jan. 2013–2022, million people
Chart 7. Dynamics of real incomes of the population of India, 2014–1 quarter 2022, %
Diagram 8. Industry life cycle stage
Diagram 9. Shares of the largest competitors in the fabric web market in 2021,%
Chart 10. Dynamics of fabric production volumes in India for 2017-2021, mln sq. m
Diagram 11. Dynamics of the total revenue of the largest manufacturers (TOP-5) of fabric fabric in India, 2017-2021, million Rs.
Diagram 12. The share of exports in production for 2017-2021, %
Chart 13. Fabric production in India by states of India, Jan-May 2022, %
Diagram 14. Volume and dynamics of imports of fabric fabrics in physical terms, 2017-2021, mln sq. m
Diagram 15. The volume and dynamics of imports of fabric fabric in monetary terms, 2017-2021, USD million
Diagram 16. Dynamics of exports of fabric fabrics in physical terms, 2017-2021, mln sq. m
Diagram 17. Dynamics of export of fabric fabric in monetary terms, 2017-2021, million USD
Diagram 18. Balance of exports and imports, 2017-2021, million Rs.
Chart 19. Structure of exports by countries in 2021, %
Diagram 20. Dynamics of consumption of fabric fabric in monetary terms, 2017-2021, sq. m/person
Diagram 21. Regional structure of supplies of fabric fabrics among tenders worth more than 9 million Rs. in 2021–Jun. 2022, %
Diagram 22. Forecast of the market size in 2022-2026, mln sq. m
Tables
Table 1. Expert forecasts for the decline in real GDP in India in 2022, %
Table 2. Measures to support light industry
Table 4. STEP Analysis of Factors Affecting the Woven Fabric Market
Table 5. The main companies participating in the fabric web market in 2021
Table 6. Profiles of companies participating in the textile web market in 2021
Table 7. Dynamics of fabric production in India by union territories, 2017-May 2022, mln sq. m
Table 8. The structure of imports of fabric fabric by importing countries in 2021
Table 9. Data on completed tenders for the purchase of fabric fabric with a contract amount of 9 million Rs., 2021–Jun. 2022
Table 10. Average producer prices in the fabric market across the Union Territories, May 2022, Rs./linear m
Table 11. Average consumer prices in the textile web market by state of India, Jun. 2022, Rs./m
Table 12. Assessment of factors of investment attractiveness of the fabric web market
Table 13. Forecast indicators of the development of the Indian economy
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