Exports likely to grow at CAGR of 12%.
MUMBAI: Despite being battered by the rupee climb, Indian textiles and apparel industry continue to be a promising bet.
Textiles and apparel exports are expected to rise at a compound annual growth rate of 12% as international retailers are increasingly looking at India as the best alternative to China for apparel sourcing, according to the CII-Ernst & Young Textile & Apparel Report, 2007. Also, fuelled by rise in disposable incomes and consumers shift towards the branded apparel, the domestic textile and apparel market would grow at CAGR of 6.5%, the report said.
Ranjan Biswas, partner & national leader, retail & consumer practice, Ernst & Young India, said, “Globally, there are clear indications that textiles and apparel production is consolidating with production shifting towards Asian countries and exciting time for the sector.”
Textiles and apparel is a $49 billion industry in India, of which the domestic market’s share is 61% while 39% of the products are exported. Segmented by product category, textiles account for the dominant 59% share and apparel making up the remainder.
Most Indian textile companies are expanding capacities across the value chain in areas of design, yarn, fabric, garments and retail forays.
The CII-E&Y report identifies ‘sourcing’ as a huge opportunity and expects sourcing market size in 2008 to touch $22-25 billion, and rise to $35-37 billion in 2011.
India has several advantages in terms of abundant supply of cotton and man-made fiber, mature and well established production base, cheap and skilled labour and good design capabilities.
Besides this, government incentives to exporters and entry of foreign retailers into the Indian market would also act as a fillip to retail sourcing from India, the report said.
The textile ministry has recently moved a Cabinet note for limited amendment to the Industrial Disputes Act (IDA) for letting textile export units conditionally hire workers on a temporary basis.
The ministry proposes increasing the working hours from 48 to 60 per week and daily working hours from 9 to 12.
28 - 10 - 2007.
NEW DELHI: Billionaire Mukesh Ambani on Monday became the richest person in the world, surpassing American software czar Bill Gates, Mexican business tycoon Carlos Slim Helu and famous investment guru Warren Buffett, courtesy the bull run in the stock market.
Following a strong share price rally on in his three group company, India's most valued firm Reliance Industries, Reliance Petroleum and Reliance Industrial Infrastructure Ltd, the net worth of Mukesh Ambani rose to $63.2 billion (Rs 2,49,108 crore).
In comparison, the net worth of both Gates and Slim is estimated to be slightly lower at around $62.29 billion each, with Slim leading among the two by a narrow margin.
Warren Buffett, earlier the third richest in the world, also dropped one position with a net worth of about $56 billion.
Ambani's wealth of about Rs 2,49,000 crore includes about Rs 2,10,000 crore from RIL (50.98 per cent stake), Rs 37,500 crore from RPL (37.5 per cent) and Rs 2,100 crore from RIIL (46.23 per cent).
Slim's wealth has been calculated on the basis of his stake in companies like America Movil (30 per cent), Carso Global (82 per cent), Grupo Carso (75 per cent), Inbursa (67 per cent), IDEAL (30 per cent) and Saks Inc (10 per cent).
According to information available with the US and Mexican stock exchanges where these companies are listed, Slim currently holds shares worth a total of $62.2993 billion, with more than half coming from Latin American mobile major America Movil. Slim is closely followed by Gates with a net worth of $62.29 billion currently.
Earlier last month, US business magazine Forbes had named Gates as the richest American with a net worth of $59 billion, calculated as on August 30. The magazine had said that a movement of two dollars in the share price for Microsoft, the world's biggest software maker, could 'add or subtract a billion dollars' from his wealth.
Since August-end, Microsoft's share price has risen by $6.58 (based on Sunday's closing on Nasdaq at $35.03), which results into a gain of $3.29 billion in Gates' wealth based on Forbes assumption.
Besides a stake in Microsoft, Gates' wealth also includes the commission and license fees earned by him and gains through his shares in an investment holding company that invests across the market.
Gates is followed by Buffett at the fourth place in the league of the world's richest with a net worth of $55.9 billion through his holding in his investment vehicle Berkshire Hathaway and in other companies. At the end of August, Buffett's wealth stood at $52 billion, as per the Forbes magazine. Berkshire Hathaway's share price has gained by about 7.5 per cent since then.
Earlier on September 26, Ambani had overtaken steel czar Lakshmi Mittal to become the richest Indian in the world.
Mittal currently ranks as the fifth richest in the world with a net worth of 50.9 billion dollars through his 44.79 per cent stake in world's biggest steel maker ArcelorMittal.
Among the companies where Slim holds shares, Grupo Carso controls a diversified group of companies in Mexico including those in retail, industrial and consumer business.
Carso Global Telecom is a Mexico-based holding company and has investments in domestic and foreign telecom, radio network and a satellite TV projects.
America Movil is a leading wireless communications service provider in Latin America, Saks Inc is into the retail business and Grupo Financiero Inbursa is a Mexico-based financial services company with interests in investment funds, mortgages and commercial banking. Impulsora del Desarrollo yel Empleo en America Latina SA, also known as IDEAL, is into infrastructure development.