Textile market set for huge growth.
Sunday October 28 2007 00:00 IST
COIMBATORE: Driven by favourable demographic factors, rise in disposable incomes and shift towards the branded apparel, the domestic textile and apparel market is slated to grow at a Compound Annual Growth Rate CAGR) of 6.5 percent.
A 12 percent CAGR is expected in exports with international retailers looking at India as the best alternative to China for sourcing of apparel, says the CII-Ernst & Young Textile and Apparel Report.
Textiles and apparel is a $49 billion industry in India, of which 61 percent is accounted for by the domestic market and 39 percent by the export market, says the report titled �India in the Global Textiles Ecosystem� released during the inaugural function of Comptex 2007, a two-day conference on textiles here on Friday.
The report identifies �sourcing� as a huge opportunity. India has several advantages like abundant supply of cotton and man-made fibre and mature and well-established production base. Besides, government incentives to exporters and entry of foreign retailers into the Indian market would also act as a fillip to retail sourcing from India.
Highlighting the challenges, the report says that the industry in India has not been able to comprehensively harness the full potential of the global opportunities available.
Global competition from other low cost countries like China, Bangladesh, Turkey, Vietnam, Pakistan and Sri Lanka; cost competitiveness, low productivity levels, technological obsolescence and a strong rupee appreciation has resulted in smaller orders, lower prices and deep uncertainty for apparel exporters.
The global textiles and apparel trade is estimated to be about $450 billion with US and European markets dominating global trade in this industry which is expected to touch $700 billion by 2010.
India's current share of the global textiles and apparel market is only $19 billion. The global demand for apparel and woven textiles is likely to grow by 25 percent from current figures to about 35 million tonne by 2010, of which 85 percent is likely to come from Asian countries.
The Indian textiles and apparel industry is one of the largest in the world, with a massive raw material and manufacturing base.
The last few years, since the phasing out of the MFA (Multi-Fibre Agreement) and the commencement of global free trade in Jan 2005, the Indian textiles and apparel industry has become increasingly integrated with the global market. India is now a significant player in fiber and yarn production at the global level. The country is the third largest producer of cotton, accounting for nearly 16 percent of global production. India is one of the largest exporters of yarns.
It has a 22 percent share of the global spindleage (second after China) and 61 percent share of the global loomage (highest in the world), the report notes.
KNOW OUR COIMBATORE - Part 1
My dear friends,
Welcome to Coimbatore.
Also known as Kovai, Coimbatore, one of the fastest growing cities in India.
The third largest city in Tamilnadu, it has earned a coveted place in the industrial and agricultural map of modern India.
Coimbatore city is the headquarters of the district.
493 kms from ( Madras ) Chennai city, it is connected by rail, air and road to almost all the places.
Very appropriately called the "Manchester of South India", it is a major textile and engineering centre.
This series being presented to highlight the industrial growth in Coimbatore by the hard work and dedications of the innovative & efficient administative industrialists, whose quest to serve the customers needs and improve the Nations Economy from Exports & Domestic Market.
Manufacture of pumpsets is one of the major industries of Coimbatore.
Apart from a cement factory, a cooperative sugar mill, bleaching units, paper mill, small gem factories, transistors and electronic calculators are also known as the "Detroit of the South", because of the varied engineering goods manufactured here.
Last but not least is the textile industry, which has brought Coimbatore to international levels. Handlooms have opened up a big export market.
Situated at the foot hills of Nilgiris, it is known for its pleasant climate, peaceful atmosphere,cosmopolitan outlook, hardworking and dedicated workforce and private enterprise.
The water from Siruvani known for its sweetness and potable will quench every citizens.
Coimbatore Owes millions of thanks to legendry GDNaidu, The Pioneer for industrial revolutions.
We at Coimbatore, like many industrialzed centres of India ( Chennai, Mumbai, Hyderabad, Ahmedabad, Pune, Ludhiana, Chandigarh, Kolkatta, Baddi, Bangalore, Mysore, Nagpur, Ankeleswar, Vadodara, Jamnagar, Surendranagar, Rajkot, Silvassa, and many more developing areas in our country Mother India ) produce many components and machinery for almost all Industries requirements.
You would have noticed some of our Coimbatore Products well known throughout the country and abroad..
Cotton textiles, electric motors, pumps, automobile spares, iron steel and aluminium castings, Defence components form major exports from Coimbatore.
Lakshmi Machine Works,Texmo, PSG Group of Industries, CRI Pumps, Suguna, Sharp, Lakshmi Automatic Looms, Lakshmi Precission Tools, Lakshmi Card Clothing, Lakshmi Electrical Controls & Drives, Elgi Equipments, Roots Industries, VR Foundary, SriRanga steels, Serval, UMS Radiators, Ram Precission Tools, Gem Precission Products, KAC Equipments Company, Vetal, Indo Shell, MEC industries, Titan Paints, Mehala Industries, Premier Mills, PreCot, Premier Electronics Pvt.Ltd., Shanti Gears, KG group of Industries, Aqua sub Engineering, Texmo Precission castings, Vel electronics, SSFasteners Private Limited, Vetri engineers, SABOL, ARC, Sakthi Group of Industries, Aircon, Janatics, GanGotri Textiles Group, Prical instruments,Revathi CP,Shiva distillaries,Pioneer & Sugnuna Poultry Kirtilal Group of Companies for its Diamonds Exports from Diamoxan and many more Medium, tiny and cottage industries.
Coimbatore is also known for its Educational Institutions excellence.
We have the oldest TAMILNADU AGRICULTURAL UNIVERSITY known for its Agro, Horticultural and Research facilities and has produced many stalwards and professional scientists.
Bharathiar University, AvinashiLingam University, Karunya University, Amirta University..
There are nearly 73 Arts & science collages, 22 Engineering Collages, 2 Medical Collages, 2 Homeopathy Medical Collages, 1 Dental Collage, 1 Siddha Medical, 1 Ayurveda Medical, 15 Para Medical Institutions, 16 Polytechnics, 27 Training centres for trade skills and 86 Schools.
Health care facilities are excellent at coimbatore and it has been acknowledged as Medical Tourism by many patients all over the Globe.
Textile Machinery and Spares caters customers allover the Globe.
We also have the finest Textile Research Lab which teaches many technicians all over the Globe. ( South India Textile Research Association ).
Coimbatore is also known for its Sugarcane Institute of Research for its innovotive and hi-brid plants.
The Unique AirForce Adminstrative Collage for the Airforce Officers.
INS AGRANI base trains cadet soldiers of NAVY.
Territorial Army Campus which trains Gunners.
Forest Collage is an another oldest institution which caters Forest Education to all students from many countries.
Those Sweet Lovers will never forget " Mysore Pak " of Sri Krishna Sweets for its taste and softness..
Krishna Sweets has branches throught the Metro cities and abroad.
Rest in Next ...
PART - 2.
Know our Coimbatore - Part 2.
As all of you know that Enterprise and resilience are ingrained in the Coimbatorean's psyche.
The entrepreneur here has shown a remarkable ability to survive crises by adapting and innovating.
This is widely held to be the main reason for Coimbatore going global ahead of the country.
Our Coimbatore district has nearly 4,000 registered factories, some 300 large and medium units, over 30,000 small-scale industries, and over 4,500 cottage industries, besides several village & agro-based units unregistered small units.
One of the 10 most industrialised districts in the country, it supplies 60 per cent of all pumps used in India, 40 per cent of motors, and a significant percentage of auto parts.
While Tata Motors sources over 25 per cent of its components from the region, Maruti Udyog gets 40 per cent of its requirements.
Coimbatore has made a foray into knowledge-based industry too.
Coimbatore's growth is sustained by a variety of industrial activities.
But textiles have been at the core of all industrial activity, and these almost revolutionised the region's industrial scene.
This revolution was set off towards the end of the 19th century when the first textile mill was set up here.
If drawing water for cotton cultivation got the pump industry going, the latter fired the foundries.
With the pump industry, the Coimbatore entrepreneur developed engineering skills to develop farm equipment.
From there to auto components was a natural progression.
With industrial development, the trade and finance sectors grew.
This not only led to massive industrialization but also created the spirit of enterprise.
Large, medium and small manufacturing sectors grew at a fast clip, linked with and feeding one another.
The free flow of technology and knowhow also helped.
This was dictated by quality considerations.
Bigger companies expected and got quality products from their feeder units; to ensure quality they were willing to offer the technology at their command.
Quality is, in fact, an obsession with the Coimbatore industrialist.
While Coimbatore seemed all set for a boom, a number of bad monsoons between 1971 and 1981 sent the pivotal textile industry into a decline. ( Year 2004 onwards the textile industry is booming with so many new units in and around Coimbatore ).
A number of mills became sick because of their uneconomic size and the competition from modern units in north India and from manmade fibres.
Some of the sick mills were taken over by the National Textile Corporation.
But, once again, the region showed its resilience by taking advantage of the export incentives offered to the hosiery industry.
This led to the growth of Tirupur and the development of markets abroad. ( We shall see it later.).
Coimbatore is best known for the manufacture of automotive parts.
Regardless of the vehicle one drives - be it a Tata Motors truck or a Mercedes car - chances are that one will be using a made-in-Coimbatore horn.
Roots Industries Limited, one of the eight companies under the Roots group, has been making electric horns since it started operations in 1970 as American Auto Service.
Besides a variety of horns, the Roots group now manufactures various other auto accessories, including halogen headlamps and fog lamps and parking and reversing sensors.
Its clients include such big names as DaimlerChrysler, Mitsubishi, Mahindra and Mahindra, Toyota, Tata Motors, TVS Motor Company and Piaggio. Roots products find their way to the United States, Europe, West Asia and Africa.
It is the first horn manufacturer in Asia to obtain the QS 9000 and VDA 6.1 certification and the first in the world to win the ISO/TS 16949 certification.
Thriving on high-end research and diversification, the Roots group also manufactures a range of non-automotive products, including cleaning equipment, castings and precision tools. According to its director N.V. Krishnan, the group is constantly innovating and developing technology.
The technical collaboration with Bosch SA for auto products in 1995 set the group on the path of sustained technical growth.
It also has collaboration agreements with other German companies for non-auto products - with Hako for multicleaners and Zeinser for textile machinery.
The Roots group's obsession with technology is evident from the range of the state-of-the-art tools it uses for research and development (R&D) - solid modelling, hard prototyping, drafting and graphics.
Its metrology laboratory is a comprehensive calibration-cum-consultancy centre that offers electrical, mechanical, pressure and vacuum calibration.
It also offers specialised CAD/CAM consultancy services for a range of products and industries.
According to Krishnan, Roots has several new products in the pipeline.
In top gear is Shanti Gears Limited (SGL), which commenced operations in 1969 with the manufacture of gear products.
Incorporated in 1972 as a private limited company, it went public in 1983. It has created a niche for itself with its quality products.
The company, a dominant player in the design and manufacture of premium industrial gears and gearboxes, commands 25-30 per cent share of the organised sector market valued at Rs.400 crores.
It has built for itself a reputation as a quality supplier with strong design capabilities and quick turnaround time.
From products weighing a few grams to ones that are more than 20 tonnes, SGL manufactures a wide range of gears, gearboxes, geared motors and gear assemblies (both standard and custom built) to global players in critical industries such as cement, power, steel, sugar, fertilizers, paper, Defence, passenger lifts, medical electronics and proton collision.
SGL is the leading aviation gear manufacturer approved by the Directorate-General of Aeronautical Quality Assurance.
Its gears meet ISO (international), DIN (German) and AGMA (American) standards.
SGL is the only industrial gear-manufacturing company in India that has all support manufacturing facilities such as cutter-manufacturing unit, pattern-making unit, casting unit (ferrous and non-ferrous) and fabrication, forging and heat treatment facilities in-house.
This, according to senior vice-president P.K.R. Kurup, helps to gain better production control, improve quality and maintain delivery schedule.
SGL has a well-diversified customer base of over 15,000, which covers over 35 industrial categories.
Its clientele include Ingersol Rand, Atlas Copco, Bharat Heavy Electricals Ltd (BHEL), Siemens, Mitsubishi, Rolls-Royce, Hindustan Aeronautics Ltd (HAL), L&T Komatsu, Bharat Earth Movers Ltd (BEML), Tata Iron and Steel Company Ltd. (TISCO), Steel Authority of India Ltd (SAIL), the Indian Space Research Organisation, Alfa Laval, Rieter LMW and Suessen and Himson; for some of these companies SGL is the sole supplier.
Recently SGL was listed as one of "Asia's rising firms" by the Forbes magazine. Sustained gains in sales and returns, market momentum and investor friendliness were considered for the ranking.
SGL is one of the 24 Indian companies that figure among the list, and the only engineering company from South India.
SGL was ranked fifth among the 500 companies by ROCE (Return on Capital Employed) in the engineering and capital goods sector.
With effect from September 27, 2004, SGL has been included in the BSE 500 by the Stock Exchange in Mumbai.
SGL's dividend policy has been liberal.
Not a single year since SGL went public (1986) has gone without dividend.
Now Shanthi Gears Limited has forayed into constructions, Auto turned components CNC, and other ventures.
Rest in Next part III ...
Know our Coimbatore - part 3 Industrial Revolutions.
I like to bring out more informations about our one of the leading Industry known as :
Premier Instruments and Controls Ltd., popularly known as Pricol.
It produces much of all the precision components for the automotive industry - passenger car, two-wheeler, tractor, commercial vehicle - and for the Ministry of Defence.
Since its inception over two decades ago, Pricol has focussed on developing products independently.
All its products - oil pumps, electronic counters and controls, products for defence needs, industrial pressure gauges, disc brakes for two-wheelers, gears, sprockets, oil-level sensors or valves - have been developed in-house.
Product quality and the company's ability to respond to change with innovative solutions have attracted over a dozen international companies as its customers.
According to Pricol chairman and managing director Vijay Mohan, liberalisation and intense competition among vehicle manufacturers have prompted auto component manufacturers to improve manufacturing processes and productivity and to cut costs.
The component-manufacturing industry is in a position to export quality products.
At present we have a partial strike in PRICOL due to labour unrest and efforts are on to sort out this issue at the earliest.
Another auto component link for Coimbatore is provided by L.G. Balakrishnan & Co, founded by the late L.R.G. Naidu in 1960 to make timing chains for two-wheelers.
Its `Rolon' brand has a 65 per cent share of the market.
The company has several manufacturing units, all ISO 9001 certified.
The company also makes transmission chains, sprockets, tensioners, cogged belts and rubber products, mainly for two-wheelers.
The company holds over 40 per cent of the market for industrial chains. LGB exports to over 10 countries and has exclusive distributors in most of these destinations to liaise with foreign customers.
Coimbatore's industrial revolution began with pumps and even today it is the main source of pump supply to much of India; 60 per cent of the country's requirement of pumps is met by Coimbatore.
Fisher Pumps Private Limited(part of the Sharp Tool group, started by K.K. Ramaswamy in 1967) is the largest producer of domestic pumps in the country.
The company produces over 40 types of pumps, including mini-mono-blocks, centrifugal submersibles, and jet and special pumps for open wells.
The company `pumps out' new products every year.
Fisher pumps are sold all over India as also in Dubai, Muscat and Sri Lanka.
Suguna Pumps, started in 1958 by Sri.C.G. Ramaswamy, began with electric motors and then diversified into pumps./b>
Half its products are aimed at the domestic use sector, followed by agriculture (35 per cent).
The 90-crore company has a separate R&D division which focusses on efficiency, design (to decrease weight) and materials management (to decrease cost and corrosion).
The company has two foundries for its own use.
According to managing director V. Lakshminarayanaswamy, while the company exported 50,000 motors last year, it plans to double the figure this year. Increasing cost due to a rise in steel and copper prices without increase in pump price has dwindled margins.
Thus a lot of R&D effort, according to Lakshminarayanaswamy, is being concentrated on material substitutes.
Another major player in the pump industry is AquaSub Engineering, which makes the Texmo brand of domestic and jet pumps and borewells and submersibles. Also popular are the Aquatex brand of agricultural mono-block pumps, open-well submersibles and electric motors.
The company also has an international brand called `Atx'. AquaSub has bagged the national export award in the last four years.
With over 650 models and 750 dealers, everything is in-house at AquaSub - from R&D to casting to motor stamping. According to general manager V. Krishna Kumar, the drought-like situation across the country is bound to generate good demand for submersible pumps. "But the heavy excise, sales and customs duties make Indian pumps non-competitive in the international market," he says.
This apart, over 60 per cent of the demand for pumps is catered to by the unorganised sector, which is out of the tax net and hence is able to cut costs. According to him, as the company is into making water pumps and not industrial pumps, it managed to survive the last recession.
All of you would have heard an another household name allover the Globe as CRI Pumps,from the concept of "Commitment, Reliability, Innovation"known asCRI. This company started in the year 1961 and one of the pioneers to produce 100 % Stainless steel Pumps of ISO standards Multistage centrifugal, deepwell submersible, and pheripheral pumps of 7,50,000 per annum.
These pumps are being sold in domestic and export markets (Be it for agriculture, Industry, Domestic, Mining or Civil applications ).
Rest in Next....Part 4.....