1. India & South Asia Textile Summit 2017, India 7 Jun, 2017
Indian Textile Industry:Latest Initiatives
R D Udeshi
Reliance Industries Limited
India & South Asia Textile Summit 2017, India
7 Jun, 2017

2. Contents Asia significance in Global Economy Changing face of India
Emerging Global Trends
India: Meeting Global Needs
Indian Textile Industry
Latest Initiatives
Summary

3. Economy: Asia Leading Asia would be the key driver of global growth
Emerging Economies
Emerging Asia
Emerging Asia
World
Emerging Economies
Advanced Economies
World
Advanced Economies
Asia would be the key driver of global growth

4. Shifting Demographics, Rising Demand
Working population will outpace the growth of dependants
New tastes, new ideas, urbanisation, nuclear families will drive demand
Apparels to have larger share in spending structure
Urban Consumption Growth
Source: McKinsey

5. Changing Face of India

6. Indian Urbanisation – Global Playground
1950
17%
Urban
2015
33%
Urban
16% of world urban growth
India, largest contributor to the global urban growth by 2050

7. Indian Consumer Structure
Youth Expenditure
Clothes – 16%
Eating Out – 16%
Soft Drinks/Beverages – 14%
Snacks – 7%
Self reliant population reinforcing future consumer base

8. Emerging Global Trends
India: Meeting Global Needs

9. Changing Consumer Face
Then
Shopping – Need based
Brand Loyalty
Low on Information
Exclusivity
Seasonal Buying
Conventional channels
Now
Shopping – Experience
Experimental
Super Informed
Service
All year buying
Multiple Channels
Changing customer priorities. Need for Innovation

10. Evolving Sourcing Preferences
Design/Branding
Logistics/Sourcing
Production
Raw Materials
Yarn Production
Fabric Production
Apparel Production
Distribution Sales
Accessories
India Ideal Sourcing base
Equipment/ Machinery
Increasing Value Addition
Tangible Manufacturing
Intangible Services
Global buyers prefer suppliers who provide “Full Package”

11. India: Global Sourcing
Research and Training
Established Manufacturing Facilities
Robust Economy and Financial Backup
Reliable
Logistics
Adequate Raw Materials
Further Focus Areas
Network of facilities make India a reliable sourcing hub

12. Indian Fibre Consumption Pattern
Indian industry gradually moving the global way

13. Technical Textiles: New Growth Path
Global
India
Source: PCI, Internal Analysis
Renewed focus towards Technical Textiles

14. Moving Forward Sustainably
Government and brands join to conserve resources

15. Indian Textile Industry
5% of
GDP
10% of
Industrial Production
15% of
Total Exports
5% of Global T&C Trade
2nd Largest Employer
INDIAN TEXTILE INDUSTRY
$ 650 Bn
2025
CAGR 19%
$ 140 Bn
2016
Textiles contributing to India’s robust growth & development

16. Indian Textile Industry: Heritage and Beyond
Fast emerging styles and fashion design
Large base of diverse traditional clothing heritage
Strong raw materials base
Technically advanced Textile operations
Largest producer of Polyester in South Asian Region
Largest producer of cotton globally
2nd largest producer of silk
20% of global spindle capacity
Highest loom capacity ~45% of global installation
A platter of heritage, diversity, style and growth

17. Supportive Government

18. India: Policy & Infrastructure support
Financial & Technical assistance through various packages & schemes
Tie up with E-Commerce companies, providing direct interface for manufacturer & consumer
Setting up Textile parks and Mega Cluster Zones to integrate textile industry.
Established wide network of textile & apparel SEZs across India
Loans to textile companies at international rates to provide impetus to textile investments
GST implementation would simplify taxation structure
During 2015, India was the destination for the highest FDI globally overtaking China.
Global players are seeing India as an attractive destination for investments given its strategic global position and proximity to major fast growing consumption bases.
Investments in textile industry has grown at a rate of 15% in past last 5 years, which is a very healthy indication investments totalled $ 2 bn, a gain of 17% YoY, which is the fastest rate in last 4 years.
Additionally, Indian domestic market is also growing. As discussed earlier India would witness a GDP growth rate of 7.6% in 2016 and 2017 which is the highest rate among major countries.
Let me take this opportunity to invite our overseas friends to invest in the Indian textile industry.
Firm & Friendly Government policy & support to stimulate growth of Textile Industry

19. India: An Ideal Investment Destination
US $ Bn
India: Textile FDI
Make In India
100% FDI is allowed in the Indian textile sector. In the last 5 years, textile sector witnessed foreign investments growing at a compounded annual growth of 15%.
CAGR: 15%
FDI in textiles
2015
Highest FDI globally
During 2015, India was the destination for the highest FDI globally overtaking China.
Global players are seeing India as an attractive destination for investments given its strategic global position and proximity to major fast growing consumption bases.
Investments in textile industry has grown at a rate of 15% in past last 5 years, which is a very healthy indication investments totalled $ 2 bn, a gain of 17% YoY, which is the fastest rate in last 4 years.
Additionally, Indian domestic market is also growing. As discussed earlier India would witness a GDP growth rate of 7.6% in 2016 and 2017 which is the highest rate among major countries.
Let me take this opportunity to invite our overseas friends to invest in the Indian textile industry.
Source: ibef
Investment in textiles becoming attractive again

20. India: Ease of Doing Business
130
131
Days to start
business
142
SIMPLIFY 6 26
2015
2016
2017
India Ranking
(Ease of Doing Business)
Government making India business friendly

21. India: Exploring Innovative Technologies
Agency
Area of Excellence
ATIRA, Ahmadabad
Composites
DKTE, Ichalkaranji
Non-woven and Coated Textiles
NITRA, Ghaziabad
Protective Textiles
PSG COLLEGE OF TECHNOLOGY, Coimbatore
Filters, Acoustic Thermal Insulators, Wipes
SASMIRA, Mumbai
Agrotextiles and Packaging
SITRA,
Coimbatore
Medical Textiles
Government keen on innovation revolution

22. Reliance: Making India Self Reliant
Oil and Gas
Exploration
Oil and Gas
Production
Petroleum
Refining
Petroleum
Retailing
Olefins and
Aromatics
VERTICAL INTEGRATION
Plastics
(PE, PP, PVC, PET)
Fiber
Intermediates
(PX, PTA & MEG)
Petrochemicals
(LAB, EO)
Polyester
(Fiber, Filament)
Textiles
Strong integration aids consistency and reliability

23. Recycling, Reaching New Dimensions
Recron® GreenGold
>25% reduction in Green house gas emission as certified by SGS, One of the greenest fibre globally
90% of water used is recycled
Eco-D fibres - 70% dyestuff and chemicals saved
Eco-D fibres - 90% energy usage reduced
Creating awareness at brand and consumer level
Developing value chains for eco-friendly products
Reliance dedicated for a green future

24. Summary
Indian textile industry is poised for firm growth with robust domestic consumption as well as rising export demand.
Rising income, growing consumerism, urbanisation are expected to aid higher growth due to emergence of new fashion & trends.
FDI flow is expected to continue strengthening new investment in this sector.
Technical textiles will be the next growth platform.
These efforts will enhance investments, skill and development of world class manufacturing textile base in India.

25. Thank You
Thank You