Home / Knowledge / News / Textiles / FDI in retail to bring opportunity for Indian T&C leaders
FDI in retail to bring opportunity for Indian T&C leaders
05
Oct '12
Expansion of multi brand retailing expected in the wake of the recent decision of government to allow FDI in the sector will create unprecedented opportunities for the textiles and clothing industry of India according to a paper presented by Mr. Thomas Varghese of Aditya Birla Group in the Indian Textile Summit organised by Confederation of Indian Textile Industry (CITI) on 27th September 2012 in Mumbai. 

The well attended summit discussed some of the critical issues and opportunities emerging in the global as well as Indian textile sector. 

Welcoming the speakers and participants to the Summit, Mr. Prem Malik, Deputy Chairman, CITI stressed the need for the clothing industry of the country to improve production efficiency to meet competition from low cost Asian competitors. He felt that the country had the potential to raise its share in global apparel trade from the current 3.1 to 6-7%. He also felt that some of the measures announced by government recently like liberalizing retail investment would help the textiles sector to improve its performance.
 
Speaking at the summit, Mr. Thomas Varghese said that textile & clothing (T&C) products would be the core component of most of the multi brand outlets because of its high margin and the ability to create differentiation through private labels. He felt that this sector would be one of the major beneficiaries of the liberal retail trade scenario. 
 
FDI in Retail would increase competition but it would also create opportunities for T&C players to garner scale and become world class players. Currently clothing occupies 36% of the overall retail segment and this would increase substantially after more organised retailers enter the market. He said that the demand for readymade and western outfit was growing at 40-45% annually, but the key for success in the emerging competitive environment would be to deliver affordable and accessible fashion to the value conscious customers.
 
Mr. R. Raghuttama Rao, MD, ICRA Management and Consultancy Services (IMaCs), in his paper on global economic situation observed that global recession had a negative impact on Indian textile industry but this would be a short term problem. Though the EU members were still in contraction mode and fighting the financial crisis, the recovery of consumption in US and the possibilities of the market emerging out of slowdown are expected to provide the much needed relief to Indian textile exports in the medium term. Moreover, the slowdown of Chinese economy and Vietnam, one of the lead players in the textile sector, would provide some competitive relief to India as the global demand starts to grow along with recovery. 
 
 


Must ReadView All

Courtesy: European Commission/European Union

Textiles | On 26th May 2018

EU set to negotiate FTAs with Australia & New Zealand

The European Union is all set to begin negotiations for free trade...

US bans import of cotton goods from Turkmenistan

Textiles | On 26th May 2018

US bans import of cotton goods from Turkmenistan

The US Customs and Border Protection (CBP) has issued a Withhold...

FPCCI prepares report on Pakistan's export issues

Textiles | On 26th May 2018

FPCCI prepares report on Pakistan's export issues

Federation of Pakistan Chambers of Commerce and Industry (FPCCI)’s...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search