It was back in 2006 that we had a discourse in this column. We are glad to welcome you once again. Obviously the industry has changed. How if we begin the talk with a glimpse on the current state of the textile and apparel sector worldwide?
•The global apparel & textile industry is recovering after the slump faced during the recessionary period of 2008-10.
•The growth in global population and sustained economic growth in the emerging countries will drive the trade of global T&A which is expected to reach USD 1 Trillion by 2020 from the current USD 510 billion.
•This increase in trade can also be attributed to the fact that consumption and manufacturing centers are different. Asia is the main manufacturing centre for textile and apparel; whereas US, Europe and Japan are still the major consumption centers.
•Although India and China are emerging as important consumption centres in the years to come, but developed nations will keep consuming more textile and apparel per capita and will be more and more dependent on sourcing these products from major production centres in Asia.
•Exports from developed countries such as USA, Europe, Korea, Canada has been decreasing, whilst the export volumes from emerging Asian countries as Vietnam, Cambodia, China, Bangladesh and India is increasingly growing.
•India will continue to capture a larger share of the exports pie as it leverages its cost competitiveness and other positive aspects like raw material availability, manpower availability etc.
How is the overall environment, especially from the investment point of view, in India?
The current environment is driven in the direction of greater investments and the industry needs to be fuelled further with more investments to achieve the target growth. Investments to the tune of USD 68 billion across the entire textile supply chain will be required by 2020 to tap the potential market created due to the growth of the industry fuelled by the domestic as well as the export markets.
Investments required in the garment sector by 2020 is to the tune of USD 14 billion and processing requires another USD 19 billion.
Apparel retail is better than other product categories in terms of ROCE (Return on Capital Employed) and hence the most attractive segment for retail investment.
There is substantial opportunity for investments in sectors like Technical Textiles for which domestic demand has been increasing in recent times.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.