Best practices for opening a Textile Mill Business in India
About this Business
The Indian textiles industry is extremely varied, with the hand-spun and hand woven sector at one end of the spectrum, and the capital intensive, sophisticated mill sector at the other. The decentralized powerlooms, handlooms/ hosiery and knitting sector form the largest section of the Textiles Sector. The close linkage of the Industry to agriculture and the ancient culture, and traditions of the country make the Indian textiles sector unique in comparison with the textiles industry of other countries. This also provides the industry with the capacity to produce a variety of products suitable to the different market segments, both within and outside the country.
The Textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation.
Why this Business
Indian Textile Industry has earned a unique place in our country. It is among one of the industries which were earliest to come into existence in India. It accounted for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture. This industry provides one of the most basic needs of people and holds importance; maintaining sustained growth for improving quality of life. It has an image of self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing which forms a major contribution to the country's economy. India textile industry is one of the leading in the world. Currently the Indian Textile Industry is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current Indian domestic market of textile is expected to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion.
How to Start
Know Who Your Buyer
Before taking a decision; just analyze the market and fix who you are targeting and who are ready to buy your product. Find what type of buyer is available in the market and what is the most demandable apparel trends are going to make a buzz.
Decide What Product You Will Produce
After analyzing the present market; you would have to decide which particular product you will produce. As you are going to make a textiles business atmosphere; you should have a clear idea about what the textile products are required less amount of money and less risk of being a looser. You can go with a single type of business or a composite knit textile business which will be depended upon how much risk you are ready to take and how much money you have.
Marketing, Sales and Administrative Strategy for Textile Business
Before manipulating you idea in such textile apparel business; you would have to hire some marketing professionals, sales executives and managerial personnel who can guide you what to do, where to invest and can manage all the tasks that you need to do. You also have to make a detailed marketing plan about where to market your textiles.
Financing Your Business
Funding and investing on Textile Business requires a whopping lot of money. If you alone can’t afford the whole money that is requires for that initial start-up; you still have the chance to start your business. There are lots of Banks and Financing or Investment Company who are ready to give you loan.
Buy or Rent Land, Buy Machinery and Install It
It is one of the crucial steps that you would have to carefully consider as lots of money you would have to spend in this step. Find any commercial or related expertise firm who can suggest you what to do and what’s not. Don’t worry. Every problem has a solution. Just go to any textile manufacturing and engineering or industry consultant and pay him/her to give you proper suggestions.
Basic Business Requirements
Investment Requirement
Kindly Note, that all these costs are not exact, vary from business to business, season to season.
S.No
Description
Cost (In Crores)
1.
Land & Site Development
0.08
2.
Margin Money for Working capital
1.60
3.
Buildings & Civil Works
6.55
4.
Plant & Machinery (Indigenous)
12.47
5.
Plant & Machinery (Imported)
4.44
6.
Errection & Transportation
0.20
7.
Electricity Deposits
0.20
8.
Preliminary Expenses
0.10
9.
Preoperative Expenses
1.26
Total Project Cost
26.90
Competitors
Some of the reputed names in the Textile companies in India are: Raymonds, Arvind Mills, Reliance Textiles, Vardhaman Spinning, Welspun India, Morarjee Mills, Century Textiles, Ginni Filaments Ltd, Mafatlal Textiles, S. Kumar Synfabs, Bombay Dyeing Ltd, BSL Ltd, Banswara Syntex, Grasim Industries, Oswal Knit India, Fabindia, Laksmi Mills, National Rayon Corp, Mysore Silk Factory and many more.
Market Trends
The Vision Statement for the textiles industry for the 11th Five Year Plan (2007-12), inter-alia, envisages India securing a 7% share in the global textiles trade by 2012.
The Indian textiles industry has enormous opportunities for domestic as well as international investors given its consistent growth performance, abundant cheap skilled manpower and growing domestic demand. With time, India has surged ahead of other countries and positioned itself as a value-added manufacturer with a varied material base, an educated and English-speaking class of executives with high product development and design orientation.
About this Business
The Indian textiles industry is extremely varied, with the hand-spun and hand woven sector at one end of the spectrum, and the capital intensive, sophisticated mill sector at the other. The decentralized powerlooms, handlooms/ hosiery and knitting sector form the largest section of the Textiles Sector. The close linkage of the Industry to agriculture and the ancient culture, and traditions of the country make the Indian textiles sector unique in comparison with the textiles industry of other countries. This also provides the industry with the capacity to produce a variety of products suitable to the different market segments, both within and outside the country.
The Textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation.
Why this Business
Indian Textile Industry has earned a unique place in our country. It is among one of the industries which were earliest to come into existence in India. It accounted for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture. This industry provides one of the most basic needs of people and holds importance; maintaining sustained growth for improving quality of life. It has an image of self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing which forms a major contribution to the country's economy. India textile industry is one of the leading in the world. Currently the Indian Textile Industry is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current Indian domestic market of textile is expected to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion.
How to Start
Know Who Your Buyer
Before taking a decision; just analyze the market and fix who you are targeting and who are ready to buy your product. Find what type of buyer is available in the market and what is the most demandable apparel trends are going to make a buzz.
Decide What Product You Will Produce
After analyzing the present market; you would have to decide which particular product you will produce. As you are going to make a textiles business atmosphere; you should have a clear idea about what the textile products are required less amount of money and less risk of being a looser. You can go with a single type of business or a composite knit textile business which will be depended upon how much risk you are ready to take and how much money you have.
Marketing, Sales and Administrative Strategy for Textile Business
Before manipulating you idea in such textile apparel business; you would have to hire some marketing professionals, sales executives and managerial personnel who can guide you what to do, where to invest and can manage all the tasks that you need to do. You also have to make a detailed marketing plan about where to market your textiles.
Financing Your Business
Funding and investing on Textile Business requires a whopping lot of money. If you alone can’t afford the whole money that is requires for that initial start-up; you still have the chance to start your business. There are lots of Banks and Financing or Investment Company who are ready to give you loan.
Buy or Rent Land, Buy Machinery and Install It
It is one of the crucial steps that you would have to carefully consider as lots of money you would have to spend in this step. Find any commercial or related expertise firm who can suggest you what to do and what’s not. Don’t worry. Every problem has a solution. Just go to any textile manufacturing and engineering or industry consultant and pay him/her to give you proper suggestions.
Basic Business Requirements
Investment Requirement
Kindly Note, that all these costs are not exact, vary from business to business, season to season.
S.No
Description
Cost (In Crores)
1.
Land & Site Development
0.08
2.
Margin Money for Working capital
1.60
3.
Buildings & Civil Works
6.55
4.
Plant & Machinery (Indigenous)
12.47
5.
Plant & Machinery (Imported)
4.44
6.
Errection & Transportation
0.20
7.
Electricity Deposits
0.20
8.
Preliminary Expenses
0.10
9.
Preoperative Expenses
1.26
Total Project Cost
26.90
Competitors
Some of the reputed names in the Textile companies in India are: Raymonds, Arvind Mills, Reliance Textiles, Vardhaman Spinning, Welspun India, Morarjee Mills, Century Textiles, Ginni Filaments Ltd, Mafatlal Textiles, S. Kumar Synfabs, Bombay Dyeing Ltd, BSL Ltd, Banswara Syntex, Grasim Industries, Oswal Knit India, Fabindia, Laksmi Mills, National Rayon Corp, Mysore Silk Factory and many more.
Market Trends
The Vision Statement for the textiles industry for the 11th Five Year Plan (2007-12), inter-alia, envisages India securing a 7% share in the global textiles trade by 2012.
The Indian textiles industry has enormous opportunities for domestic as well as international investors given its consistent growth performance, abundant cheap skilled manpower and growing domestic demand. With time, India has surged ahead of other countries and positioned itself as a value-added manufacturer with a varied material base, an educated and English-speaking class of executives with high product development and design orientation.
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