Niveshaay Analysis of Indian Textiles and Apparel Industry

July 26, 2021 | Stock Talk

Why Indian Textile Industry?
- Second largest employer after agriculture 

- Contributes 5% to India’s GDP, 7% of industrial outputs in value terms, 12% of the country’s export earnings

Being, brought up in a textile family and living in the textile city of India, also led us to research this sector. Of course, there is no bias involved while presenting the report.

According to Maslow’s hierarchy theory, clothing is a basic and fundamental need. But, the industry working is quite different according to what the theory describes. This report aims to outline the same.

Apart from the supply chain re-alignment or ban on China, one more emerging trend is clothing is massively underutilized. The customers purchase more clothing than they will use and are quick to throw garments after use. Worldwide, clothing utilization – the average number of times a garment is worn before it ceases to be used – has decreased by 36% compared to 15 years ago. This is known as a fast-fashion trend.

In this report, we did an in-depth analysis of how the industry operates and which aspect of the value chain holds the most value and can provide us with great returns.

Generally, no single company in India has invested in the entire value chain from yarn to fabric to apparel.

A detailed note on the analysis is attached below.